PAGENO="0001"
PANAMA CANAL MISCELLANEOUS
HEARINGS
BEFORE THE
SUBCOMMITTEE ON THE PANAMA CANAL
OF THE
COMMITTEE ON
MERCHANT MARINE AND FISHERIES
HOUSE OF REPRESENTATIVES
NINETY-FIFTH CONGRESS
FIRST SESSION
ON
C.Z. BIOLOGICAL AREA AUTHORIZATION-H.R. 3348
MARCH 22, 1977 /
PROBLEMS OF CANAL ZONE RESIDENTS AND
EMPLOYEES
APRIL 12, 13, 1977-BALBOA, CANAL ZONE
Serial No0 95~9
Printed for the use of the Committee on Merchant Marine and Fisheries
0
U.S. GOVERNMENT PRINTING OFFICE
95-549 0 WASHINGTON': 1977
PAGENO="0002"
COMMITTEE ON MERCHANT MARINE AND FISHERIES
JOHN M. MURPHY, New York, Chairman
THOMAS L. ASHLEY, Ohio
JOHN D. DINGELL, Michigan
PAUL G. ROGERS, Florida
WALTER B. JONES, North Carolina
ROBERT L. LEGGETT, California
MARIO BIAGGI, New York
GLENN M. ANDERSON, California
E (KIKA) DR LA GARZA, Texas
RALPH H. METCALFE, Illinois
JOHN B. BREAUX, Louisiana
FRED B. ROONEY, Pennsylvania
BO GINN, Georgia
GERRY E. STUDDS, Massachusetts
DAVID R. BOWEN, Mississippi
JOSHUA EILBERG, Pennsylvania
RON DR LUGO, Virgin Islands
CARROLL HUBBARD, JR., Kentucky
DON BONKER, Washington
LES AuCOIN, Oregon
NORMAN B. D'AMOURS, New Hampshire
JERRY M. PATTERSON, California
LEO C. ZEFERETTI, New York
JAMES L. OBERSTAR, Minnesota
WILLIAM J. HUGHES, New Jersey
BARBARA A. MIKULSKI, Maryland
DAVID E. BONIOR, Michigan
DANIEL K. AKAKA, Hawaii
JOHN M. MURPHY, New York
(ex officio)
PHILIP E. RUPPE, Michigan
PAUL N. McCLOSKEY, JR., California
GENE SNYDER, Kentucky
EDWIN B. FORSYTHE, New Jersey
DAVID C. TREEN, Louisiana
JOEL PRITCHARD, Washingtop
DON YOUNG, Alaska
ROBERT E. BAUMAN, Maryland
NORMAN F. LENT, New York
DAVID F. EMERY, Maine
ROBERT K. DORNAN, California
THOMAS B. EVANS, JR., Delaware
PAUL S. TRIBLE, JR., Virginia
CARL L. PERIAN, Chief of Staff
ERNEST J. CORRADO, Chief Counsel
FRANCES STILL, Chief Clerk
W. PATRICK MORRIS, Chief Minority Counsel
SUBCOMMITTEE ON PANAMA CANAL
RALPH H. METCALFE, Illinois, Chairman
ROBERT L. LEGGETT, California GENE SNYDER, Kentucky
DAVID R. BOWEN, Mississippi ROBERT K. DORNAN, California
CARROLL HUBBARD, JR., Kentucky
BO GINN, Georgia PHILII~' E. RUPPE, Michigan
LEO C. ZEFERETTI, New York (ex officio)
TERRENCE W. MODGLIN, Professional Staff
BERNARD TANNENBATJM, Consultan~t
NICHOLAS T. NONNENMACHER, Professional Staff, Minority
(II)
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CONTENTS
CANAL ZONE BIOLOGICAL AREA AUTHORIZATION
Page
Hearing held--March 22, 1977 1
Text of-H.R. 3348 2
Reports from-
General Accounting Office 3
Interior Department 5
Panama Canal Company 6
Smithsonian Institution 8
Statement of-
Challinor, Dr. David, Assistant Secretary for Science, Smithsonian
Institution 11
Jameson, John F., Assistant Secretary for Administration, Smith-
sonian Institution 11
Rand, Dr. A. Stanley, Assistant, Smithsonian Tropical Research
Institute 11
Rubinoff, Dr. Ira, Director, Smithsonian Tropical Research Institute.. 11
Prepared statement 15
Additional material supplied-
Smithsonian Institution:
Contract No. 1, informal translation by the Embassy 49
Cooperative research with universities and other organizations
in foreign countries 76
Current and future research projects conducted by Smithsonian
scientists on Barro Colorado Island 65
Examples of STRI research with applications to resource man-
agement, disease control, wildlife conservation, food produc-
tion, and other areas 53
Fellowships at STRI 61
Future status of Barro Colorado Island 72
Origin of purchases for Barro Colorado Island 69
Papers Published Annually by employees and associates of the
Smithsonian Tropical Research Institute 24
1976 25
1975 36
1974 41
1973 46
Proposed capital projects 22
Questions of Subcommittee answered by Dr. Ira Rubinoff 85
Research projects currently under investigation by visiting
scientists on Barro Colorado Island and anticipated end-
points 63
STRI-Visitor data 57
PROBLEMS OF CANAL ZONE RESIDENTS AND EMPLOYEES
Hearings held-
April 12, 1977 99
April 13, 1977 .. 175
Statement of-
American Federation of Teachers, expanded statement of local 29 - - 336
Anderson, Luis, interpreter, Panama Canal Atlantic Side Dock
Worker's Union 340
President, Local 907, Armed Forces employees Union. 343
Baglien, David, Local 14, American Federation of Government
Employees 345
(III)
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Iv
Statement of-Continued
American Federation of Teachers-Continued Page
Blenman, Samuel H., president, Paraiso Civic Council 126
Boreham, Dr. Melvin, president, Coco Solo-France Field Civic
Council 139
Delgado, Jose L., General Secretary, Panama Canal Atlantic
Side Dock Worker's Union - 340
Drummond, William R., president, AF&GE, Local 1798 206
Fulton, Mrs. Patricia, president, Pacific Civic Council 139
Gaskin, Edward A., assistant regional director, National Mari-
time Union in Latin America and the Caribbean 176
Goidson, Robert S., Vice President, Pacific Region, Local 900,
American Federation of State, County, and Municipal
Employees 185
Gordon, Clarence G., president, Santa Cruz Civic Council,
Canal Zone 127
Graham, Alfred, president, Canal Zone Central Labor Union
and Metal Trades Council 206
Green, Harold B., Jr., president, Gamhoa Civic Council 139
Johnson, Eugene A., president, Congress of Latin American
Civic Councils 124
Kennedy, Mrs. Charlotte, president, Cristobal-Margarita-Brazos
Heights Civic Couneil 139
Lioeanjie, Rene, regional director for the National Maritime
Union in Latin America and the Caribbean 176
Mauge, Saturnin G. president, Local 900, American Federation
of State, County, and Municipal Employees 185
Metcalfe, Hon. Ralph H., a Representative in Congress from
the State of Illincis 123
Morrissey, Captain Joe, vice president, Panama Canal Pilots
Association 363
O'Donnell, James J. president, Local No. 14, American Federation
of Government Employees 345
Parfitt, Harold R., Governor of the Canal Zone, and president
of the Panama Canal Company 100
Sheppard, Ralph, president, American Federation of Teachers,
Local 29 206
Simpkins, Talmage E., executive director of the AFL-CIO
Maritime Committee 176
Sinclair, William H., area director, American Federation of
State, County, and Municipal Employees, AFL-CIO 185
Valentine, Captain R.D., past president, Panama Canal Pilots
Association 363
Williams, Frenando, Panama Canal Atlantic Side Dock Worker's
Union 340
Williams, J. R., president, Panama Canal Pilots Association_ -- 363
Windle, Dale, president, Gatun Civic Council 139
Additional material supplied-
Drummond, William R.:
Articles of the 1972 political constitution instituting a non-
discriminatory system of employment in the Republic of
Panama 251
Chart of Government of Republic of Panama 269 ~
Communist and front organizations and participants 286
Key Communists 270
List of important offices and office holders in the Republic of
Panama 276
Newspaper clippings 245
News releases of the Inter-American Development Bank 288
Public witnesses-March 30, 1977 233
Statement of events (summarized) of activities that led to my
resignation from the Canal Zone Government 217
Statement in response to inquiry of Communist influence in the
Panama labor force 236
The Communist path to power in Panama 260
Gordon, Clarence G.:
Bachelor quarters vacancy bulletin No. 137 377
Family quarters vacancy bulletin No. 37 379
PAGENO="0005"
V
Additional material-Continued
O'Donnell, James J.: Page
Ccurt case-Espinoza et vir v. Farah Manufacturing Co., Inc__ 387
Recommendations of the AFL-CIO Committee on Panama
Canal Treaty negotiations 348
Panama Canal Company:
Assurances for present employees of the Panama Canal/Canal
Zone Government under a new Panama Canal Treaty 103
Sinclair, William H.:
Workers' Buying Power in Major Cities of World 381
Williams, Capt. J. R.:
Treaty position paper statement on early retirement 369
Treaty position paper of Panama Canal Pilots' Association 372
Communications submitted-
Boreham, Dr. Melvin:
Letter of March 23, 1977, to Harold R. Parfitt 152
Davis, Diana R.:
Letter of March11, 1977, to Lt. Gen. D. P. McAuliffe 169
Letter of March 14, 1977, to Hon. Gene Snyder 168
Drummond, Wiffiam R.:
Letter of March 26, 1977, to Gov. Harold R. Parfitt 224
Letter of April 21, 1977, to Gordon M. Frick 227
Letter of April 21, 1977, to William F. Kessler 225
Fulton, Patricia:
Letter of March 11, 1977, to Hon. M. G. Snyder 160
Green, Harold B., Jr. and Mrs. Patricia Fulton: Letter of March 28,
1977, to Harold R. Parfitt 231
Kessler, W. F.:
Letter of May 3, 1977, to William R. Drummond 226
Metcalfe, Ralph H.:
Letter of May 24, 1977, to James J. O'Donnell 382
O'Donnell, James J.:
Letter of April 13, 1977, to Ralph H. Metcalfe.~ - 362
Letter of April 30, 1977, to Hon. Ralph H. Metcalfe 383
Parfitt, H. R.:
Letter of September 8, 1975, to Kenneth H. Hannah 339
Richbourg, Donald B.:
Letter of March 23, 1977, to Wffliam R. Drummond 223
Sheppard, Ralph 0.:
Letter of April 14, 1977, to Representative Ralph Metcalfe~ 335
Sinclair, William H.:
Letter of April 12, 1977, to Hon. Ralph H. Metcalfe 192
Williams, Capt. J. R.:
Letter of April 11, 1977, to Representative Ralph H. Metcalfe_ - __ 367
Letter of April 15, 1977, to Representative Ralph H. Metcalfe_ - -- 371
Letter of May 1, 1977, to Representative Ralph H. Metcalfe 368
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CANAL ZONE BIOLOGICAL AREA AUTHORIZATION
TUESDAY, MARCH 22, 1977
SUBCOMMITTEE ON PANAMA CANAL,
COMMITTEE ON MERCHANT MARINE AND FISHERIES,
U.S. HOUSE OF REPRESENTATIVES,
Washington, D.C.
