Wayzata World Factbook 1996/The World Factbook - 1996 Edition - Wayzata Technology (3079) (1996).iso/mac/TEXT/backgrd/panama.bkh

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U.S. Department of State
Background Notes: Panama, January 1995 (CONTINUED)
Bureau of Public Affairs


January 1995

Official Name: Republic of Panama

U.S.-PANAMANIAN RELATIONS

The U.S. and Panama are working toward implementing the 1977-78 Canal
Treaties by preparing for the U.S. withdrawal and the Panamanian
takeover of the canal and the U.S. base properties.  U.S. economic
assistance to Panama in FY 1993 was $8.6 million.

The United States cooperates with the Panamanian Government in promoting
economic, political, and social development through U.S. and
international agencies.  Cultural ties between the two countries are
strong, and many Panamanians come to the United States for higher
education and advanced training.  President Perez Balladares has
indicated that he intends to maintain a close relationship with the
United States.

In the past, the presence of a large contingent of U.S. armed forces in
Panama has generated friction.  Panama's relationship with the United
States has been a recurring political issue throughout Panamanian
history.  Severe strains were placed on the relationship by the Noriega
regime during the late 1980s, but the renewal of democracy and stability
in Panama has shown that the bilateral relationship remains
fundamentally strong.  The presence of the U.S. forces was not an issue
during the 1994 presidential campaign.

In addition, the Panama Canal Treaties have provided the foundation for
a new partnership.  The United States and Panama remain committed to the
smooth implementation of these treaties, including the departure of U.S.
armed forces, the reversion of U.S. military bases, and the turnover of
the canal to Panamanian control at noon on December 31, 1999.  Managing
this complex turnover, which Panamanians call their "national
patrimony," will be one of the prime challenges of the Perez Balladares
administration.

Panama continues the fight against illegal narcotics.  The country's
proximity to major cocaine-producing nations and its role as a
commercial and financial crossroads make it a country of special
importance in this regard.  Although Panamanian anti-narcotics
institutions lack trained personnel and blueprints for action, the Perez
Balladares government and the United States are discussing concerted
efforts to combat the drug plague.

Principal U.S. Officials

U.S. Embassy
Charge d'affaires--Oliver P. Garza
Counselor for Political Affairs--John Bennett
Counselor for Economic Affairs--Elizabeth Bollman
Counselor for Public Affairs--Joe Johnson
Counselor for Administrative Affairs--Bernardo-Segura-Giron
Consul General--L. Bradley Hittle

Panama Canal Commission
Administrator--Gilberto Guardia
Deputy Administrator--Raymond Laverty

U.S. Southern Command
Commander in Chief--Barrey McCaffrey

The U.S. embassy in Panama is located at Avenida Balboa y Calle 38,
Panama City (tel. 27-1777).  Personal and official mail for the embassy
and members of the mission may be sent to:  U.S. Embassy Panama, Box E,
APO Miami FL 34002.


The Panama Canal Treaties

The 1977 Panama Canal Treaties entered into force on October 1, 1979.
They replaced the 1903 Hay/Bunau-Varilla Treaty between the United
States and Panama, and all other United States-Panama agreements
concerning the Panama Canal which were in force on that date.  The
treaties comprise:

--  A basic treaty governing the operation and defense of the Canal from
October 1, 1979, to December 31, 1999 (Panama Canal Treaty); and
--  A treaty guaranteeing the permanent neutrality of the Canal (Treaty
on the Permanent Neutrality and Operation of the Panama Canal).

The details of the arrangements for U.S. operation and defense of the
Canal under the Panama Canal Treaty are spelled out in separate
implementing agreements.

Purpose of the Treaties

In negotiating the Panama Canal Treaties, the United States acted to
protect a fundamental national interest in long-term access to a secure
and efficient Canal.  Panama's cooperation is fundamental to this
objective.  By meeting Panamanian aspirations for eventual control of
the Canal, the United States sought a new relationship with Panama based
on friendship and mutual respect.  The treaties make Panama a partner in
the continued safe and efficient operation of the Canal.  In serving the
best interests of both nations, the treaties serve the interests of all
users of the Canal.

History of the Negotiations

Our bilateral relationship with Panama has centered on the Panama Canal
since the beginning of the century.  Under the 1903 treaty, the United
States acquired unilateral control of the Canal and the Canal Zone--a
553-square-mile area in which the United States exercised the rights,
power, and authority of a sovereign state.  Panamanians deeply resented
the 1903 treaty and the unequal relationship with the United States
which it embodied.  In January 1964, Panamanian dissatisfaction with
this relationship boiled over into riots which resulted in the deaths of
four U.S. Marines and more than 20 Panamanians.  A three-month
suspension of diplomatic relations followed.

