STATEMENT OF HON. J. IRVING WHALLEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA

THE UNITED STATES MUST MAINTAIN ITS RIGHTS IN THE PANAMA CANAL ZONE

Mr. Chairman, I strongly urge members to support House Resolution 239 which resolves that the "United States maintain and project its sovereign rights and jurisdiction over [the Panama Canal] and that the U.S. Government in no way forfeit, cede, negotiate, or transfer any of these sovereign rights or jurisdiction to any other sovereign nation or to any international organization."

The canal is our strategic lifeline between the Atlantic and Pacific Oceans. Its benefits have proven invaluable in times of crisis to the United States and to its allies, in terms of quick transport of men and military material.

Commercially, the canal is a tremendous asset to this Country. About 70 percent of cargo passing through the Panama Canal originates in or is destined for U.S. ports.

Gen. George R. Mather, U.S. Army, commander in chief, Southern Command, stressed the strategic and economic importance of the canal in his statement of July 10, 1970, before the Subcommittee on InterAmerican Affairs of the House Committee on Foreign Affairs:

"The continued operation of the canal is of great economic importance to the United States and to friendly countries throughout the world ***. It also continues to be important to our national defense, even in this age of nuclear weapons, and our separate Atlantic and Pacific fleets. Large carriers cannot transmit the canal, but nuclear submarines do. The canal thus provides a capability for prompt redeployment of this element of our strategic capability.

"More important to our overall defense posture in these times when defense dollars must be so judiciously allocated are the same economic advantages that concern commercial shippers. The millions of tons of cargo that have passed through the canal each year during the Southeast Asia conflict would have added greatly to the financial burden of our operations had some alternate route been forced upon us."

Granting the Republic of Panama greater control of the canal could have dire consequences for the United States and its allies. Should a hostile government in Panama deny us transit through the canal, a vital link in our chain of defense would be irretrievably broken. The curtailment of our commercial shipping through the canal would result in phenomenally increased costs to U.S. consumers.

The United States has upheld the obligations it has incurred in opening this interoceanic canal route. It has operated, maintained, and protected the canal, not only for its own use, but for the benefit of the other countries of the world. It has paid the Republic of Panama nearly $50 million in gratuities and has invested a total of $5 billion in the waterway.

If the canal is now becoming overcrowded and is not able to accommodate some of the larger ocean going vessels-the answer is not to hand it over to Panama, but to modernize it.

There is no doubt that the Panama Canal constitutes a vital link in the U.S. defense network and has to remain in our hands.

I, therefore, urge all members of this body to support House Resolution 239.

STATEMENT OF HON. C. W. BILL YOUNG, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA

Mr. Chairman, I appreciate this opportunity to testify in behalf of my resolution, House Resolution 190, and other similar resolutions which call on the United States to retain sovereignty of the Panama Canal Zone.

The Treaty of 1903 in which Panama offered the United States terms to build a canal in Panama instead of Nicaragua has been condemned almost every day by the Panamanians. Since 1903, Panama has insisted on more generous terms and benefits, and despite two revisions in 1936 and 1955, Panama still claims that she is not receiving a fair share.

On December 1, 1970, the final report of the Atlantic-Pacific Interoceanic Canal Study Commission, authorizing a sea-level canal regardless of ecological damage or economic costs, would surrender the United States' sovereign rights and jurisdiction. Panama demands that we sign all of our rights over the canal to her, without regard to her previous commitment and the security of the entire Western Hemisphere. Presently, the United States has sovereignty over the canal and the Canal Zone. This canal, which cost approximately $375 million, has not paid its own way. Now, Congress will be asked to build a new canal, at a cost estimated to be $2.88 billion, a canal whose feasibility remains questionable and over which the United States will have no authority. We must not give away our rights to control and to defend the canal as a condition to building a new one or improving the present one. The possible consequences of signing away these guarantees are severe, and I call on this committee to report favorably a resolution to retain U.S. sovereignty over the Panama Canal.

