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were going to close off the Canal Zone-Panama border along Fourth of July Avenue.

On the late morning of April 3, 1976, the border was closed for approximately 10 minutes.

In order to close that border, the Guardia Nacional has to come up into the Canal Zone.

It is my understanding that the police did give permission for them to do this.

This particular idea of the Guardia Nacional closing this boundary off I believe was presented as what they call Operation Cement, or a version of that, which was to stop people from-if they rob a bank, even in the Canal Zone area, during that same day there was some indication that a bank had been robbed, but in this particular case they had indication from Guardia Nacional the day before they were going to do this.

It just so happened I think there was a bank robbery-I do not really have substance to that other than a good indication that is what did take place.

In all of these incidents there is an attempt by the Guardia Nacional to subvert or test U.S. sovereignty within the Canal Zone. Canal Zone officials have acquiesced to these incursions, officially describing them in a less serious light than they are.

The U.S. Embassy has taken no steps that I am aware of to protest.

While in former years every border incident involving the Guardia Nacional was given special attention, today they are given little notice, to the point that even the Governor is not made aware of some, if not most, of them.

There appears to be great reticence by the executive branch to release this information to the legislative branch or the public, although each of these incidents has the potential of widespread violence and internatioal damage to the image of the United States. In the specific example of the forced recovery of a violator, this could generate death, either through the Guardia overreacting or the police overreacting, with large-scale riots occurring.

The image of the Guardia taking this prisoner who had violated. a law within the Canal Zone away from Canal Zone policemen does damage the image of the United States, especially with the people of Panama. And they therefore have that much more difficulty in establishing the law and order within the Canal Zone.

Mrs. SULLIVAN. Let me interrupt you just a moment. The bells

rang.

When the bells ring again, we will have to go over for a vote. All right, Mr. Drummond, carry on with your statement.

Mr. DRUMMOND. In points 3 and 5, with the permission of the subcommittee, I would like to discuss them together. The third and fifth subjects are outlined in the letter of March 1976, the two subjects being the progress of canal treaty negotiations and how this progress may affect events on the isthmus, especially in the operation of the canal, and actions by the U.S. Government to foster good relations with the Republic of Panama irrespective or prior to a new arrangement. With your permission, Madam Chairwoman, I would like to discuss them together, as I have them.

Mrs. SULLIVAN. That is all right.

Mr. DRUMMOND. Even before you clearly understand how a new treaty or pretreaty commitment may affect the operation of the canal. I think it is extremely important that you understand the social order and historical background of the canal.

You must know the authoritative chain of command that has been established whereby it is posible to link up the Governor's office to the treaty negotiators.

I think it goes without saying, especially during the election year, that public statements by the executive branch cannot be relied upon to any great extent in these treaty matters.

For instance, in a recent statement the State Department has denied Governor Reagan's allegation that the new canal treaty has been all but signed by Panama and the United States. This statement was made despite the fact that President Ford has sent General Torrijos his personal assurances that the treaty would be signed if President Ford is reelected.

Therefore, I submit that the only way to analyze this problem at all and to arrive at the truth is through a cause and effect process. Significantly, I would like to include this letter from the Costa Rican paper, and it is dated February 27, 1976, from Naulas Young. It is a discussion of the meeting which was held with General Torrijos and President Oduber of Costa Rica in which General Torrijos has made it plain that Panama had complete sovereignty in the area known as Canal Zone and that this will take place in 1977.

Now, Ambassador Bunker, I believe, spoke in Colombia during the same period of time in which he indicated the same thing. I have got it translated into English.

Mrs. SULLIVAN. He said this would happen in 1977? Does he not know when the treaty might be

Mr. DRUMMOND. No, ma'am. It is one of these things when Torrijos is already-publicly stated it, he wants it signed he is not particularly caring about the ratification, by the end of the year.

Now he is going to 1977. There is some indication he is at the beginning of the year, not the end of 1977.

Mrs. SULLIVAN. That he is going to take over the Canal Zone? Mr. DRUMMOND. Yes, ma'am.

Mrs. SULLIVAN. All right.

[The documents referred to above follow :]

PANAMA TO HAVE ABSOLUTE CANAL SOVEREIGNTY

La Nacion, FEBRUARY 27, 1976.

General Omar Torrijos told President Oduber of Costa Rica that Panama will have absolute sovereignty in the Canal.

Oduber and Torrijos met at Farallon in Panama for several hours, and the general who overthrew Dr. Arnulfo Arias on October 11, 1968, gave the Costa Rican president a detailed briefing, of the status of the negotiations between Panama and the United States on a new treaty.

