The original documents are located in Box 6, folder “Panama Canal Treaty Negotiations: 1975” of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. " /--.., / ') ;--1 ; . /.i / ,., : ~ ~ t... ( ,': , /' '-/ 'f January 1975 Bureau of l'utllic :\ff;.:: , Office of :\Icdia Sen·i.:: Pr\;\',\\l:\ CA~AL TREATY :\EGOTIATIO:\S: BACKGlZOU:\D A);D CURR;~:\T STATUS , ~ Canal, rearL:.'1gcrrlcnt of lnarkets and SO i..d' CC S, product e:-.:c hanges, anel p~1't i al or comj1lctc su' The Cn;tcc1 SUkS ,uhf Panama arc currc;ltly stilllti\)'il of lanel or ("; iI' tr,Lr!Spoit for' OCl ~Z':":-l tr ~~: ' negotiating a new l',tn::ma Canal treaty' to replace port. J\S c; ll ~a l usc;-,; wkc ad\,2.nt,:::;,~ of t!,ese the Trc,itY of 1903. altcrnz~:iYcs, the c£u j~ ; l\ \' ah"~e declines rc:l~:li\ 'e : h1 th:lt trc::ty Panama ~'T,m tccl the lin;tecl the cconomics of t;IC llser IEtio:1,:. For the Statc~-in pClj)ctuity - tllc usc o f a 1CJ-milc wide United Scate", in p <[Li cli Lr, a recent sLue;y h > zone of l'an:l;i~anial1 tcnit c.;-): for Lii,'· "construc­ 'shown i.h,~ l the canal'5 impact on the domes :: ~ ti on, m :lintcn::ncc, operatioIl :mcl j,rotection" of cconomy IS quitc SI1L!.ll compalTd to the ceo;"" a can~J) as \,,'cl! as all the right:-"\, po\,:cr, ftnc1 as a ,,:hole. autho;-ity \\'j i.~ljn t!ut zonc which the el\itecl Stat e~ wO~lld "po."·;:::~, i[ it were the sovereign." .' Thc very b\'orablc terInS of tile treaty wcre a m;:jo1' factor in thc U.S. dec;sio:1 to buiicl the c~tn ~l l in P~U-l,i::l:~ rali~'-'r th~Ul in >':1·':~i.ragl;a as initially pL:m:cd. ri\'~d frO!ll PcHianLt'S i.ill..~·rprl.~L~:~lon or' i.\VU t ....-);·.< of the situation \\"hicL resulted in the Trc·:'":'. :: Canal\ Economic ·Valuc 1903: ( 1') P-cr,'0:.. l ..,~'~l'lt~ ""' 's~ -<,.......("','n 1..._,. tal'l\...\"" ~" elf_ t'"~,J.~,~,l r",," -,"~;) .~_\ ...." tree.t)' terms clue to its c1epclHlcnce UPO;-' L;,e Since its (li)cning in 191{, the eli1a1 h:L') pro­ Unitcd Slates to protee~ its ncw-[oll:IC! i;H; ~: '<; \'ided LCilcfits to the l;nitccl StaLes, to l'alla;na, clcnce f:-o;n Colon: bi.t; and (2) I':ma:na', i':'i:H:, and to the worlel_ 0:' the total \O:li l:!ge that ..... negoti:,tur was a frcnchm : ~:l \\'ho b .... i1\.'t"i;e c\ transi ts the cmal, about {~ percc' ill origin;:tes in, cOllsidc;':I!)Iy \\-he;, doC Cllited S::l~es jJL:'cl",;.:,,· ,: and 22 pcrce,ll is destined [or, U.S_ ports_ This the pr;\,;l:e french CO:1CC';S !On to b .. :;l:1 :: [!';,;i,­ tonnage rcprcsen ts "bOll t 1 G percc:H of the tot:tl is thmi::i1 CII1:t:. U.S_ c:-.:port and import tonl~a :-;c~. OYer the \"c~trs P2..n~l711~l h;:..s al~o ch~;..;-:.."