The growing bilateral tension in the 1960s gave weight to the views of
those who believed that a new Canal treaty was needed to replace the
1903 treaty and to establish a new relationship with Panama.  In June
1967, United States and Panamanian negotiators completed draft treaties
dealing with the existing Canal, a possible sea-level Canal through
Panama, and defense matters.  Neither country ratified the treaties,
however, and they were publicly rejected by the new Torrijos government
in 1970.

Treaty negotiations resumed in June 1971.  On September 7, 1977,
President Carter and General Torrijos signed the Panama Canal Treaties
at the headquarters of the Organization of American States in
Washington, DC.  The Panamanian people approved the new treaties in a
plebiscite held on October 23, 1977.  The U.S. Senate ratified the
neutrality treaty on March 16, 1978, and the Panama Canal treaty on
April 18, 1978. The treaties entered into force on October 1, 1979.  The
protocol to the neutrality treaty is open to accession by all nations,
and more than 35 have subscribed.

Basic Provisions of the Treaties

The United States has primary responsibility for the operation and
defense of the Canal until December 31, 1999.  After that date, the
United States and Panama will maintain a regime of neutrality for the
Canal, including nondiscriminatory access and tolls for merchant and
naval vessels of all nations.

In order to meet its operational and defense responsibilities, the
United States has the right to use specified land and water areas and
facilities in Panama necessary for the operation, maintenance and
defense of the Canal until December 31, 1999.  United States rights to
operate the Canal, station military forces, and maintain military bases
terminate with the Canal treaty at the end of the century.  U.S.
warships will be entitled to expeditious passage of the Canal at all
times, however, and the United States will continue to have the right to
ensure that the Canal remains open and secure.

The United States operates the Canal through the Panama Canal Commission
(PCC), which is a U.S. Government agency supervised by a board of
directors consisting of five American and four Panamanian members,
appointed by the President (the Panamanian members are initially
nominated by their government).  Until 1990, the Canal administrator was
an American and the deputy administrator was Panamanian; these
nationalities reversed for the final decade of the Treaty on September
20, 1990, when Gilberto Guardia was installed as the first Panamanian
administrator.  Pursuant to treaty obligations, the PCC is training
Panamanians in all areas of Canal operations prior to the transfer of
the Canal in 1999, and Panamanian citizens currently comprise over 87%
of the PCC workforce.

During the life of the Treaty, Panama receives the following payments
from Canal revenues:

--  A fixed annual payment of $10 million;
--  An annual payment of $10 million, adjustable for inflation, for
public services provided to Canal operating areas by the Government of
Panama (the Canal Zone and its government ceased to exist when the
treaties entered into force, and Panama assumed jurisdiction over Canal
Zone territories and functions);
--  An annual percentage of toll revenues assessed at $0.35 (since
October 1, 1990) per Panama Canal net ton transiting the Canal, worth
$60 million in 1990;
--  A payment of up to $10 million in the event that revenues exceed PCC
expenditures in a given year.

Under U.S. implementing legislation (the Panama Canal Act), the PCC must
be self-sustaining; its costs may not exceed its revenues, nor may U.S.
taxpayer funds be used for Canal operations or payments to Panama.

Panama and the United States are committed by Article XII of the Canal
Treaty to study jointly the feasibility of a sea-level canal in Panama
and to negotiate terms for its construction if it is agreed that such a
canal is desirable.  In 1993, a tripartite international organization,
the Canal Alternatives Study Commission, established by the United
States, Panama, and Japan, completed a study concerning possible
modifications and alternatives to the existing system; it concluded
there was no immediate need for major changes.  Completion of this study
fulfilled the Treaty obligation under Article XII.


Travel Information

The U.S. Department of State's Consular Information Program provides
Travel Warnings and Consular Information Sheets.  They can be obtained
by telephone at [phone] or by fax at [phone]; to access
the Consular Affairs Bulletin Board by computer modem, dial (202) 647-
9225.  Travel Warnings are issued when the Department recommends that
Americans avoid travel to a certain country.  Consular Information
Sheets exist for all countries and include information on immigration
practices, currency regulations, health conditions, areas of
instability, crime and security information, political disturbances, and
the addresses of the U.S. embassies and consulates in the subject
country.

Travelers can check the latest information on health requirements and
conditions with the U.S. Centers for Disease Control and Prevention in
Atlanta, Georgia.  A hotline at [phone] provides telephonic or
fax information on the most recent health advisories, immunization
recommendations or requirements, and advice on food and drinking water
safety for regions and countries.  A booklet entitled Health Information
for International Travel (HHS publication number CDC-94-8280, price
$7.00) is available from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC 20402, tel. [phone].

Information on travel also may be obtained from this country's embassy
and/or consulates in the U.S. (see "Principal Government Officials").

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Published by the United States Department of State--Bureau of Public
Affairs--Office of Public Communication--Washington, DC

Department of State Publication 8022
Background Notes Series--This material is in the public domain and may
be reprinted without permission; citation of this source is appreciated.

For sale by the Superintendent of Documents
U.S. Government Printing Office, Washington, DC  20402.

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