La Nacion learned:

1. Panama will have complete sovereignty in the area known as Canal Zone. 2. American hegemony in the canal will be gradually reduced.

3. At the last round of meetings between U.S. Ambassador Bunker and Panama's Juan Tack, it was indicated a new treaty will be ready for signing in 1977.

4. The Canal Zone will be managed by Panama at the middle level management.

5. Relations between Torrijos and the U.S. government are at their best for the 1977 signing of the new treaty.

Oduber for his part briefed Torrijos on Secretary of State Kissinger's visit. He said Kissinger had told him privately that the U.S. would invoke the Rio treaty on a future military adventures on the American continent. Oduber also said that Kissinger is taking a positive stand to have the canal problem solved in a satisfactory manner.

[De La Nacion, viernes 27 de Febrero de 1976]

PANAMÁ TENDRÁ SOBERANÍA ABSOLUTA SOBRE EL CANAL

El general Omar Torrijos Berrera, jefe de Gobierno de Panamá dijo ayer al presidente Oduber que Panamá tendrá soberania absoluta sobre el canal.

Oduber y Torrijos se reunieron en Farallones, Panamá, por varias horas y el general que derrocó al Dr. Amulfo Arias el 11 de octubre de 1968, le dio al Presidente costarricense una detallada explicación de cómo están las negociaciones entre Panamá y Estados Unidos para la firma del nuevo tratado del canal. La Nación supo quei:

(1) Panamá tendrá la soberanía sobre el canal y la zona completa conocida como "zona del canal".

(2) El punto por discutir es como ir paulatinamente, reduciendo la hegemonía norteamericana en el canal.

(3) La última ronda de negociaciones entre el embajador de Ford, señor Bunker y por parte del Gobierno de Panamá, el Dr. Juan Tack, indican que se llegará a la firma del nuevo tratado en 1977.

(4) Que la zona del canal será administrada por Panamá a mediano plazo. (5) Que hay las mejores relaciones entre Torrijos y el Gobierno norteamericano para que en 1977 se llegue al nuevo tratado.

KISSINGER

Oduber le hizo a Torrijos una relación de la visita del Secretario de Estado norteamericano Henry Kissinger.

Le comunicó que habia conversado en privado sobre la aplicación del Tratado Interamericano de Asistencia Recíproco (TIAR) y sobre cuál es la determinación norteamericana en el futuro de no tolerar acciones extracoontinentales en el hemisferio.

Oduber además le explicó que Kissinger tiene una posición positiva para que el problema del canal de Panamá se resuelva en forma satisfactoria.

REUNION DE PRESIDENTES

Se habló de la próxima reunion de presidentes centroamericanos, pero en especial el general Torrijos explicó a Oduber cómo es la organización para la cita de 25 jefes de estado de America Latina en junio de 1976, en ocasión de los 150 años de la cita bolivariana.

Es obvio que Oduber le ratificó que asistirá a esa reunion en la cual se firmará la "Declaración de Panamá”.

CUBA

Torrijos dio detalles de su reciente viaje a Cuba donde estuvo invitado en forma oficial por el Gobierno de Castro.

Torrijos estuvo cinco dias en la isla durante enero pasado.

REGRESO

El mandatario costarricense regresa hoy en la mañana desde "Tocumen" hasta "La Flor". El próximo domingo irá a un recorrido por la península de Nicoya. Mr. DRUMMOND. Significantly, prior to 1912 the Canal Zone was destined to a democratic-type social order. I do not know if that was the legal term used.

However, in 1912, pursuant to the Canal Zone Administrative Act, the Congress of the United States created what later evolved into a

completely closed and regulated society in the Canal Zone, with but one single exception.

I believe that the thoughts of Alexis de Tocqueville "Democracy in America," volume II, best describes this social order, at least up until recently.

Above this race of men stands an immence and tutelary power, which takes upon itself alone to secure their grativications and to watch over fate . . .

Thus if every day renders the exercise of the free agency of man less useful and less frequent; it circumscribes the will within a narrow range and gradually robs a man of all the uses of himself. The principle of equality has prepared men for these things; it has predisposed men to endure them and often to look on them as benefits.

After having thus successively taken each member of the community in its powerful grasp and fashioned him at will, the supreme power then extends its arm over the whole community. It covers the surface of society with a network of small, complicated rules minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, and guided; men are seldom forced by it to act, but they are constantly restrained from acting. Such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, enervates, extinguishes, and stupifies a people, till each-is reduced to nothing better than a flock of timid and industrious animals, of which the government is the shepherd.