The Subcommittee met in Room 1334, Longworth Building, begin-
fling at 2:07 p.m., Ralph H. Metcalfe, Chairman of the Subcommit-
tee, presiding.
Mr. METCALFE. The Subcommittee on Panama Canal will come to
order.
Distinguished guests from the Smithsonian Institution, ladies and
gentlemen:
This afternoon the Subcommittee will hear testimony from the
representatives of the Smithsonian Institution on the bill H.R. 3348.
This bill would raise the present annual limit on funds authorized
for Barro Colorado Island in the Canal Zone to $600,000.
The present limit of $350,000, as contained in Title 20 of the U.S.
Code, was legislated in 1965. This Subcommittee has held no hear-
ings on Barro Colorado Island since the 1965 legislation, so this is
the first time in at least twelve years we have had an opportunity
to examine the management and the financial needs of this island,
which is officially called the Canal Zone Biological Area.
In my view, therefore, these are important hearings.
The Senate passed legislation very similar to H.R. 3348 in the
94th Congress. Unfortunately, that Senate-passed legislation was
referred to this Subcommittee during the last month of the delib-
erations of the 94th Congress.
Since no hearings had been conducted on the Canal Zone Biologi-
cal Area by either House or Senate in the 94th or many previous
Congresses, we thought it would be premature to pass legislation
without some public examination of the status of the Island of
Barro Colorado. Thus, we did not act last year. Today is the time for
that public examination which we believe ought to occur before
deliberations on H.R. 3348.
After today's hearing, the Subcommittee will proceed to study
and analyze all the data presented orally by the Smithsonian
Institution as well as all data submitted for the record of the
hearing. We hope to take whatever action is appropriate by May 15
in accordance with the Budget Control Act.
(1)
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2
I want to make it clear that the Subcommittee is proud of the
Canal Zone Biological Area and the personnel who have managed it
over the years. Clearly this area is a focal point for scientists all
over the world who wish to do tropical research. Clearly there has
been very important research which would not have been possible
without the facilities at Barro Colorado Island. I know that the
testimony we receive today will bring out these facts.
At this point I ask unanimous consent that the bill, H.R. 3348,
and such executive agency reports as we have received or will
receive on this matter be inserted in the record.
Are there any objectives?
Hearing none, it is so ordered.
[Bill H.R. 3348 and executive agency reports follow:]
D5THCONGRESS 0
1ST SESSION ~ ~ 3 34~
TN THE HOUSE OF REPRESENTATIVES
FEBRUARY 9, 1977
Mr. METCALFE (by request) introduced the following bill; which was referred
to the Committee on Merchant Marine and Fisheries
A
To aniend the Act of July 2, 1940, as amended, to mciease the
amount authonzed to be appropuated for the Canal Zone
Biological Area
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Con qress assembled,
3 That section 7 of the Act of July 2, 1940 (20 U S C 79e),
4 as amended by Public Law 89-280, be fin ther amended
5 by striking out "$3~50,000," and inserting in lieu thereof
6 "$600,000,".
*I
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3!
COMPTROLLER GENERAL OF THE UNITED STATES
D
B-188652 ~4PR 19 1977
GG7-l 75
The Honorable John M. Murphy
Chairman, Committee on Merchant Marine
and Fisheries
House of Representatives
Dear Mr. Chairman:
* - By le±ter dated March 16, 1977, you requested our
comments on H.R. 3348, a bill to increase the amount
authorized to be appropriated annually for the Canal
-Zone Biological Area from the present limit of $350,000,
established in 1965, to $600,000.
The Canal Zone Biological Area is located in the
Panama Canal Zone on Barro Colorado Island (BCI). It is
part of the Smithsonian Tropical Research Institute (STRI)
which conducts research there and in other tropical areas,
principally in Central and South America. The annual
budget justifications of the Smithsonian do not show BCI
as a separate line item; the amounts requested are included
in the salaries and expenses appropriation justification
under the line item f or STRI.
The Smithsonian does not maintain separate accounting
records for BCI. An informal budget is prepared each year
to show the estimated amounts to be expended for BCI
and a cost finding system is used to relate these costs
to the appropriation authorization limitation. For
fiscal year 1976, this system showed operating costs
of $285,254 for BCI.
In reviewing the costs allocated to BCI for fiscal
year 1976, we noted several problems in determining the
amounts to be charged to the appropriation authorization
limitation. For example, the full amount expended to
install telephone facilities, and for materials, supplies
and contract services to renovate a tramway was not charged
to such limitation. Instead, a prorated amount based on
the estimated useful life of these items was charged.
PAGENO="0010"
4:
Also, no indirect costs--such as a portion of the salary
of the Director and administrative personnel at STRI and
the costs incurred by Smithsonian employees in Washington,
D.C., who provided support services--were charged to this
limitation.
We recommend that the Committee report on this bill
make clear whether the annual appropriation authorization
limitation is intended to include the total obligations
incurred for construction and renovation as well as those
for salaries and expenses, and which, if any, indirect
costs are chargeable to such limitation. We have no special
information on the need for the increase in the authorization.
The enadtment of this bill would not result in any
additional costs by the General Accounting Office.
Since ely yours,
J~t~t2ty Comptroller General
of the United States
PAGENO="0011"
United States Department of the Interior
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20240
AR251g77
Honorable John M. Murphy
thairman, Cc&rnittee on
Murchant Marine arxI Fisheries
House of Pepresentatives
Weshington, D. C. 20515
J~ar Mr. thaixrnan:
Your OonTnittea has requested the views of this Department on
H. R. 3348, a bifl "lb arreed the Act of July 2, 1940, as arrended,
to increase the arrount authorized to be appropriated for the Canal
Zone Biological Area."
The bill does not appear to relate to any matter within the juris-
diction of this Deparbrent or to affect any iratter upon which the
Department weuld be in a position to give helpful information or
advice. Accordingly, we have no carrrent to offer with respect to
the marits of the bifl.
We welazre the opportunity to suhnit recxrrr~rendations on any treasure
where possibly the activities of the Departnent may be involved, or
where its experience may be of value.
The Office of Manageient artS Bedget has advised that there is no
objection to the presentation of this report fran the standpoint
of the Administration's program.
Sincerely,
SE~RETAPY
PAGENO="0012"
6.
CANAL ZONE GOVERNMENP
OFFICE OF THE GOVERNOR
* APR~8~77
Honorable John M. Murphy
Chairman, Committee on Merchant
Marine and Fisheries
House of Representatives
Washington, D.C. 20515
Dear Mr. Murphy:
This is in response to your request of February 16, 1977, for
a report on H. R. 3348, a bill To increase the amount authorized
to be appropriated for the Canal Zone Biological'Area. The bill
would amend the Act of July 2, 1940 (20 U. S. C. 79e), as amended,
by increasing the amount of the annual appropriation from $350, 000
to $600, 000.
The Canal Zone Biological Area (Barro Colorado Island) was
designated as a wildlife preserve and study area in 1923. It was
placed under the administrative control of the Smithsonian Institution
from 1946 until 1966 at which time the Smithsonian Tropical Research
Institute assumed that responsibility. The island has acquired a
worldwide reputation as a tropical field research station at which a
large number of scientific studies are carried out. According to our
agency environmental control personnel, these studies are crucial to
the understanding of changes occurring in tropical areas of the
world. The station is ideally located for continuing research on a
diversity of terrestrial and marine projects.
While the Canal agencies are cognizant of the significant role of
the island in the areas of tropical research and conservation, neither
the Panama Canal Company nor the Canal Zone Government exercises
responsibility for the funding or operation of the Canal Zone Biological
A rea. Consequently~ these agencies have no basis upon which to
comment concerning the necessity for the proposed legislation.
PAGENO="0013"
7.
APR28 1977
Honorable John M. Murphy
The Office of Management and Budget has advised that it has no
objection to the presentation of this report to your committee.
Sincerely yours,
H.R. Parfitt
Governor of the Canal Zone
President, Panama Canal Company
PAGENO="0014"
8~
~0
~ COMMITTEE ~
I~IT ~ AND FI~
SMITHSOXIA~ IXSTITUTIO~
D `1~8
1Z~Y.IL
March 17, 1977
Honorable John°M. Murphy
Chairman
Committee on Merchant Marine and Fisheries
U. S. House of Representatives
Washington, D. C. 20515
Dear Mr. Chairman:
Thank you for your letter of February 16 requesting the
comments of the Smithsonian Institution on H. R. 3348 a bill to
amend the Act of July.2, 1940, as amended, to increase the
amount authorized to be appropriated for the Canal Zone Bio-
logical Area
The Act, as effectuated by Executive Order 8515, established
the Canal Zone Biological Area as an independent unit with its
own Baard of Trustees and an annual appropriation authorization
of up to $10, 000. The Act also established a trust fund within
the U. S. Treasury for the depo sit of future donations to. the facility
and of fees charged to visiting scientists as a means of additional
support. The functions and authority of the Board were transferred
to the Smithsonian Institution by Reorganization Plan No.3 of 1946
and are recited in 20 U. S. C. 79.
The Canal Zone Biological Area, which is essentially
Barro Colorado Island located in Gatun Lake, is now an integral
part of the Smithsonian Tropical Research Institute (STRI). The
activities and programs of STRI, which are focused on tropical
biology, extend to areas throughout Central and South America,
as well as to the Old World tropics, and include facilities in
Panama at Ancon, Galeta, and Naos, and in Cali, Colombia.
The operations of STRIare governed by the general authorities
of the Smithsonian (20 U. S. C. 41 ~j~) as well as that cited
previously.
PAGENO="0015"
9~
The Barro Colorado Island reserve was initially created in
1923 by decree of the Governor of the Canal Zone at the behest and
under the aegis of the Institute for Research in Tropical America,
an organization composed of several independent research institutions,
including the Smithsonian, for the study of tropical flora and fauna.
The cooperating institutions each contributed to its funding and admin-
istration, and by 1940 more than 400 scientific papers had been pub-
lished on the research carried out there. It had become a valuable
educational facility for teachers and students from around the world,
and in order to ensure continued preservation and conservation of the
Island's natural features, as well as adequate funding for research pro-
grams and maintenance of the facility, a more formal entity was deemed
necessary by the cooperating institutions. With the support of several
Government departments that had benefitted from the facility's research
efforts, it then turned to the Congress for assistance, and the Act of
July 2, 1940, ensued. The Act was amended by P. L. 89-280, approved
October 20, 1965, in order to raise the limit on appropriations from
$10, 000 to.$350, 000.