~(~ ~L~: ; " The cailal has bl'i.'E eC(l;:ClI:licll:y imporLI:lt to the Cni;l'ci SI:l~CS klS linibte;-::l:Y i:I:,";':';'C:I'd : , P;l\1 :111l~ l, too. \lc>rc llt:lll 30 perce:-, i of l'ail:1;lla'S trc(.~ty to Pan~Ln1~t's disac1\'all t~~~~c :~i1~l :~-,:\'l'11 p~ ~ \ . foreign e:-.:ch.:nge can,in,> :lIld nearly 13 pcrcent at! inadcqu~lic ~h:lrc of the bC~l(fi~~ l · rl.):~i t::c ~ ~ of it~ C:\1' ill-t' directly or i:;(:irn~ tly ;,ttrihuted to t'i'alion of Lhc v.'al l.:r\\·.1Y. [,\'L'n ;~ 1() :·:.· o:\~L\,"li~ . tile presence- uf the ClIl<lJ. nil t thu,;e COil tribll­ abIL in I'~ln~ ~;'! l~t' S yi cv;, ~lrc the t);'l...l"-::-.:( :::.) ~11 t: .·. tions represen t .1 slil:,"!kr por lio:1 (Jf·l';uuli J:!'s Tre:tty (>~- 19.:n \\'hil-il g;\L' tu ;, fO:'L-:~:: ' : "O \':"~':" eco:lOmy 1l0W tku1 tlley did i:l )jC:ll'S p:l\t. pcrptlu;ty gO\"C:-IIlliCl1t:d j~,ri ~d ;c:tin;1 \.: ;;::::: .. In fa ct, rcli;mcc on the Glnal Uy :111 p,lrLies h :1S portiun of l':ii1..,ll;lIIi::n teni;,):-y_ ll~crl'.:,:::..:>: c\,oh·,:c! from carlier years. As tr':lding patterns recent YCiUS l':tn:ll1i:t has ins~stl'.l t:;,l: C.':;. 1'1';".: have ch:tn~:l~cl ;mn world commerce has becolllc o\'er lhc Canal ZI'llC jJl'C\'t'lHS tLl' C)\::,;;'y ;-:, . more' sCJjlhi:.tic:ltccl, illtcrnati\'Cs to tLe Clll.t! h:l\'C rc:Jizin:; its ftlll economic p o tellli.d. begun to cmcrt;c. These altenLltiH:s illclude the The Uniteci Slates Ius rcs,h.JllCln; ~>y[::;,,:~ : .: : Digitized from Box 6 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library • 2 Presidelll :\·jxuJ) cst~lb ~ i ~ .LC'd nL,~~(J~ :;~iin ~ ~ {~:' . >:t · i ;'. .. \:':~....I.:..I":IooI-'i>Uo~~~ ~~O jlC:. The t: ' ,:.~ty \'.':\,-; n'\T;('( , in \vhich, :dlhc)ugh lllUdifil.' d ~)y dl'\'l'! ( Ji)lilt'l1 l ", \".\. ~ ,~g<till iii 1 ~1~)5, lu pr(1\'i<ic l';lll:tm:t silllibr tn thu~;,: sc: hy l'n',id,-lIt .1 'Il :n',/);i . I 1(, \\·jth ~l gTC~ltCl ~h;lrL' cl f ih:.: Ct.'d:1c)}nic lJcncfi t:-, or The objcctin:s :::ld p"'iti(l!1s ur ;;_-,~ Ll l ii (" ,: S~ . , : tb: Clll~tl "ntI to ;C:in,U',C ccn,~ill (,Litd;tlC-c! aSi,ccts, tllli:; reflect <l hip:trli'Jll ~'il;Ji"";l, : ll L(l tr<·.,i\' n ',':," such ;[:,) tl1c ri;ht ;-;';mt·, : t.) :.i.e Ll1i;c'd St;llc.