This is my opinion of what the Canal Zone system was, and I say up until 5 years ago. 10 years ago.

As stated above, in good faith, the Congress has relegated to the President of the United States, the Governor of the Canal Zone, their authority to operate and protect the Canal for world commerce. The one thing that the Congress did not give the President, or through him the Governor, the authority to do is disrupt the efficiency and protection of the canal. They did not give the executive branch the authority to dismantle the canal. Were this the case, I am sure there would have been a bill introduced in Congress spelling out this agreement as there was a bill introduced creating the canal, the Spooner Act.

Over the years the Governor, through the authority of the Secretary of the Army, has created a virtual military dictatorship in U.S. territory.

The Congress for the most part has not been too upset over this fact; however, a major factor was later introduced to disrupt this association between the Congress and the Canal Zone government.

This major factor can best be described by the Secretary of the Army's office dual functions in their administering to the canal and their participation in the present treaty negotiations and pretreaty implementations.

În a letter dated November 6, 1975, the Deputy Secretary of the Army appointed Lt. Gen. Wellborn G. Dolvin, U.S. Army (retired), as Deputy Negotiator for the Panama Canal negotiations.

Army General Dolvin's major duties are:

1. He will represent the Department of Defense and the Secretary of the Army in treaty negotiations.

2. His primary office will be in the Department of State.

3. He is concurrently appointed Cochairman of the DOD Panama Canal Negotiations Working Group.

In a letter dated November 11, 1975, addressed to Hon. Leonor K. Sullivan, the Governor of the Canal Zone describes the duties of the

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Assistant Secretary of the Army (Civil Works) Victor V. Veysey, who serves as Cochairman, Department of Defense Canal Negotiations Working Group.

Secretary Veysey's other functions consist of:

1. He is chairman of the Canal Zone Civilian Policy and Coordinating Board.

He is, in effect, the Governor's boss.

Mr. Chairman, with the committee's permission, I would like to enter these letters into the record, although I believe they are already on file.

Mrs. SULLIVAN. Without objection, the document will be entered. [The letter referred to follows:]

HON. LEONOR K. SULLIVAN,

CANAL ZONE GOVERNMENTS,
OFFICE OF THE GOVERNOR,

Balboa Heights, Canal Zone, Nov. 11, 1975.

Chairman, Committee on Merchant Marine and Fisheries,
House of Representatives
Washington, D.C.

DEAR MRS. SULLIVAN: This is in response to your letter of October 28 in which you express concern about the existence of a "treaty task force" within the organizational structure of the Panama Canal Company/Canal Zone Government. While a small Treaty Planning Group has been established, composed of top and middle level Company/Government experts in various fields, I believe there must be some misunderstanding regarding its mission and functions.

With the renewal of the treaty negotiations between the United States and Panama in 1974, the Company/Government began to receive an increasing number of requests from the Department of State/Defense treaty working groups in Washington for information on various aspects of agency operation. From time to time the Washington working groups have solicited comments from the operating agency standpoint on subjects being considered by the U.S. negotiators or put forth by the Panama negotiators. As the negotiations progressed it semed prudent that we should also begin to assess the potential operational impact of changes that could result from a new treaty and to provide comments on such impact to the Assistant Secretary of the Army (Civil Works), who serves as Co-Chairman, Department of Defense Canal Negotiations Working Group. We also contemplated initiating very general planning toward possible treaty implementation, although to date negotiations have not developed to the extent that such planning has become feasible.

It became apparent to my predecessor, Dave Parker, that the normal organizational staffing of the Company/Government could not support these requirements while at the same time preserving the confidentiality of the negotiations. Therefore, in November 1974 a "Treaty Planning Group" was formed within the Company/Government by detailing a small number of senior personnel to the group from their normal assignments. To provide a balanced interdisciplinary team, employees with backgrounds in engineering, law, personnel management, long-range planning and financial management were selected. In addition, each employee was chosen for his knowledge of and concern for overall Company/ Government operations. The group has functioned as needed on an intermittent basis, with its members otherwise continuing to serve in their respective operational and staff positions. The group is not engaged in a mission of negotiations with Panama.

I believe it is essential that the U.S. negotiators have correct information regarding Canal operations and that it is also important for them to have the views of the operating agency on the subject matters being considered in the negotiations. The group has provided former Governor Parker and myself with staff support in these matters. I hope that with this explanation of the function of the group you will agree that its establishment is proper and serves the interests of the Panama Canal Company and Canal Zone Government.

Sincerely yours,

H. R. PARFITT,

Governor.

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