Although current obligations are within the statutory limit (the.
FY'77 budget estimate for STRI is $1,465,000, of which. $327, 000 will
be obligated for activities related to Barro Colorado Island), increasing
costs and needed capital improvements suggest that the limit will be
reached in the near future. Furthermore, the General Accounting
Office has suggested that indirect costs associated with Barro Colorado
be applied to its account. It has not been our past practice to do this.
We have instead chosen to subsume these costs within the general
administrative expenses of STRI as a whole. To apply indirect costs,
as suggested by the General Accounting Office, to operations for FY'77
would exceed the existing limit and, based on current estimates, will
exceed the limit of $600, 000 proposed in H. R. 3348 in the near future,
thus requiring further Congressional action to once more raise the
authorized ceiling.
We would, therefore, recommend that consideration be given
to the possibility of raising the limit to $750, 000 or to removing it
altogether. .
PAGENO="0016"
10
The Office of Management and Budget advises that there
is no objection to the bill or the submission of this report from
the standpoint of the Administration' s program.
Sincerely yours,
S. Dillon Ripley ~ -~
Secretary
Mr. METCALFE. I also ask unanimous consent that additional
material relevant to H.R. 3348 which has been submitted to the
Subcommittee in the last year be inserted in the record.
Are there any objections to that?
Hearing none, it will be so ordered.
[The material was placed in the record files of the subcommittee.]
Mr. METCALFE. The principal witness for the Smithsonian Institu-
tion today will be Dr. Ira Rubinoff, Director of the Smithsonian
Tropical Research Institute, which manages the Canal Zone Biologi-
cal Area.
Accompanying Dr. Rubinoff are Dr. A. Stanley Rand, Assistant
Director of the Tropical Research Institute, Dr. David Challinor,
Assistant Secretary for Science, and Mr. John F. Jameson, Assis-
tant Secretary for Administration of the Smithsonian Institution.
We welcome all of you here today.
I would like to ask who will be the first witness.
Mr. SNYDER. Mr. Chairman?
Mr. METCALFE. I recognize the distinguished minority Member,
Mr. Snyder.
Mr. SNYDER. Thank you, Mr. Chairman.
I want to take this opportunity to welcome Dr. Rubinoff and the
other people from the Smithsonian Institution on behalf of the
minority, and I appreciate this opportunity to learn more about
your operation in the Canal Zone.
It has been a couple of years since I have been in the Canal Zone.
I never really had a good opportunity to learn what the
Smithsonian was doing down there.
One of the questions on the mind of everybody who has any
interest in the Canal Zone is one that I hope you will address
yourself to today, and that is, what will happen to the facility in the
event of a treaty.
The public press has indicated that the eight points of the
Kissinger-Tack Agreement in the negotiations include the idea of
turning the Zone over to the Panamanian government within three
PAGENO="0017"
11
years after the ratification of the treaty and the operation of the
Canal after twenty years.
I hope you can address yourself to that as well as the justification
for the additional expenditure you seek, which, of course, is the
primary purpose for which we have gathered here today.
I know that we will want to scrutinize the latter as well as
looking into the idea of what happens to this facility and our
investment there in the event of a treaty.
We want to look at it probably a little bit more so than usual
because of Mr. Carter's campaign commitments to attempt to go
toward zero base budgeting during his tenure in office, and that
makes us all want to go back and scrutinize the expenditures.
I appreciate the opportunity of being here with you.
I have another meeting at three o'clock, so I will not talk any
longer.
Mr. GINN. Mr. Chairman?
Mr. METCALFE. Mr. Ginn.
Mr. GINN. I only want to join you and Mr. Snyder in welcoming
Dr. Rubinoff and his associates.
Your very fine reputation precedes you and I, like Mr. Synder,
would like to know what would happen to Barro Colorado Island in
the event the treaty that is in the news is consummated.
Mr. Metcalfe. Dr. Rubinoff, do you wish to be the leadoff witness
in this proceeding?
Dr. RUBINOFF. Yes.
STATEMENT OF DR. IRA RUBINOFF, DIRECTOR OF THE
SMITHSONIAN TROPICAL RESEARCH INSTITUTE; ACCOMPA-
NIED BY DR. A. STANLEY RAND, ASSISTANT OF THE
SMITHSONIAN TROPICAL RESEARCH INSTITUTE; DR. DAVID
CHALLINOR, ASSISTANT SECRETARY FOR SCIENCE,
SMITHSONIAN INSTITUTION; AND MR. JOHN F. JAMESON, ASSIS-
TANT SECRETARY FOR ADMINISTRATION, SMITHSONIAN
INSTITUTION
Dr. RUBINOFF. Thank you, Mr. Chairman.
I appreciate the opportunity to appear before you today in sup-
port of H.R. 3348, which would raise the amount authorized to be
appropriated for the Canal Zone Biological Area. The Canal Zone
Biological Area, which is essentially Barro Colorado Island, located
in Gatun Lake in the Canal Zone-it is this (indicating) area in the
center of the lake, the largest island in the lake is for scientific and
administrative reasons, and by means of a process which I shall
describe shortly, an integral part of the Smithsonian Institution's
Tropical Research Institute. An increase in the limit on appropri-
ations authorized is needed in order to continue operating Barro
Colorado as a tropical reserve and research station and to permit a
modest program of reconstruction.
Barro Colorado Island was formed when the Chagres River was
dammed in 1914 to create Gatun Lake during construction of the
Panama Canal. In 1923 a group of botanists, zoologists, and medical
scientists, who had been brought to the Isthmus of Panama by
Colonel William A. Gorgas to investigate diseases such as yellow
95-549 0 - 77 - 2
PAGENO="0018"
12
fever, malaria, and the plague, petitioned the Governor of the Canal
Zone to reserve an area in the Zone for scientific research. The
petition was successful, and the Governor offered the largest island
in Gatun Lake to the scientists on which a 6,000 acre reserve and
research station was established. Barro Colorado Island, as it was
called, was put under the general supervision of the Institute for
Research in Tropical America, a unit of the National Research
Council, and the first Resident Naturalist was Dr. James Zetek, a
specialist on the Anopheles mosquito, who combined administration
of the reserve with his continuing work for the Department of
Agriculture.
The expenses of the station in the twenties and thirties were paid
by subscriptions from a number of North American universities and
institutions; fees from visiting scientists; and the generosity of Dr.
Thomas Barbor, the Director of the Museum of Comparative
Zoology at Harvard, who had provided the initial funds to buy out
the three farmers who had settled on the island before it became a
reserve.
By 1940 Barro Colorado had acquired a worldwide reputation as a
tropical field station, and publications about its flora and fauna had
made it one of the best known pieces of tropical real estate on
earth, which, in turn, made it valuable for further research. In that
year, Congress authorized the President to establish the Canal Zone
Biological Area as a separate agency under a board of directors that
included the Secretaries of War, Agriculture, and Interior; the
Secretary of the Smithsonian Institution; the President of the
National Academy of Sciences; and three eminent biologists.
The Act of July 2, 1940 sought to preserve and conserve the
natural featurs of the Island in order to provide an undisturbed
place for scientific research and authorized $10,000 for the adminis-
tration of the Act and the maintenance of a laboratory and other
facilities. Under Reorganization Plan No. 3 of 1946 the functions for
the Board of Directors of the Canal Zone Biological Area were
transferred to the Smithsonian Institution.
The tropics provide unusually favorable opportunities for studies
of a variety of subjects and problems of both theoretical interest
and practical importance. Generally, these are most productively
investigated by comparative methods. To utilize effectively the rich
scientific resource represented by Barro Colorado Island-a moist
lowland habitat-and to provide an appropriate structure within
which to pursue comparative studies of other regions and habitats
such as highlands, grasslands, mangrove, coral reefs, and islands, in
the Old World as well as the New, the Board of Regents of the
Smithsonian Institution created the Smithsonian Tropical Research
Institute on April 18, 1966.
It was entrusted with the administration of the Canal Zone
Biological Area; the development and maintenance of marine labo-
ratories on both the Atlantic and Pacific Coasts of Panama; and the
encouragement and support of research throughout the tropics.
It is important to understand the tropics for a variety of reasons,
among which is the fact that this region cotains the most rapidly
growing segment of the human population, and tropical peoples are
now changing their environment at an unprecedented rate. We
PAGENO="0019"
13
must understand the complex ecological interactions of tropical
forests and coral reefs if we are to mitigate man's increasing impact
on these unique habitats and preserve a reservoir of genetic diver-
sity for future generations.
In addition, the tropics contain more species of animals and
plants than any other region on earth. For example, there are more
species of birds in Panama than in all of the United States and
Canada. Indeed, most of the birds inhabiting North America in the
summer are migrants from the tropics, merely using the north for
nesting.
The fauna and flora of Barro Colorado Island are particulary rich
in species, and typical of what similar habitats used to be elsewhere
in Panama. There are approximately 1,300 species of vascular
plants, and certain species of mammals and birds that are hunted
elsewhere are more tame and abundant on Barro Colorado Island.
There are about 465 species of land vertebrates recorded from the
Island; 310 species of birds (some 200 species breed there), 65 species
of mammals, 58 species of reptiles, and 32 species of amphibians.
Several hundred people from the United States and foreign uni-
versities and research institutes visit Barro Colorado Island each
year, involved in one way or another with the Smithsonian Tropical
Research Institute's major functions: research, education, and
conservation.
Most research on Barro Colorado is done by biologists interested
in ecology and in the behavior of the island's plants and animals.
However, work is also done by physiologists, anthropologists, psy-
chologists, geologists, geographers, and geneticists.
Barro Colorado Island is attractive to research workers because of
the fifty-year accumulation of information about a protected forest
preserve that stands a reasonable chance of remaining undisturbed
forest; living conditions that are healthful and moderately comfort-
able; and a community of biologists with which to exchange ideas.
The Smithsonian supports the basic maintenance and operating
costs of the station, but researchers pay their own living expenses
and a laboratory fee. Support for the research itself comes from
many sources, such as Smithsonian fellowships or grants from the
National Science Foundation, National Institutes of Health, and
private foundations.
In 1965 the level of appropriations authorized for the Island was
raised from the original $10,000 to $350,000 and we are now seeking
a further increase essentially to keep pace with inflation and to
provide for some necessary capital improvements on Barro
Colorado.
Over the past twelve years costs such as fuel, food, utilities, and
salaries associated with Barro Colorado Island have increased. As
an example, salaries of launch operators, cooks, and game wardens
have increased in a range between 88 and 150 percent since 1965.
Furthermore, the introduction of game fish into Gatun Lake has
dramatically increased the use of the area for recreational pur-
poses. The increase in population pressure has required STRI to
employ additional game wardens to protect Barro Colorado Island
against poaching and trespassing.
