Foreign Relations of the United States, 1969–1976, Volume XXII, Panama, 1973–1976

121. Memorandum From Stuart Eizenstat to Governor Carter¹

May 11, 1976.

RE: Panama Canal

Attached is Colonel Donovan’s memorandum on the Panama Canal,² which includes the Statement of Principles agreed upon by Secretary Kissinger and the Minister of Foreign Affairs of the Republic of Panama. Colonel Donovan believes that we should stress that our negotiations with Panama should insure security of the Canal, its availability for civil and military purposes to the United States, and the efficient operation of the Canal.

You have already stressed that the “in perpetuity” language should be removed, and this is covered by the Statement of Principles.

Also, the $2.3 million dollars per year we pay Panama should be adjusted upward.

One tack to take is to stress that while the Panama Canal is vital to our national interest and while its security is critical, one of the best ways to assure its security and availability is to have peaceful relations with the country in which the Canal is located. Nothing could be more counterproductive than to have guerilla warfare or a continuing irritant in our relations with the country in which the Canal is located.

1. Source: Carter Library, Campaign Issues Office, Box 26, Folder 5. No classification marking. Eizenstat was the Policy Director for Governor Carter’s Presidential campaign.
2. The memorandum, dated May 11, entitled “The Panama Canal Issue,” is attached but not printed.