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COMMITTEE ON FOREIGN RELATIONS

JOHN SPARKMAN, Alabama, Chairman FRANK CHURCH, Idaho

CLIFFORD P. CASE, New Jersey CLAIBORNE PELL, Rhode Island

JACOB K. JAVITS, New York GEORGE MCGOVERN, South Dakota JAMES B. PEARSON, Kansas HUBERT H. HUMPHREY, Minnesota CHARLES H, PERCY, Illinois DICK CLARK, Iowa

ROBERT P. GRIFFIN, Michigan
JOSEPH R. BIDEN, JR., Delaware

HOWARD H. BAKER, JR., Tennessee
JOHN GLENN, Ohio
RICHARD STONE, Florida
PAUL S. SARBANES, Maryland

NORVILL JONES, Chief of Staff
ABNER E. KENDRICK, Chief Clerk

S. Con. Res. 53

Agreed to November 3, 1977 Resolved by the Senate (the House of Representatives concurring), That there be printed for the use of the Senate Committee on Foreign Relations two thousand five hundred additional copies of each part of its hearings entitled "Panama Canal Treaties”. Attest:

J. S. KIMMITT.

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CONTENTS

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149

119

Hearing days:

Tuesday, October 4, 1977-

Wednesday, October 5, 1977---
Statements by

Allen, Hon. James B., U.S. Senator from Alabama---

Corrada, Hon. Baltasar, Resident Commissioner of Puerto Rico and

Member, U.S. House of Representatives.-

Dole, Hon. Robert, U.S. Senator from Kansas..

Fraser, Hon. Donald M., U.S. Representative from Minnesota..

Gravel, Hon. Mike, U.S. Senator from Alaska----

Helms, Hon. Jesse, U.S. Senator from North Carolina---

Hollings, Hon. Ernest F., U.S. Senator from South Carolina.

La xalt, Hon, Paul, U.S. Senator from Nevada---

Leggett, Hon. Robert L., U.S. Representative from California--

McDonald, Hon. Larry, U.S. Representative from California.

Murphy, Hon. John M., U.S. Representative from New York--

Scott, Hon. William L., U.S. Senator from Virginia---

Stratton, Hon. Samuel S., U.S. Representative from New York.--

Thurmond Hon. Strom, U.S. Senator from South Carolina--

Insertions for the record :

"Treaties Are Attacked in Panama, But Officials Predict Ratification,”

article by Alan Riding, the New York Times, September 27, 1977--

Addendum to statement by Senator Strom Thurmond..

"The Panama Canal: Sovereignty and Security, article by Hanson W.

Baldwin, AEI Defense Review----

"The Panama Canal," excerpt from a report by Senator Fritz Hollings

Letter to Senator Ernest F. Hollings from John M. Harmon, Assistant

Attorney General, Office of Legal Counsel, Department of Justice,

dated September 16, 1977---

Testimony by Hon. Ronald Reagan before Subcommittee on Separation

of Powers.--.

Excerpt from chapter 16 of "Restatement of Contracts," section 492,

"Definition of Duress".

Addition to statement of Senator Hollings.

Prepared statement of Senator Mike Gravel..

“Laxalt Testifies at Panama Canal Hearings," News release, October

1, 1977---

Prepared statement of Senator Paul Laxalt.

Letter to Senator John Sparkman from Douglas J. Bennet, Jr., Assis-

tant Secretary of State for Congressional Relations, dated October

5, 1977, concerning Senator Dole's proposed amendments and reser-

vations

Senator Dole's proposed amendments and reservations -

Letter to Senator Robert Dole from Robert B. Carney, Admiral, U.S.

Navy (ret.), dated October 1, 1977----

Prepared statement of Senator Robert Dole-

Letter to Secretary of State Cyrus R. Vance from Senator Robert

Dole, dated October 4, 1977_

Letter to Senator John Sparkman from Acting Secretary of State

Warren Christopher, dated October 5, 1977..

Telegram from Amembassy, Panama, to Secstate, Washington im-

mediate; subject : "Negotiator Speaks on National Television”----

197

198

361

Insertions for the record-continued

"Investigation of Panama Canal Matters," supplied by Senator Scott-

Supreme Court opinion in W'ilson v. Shaw, Secretary of the Treasury,

October term, 1906_.

Excerpts from fiscal year 1978 military procurement hearings before

Senate Armed Services Committee, March 11, 1977-.

Prepared statement of Hon. John M. Murphy and attachments.

Prepared statement of Hon. Robert L. Leggett and attachments---

Appendix :

Treaty Between the United States and Great Britain To Facilitate

the Construction of a Ship Canal.---

Letter to Hon. Morarji Desai, Prime Minister of India from Mrigendra

Singh, Raja of Patiala, dated April 22, 1977---

Testimony of Hon. Daniel J. Flood before the Subcommittee on Inter-

American Affairs, Committee on Foreign Affairs, House of Repre-

sentatives, September 22, 1971..

“Xew Panama Canal Treaty Report: Fallacies Clarified and Construc-

tive Program Proposed,” statement by Hon. Daniel J. Flood, from

the Congressional Record-House, September 9, 1976_-

Text of House Resolution 92, 95th Cong., 1st sess.

Text of H.R. 1587, 95th Cong., 1st sess.

