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PANAMA CANAL TREATY NEGOTIATIONS

HEARINGS

BEFORE THE

SUBCOMMITTEE ON PANAMA CANAL.

United States. Congress.

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OF THE

COMMITTEE ON

MERCHANT MARINE AND FISHERIES.
HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

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Horwitz, Leonard, Deputy Director for Panamanian Affairs, Depart-
ment of State__

69

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Hurwitch, Robert A., Deputy Assistant Secretary of State for Inter-
American Affairs, Department of State..

Ingersoll, John E., Director, Bureau of Narcotics and Dangerous
Drugs, Department of Justice.

Jones, Dr. Meredith L., Smithsonian Institution

Keal, Joseph, Office of the Secretary of Defense, Legislative Affairs..
Kendall, Maj. Gen. Maurice W., Regional Director of Inter-American
Affairs in the Office of the Assistant Secretary of Defense for
International Security Affairs.

3, 19, 39, 69

219

252

69

85

Kneale, Capt. James E., U.S. Navy, Office of Legislation Liaison,
Department of Defense-

19, 69

Marcuse, Herman, U.S. Department of Justice..

95

Maskin, Alfred, executive director, American Maritime Association,
Washington, D.C..

306

McNitt, James R., president, All America Cables & Radio, Inc., ITT
Central America Cables & Radio, Inc_____

289

Miller, Loren, Counsel, ITT Central America Cables & Radio, Inc... 289
Mundt, John C., American Ambassador, Deputy Chief Negotiator,
Department of State....

3, 19, 39, 69

Parker, David, Governor of the Canal Zone..

Reynolds, James J., president of American Institute of Merchant

Shipping

Runnestrand, Paul, Executive Secretary of the Canal Zone-
Salans, Carl F., Deputy Legal Adviser, Department of State..

Price, Hon. Bob, a Representative in Congress from the State of
Texas..

19, 47, 69, 338

205

19, 69

3, 19

Statement of-Continued

Samuels, Michael A., Office of Congressional Relations, Department
of State..

Sheffey, Col. John, Assistant Legal Adviser, Department of State--
Thurmond, Hon. Strom, a U.S. Senator from the State of South
Carolina.

Page

19, 69 19, 69

156

Ward, David H., Deputy Under Secretary of the Army for International Affairs.

19, 69, 85

Weber, Dr. Jon N., associate professor of marine geology and
geochemistry, Pennsylvania State University..

Weintraub, Sidney, Deputy Assistant Secretary for International
Finance and Development, Department of State...

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Flood, Hon. Daniel J.:

Committee for Continued U.S. Control of the Panama Canal..

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The Sea Snakes Are Coming, by William A. Dunson_

184

Washington Mulls Ceding the Panama Canal, by Richard
O'Mara_

192

Hennessy, John M.:

Projects for possible Board Consideration by the Inter-American
Development Bank during the remainder of 1972.

367

McNitt, James R.:

Additional paragraph to be added at end of article XVIII of
Lock Canal Treaty.

293

Murphy, Hon. John M.:

Document: "Disposal by Treaty of U.S. Property Rights in
Panama," by Rieck B. Hannifin__

101

Study: "Cession of Realty to Panama: Limitation of Construc-
tion," by Johnny H. Killian___

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Breakdown of arrests in Canal Zone, calendar year 1970_____
Extract from final report of the Atlantic Pacific Interoceanic

52

Canal Study Commission___

35

Panama Canal users, fiscal year 1969 (table).

Price comparison between Panama Canal company retail sales
facilities and Republic of Panama__

56

Weber, Dr. Jon N.:

Ecological studies of the coral predator Acanthaster planci in the
South Pacific__

246

Weintraub, Sidney:

Number of employees-

336

Policy statement: Economic Assistance and Investment Security
in Developing Nations--

320

South American power

334

Communications submitted for the record

Austen, W. J., Defense Department, letter of July 16, 1962, to C. C.
Duncan.

297

Clark, Charles R., letter of July 20, 1972, to Rafael Ayax Moscote..
Duncan, C. C., letter to Adm. M. E. Curts__

346

297

Maskin, Alfred, letter of January 25, 1972, to Robert J. McElroy..
McNeely, E. J., letter of April 5, 1962, to Dean Rusk

311

296

Moscote, Rafael Ayax, letter of June 30, 1972, to Col. Charles R.
Clark

Parker, David S., letter of December 20, 1971, to W. M. Whitman__
Trezise, Philip H., State Department, letter of April 20, 1962, to
E. J. McNeely..

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PANAMA CANAL TREATY NEGOTIATIONS

MONDAY, NOVEMBER 29, 1971

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON THE PANAMA CANAL,

COMMITTEE ON MERCHANT MARINE AND FISHERIES,

Washington, D.C.

The subcommittee met pursuant to call at 10:10 a.m., in room 1334, Longworth Office Building, Hon. John M. Murphy presiding. Mr. MURPHY. The subcommittee will come to order.

Today, this subcommittee begins hearings on the Panama Canal in an effort to determine where the United States stands with the Republic of Panama on current and future issues which are of vital importance to both countries. There are negotiations currently going on between the two countries over our future course of action. Because these negotiations are, perforce, confidential, and because they are so important to our respective futures, speculation has been rampant in both countries over their eventual outcome, and over the treaty document itself.

Rumors have blown out of proportion the nature of certain aspects of our current talks with the Panamanians. Anti-American elements in Panama have accused Panamanian negotiators of "giving in" to the "collossus of the North". On the other hand, reports have appeared in the American press to the effect that U.S. negotiators are surrendering American "sovereignty" and, in the process, the future livelihood of American citizens in the zone and, indeed, the future of the United States in Latin America.

The purpose of these hearings is to calm what I perceive is a growing sense of fear on the part of citizens and officials of both nations over imagined "wrongs" that are more fancy than fact.

I truly believe that the interests of both of our countries are the

same.

I believe that a mutual bond of interest and friendship can both be served and maintained by solving our differences openly and frankly rather than by the inflammatory rhetoric that has recently surfaced.

This subcommittee has the obligation and duty to do everything possible under its mandate to guarantee the continued operation of the canal in the best interests of the United States. On the other hand, we must give equal cognizance to the fact that Panama has been our partner in the canal enterprise for almost 70 years. And while arguments have arisen during the years of U.S.-Panama collaboration on the Isthmus, and political issues have sometimes led to hostile street action against the United States, in a larger sense the governments have collaborated through the years to the benefit of both.

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