-; to ti;Lii )llS \\"irh P,ln'trn:l. ·rr":!'..~ y ;J;-.,u ~'~'l' t'(':"I:";i'~' nt j;1~crfcrc, \\'h<.:n it bdi,""',! lleC-';:-";t;'Y, ill l';~n;UlI.l's with tltc hr(i ~l (kr po:i,:y ~.i : lil·d ill SC:CiT i:,;':: in:'l:rnal affairs. l)c:,pitc f1L'~(' 1~1~)(!ific~~ti()l1s, ho\v­ E.is ~ ; : Jlger's cell i;) Onuk'r 197:; ["(Il' ;\ "nn ': d;;:, C\"C[, lT1Ztny of the fL'a~UrLS 0; tile' trl'~lty r:1ost }Ogl!C" \\"i lh (iur I...I~~tin 4-\lI1 L''i-i c ;~n Lt : i : ~hhu~ ' ~ ', ~;, objectiunable l~~ ) P("!.nal~l~~t rcn::l.l:1 unch~lng~·d. policy \\']liclt Pr(:!;icknl Ford h~l' I,;,:;>:id:: <: !;(l;.: ., The cand ;'.'5 become t;iC' ;;nj,)f jluliticd isslle A 1)ana!11(llli~1n nC'gotii.l:;n:_~ tl.:i ! ~ Ll ~ tlTj'.·~~l in in }":i1;J.ma. };, rC'ccn~ yc;:;s tl.c: inte...,ification of \\'~shi" i-; toil in J une 1971. Incen-;: ';c m:;::,, : i.(tlO; ., P~ln~-unJ.'s c~uni)aiZIl f.~)r ;:"lO;"C f:~\<J:·~~L ':~· treaty durin::; tile rest of the YC';:;' reS -,die(; iii a l:.S. terms h,[s produced lcns;o;i5 iii L'.S.-;}anamani;m treaty offer cuyerin'g mosL of the j, sla:s rc:c':<\r.: relations.. In 19G·~ the de,lt:1 ut" 20 P,II1<tm;llli;C:1S to the.: trC'~lty. 'rhe Paj1~ullz:.nian n~:got.iat(I I . ~ C~l:T : ill.d 4. f\mcric;,;ts brou;!lt i.h:: I';::1ar.::t C;-;li:!l issue the (lan to P,n,:\i;1 <l fell' <l rcyic\,- i:~ Decc:; ~ ' ,,~;, to the atien tiO;1 (If t;,t~ United ~\:;tiu;IS ;HHl the 1971. E:.;c.:pt for some ii1fo:-mal C ") ;1\·l:r ~., ::., ) "C; : : ( )1 ' 'W' t-<.IlJzallon : - " OJ.r :l.t~lll\ .,.., .. ..;j \....(iJi--," uL._~t\..:,-.:.- '"" (()_ J \S)•• 6 r\Jarch 1~)72 and an cx(h~u~St.' of c o: 'rt.:~i) ( ";~ (: :.' :1C\ in the f~dl) the :i l (:g()i.i:ltio;"'. 5 v'·'.~rc ~~ O i.. r C ~ L , ; ~·.l' l l Eya]t:ation of Bibtn;·J :\e~()~i;li.i()llS [or a AC'W until I)cccrnucr ] :.,2, \\'hcn ct l..J.S. (~clcg~llii)d Treaty tra\"Clcd to P:1i1;\::n. Folluwing clisCI;S5!nn (if ~h- i,-,cle by tlie OAS, U.S. Sl"ctlrity CO;Ii.: , ;l ,\ctiOIl the 'GJ1itcd :\3.tions~ ;U1':'~ o~: : ('=-- inll ..: ril~ ~ion~d a~ci1­ cics aricr the 1964- riol:s, t!~c "l.~ Il:ted ; ~La:'L.~ CLnd l\t Pa!1aln , ~'s il1i il a:.i\'l', the 'L;.:\. Se (" !"~;·: t \' 1)an~!1~1a ~'. g n.:l"(l ill ISG"; to b':~ l n 1)il:lt ~~ r21 i ~: L'go~ia­ C:ouilcjl ~lIC~ ill Pa ! l~j n~ \ C: i LY ir i..': ;:! \Lirc:'! ~~) to tic')ns for :~ nc\v trc~L\·.