“Panama Canal Sovereignty and Modernization Memorial to the Con-

gress, 1975,” by Committee for Continued U.S. Control of the Canal -

“Environmentalists Oppose Panama Sea-Level Canal,” by Friends

of the Earth, September 6, 1977, and attached telegram to President

Carter

"Panama Canal Pilots Association Urges Major Modernization as the

Solution for Canal Problems,” statement by Hon. Daniel J. Flood,

from the Congressional Record, House, November 15, 1973, and

attachments

“Panama Canal Giveaway: A Latin American's View," by Mario Lazo,

Special Study No. 1 for Inter-American Security

“The Treaty Power and Congressional Power in Conflict: Cession of

United States Property in the Canal Zone to Panama," by Kenneth

Merin, legislative attorney, American Law Division, Congressional

Research Service, Library of Congress_

Statement of Senator Clifford P. Hansen..

Statement of Representative James Abdnor---

Remarks by Representative John J. Flynt, Jr.---

Remarks by former Representative Jack A. King and attachment----

Statement of Representative Elwood Hillis.-

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414

518

419

420

121

PANAMA CANAL TREATIES

TUESDAY, OCTOBER 4, 1977

UNITED STATES SENATE,
COMMITTEE ON FOREIGN RELATIONS,

Washington, D.C. The Senate Committee on Foreign Relations met, pursuant to notice, at 9:47 a.m., in room 4221, Dirksen Senate Office Building, the Honorable John Sparkman (chairman of the committee) presiding.

Present: Senators Sparkman, Church, Pell, Clark, Biden, Sarbanes, Case, Javits, and Percy.

OPENING STATEMENT

The CHAIRMAN. Senator Thurmond, I don't like to keep you waiting, but I do want other members of the committee to be here. According to the list given me, we are due to have 10 members of the committee here, and I would like for as many of them as possible to hear all of your testimony. So, I hope you won't mind our waiting a little while longer.

[Pause.]
Let the committee come to order, please.

The committee this morning is continuing its consideration of the proposed Panama Canal treaties. Today and tomorrow have been set aside for testimony from Members of Congress.

To get this morning's hearing underway, we are pleased to have the senior Senator from South Carolina, our colleague and friend, Senator Strom Thurmond.

Following the Senator's oral presentation, we will proceed with questions under the 10-minute rule.

Senator Thurmond, that does not mean that you have to limit your answers to 10 minutes. It means that we have to limit our questions to 10 minutes.

We are very glad to have you here. Other members are on their way here, we are told. We would be very glad to start with you now, if

you will. Before you begin, however, I will ask Senator Percy if he has any opening remarks.

Senator Percy. Thank you, Mr. Chairman.

OPENING REMARKS OF SENATOR PERCY

I will have to excuse myself in a few minutes to go over to the Judiciary Committee to introduce two Federal judges from Illinois. I know that Senator Thurmond will understand this as he is a member

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of that committee. I will be right back, though. I did want to explain why I would slip out for a few minutes.

I certainly welcome you very warmly this morning, Senator Thurmond. This committee is anxious to hear your

views. The CHAIRMAN. Senator Thurmond, we have a copy of your prepared statement. That will be placed in the record in its entirety. You inay proceed as you wish. You may read it, discuss it, or summarize it, as you wish.

STATEMENT OF HON. STROM THURMOND, U.S. SENATOR FROM

SOUTH CAROLINA Senator THURMOND. Mr. Chairman and gentlemen of the committee, I am here this morning to present to the committee and to the American people my reasons for opposing the treaties with Panama.

My interest in the Panama Canal is longstanding. Over the years I have introduced several bills to modernize the Panama Canal. In the 94th Congress, I offered a resolution signed by 38 other Senators opposing the surrender of this waterway to Panama. Last August, I visited the Canal Zone for briefings and study to ascertain any changes since my previous visit several years before.

While I recognize the need for some adjustments with Panama concerning the Panama Canal, I see the retention of U.S. sovereignty as basic to continued “practical control” of the canal, which even the President himself has expressed as being necessary.

My 1976 resolution was more than sufficient warning to both the Ford and Carter administrations relative to the Senate's concern in this matter and to alert the Government of Panama that the treaties would be scrutinized closely.

Yet, the treaties have been signed with great fanfare, and the threats from Panama strongly suggest either we ratify or pay the consequences of violence and disruption in the Canal Zone. In fact, Panamanian Chief Negotiator Escobar Bethancourt went so far as to say, "This country"-Panama-"would take a course of violence" if the treaties are not ratified.

At no time in my memory have such threats and pressure been exerted on the Senate as is the case with these treaties. In making our decision, however, we must rationally decide what is in the best interest of our Nation, irrespective of the pressures and threats directed toward

us.

IMPORTANCE OF CANAL

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I disagree completely with Ambassador Linowitz's statement to this committee last week that the canal has become "economically obsolescent." This statement is designed to denigrate the importance of the canal and thus make the proposed treaties more palatable. The canal is one of a very few vital world waterways. It permits rapid two-ocean commerce very beneficial to our Nation. In 1975, about 14,000 ships transited the canal. Approximately 70 percent of the traffic originated in the United States or was bound for the United States. It is estimated that 45 percent of Alaskan oil will be shipped through the canal by 1980.

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