APPENDIXES

APPENDIX A

CONVENTION FOR THE CONSTRUCTION OF A SHIP CANAL, 1903

Concluded November 18, 1903; ratification advised by the Senate February 23, 1904; ratified by President February 25, 1904; ratifications exchanged February 26, 1904; proclaimed February 26, 1904. (U.S. Stats., vol. 33.)

I. Independence of Panama. II. Canal zone.

III. Authority in canal zone.

IV. Subsidiary rights.

ARTICLES.

XIV. Compensation.

XV. Joint commission.
XVI. Extradition.
XVII. Ports of Panama.

V. Monopoly for construction, etc. XVIII. Neutrality rules.

VI. Private property.

VII. Panama; Colon; harbors.
VIII. Panama Canal Company and

railroad.

XIX. Free transport.

XX. Cancellation of existing treaties. XXI. Anterior debts, concessions, etc. XXII. Renunciation of rights under concessionary contracts.

XXIII. Protection of canal.

XXIV. Change in governinent, laws, etc.
XXV. Coaling stations.
XXVI. Ratification.

The United States of America and the Republic of Panama being desirous to insure the construction of a ship canal across the Isthmus of Panama to connect the Atlantic and Pacific oceans, and the Congress of the United States of America having passed an act approved

28, 1902, in furtherance of that object, by which the President of the United States is authorized to acquire within a reasonable time the control of the necessary territory of the Republic of Colombia, and the sovereignty of such territory being actually vested in the Republic of Panama, the high contracting parties have resolved for that purpose to conclude a convention and have accordingly appointed as their plenipotentiaries,

The President of the United States of America, John Hay, Secretary of State, and

govern

The Government of the Republic of Panama, Philippe BunauVarilla, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Panama, thereunto specially empowered by said ment, who after communicating with each other their respective full powers, found to be in good and due form, have agreed upon and concluded the following articles:

ARTICLE I.

The United States guarantees and will maintain the independence of the Republic of Panama.

(131)

ARTICLE II.

The Republic of Panama grants to the United States in perpetuity the use, occupation and control of a zone of land and land under water for the construction, maintenance, operation, sanitation and protection of said Canal of the width of ten miles extending to the distance of five miles on each side of the center line of the route of the Canal to be constructed; the said zone beginning in the Caribbean Sea three marine miles from mean low water mark and extending to and across the Isthmus of Panama into the Pacific ocean to a distance of three marine miles from mean low water mark with the proviso that the cities of Panama and Colon and the harbors adjacent to said cities, which are included within the boundaries of the zone above described, shall not be included within this grant. The Republic of Panama further grants to the United States in perpetuity the use, occupation and control of any other lands and waters outside of the zone above described which may be necessary and convenient for the construction, maintenance, operation, sanitation and protection of the said Canal or of any auxiliary canals or other works necessary and convenient for the construction, maintenance, operation, sanitation and protection of the said enterprise.

The Republic of Panama further grants in like manner to the United States in perpetuity all islands within the limits of the zone above described and in addition thereto the group of small islands in the Bay of Panama, named, Perico, Naos, Culebra and Flamenco.

ARTICLE III.

The Republic of Panama grants to the United States all the rights, power and authority within the zone mentioned and described in Article II of this agreement and within the limits of all auxiliary lands and waters mentioned and described in said Article II which the United States would possess and exercise if it were the sovereign of the territory within which said lands and waters are located to the entire exclusion of the exercise by the Republic of Panama of any such sovereign rights, power or authority.

ARTICLE IV.

As rights subsidiary to the above grants the Republic of Panama grants in perpetuity to the United States the right to use the rivers, streams, lakes and other bodies of water within its limits for navigation, the supply of water or water-power or other purposes, so far as the use of said rivers, streams, lakes and bodies of water and the waters thereof may be necessary and convenient for the construction, maintenance, operation, sanitation and protection of the said Canal.

ARTICLE V.

The Republic of Panama grants to the United States in perpetuity a monopoly for the construction, maintenance and operation of any system of communication by means of canal or railroad across its territory between the Caribbean Sea and the Pacific ocean.