With respect to capital improvements, there is a need to gradu-
PAGENO="0020"
14
ally convert the existing wooden structures on Barro Colorado to
cement construction in order to provide more sanitary and easily
maintained accommodations to preclude periodic replacement
caused by termite and dry rot damage. Additionally, there has been
a significant trend toward longer term investigations by scientists
who need to study variations between the wet and dry seasons and
environmental differences from one year to another. Thus, housing
more substantial than that which serves scientists on short-term
studies, unaccompanied by their families, is required.
A listing of capital projects proposed through fiscal year 1982 is
attached to this statement and I shall be happy to discuss these
inwhatever detail the Subcommittee may require.
In the past it has not been our practice to ascribe to Barro
Colorado Island any indirect costs, electing instead to subsume
these within the general administrative expenses of STRI as a
whole. However, the General Accounting Office has recently sug-
gested that such costs be appropriately attributed.
While we are certainly willing to accet that suggestion, we have
not yet determined a methodology for doing so. However, applica-
tion to the current year's operations will probably exceed the
existing limitation on appropriations, and will exceed the limit of
$600,000 in H.R. 3348 in the near future.
We would, therefore, respectfully recommend that the Subcom-
mittee consider the possibility of a limit on the order of $750,000 or
the prospect of removing the limit altogether in view of Barro
Colorado's integral relationship to STRI.
In closing, I would like to comment briefly on a matter of obvious
concern, the future status of Barro Colorado Island in light of the
current treaty negotiations. It is our hope that, should a treaty be
concluded placing the Canal Zone under the responsibility of the
government of Panama, the Island would remain a reserve under
Smithsonian Institution custodianship and supervision. Its existing
status could continue under international agreement and mitht also
be protected under the terms of a contract recently signed by the
Smithsonian Tropical Research Institute and the Government of
Panama which gives to STRI official recognition and a number of
specific benefits such as tax and customs exemptions for scientific
activities carried out in the Republic Panama.
Mr. Chairman, attached to my statement is a list of proposed
capital projects and expenditures for Barro Colorado Island for
fiscal year 1974 projected through 1982, which I would like to
include in the record with your permission.
Mr. METcALFE. It will be done, unless there are objections.
[The complete statement of Dr. Rubinoff, together with attach-
ments follows:]
PAGENO="0021"
15
STATEMENT O~ DR. IRA RUBINOFF, DIRECTOR OF THE SMITHSONIAN
TROPICAL RESEARCH INSTITUTE
Thank you, Mr. Chairman. .. ,.~. .~ .
I appreciate the Qpportumty to appear befqre yo~.i today in support
of H. R~3348 which w~uld raise.the amount authorized to be appropriated..
for the Canal Zone Bsological Area The Canal Zone Biological Area
which is essentially ~Barro..Coiorado Island,. lo~a~ted in Gatun La~e i~ the~;
Canal Zone is for scientific1and adminietrative reasons and by means of
a process which I shah deac~ribe ~hórtiy an integral part of the Smithsonian
Institution's Tropical Research Institute An increase in the hmrt on
appropriations authorized .~1s needed in orde,r ~o~.cp~itinpè operating -Bairo -
Colorado as a tropica~ reserve and research station atid to permit ~ modest
program of reco1~sfruct~dzIT,. . - *- - .- -
Bai'ro Colorado Island was formed when the Chagres River was
dammed in 1914 to create Gatun Lake during construction of ~qie Pänama
Canal. In 19Z3 a gi~ddpofbotanists, zbolbgists, and medical scte~it~sts,
who had beenbroü~ht tótl~e I~ththue of Panama by~Colonel WiUiamA.
Gorgas to investigate diseao~s such at(yell.w fever, `malaria, and4h~ plague,
petltiQned the Governor of the Canal Zone to reser~re an area in the Zone
for scientific research. Thépetition was successful, and the Giovernor
pffei~d the largest island in Gatun Lake to the sci~ntists on which a 6, 000
acre reserve and research station was established. Barro Colorado
Island, as it was called, wa~ put under the general supervision of the
PAGENO="0022"
16
Institute for Research in Tropical America, and the first Resident
Naturalist was Dr. James Zetek, a specialist on the Anopheles
mosquito, who combined administration of the reserve with his
continuing work for the Department of Agriculture. The expenses of
the station in the twenties and thirties were paid by subscriptions from
a number of North American universities and institutions; fees from
visiting scientists; and the generosity of Dr. Thomas Barbour, the
Director of the Museum of Comparative Zoology at Harvard, who had
provided the initial funds to buy out the three farmers settled on the
island before it became a reserve.
By 1940 Barro Colorado had acquired a worldwide reputation as
a tropical field station, and publications about its flora and fauna had
made it one of the best known pieces of tropical real estate on earth, which,
in turn, made it valuable for further research. In that year Congress
authorized the President to establish the Canal Zone Biological Area
as a separate agency under a board of directo~s that included the Secretaries
of War, Agriculture, and Interior; the Secretary of the Smithsonian
Institution; the President of the National Academy of Sciences; and three
eminent biologists. The Act of July 2, 1940 sought to preserve and
conserve the natural features of the Island in order to provide an undisturbed p1ace~
for scientific research and authorized $10, 000 for the administration of
the Act and the maintenance of a laboratory and other facilities. Under
Reorganization Plan No. 3 of 1946 the functions of the Board of Directors
of the Canal Zone Biological Area were transferred to the Smithsonian
Institution.
PAGENO="0023"
17
The tropics provide unusually favorable opportunities for studies
of a variety of subjects and problems of both theoretical interest and practical
importance. Generally, these are most productively investigated by com-
parative methods. To utilize effectively the rich scientific resource rep-
resented by Barro Colorado Island- -a moist lowland habitat - -
and to provide an appropriate structure within which to pursue
comparative studies of other regions and habitats such as highlands,
grasslands, mangrove, coral reefs, and islands, in the
Old World as well as the New, the Board of Regents of the Smithsonian
Institution created the Smithsonian Tropical Research Institute on April 18,
1966. It was entrusted with the administration of theCanal Zone Biological
Area; the development and maintenance of marine laboratories on both the
Atlantic and Pacific Coasts of Panama; and the encouragement and support
of research throughout the tropics.
It is important to understand the tropics for a variety of reasons,
among which is the fact that the region contains the most rapidly growing
segment of the human population, and tropical peoples are now changing
their environment at an unprecedented rate. We must understand the complex
ecological interations of tropical forests and coral reefs if we are to mitigate
man's increasing impact on these unique habitats and preserve a reservoir
of genetic diversity for future generations. In addition, the tropics contain
more species of animals and plants than any other region on earth. For
example, there are more species of birds in Panama than in all of the
United States and Canada. Indeed, most of the birds~ inhabiting North
America in the summer are migrants from the tropics, merely using
the north for nesting.
PAGENO="0024"
18
The fauna an'd flora of Barro Colorado are particularly rich in
species, and typical of what similar habitats used to be elsewhere in Panama.
There are approximately 1, 300 species of vascular plants, and certain species
of mammals and birds that are hunted elsewhere are more tame and abundant
on Barro Colorado Island. There are about 465 species of land vertebrates
recorded from Barro Colorado; 310 species of birds (some 200 species
breed there), 65 species of mammals, 58 species of reptiles, and 32 species
of amphibians. Invertebrates are present in a proportional variety.
Several hundred people from the United States and foreign universities
and research institutes visit Barro Colorado Island each year, involved in
one way or another with the Smithsonian Tropical Research Institute's major
functions: research, education, and conservation.
Most research on Barro Colorado is done by biologists interested
in ecology and in the behavior of the island's plants and animals. However,
work is also done by physiologists, anthropologists, psychologists, geologists,
geographers, and geneticists.
Research currently in progress can be arranged under topics
such as social behavior, including communication, sociobiology, and
social organization; population ecology, including population fluctuations
and control mechanisms; forest function and structure, including phenology,
regrowth, primary productivity, and nutrient cycling; and complex inter-
specific relationships which include coevolution of plants and animals;
predato r-prey, parasite -ho st, and herbivore-plant interactions; pollination
and seed-dispersal systems; and competition and resource partitioning
between and within systems.
PAGENO="0025"
19
Some studieshave continued for more than a decade, conducted
either by staff scientists or by scientists from elsewhere who visit the
island repeatedly. Much research is done on a long-term basis by scientists
who come for a year or two, live on the island, and devote full-time to
their research. These are usually graduate students working on doctoral
theses, recent graduates doing postdoctoral studies, or senior scientists
on sabbatical leave. Short-term scientists who stay a week to three months
also play an important role. They may be doing a limited research project;
part of a project, much of which is done elsewhere; or a pilot study for
a long-term project. Visitors who stay only a day or so are seldom
able to do research, but are able to learn enough about the island to plan
a return visit of longer duration.
Barro Colorado Island is attractive to research workers because
of the fifty-year accumulation of information about a protectedforest preserve
that stands a reasonable chance of remaining undisturbed; the juxtaposition
of modern laboratory facilities and undisturbed forest; living conditions
that are healthful and moderately comfortable; and a community of
biologists with which to exchange ideas.
The Smithsonian supports the basic maintenance and operating
costs of the station, but researchers pay their own living expenses and a
laboratory fee. Support for the research itself comes from many sources,
such as Smithsonian fellowships or grants from the National Science Foundation,
National Institutes of Health, and private foundations.
PAGENO="0026"
20
In 1965 the level of appropriations authorized for the Island was
raised from the original $10, 000 to $350, 000, and we are now seeking
a further increase essentially to keep pace with inflation and to provide
for some necessary capital improvements on Barro Colorado.
Over the past twelve years costs such as fuel, food, utilities,
and salaries associated with Barro Colorado Island have increased. As
an example, salaries of launch operators, cooks, and game wardens
have increased in a range between 88 and 150% since 1965. Furthermore,
the introduction of game fish into Gatun Lake has dramatically increased
the use of the area for recreational purposes. The increase in population
pressure has required STRI to employ additional game wardens to protect
Barro Colorado Island against poaching and trespassing.
With respect to capital improvements, there is a need to gradually
convert the existing wooden structures on Barro Colorado to cement
construction in order to provide more sanitary and easily maintained
accommodations and to preclude periodic replacement caused by termite
and dry rot damage. Additionally, there has been a significant trend
toward longer term investigations on Barro Colorado Island by scientists
who need to study variations between the wet and dry seasons and environ-
mental differences from one year to another. Thus, housing more substantial
than that which serves scientists on short-term studies, unaccompanied
by their families, is required.
A listing of capital projects proposed through fiscal year 1982
* is attached ~o ttiis statement and I shall be happy to discuss these in
whatever detail the subconirnittee may requIre.
