Attachment
Memorandum2
Washington, undated
Next Steps on the Panama Treaties
Following up on the Senate’s approval of the Panama Canal Treaties,
we are initiating our planning in the following areas:
Treaty Ratification. We are preparing
materials which would be useful if you visit Panama.3 We will have drafts in
readiness as your plans develop. These will be keyed to the time
schedule envisaged as a result of Senator Brooke’s reservation:4 a relatively
early ceremonial exchange of instruments of ratification by you and
General Torrijos; an
effective ratification date of March 31, 1979, and the beginning of
the thirty-month treaty transition period on October 1, 1979.
Implementing Legislation. For use during the
Senate debate, we made available an informal text of draft
legislation which should be adopted before the Treaties go into
force. Major points concern:
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—organization and procedures of the Panama Canal Commission;
—the setting and alteration of tolls;
—employment, recruiting and retirement;
—courts and legal arrangements;
—authority of the Ambassador; and
—miscellaneous provisions with respect to bilateral relations,
security, health matters and the like.
Through OMB we are now completing
inter-agency clearance of the draft legislation. We must consult the
Congressional leadership on the timing of formal submission: the
House Merchant Marine and Fisheries Committee is anxious to begin
hearings soon. We expect the legislation to be considered by perhaps
four committees in each House before enactment, next year. When we
resubmit the legislation to the new Congress, we hope to arrange a
time agreement with the leadership for early completion of
Congressional action.
Economic Package. You will recall that our
negotiators agreed that, entirely apart from the Treaties, we would
use our best efforts to make available to Panama up to $295 million
over five years in loans and guarantees for economic assistance
purposes, and up to $50 million in FMS credits over ten years to prepare the Panama
National Guard for its defense role. We believe we should proceed
promptly to put the programs we have envisaged into effect, as they
would be helpful in coping with Panama’s depressed economic
conditions.
U.S. Government Organization for
Treaty Implementation. When the Treaties become effective,
the Canal will be operated by the Panama Canal Commission, in which
Panama has minority representation. In this sense, Canal management
will take place in conjunction with Panama. We believe it is
important that, while maintaining continuity and profiting from
experience, the United States Government should adapt its
bureaucratic machinery to the new requirements. At our suggestion,
Jim McIntyre is
completing a memorandum to you embodying the views of concerned
Departments on this subject.5
Implementation Planning with Panama. We will
want to begin promptly to conclude implementation arrangements on a
series of matters as to which we are obligated to consult with
Panama:
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—an agreement covering exchange of prisoners similar to the Mexican
treaty of this type. We are committed to the Senate to do this by
formal treaty;
—an agreement covering the continuation of Federal Aviation Agency
activities in Panama; and
—a schedule for the transfer of property and jurisdiction during the
first thirty-month transition period.
