[Congressional Record Volume 143, Number 140 (Thursday, October 9, 1997)]
[Extensions of Remarks]
[Pages E1997-E1998]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE CLOCK IS TICKING ON THE PANAMA CANAL'S TRANSFER

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                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                       Thursday, October 9, 1997

  Mr. CRANE. Mr. Speaker, in just over 2 years, the United States will 
transfer control of the Panama Canal and our adjacent bases to Panama 
under the terms of the 1977 Panama Canal Treaties. Already, 
preparations for this transition are underway. At this moment, U.S. 
military forces are scheduled to be drawn down in the region from the 
5,600 that remain, out of the traditional 10,500 U.S. troops stationed 
there, to 4,400. The significance of this process, its imminent 
completion, and the impact it could have on the U.S. economy and the 
security of the region cannot be understated. For this reason, I am 
reintroducing a resolution today calling for the negotiation of a base 
rights, canal operation and security agreement with Panama that 
provides for a continued U.S. military presence in the region after 
December 31, 1999.
  More than 80 years ago, the United States completed construction of 
the 51-mile-long interoceanic ship canal across the Isthmus of Panama, 
one of the great engineering marvels of its or any age. Since then, 
this man-made waterway has served the maritime nations of the world 
almost without interruption, enabling ships to travel from the Atlantic 
to the Pacific and vice versa much faster and cheaper than would have 
been otherwise possible. For more than 80 years, the U.S. military has 
stood watch over the canal from a series of bases located in a 10-mile-
wide strip of territory adjacent to the canal. From that position, the 
United States has been prepared to respond effectively not only to 
immediate threats to the canal itself, but also to other problems that 
could have eroded hemispheric peace and security. By December 31, 1999, 
however, the United States forces on these bases must be withdrawn and 
control over them and the canal will be transferred to Panama. In 
preparation for this date, the U.S. Southern Command recently moved to 
its new headquarters just west of Miami.
  The great importance of the Panama Canal to our country cannot be 
overlooked when you consider that 15 percent of U.S. seaborne trade, 
and 5 percent of the world's, passes through its locks. These figures 
become even more significant when you take into account that trade 
comprises nearly 30 percent of our gross domestic product [GDP], and 
that roughly 25 percent of U.S. economic growth in the last 4 years has 
come from increased exports. As a mature economy, it is clear that the 
United States must seek to open new markets to our products for our 
economy to continue to grow and create high paying jobs. For this 
reason, as chairman of the Ways and Means Trade Subcommittee, I have 
supported Chile's accession to the North American Free Trade Agreement 
[NAFTA], as well as the trade liberalization underway through the 
Summit of the Americas and the Asian-Pacific Economic Cooperation 
[APEC] forum, and the initiation of a trade policy toward sub-Saharan 
Africa. However, it only takes one look at a globe to recognize the 
critical importance of the Panama Canal to getting U.S. exports to 
their destinations overseas. Absent the canal, U.S. products would have 
to be transported via more expensive routes, adding to their overall 
cost and decreasing their competitiveness in foreign markets. On this 
basis, it is clear that continued growth in U.S. exports and job 
creation is, at least in part, dependent on the regular operation of 
the Panama Canal well into the 21st century.
  For all of these reasons, the United States national interest compels 
us to seek the negotiation of an agreement with Panama that will: 
First, allow the United States to leave military bases in Panama past 
the turn of the century; second, permit U.S. military forces to operate 
out of those bases; and third, enable the United States to guarantee 
the regular operation of the canal. At present, the administration is 
conducting negotiations with the Panamanians to provide for a continued 
United States presence in Panama. However, I believe that a continued 
U.S. presence is meaningless without also having the ability to 
intervene to guarantee the canal's security and insure its regular 
operation.
  It is clear that the conclusion of such an arrangement would also 
benefit Panama, as 6,000 Panamanian citizens are currently employed on 
U.S. bases, and $200 to $600 million in additional income for Panama is 
tied directly to the United States military presence in the region. 
Moreover, a poll of Panamanians published in March found that 72 
percent of those surveyed would like the United States bases to remain 
open after their scheduled closure date. Similar polls have shown that

[[Page E1998]]

Americans support a continued U.S. presence in the region as well.
  Unfortunately, time is growing very short and urgent action is needed 
to negotiate an agreement with Panama before the United States 
withdrawal is complete. I ask my colleagues to join me as cosponsors of 
the critical resolution that I am introducing today and to support 
swift action on this issue.

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