PAGENO="0027"
21
In the past it has not been our practice to ascribe to Barro Colorado
Island any indirect costs, electing instead to subsume these within the
general administrative expenses of STRI as a whole. However, the General
Accounting Office has recently suggested that such costs be appropriately
attributed. While we are certainly willing to accept that suggestion, we
have not yet determined a methodology for doing so. However, application
to the current year's operations will probably exceed the existing limitation
on appropriations, and will exceed the limit of $600, 000 proposed in H. R. 3348
in the near future.
We would, therefore, respectfully recommend that the subcommittee
consider the possibility of a limit on the order of $750, 000 or the prospect
ofremoving the limit altogether in view of Barro Colorado's integral
relationship to STRI.
In closing, I would like to comment briefly on a matter of obvious
concern, the future status of Barro Colorado Island in light of the current
treaty negotiations. It is our hope that, should a treaty be concluded
placing the Canal Zone under the aegis of the Government of Panama,
the island would remain a reserve under Smithsonian Institution custodian-
ship and supervision. Its existing status could continue under international
agreement and might also be protected under the terms of a
contract recently signed by the Smithsonian Tropical Research Institute
PAGENO="0028"
22
and the Government of Panama which gives to STRI official recognition and
a number of specific benefits such as tax and customs exemptions for
scientific activities carried out in the Republic of Panama.
This concludes my statement, Mr. Chairman, but I would
welcome the opportunity to respond to any questions you may have.
PROPOSEDCAPi2P~L PR03~CTS
197L Thst ation of ecergency generaor
1975 Penovation of nain laboratory building
Reconstr~iction of boathczise and pier
1976 Tra~ay. reuo~ration~ This is a winch dran cart.
to piU ~xpplies fran t~e lake 1eiré]~to the top
o~ the hill. It re~1acès a systera built in 1927 -
which is now unsafe. Phase I .. -..
Installation of a telephone :systan to replace
present unreLaola rad_o sjsten
1977 Tra~~ay re~ovation. Phase II *. 9,976
Coust. of Puel. Storage area. 1,600
* Conat. of Silberglied iu~ect. : 2,500
Z~enode1 lower honse 1,500
* Rebuild carpentry storage area 2,000
3arberhonse .1 1,500
Kitchen renovation .. 1,500
* ~4A Eouse- -.~ . *. 500
Haskins house *:. *. * . ** . _i22
ira Renovation of ~atroc.n~o's hct..se
Renovation of Vatola a house
1979. Replicenent of dornitory ~ui1t in l92~.
1930 Replacenent of dining ha1~. and kitchen facilities
with nore nadern sanitary facilities
19.31 Replacenent of ~rent.septic~tär.k sewage s~rstan
with nodern non-'pollating sanitary treatnent facility
* Conpletitiou of renodeling of laboratory building
Construction o~ new long-tern staff scientist residence
l~32 Reconstruction of atiirna]. holding facilities
Construction of plant grcw~h facilities
Construction of forest canop~ access towers and wa].kway
10,000.
* 28,000.
17,0.
* ~,C0p
22,000
2,000
15,000
L25,000
169,500
50,C00
35,000
35,000
35,000
20,000
25,000
PAGENO="0029"
23
EXPENDITURES FOR BARRO COLORADO ISLAND
FY74FY82 .
OPERATING (1) :. CAPITAL . SOURCE OF .
EXPENSES . PROJECTS ~FUNDS_ TOTAL
~ 74 - *:$221~OO0 $ io,00G- s & s : $. 231,000
FT 75 $ 235,000 $ 45,000 S & E $ 280,000
FT 76 $ 277,000. $ 67,000. S & E $ 344,000
FT 77 $ 3O5,000 $ 22,000 S & E $ 327,000
FT 78 $ 335 170 $ 17 000 R & ~ $ 352 000
PT 79 $ 3o9 000 $ 125 000 R & ~ $ 494 000
P~T 80 $ 405 500 $ 169 500 R 6. R $ 57~ 000
FT 81 $446,000 $ 120,OÔO S & E/R& R $ 366,000
~ 82 --$ 491,Ô00.. $ 80,000 S & E $ 571,00O
(1) Actual )figures-~up toFY76 from ther~e we assuae a± 101 iccrezaeot over
f3'~ nreviou~ year
Dr. RUBINOFF. I would also like to include our brochure on STRI;
a statement on applied STRI research; charts on vistors to BCI and
STRI, together with data on States, universities and organizations;
a publications list for 1960-76; a copy of the contract between the
government of Panama and STRI; a list of current research projects
by visiting scientists; and a list of current projects by Smithsonian
scientists.
The brochure, together with some pictures, the statement on
applied research, and some visitor data have been supplied sepa-
rately to members of the Subcommittee for their consideration and
review.
This concludes my statement, Mr. Chairman, but I welcome the
opportunity to respond to any questions that you may have.
Mr. Metcalfe. If there are no objections, then this additional
material would be included in the record as so requested.
Not hearing objections, it is so ordered.
[The brochure on STRI was placed in the record files of the
Subcommittee.]
[The other information just referred to follows:]
PAGENO="0030"
24
PAPERS PUBLISHED ANNUALLY BY EMPLOYEESAND ASSOCIATES
OF TIRE SMITHSONIAN TROPICAL RESEARCH INSTITUTE
Attached is a bibliography of publications based upon the work of
the staff, associates, and visiting scientists at th~ Smithsonian
Tropical Research Institute. Those related to work done on Barro
Colorado Island are indicated in the left hand margin by S (STRI staff
scientist) and A (STRI associate). The latter includes a variety of
affiliations such as pre- and post-doctoral fellows receiving support
from the Smithsonian Institution.
PAGENO="0031"
25
* STRI PUBLICATIONS 1976
Abele, La~rauce G~. "Co~arative Species Richness and Constant Eavirca-
nents; Coral-Associated Dacapod Cr~stacean3." Science, voluo 192,
n~.ber 4238 (1976) ,pagas 461-463.
~be1e, Lawrence G., and Wendel]..K. Patton. "The Size of Coral Heads and
the Cot it~:3io1ogy of Associated Decapod Cr~scaceans." Journal of
~ o2ranhy vo1um~ 1, ~uther1 (197~), pages 33-47.
A~frews, Robin M. "Growth Rate in Island and Naimlond Artoline lizards."
-. * ~eia,nu~er 3 (1976), pages 477-632.
-`.rosanena ~1 Dalva H ~thsorca6n de Rad~.ocarboro en el Golfo de Panan~
Theb~S Ftdac~m L~..zeimadad ae Bogoc~ Jor;a aae~ Tozarto Pac~.1tad
da Lenc.as eel ~ l97~ ~`
Bertsth, Rans. "Distributional and Anatonical CbsavntionS of Berthalla
* ~a (O?ist~obr~chia: Notaspidea) -:` ::attil, vcl~e 89 (1973),
pages 12-.--~.26
______ "?~ew Data on~7ca callista (Gascropoda: Capulidac) ." * The Velicrer,
~o1t~e 18, n~bar 1: (1973), pages 99-ICO. * -- * * -
* Birkeland, ~ar1es, Anada A. Reiner, and Joyce Reds~k~ Young. "Survey of
Narine Cocmi.~itias in Panama and ~oerinenrs ~ith 0i1" Ecolo~ica1
Research Series, E?A-600/3-76-023, 1976, 177 pages.
3onaccorso, F~nk 3. "Zoraging and Reprcdrct~:a Ecology in a Counity of
Bats in Paziana." Thesis, University of Florida, Gaine~vi1le, 1973.
3ovden, Thomas C. "~uc:arf1y Pziz~abiiity nrd ~inicry: perinen:s ~:ith
`*1; ~2~5S 3-3~.
PAGENO="0032"
26
Ca~paneUa, Paul J. "The Evolution of ~Lating Syste~ in Tanperato Zone
Dragonflies (Odonata: Anisdptera) I1:Libellula luctocsa (Bu~nister~."
3~havaour voitne 54 nunoer 4 (197~) pages 278-310
c~:<~, Richard. ~E1 Honbre ~ .]a flerra: an ~1 Paztari hinr~.co.~"
- Revista Nacional de Cultura, nunber 2 (1976), pages l7-3S.~
Cr~at, Thonas B. - `Placourtiacaaa Net to* ?anana: Casearia ~nd Xvlosna.."
4.nna_s o Jie lissouri So .niccl Ga'den~ vol.ne ol nunoar 2 (1975)
pages 434-490.------ -
______ "Pbenoiogical Behavior of Habit and Hab±.tat Classes on Barro
Coloaco Islano (Panana Cana]. Zone) B.o o~ic._ !olLne 7 nunbar 4
(1975) nagea 270-277
_____ "A Raccnsideratinnof Trichilia o (A. J~ss.) C.DC.; (Meliaceas)....-
- ~~na23 of -the hissouri Botanicai~Ga~den, volua 62, nuber 2 (1975),
pages 4?1-49-5.
Daler, Robert 1. "It Grove iJ~ in the Tress; 2e5117 I Does." Maria
Seib~i Botanical Garien Bulletin, volune 2 (1975), nagea 22-23.
______ "El G~ne:o Nidana." 0r~uidaa (Nan.), vol'.e 5 (1975), pages
235-239.
`~ otas Soore `onenc1atur~s de las 0'guidfceas V 0rgu~dea
ia*.voiunA5, nunherS (1975), oages 1~3-146. : -
______* "The ~se of Pollinaria in Orchid Systen~cics." ifl Tires Sy-noosium
on the Scientific Asoects of Orchids. Southfield, Nichizan, edited by
H. Harry Sznan: and Janes Wecple. Th~iversit7 of Detroi, 1976.
______* -~ `!Jacquin nanes-again.' T~::o~, Voi~Ine 2~, nunber 5/6 (1975),
psgas 6-~7-ó5O.
PAGENO="0033"
27
______ "Proposal for the Conservation of the Generic Name 1779 Oncidium
Swartz (Orchjdaceae) wit1~ a Conserved Type Species, Oncidium altissiumum....
Sw.".~Ta~on,vo1ume 24~number5/6 (1975), pages 692-693...
______ Pronosa]. for the Conservation of t1~e Generic Name 1393b
?hragnipedjun Ro].fe (1896) (Orchidaceaa), against Uropedium Liadley
(i8qo) T~.on i,olume 24 nunoer 5/ (1975) nages 691-692
The~nard \ary Jane ~Iest Eori Sociobiology (A review) Qua~te~1~/
P~eview of Biology; volume. 51, number 1 (1975), pages .8992..
______ "Estudios da ins Avispas Socialas (Hynenoptera, Vespidas) dcl
Valle dcl Cauca. I. ~ Objetivos, »=~ftodos y Notes para Pacilitar la
Eden _~_cati6n de Es~ecies Canines Cesaedesa volume 4 (1975)
pages 243-257. -- . -
The±ard, William G.. "The Ecologyjand Behavior of a SubsocialPentetomid
3uz aria Tvo.Scelionid T~3p5: Strategy and Coumnastrategy in a East
and f.:s !ar~ites~" Snitheonian Cantributicrs to Zoo1ogy~, number 205
(1973).
______ "Photography of Orb Webs in. the Field." Builatin of the British
Arachmologice.i Society, -voluma 3 (1976), pages 200-204.
Gliricz, Z. M.., and Biesiadka, B. "Pelagic Water Hites (Hydracarina) arid
Their Effedt on the-Plankton Co~nunity :~fl ~ Neonropical Han~Hade Lake."
Azc»=ii~ fuer Hydrobiologie, volume 76,.number'l (1975), pages 63-86.
~ Peter W. "A New Sha11ow-~acer Serolid (Isopoda: Flabellifara) from
the Pa.:ific Coast of Panama.' Jou~a1 of ~atura1 Eis~orV, volume 10;
2umDa~ 1 (1976), pages 7-16.
95449 0 - 77 - 3
PAGENO="0034"
28
______ "The Coral. Reef Cou~munity." Encyclopedia Britannica, Yearbook of
Science: and the Future, 1976, pages 202-219.
Go~s, R. D. "Fungi of. Bar:o Colorado Island: New and Interesting
i~7phOn7Cate5." Canadian Journal of 3o~y, volune 53, nunber 24 (1975),
?a~S 2927-2932.
Gore, R~bsrtH. "Ps~rolistheszacaeHaig,.19GB (Crustacea, Decapoda,
?orcellanidae): TheDeveiopment of La~as in the Laborato~."- Pccific
S:iance, voluna 29, nu~er 2 (1975), cages 181-196.
Gorsn, George C., lung J. Kin and Robarra Rubi~off. `Genetic Relationships
of Three Species of Bat~ivgobius fron the Atlantic and. Pacific Sides of
?anana." Co~eia, nunber 2 (1~76), pages 361-364.
G:1:an, Jeffrey 3~T "Respiratory Adaptations of !arins Air-Breathing Fishes."
?.ascf.ration of A~ohibious Vertebrates, edited by G. M. Eughes. New
Acadanic Press, 1976.
______- "ZenogloBin Concentrations of Air-Breathing Fishes." ~\aierican
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STRI PUBLICATIONS 1975
Abele, Lawrence G. The macruran decapod Crustac~a of Malpelo Island.
S~ithsonjan Contributions to Zoolo~r l76:~9-85.
Bertscb, Hans. Additional data for two dorid nudibre.nchs fron the
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Birkeisnd, Charles, David L. Meyer, James P. Stanes and Caryl L. Buford,
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A Bonaccorso, Frank J. F3raging and renroductive cco1o~r in a conzunity
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A Croat, Thomas B. and Phi1i~ Busey. Geographical affinities of the Barro
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Eberhard, William 0. The ecology and behavior of a s'fosocial pentatomi'I
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A Haines, Bruce. Imuact of leaf-cutting ants on vegetation development
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A Karr, James R. and Frances C. James. Eco-morpho~.ogica]. configurations
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38
A. Knight, Dennis H. A pb'tosociological analysis of species-rich tropical.
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A Milton, Katharine. Urine-rubbing in the mantled bowler monkey Alouatta
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A Moser, Don. Barro Colorado is a Noah's ark in the rain forest.
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______ George C. Gornan and William N. Rand. Natural history,
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Reiner, Roger and Anada A. Reixner. Chemical control of feeding in four
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A Sexton; Owen J. Black vultures feeding on iguana eggs in Panama.
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Smith, Alan P. Altitudinal seed `~cotZrpes in the Venez~ie1an Andes.
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(Co~positae) of the Andean paramo. Biotropica 7:28l~_286.
______* Response of Dlants of an Andean para'so species to an artificial
vet season. Bulletin o~ the Torrey- Botanical Club l02:28~.3~.
S Smith, Neal G. "Spshing noise": biological significance of its
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Todd, Eric S. Vertical movements and development of the* prolarvac of~*
the eleotrid fish Dorviitator latifrons. Copeia 1975 :56!4_568.
Warner, Robert B. The adaptive signifficance of s~quentia1. hermaphro-
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Wolda, Henk. Ecosystem of Malpelo Island. Smithsonian Contributions
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Zaret, Thomas N. and W. Charles Kerfoot Fish predation on Bosmina
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PAGENO="0047"
41
STRI PUBLICATIONS 1974
Thele, Lawrence C. "A new species of Sesanna, S. (Holometopus) Rzthinofforwn
from the Pacific coast of Panama (Crustacea, Decapoda, Grapsidae)."
Proceedings of the Biological Society of Washington, volume 86,
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__________ "Taxonomy, distribution and ecology of the genus Seeasma,
(Crustacea, Decapoda, Grapsidae), in eastern North America, with special
reference to Florida". Americon Midland Naturalist, volume 90, number 2
(1973), pages 375-386.
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Ecology, volume 55, number 1 (1974), pages 156-161.
* Abele, Lawrence C. and Robert H. Core. "Selection of a lectotype for
Megalobrachiwn granuliferun Stimpson, 1958, (Decapoda, Forcellanidne)."
C'rustaceana, volume 25, number 1 (1973), pages 105-106.
Abele, Lawrence G., Nichael H. Robinson and Barbara Robinson. "Observations
on sound production by two species of crabs from Panama (Decapoda,
* Gecarcinidae and Pseudothelphusidae)." C'rustacewza, volume 25,
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Bohlke, James H. and John E. McCosker.. "Two additional West Atlantic gohies
(Genus Gobiosoma) that remqve ectoparasites from other fishes."
Copsia, volume 3 (1973), pages 609-610.
Buckman, Nancy S. and John C. Ogden. "Territorial behavior of the striped
parrotfish Scacus croicensis Bloch (Scaridae)." Ecology., volume 54,
number 6(1973), pages 1377-1382.
S Dressler, Robert L. "Elleanthus c~itatus - A name that must be changed, or
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Dressler, Robert L. and Eric Hagsater. "Dna govenia nueva del Estado de
Jalisco: Govenia tequilana." Orquidea (Mar.), volume 3 (1973), pages
175-183.
* Dressler, Robert L. and Glenn E. Pollard. "Una nueva Encyclia del sureste
de N~xico." Oi'quidea (K&c.), volume 3 (1973), pages 272-279.
Dresaler, Robert L. "Notes sobre el gdnero Encyciia en Hfxico." Crquidea (Mda).
* volume 3, number 10 (1974), pages 306-313.
A Elton, Charles S. "The structure of invertebrate populations inside neotropical
rain forest." Journal of Aniral Ecology, volume 42, number 1 (1973),
pages 55-104.
PAGENO="0048"
42
A Fleming, Theodore H. "Numbers of meumal species in North and Central American
* forest comiminities." Ecology, volume 54, number 3 (1973), pages 555-563.
A Gliwicz, J. "A short characteristics of a population of Proechinrys semispi-
* *nOB8US (Tomes, 1860) - a rodent species of the tropical rain forest."
BUZZ. de ia Acad. Polonaise de Sciences, 5cr. Science Biology, ci. 2,
volume 2l,'tiUmbet 6 (1973), pages 413-418.
Glynn,, Peter William. "Ecology of a Caribbean coral reef. The Poritès reef-.
* flat biotope: Part I. Neteorology and hydrography." Marine Biology,
votume 20 (1973), pages 297-318. .
__________ "Ecology of a Caribbean coral. reef. The Porites reef-flat
15d~otope: Part II. Plankton counitywith evidence for depletion."
Marvne Bwiogy volume 22 number 1 (1973) pages 1-21
,~lyen, ?eter W. and Robert H. Stewart. "Distribution of coral reefs in the
Pearl Islands (Gulf of Panama> in relation to thermal conditions."
~j~pgythi4 Ocecmogrcrphy, volume 18, number 3 (1973), pages 367-379.
Gore, Robert H. and Lawrence C. Abele. "Three new~ species of poráe1làni~ crabs
(Crustacea, Decapoda, Porcellanidáé) fron the Bay of Panama and adjacent
Caribbean waters." Bulletin of Marine Science, volume 23, number 3 (1973),
pages 559-573. . .: ... . . . .
Graham, Jeffrey B. "Heat exchange in the black skipjack, and the blood-gas
relationship of warm-bodied fishes." Proceedings of the IVatural Academy
of Science, volume 70, number 7 (1973), pages 1964-1967.
__________ "Terrestrial life of the amphibious fish Mnierpes rnacrocephàius. ~
Marine Biology, volume 23 (1973), pages 83-91.
A Hespenheide, Henry A. "A novel mimicry complex: beetle and flies." Joui'haV
of Entomology, volume 48, number 1 (1973), pages 49-56.
Kropach, Chain and John D. Soule. "An unusual association between an ectoproct
and a sea snake." Herpetologica, volume 29, number 1 (1973), pages 17-19.
Lang, Judith. "Interspecific aggression by scleractinian corals. 2. Why the
race is not only to the swift." Bulletin of Marine Science, volume 23,
number 2 (1973), pages 260-279.
Lehman, John T. and James W. Porter. "Chemical activation of feeding in the
Caribbean reef-building coral Montastrea cavernosa." Biological BuUe*liz,
volume 145 (1973), pages 140-149.
S Leigh, Egbert C. "The evolution of mutation rates." Genetics SuppZ~msnt,
volume 73 (1973), pages 1-18.
PAGENO="0049"
43
~ Olga F. "Current research: Lower Central America." American
- AntLquity, voltxma 38 (1973), pages 234-235.
__________ "Excavaciones en Barriles y Cerro Putita: nuevos datos sobre
l.a epoca formativa tardla (0-500 D.C.) en ci oeste panameflo."
Actas del Tercer Sinrpasia de Antrapaiogia, A.rque'ologia y Etnohistoria
de Panam~z, Octubre, 1973.
__________ "From the late precersmic to the early formative in the
int~rmediate area: some issues and methodologies." First Sinrposiurn
of Archaeology and History, Puerto Rico, December, 1973.
_________.` "Ngawbe: Traditions and thdnge among the western Guaymi of
Panama, by Philip D. Young. (Review)." American Anthropologist,
volume 75, number 4 (1973), pages 1011-1012.
__________ "Pre-Coiumbian man finds Central America: the archseological
bridge, by Doris Stone (Review." American Journal of Archaeology,
* volun~e 77 (1973), pages 361-362.
__________ "Revista EspaBola de Antropologla Americana .(Trabajos y
conferencias), volume 6, ed. by Jose Alcina French." (Review).
American Journal of Archaeology, volume 77 (1973), pages 253-254.
Lubin, Yael I). "Web structure and function: the non-adhesive orb-web of
Cyrtophara moluccesis (Doleschail) (Aranaea :Araneidae)."
Farina et Functia, volume 6 (1973), pages 337-358.
Xacurda, Donald B. and David L. Meyer. "Feeding posture of modern stalked
crinoids." Nature,, volume 247 (1974), pages 394-396.
Mayer, David L. "Feeding behavior and ecology of shallow-water unstalked
crinoids `(Echinodermata) in the CaribbeAn Sea." Marine Biology,
volume 22, number 2 (1973), pages 105-129.
8, Montgomery, G.G., W.E. Cochran and N.E. Sunquist. "Radiolocating arboreal
* . `vertebrates in tropical forest." Journal Wildlife Management,
volume 37, number 3 (1973), pages 426-428.
S.. Montgomery, G.G., A.S. Rend and N.E. Sunquist. "Post-nesting movements of
iguanas `from ~ nesting aggregation." Copeia, volume 3 (1973), pages
620-622.
A Morton, Eugene S. "On the evolutionary advantages and disadvantages of
fruit eating in tropical birds." American Naturalist, volume 107
* ` -(1973), pages 8-22.
S Noynihan, Martin H. "The evolution of behavior and the role of behavior in.
evolution." Brevicra, volume 415 (1973), pages 1-29.
95-549 0 - 77 - 4
PAGENO="0050"
44
Ogden, John C. and Nancy S. Buckman. `~14overnenta, foraging groups, and
* diurnal migrations of the striped parrotfish Scarnes croicensis
Bloch (Scandal)." Ecology, volume 54, number 3 (1973), pages
589-596.
A Oppenheimer, John R. social and communicatory behavior in the Cebue
monkey. Pages 251-271 in C.R. Carpenter, editor, Behavioral
Regulators of Behavior in Primates. Bucknell University Press:
Lewisburg, 1973.
S Ospina H. }lariano, Robert L. Dressier. "Orqu~deas de las Am~nicas."
Fondo de Publicaciones Cientificas, Medell~n. Pages 1-496 (1974).
Porter, James W. "Biological, physical, and historical forces
structuring coral reef coi~snunitiea on opposite sides of the
Isthmus of Panama." Thesis 1973, pages 1-146.
Pbrter, James W. and Karen Porter. "The effects of ~ Guns
Indiana on èoral reefs." LJiscover~j, volume 8, number 2 (1973),
pages 65-70.
A Ricklefs, Robert E. "Ecology." . Chiron Press: NewtOn, Massachuset,
1973. Pages 1-861. . .
A Ricklef a, Robert E. and John Cullen. "Embryonic growth of the green
iguana Iguana iguana." Copeia, volume 2 (1973), pages 296-305.
Robinson, Michael H. "The evolution of cryptic postures in insects, with
special reference to some New Guinea tettigoniids (Orthoptera)."
Fsyche~ volume 80, number 3 (1973), pages 159-165.
S . "Insect anti-predator adaptations and the behavior of
predatory primates." Actas del IV Congreso Latinoameriáano de
Zoologia, volume 2 (1973), page~ 811-836.
__________ "The stabilimenta of Nephila clavipes and the origins of
stabilimentum-building in araneids." Psyche, volume 80, number 4
(1973), pages 277-288.
__________ "The biology of some Argiope species from New Guinea:
I. Predatory behavior and stabilimentum construction." Zoological
Journal of the Linnean Society, London.
Robinson, Michael H., B. Robinson and Yael D. Lubin. "Phenology, species
diversity and Oatural history of web-building spiders on three
transects at Wau, New Guinea." Pacific Insects, vorume 20 (1974),
pages 117-163.
Robinson, Michael H. and Barbara Robinson. "Ecology and behavior of the
giant wood spider l.'ephila mam~ilata (Fabricius) in New Guinea."
Sthithsbnian Cor.trz~bution to Zoology, volume 149 (1973), pages 1-76.
PAGENO="0051"
45
.Rubinoff, Ira. A sea level canal in Panama. Theme 3 (1973). Pages 1-13,
in Lea consequences biologiques des canaux interoceans. . XVII Congres
International de Zoologie, Hontecarlo, 1972.
* Smith, Wayne L. "Record of a fish associated with a Caribbean sea
anemone." Copeia, volume 3 (1973), pages 597-598.
Toad, Eric S. "Positive buoyancy and air-breathing: a new piscine gas
bladder function." Copeia, volume 3 (1973), pages 461-464.
__________ "A preliminary report of the respiratory pump in the
Dactyloscopidae." Copeia, volume 1 (1973), pages 115-119.
S Williams, Norris H. and Robert L. Dressler. "Oncidiwn species described
by Jacquin and the typification of Oncidiwn." Taxon, volume 22,
number 2/3 (1973), pages 221-227.
A Willis, Edwin 0. "The behavior of oceilated antbirds." Smithsonian
Contribution to Zoology, volume 144 (1973), pages 1-57.
Volda, Hindrik. "Ecology of some e.rperimental populations of the
landsnail Cepaea nemoralis (L.). II. Production and survival of
eggs and juveniles." Netherlands Journal of Zoology, volume 32,
* number 2 (1973), pages 168-188.
A Zaret, Thomas H. and R.T. Paine. "Species introduction in a tropical
lake.'.' Science, volume 182 (1973), pages 449-455.
* Zucker, Naida. "Shelter building as a means of reducing territory size
in the fiddler crab, i/ca terpsichores (Crustacea: Ocypodidae)."
American Midland Naturalist, volume 91 (1973), pages 224-236.
PAGENO="0052"
46
STRI Publications 1973
A Batten, Mary, The tropical forest; ants, animals and plAnts, New York,
Thomas Y. Crowall, 1973.
Bohike, James E. and John E. NcCosk.er, Two additional west Atlantic
gohies (genus Gobiosàma) that remove ectoparasites from other
fishes, Copeia 1973(3)c609-6l0.
Buckinan, Nancy S. and Johñ.C. Ogden. Territorial behavior of the striped
parrotfishScarus croi~énsis Bloch (Scaridae). Ecology 54(6):
l377~-l382
.Dressl'~r, Robert L. Elleanthus capitatus - A name that must be changed,
or is it? American Orchid Society: Bulletin 42:419-420.
Dressler Robert L and Eric Eageater lJna Govenia nueva de~L Estado de
Jalisco Goveniã tequilana Orquidea (Men ) 3 l75'~l83
A Elton Charles S The structure of invertebrate populations inside
neotropical rain forest. J. Animal Ecol., 42(l):55~-1O4i
A PlAning Theodore H Numbers of mammal species in North and Central
American forest commmities Ecology 54(3) 555-563
A Gliwicz J A short characteristics of a population of Proechimys
seni~pinosus (~roines,..186O) - a rodent.species of the tropical
rain forest. Bull. de Vicad. Polonaise de Sciences,. Ser. Sci.
Biol Cl 2 21(6) 413-418
Glynn, Peter W. Acanthaster: effect on coral reef* growth in Panama.
Science 180:504-506. - . . *
__________ Aspects of the ecology of coral reefs in the western Atlantic
region. Biology and geology of coral reef s, ed. by D.A. Jones and
* R. Endean. New York Academic Press,. 1973:271-324.
` Ecology of a Caribbesn coral reef. The Porites reef~flat
biotope: Part I. Meteorology and hydrography. Marine Biology
20:297-318, June.
__________ Ecology of a Caribbean coral reef. The Porites reef'-flat
* biotope: Part II. Plankton community with evidence for depletion.
Marine Biology, 22(I):l.-21.
* . . Isopoda of the Suez Canal. Contributions to the knowledge
of Suez Canal migration, ed. by P. D. Por. Israel J. Zool. 2l;3-4.
Glynn, Peter W. and Robert H. Stewart. Distributions of coral reefs in
the Pearl Islands (Gulf of Panama) in relation to thermal conditions
Li~sriology and OceanOgraphy l8~3):367-379.
Graham, Jeffrey B. . Heat exchange In the flock skipjack, and the blood-
gas relationship of warn-bodied fishes. Proc. Nat. Acad. Sci.
* 7O(7):l964-19~3. * ~** *. . . . . . .
PAGENO="0053"
47
STRI Publications 1973 cont'd
Graham, Jeffrey B, and Lawrence G. Abe_la. Panama Bay fish bill and crab
swa~mii~g, Sm_jthsonjan Institution, Center for short lived pheno-.
mena, event information report 3J54-~73, 16l8"l6l9. April 25, 1973.
Ranbury~.Tenison, A.R. and P .J .K, Burton. Should the Darien gap be closed?
Geogr. J. 139(l):43-.52
KrOpach, Chain and John D. Soule. An unusual association between an
ectoproct and a sea snake. Harpatologyica 29(1):17-l9.
Lehman, John T. and James W. Porter, Chemical activation of feeding in the
Caribbean reef-building coral Montas trae cavernosa Biol. Bull.
145:140-149.
S Leigh, Egbert G. The evolution of mutation rates. Genetics 73, su~pl..
(Fogarty International Center Proceedings 17:1.48.)*
LeShack, Leonard A., William K. Brinley and Dale E * 1~1cIvor. Automatic
processing of airborne remote sensing data for pattera discrlinina-
tion of jungle and other vegetation areas. Final report. Silver
Springs, MD, Development and Resoi.trces Transportation, 1973.
Lewis, Walter H. A new species of Byrsonima (Malpiguiaceae) from
Panama. Brittonia 25(3):304-.306.
Linares, Olga F. Ngawbe: tradition and change among the western Guaymi
of Panama, by Philip D. Young. (Review), Amer. Artthropol.
75(4) 1011-1012
_________ Pre-Columbiau man finds Central America: the archaeological
bridge, by Dons Stone (Review). Amer. J. Arch., 77:361-362.
* . Revista Espanola de Antropologia Americana (Trabajos y
conferencias), vol. 6, ed. by Jose Alcina French. (Review).
Amer. J. Arch. 77:253-254.
Meyer, David L. Feeding behavior and ecology of shallow-water unstalked
criüoids (Echinodernata) in The Caribbean Sea. Mar. Biol. 22(2):
105-129.
SA hontgonery G G W W Cochran and N E Suncjuist Radiolocating
arboreal vertebrates in tropical forest. J. Wildi. Manage..
37 (3): 426-428
SA Montgomery C G , A S Rend and N E Sunqin.st Post~'nest~ng ~oyements of
* iguanas from a nesting aggregation, Copaia l973(3):62O~.622.
- A Morton, Eugene S. On the evolutionary advantages and disadvantages of
fruit eating in tropical birds. Amer. Nat, 107:8-22,
Moynihan, Martin H. Species proportions - a reply. Amer. Nat, 107:155-156.
PAGENO="0054"
STRI Publications 1973 cont'd.
48
Ogden, John C. and Nancy S. Buckaan. 2'IoyeIae.nts, foraging groups, and
diurnal migrations of the striped parrotfish Scarus croicensis
Bloch (Scandal). Ecology 54(3):589-596.
Porter, James W. Biological, physical, and historical forces
structuring coralreef communities on opposite sides ot the
Isthmus of Panana. Thesis (PE. D) Yale University, (photocopy.)
Porter, James W. and Karen Porter. The effects of Panama's Cuna Indians
on coral reefs,. Discovery 8(2):65.-70.
Reiner~, Ainada Alvarez. Feeding behavior in the sea anenone Calliactis
p~ypus (Forskal, 1775) Comp. Biochein. Physiol. 44A:l289-l301.
A Ricklefs, Kabert E. and John Cullen... Embryonic growth of the green
iguana ~~na iguana. Copeia 1973 (2) :296-305.
S Rbbinson, Nichael H. Insect anti-predator adaptations and the behavior
of predatory primates. Actos del TV Congreso Latjnoainenicano de
Zoplogia 11:811-836.
Bubinoff Ira Biological assessment The Panama.c biota [a review]
Science 179:791. . .
__________ A sea level canal in Panama, XVII Congr~s International
de Zoologie, Montecarlo, 1972. Theme No. 3, Les cpns~juences
biologiques des canaux iuterocean.S. pp.
Smith, Neal G. A game of brood parasitism: cowbirds versus oropendolas.
Fauna 4, 1973. .
__________ Spectacular Buteo migration over Panama. Amer. Birds
27:3, 1973.
Smith, Wayne L. Record of a fish associated with a Caribbean sea anemone.
Copeia, 1973(3) :597-598.
Todd, Eric S. Positive buoyancy and air-breathing: a new piscine gas
bladder function. Copeia, l973(3):46l464.
___________ A preliminary report of the respiratory pump in the
Dactyloscopidae. Copeia l973(l):115-ll9.
Williams, Norris H. and Robert L. Dressier. Oncidium species described
by Jacquin and the typification of Oncidium. Taxon 22(2/3):22l-227
Wolda, Rinrik. Ecology of some experimental populations of the landsnail
ç~p~nemoraiis CL.). II. Production and survival of eggs and
juveniles, by H. Woida and D.A. Kreulen. Netherlands J. Zool.
32(2) :168-188.
A Zaret, Thomas N. and K. T. Paine. Species introduction in a tropical
lake. Science 182:449-455.
PAGENO="0055"
49
ENCLOSURE N 2
Enclosure to A-024
Panama
INFORMAL TRANSLATION BY THE EMBASSY
CONTRACT #1
Between the Government of the Republic of Panama, represented by
Dr. ABRAHAM SAIED, Minister of Health, duly authorized, on the one
part and which hereafter shall be denominated "The NATION", and on
the other part, Dr. IRA RUBINOFF, male, of legal age, married, a
~citizen of the United States of America, bearer of Passport
#Y1081171, Director of *the Smithsonian Tropical Research Institute,
hereafter referred to as THE INSTITUTE, acting in the name and in
representation o~f said Institute, with duly approved by-laws and
Legal Capacity("Personeria Juridical established by Resolufion #43
of 15 November 1976, issued by His Excellency, the President of the
Republic, in exercise'of his legal powers and inscribed in the
Public Registry, and with sufficient powers for the present act,
as recorded in public document #10,690, authorized on 22 November
1976, at the Fifth Notary of the Panama Circuit, registered in
Volume 1299, Folio 42, Entry #117,403, under the Section of Public
Persons ("Persona Comun") a contract has been agreed upon, in
accordance with Law #57 of June 6, 1974 of the Republic.of Panama,
pursuant to the following clauses:
FIRST: The Institute will effect in th~ Republic of Panama activi-
ties and research of a purely scientific character in the field
of tropical biology, including studies on the ecology of the Isthmus
of Panama, with advance notification to the National Government,
through the Ministry of Health, on the projects to be carried out,
60 days prior to the inception thereof.
SECOND: The Institute will totally defray the cost of the
activities and research which will take place in territory of the
Republic of Panama, but As obliged to keep the Nation informed
* of all the activities and research and to provide to it, gratis,
the results of such research.
THIRD: The Institute will provide the Nation with fundamental
Thi~mation on the ecology of the Isthmus and will offer its
collaboration in the execution of such research and programs
as may be agreed upon.
FOURTH: The NATION authorizes the INSTITUTE to establish in the
Républfc of Panama offices, field stations, laboratories and work
shops for the activities and research referred to in Clause One,
and in consideration of the benefits which the Republic of Panama
will derive from the scientific activities and research work
effected by the Institute, it grants the following privileges:
PAGENO="0056"
50
ENCLOSURE 11 2
Page 2 of Enclosure to Panama A~O24
*a) Exemption to thq INSTITUTE of all thenational taxes
* and liens, real or personal, with the exception of:
1. ~ taxes such as are normally -
* included in the price of merchandise
or services; -.
~"2. Ta~è~és~ates; . -. ..-. - - ..
3. Taxes and liens on private income which
originated in the national territáry and
such taxes on capital as are assessed on
commercial investments in the Republic. of
Panama;
4. Taxes or assessments pertaining to
private services rendered; and -
5~- Registry and judicial fees, mortage
and stamp tax
b) Exemption from the obligation to pay the quotas required
under the Social Security Law on salaries or emol-
uments which theInstitute pays its foreign scientific
personnel which do not have permanent residence in the
Republic. This exemption is extended to the INSTtTUTE
and to its said scientific personnel.
c) Exemption from the payment of any type of customs duty
or related taxes and assessments, with the exception
* of those expenses in connection with storage charges,
transportation and analogous services for goods, equip-
ment and material belonging to the INSTITUTE, and destined
exclusively for use in its offices and by its officials,
but title to which may not be transferred by purchase,
* or gratis, without prior payment of the corresponding
*taxes. .. - .
It is understood that should the INSTITUTE decide to~
construct its own buildings, it may benefit from the
exoneration here granted only with respect to goods
not produced in Panama;
d) Authorization of visas and residence permits for foreign
scientists and technicians which the INSTITUTE contracts.
to work in Panama;
PAGENO="0057"
51
ENCLOSURE #2
Page 3 of Enclosure to Panama A~2~
e) Exemption to foreign scientists under contract with the
INSTITUTE for services in the Republic of Panama,
whose repatriation is guaranteed by the INSTITUTE,
from the obligation of making a deposit for repatriation',
or from any tax, duty, or assessment pertaining to
immigration;
f) Exemption from cornpliinc~ withthe laws oC~rotectiön of~
the national worker, with regard to the contracting by the
INSTITUTE of foreign scientists and technicians.
For legal purposes the INSTITUTE will advise the Ministry
of Labor and Social Welfare of the arrival in the
country of the foreign scientists and technicians which
are contracted. In each case the status of foreign
the scientist or technician must be verified.
FIFTH: It is expressly agreed that the INSTITUTE' is oliliged to
inscribe in proper form, in the Public Registry, before establishing
its offices in Panama, proof of its existence and personality,
and also of the appointment of its attorney, residing in the
Republic of Panama, with full and sufficient authority to represent
the INSTITUTE judicially or extrajudicially in all matters per-
taining to its activities, properties, rights and obligations in
the Republic of Panama.
SIXTH: The INSTITUTE shall be subject to the laws of the Republic
6T'P'~nama and to the jurisdiction of Panamanian tribunals, and
renounces recourse to diplomatic redress with reference to the
rights and duties arising out of this contract, except in case
of denial of justice.
* SEVENTH: This èontract will remain in effect so long as any of
its parties does not express a desire to terminate it, which
intention should be made known at least one year before it is
* desired that the contracts terminate. The INSTITUTE will allow
the use of its laboratories,. work shops and field stations upon
request of the NATION for scientific research and work when this
is possible and available.
PAGENO="0058"
52
ENCLOSURE #2
Page 4 of Enclosure to
Panama A024
In testimony of all that was expressed above, the contracting
)parties sign the present contract in the City of Panama on the
fifth day of January of the year 1977.
THE NATION THE INSTITUTE
(Sgd.) Dr. ABRAHAM SATED
Minister of Health (Sgd.) IRA RUBINOFF
Director of the Smithsonian
Tropical Research Institute
PAGENO="0059"
53
Examples of STRI Research ~ith Applications to Resource Management Disease
Control, Wildlife Conservation, Food Production, and Other Areas
1. Because of its strategic location, the research of STRI marine scien-
tists was of direct use in constructing models of the possible ecological con-
sequences of digging a sea-level canal on the Central American isthmus. Our
efforts led to the Nat~onál Academy of Sciences to recommend that such a canal
not be constructed without a careful ecological survey and the inclusion of a
biotic barrier to the exchange of organisms between the Atlantic* and Pacific,
in order to prevent such untoward consequences as the inadvertent and destruc-
tive introduction of the sea lamprey into the Great Lakes by the construction
of the Welland Ship Canal.
2. STRI maxnmalogists were examining basic aspects of biology of sloths
when the most recent epidemic of yellow fever (1974) began spreading northward
from the Darien jungles. Medical researchers discovered that some sloths pos-
sessed a high viremia and consequently represented a potential reservoir of
the disease, one which could potentially bring it into closer contact with
urban human populations. STRI scientists joined a collaborative effort to
establish radio-tracked sentinel populations of sloths in order to monitor
the progress of the disease.
3. As a result of its long-term reserve status, Barro Colorado Island
has a very large population of Howler monkeys. This species is a natural
reservoir of yellow fever-which has an 80% mortality rate among humans-and
is extremely susceptible to the disease. As a means of providing local public
health authorities with an early warning on the: recurrence of yellow fever,
we encourage comprehensive research programs on the biology of Howlers on the
Island. Therefore, any disease-caused pOpulation changes can be recognized
immediately and permit early vaccination of the susceptible human population.
4. A fundamental question of tropical forests is how so many different
species: maintain themselves when individual densities are relatively low. For
example, in an hectare of northern U.S. woods there may be 8 species of trees,
whereas the same area of tropical forest may contain. dyer 55 species. What
strategies of forestry or crop rotation should be applied to naximize produc-
tivity and yet still preserve the long-range fertility of these two areas?
An enormous amount of research has been applied to these problems in the
North Temperate Zone, but in the tropics-which contain the fastest-growing
segment of. the human population-our knowledge of forest regeneration is still
anecdotal. STRI has encouraged the research of a number of scientists examining
the conditions controlling the germination, survival and recruitment of new
seedlings in the forest. These scientists have taken advantage of natural
light gaps in the forest, ranging in size from a single treefall, to a 1.5
hectare wind-induced.blowdown on Barro Colorado Island, to huge areas of
tropical forest in southeast Panama denuded by an earthquake in June 1976.
PAGENO="0060"
54
5 The narrowness of the Central ~mericari isthmus in Panama enables
STRI scientists to monitor the entire populations of migrating broadwinged
and Swainson's hawks. The breeding success of these species in North America,
as well as their survival in South American wintering grounds, can be. monitored
by photographing and counting the individuals during their fall and spring
migrations This data is indicative of how well the breeding sites in North
America are being protected and how the species is reacting to the pesticides
commonly applied to northern crops, and how successfully it has over-wintered
in the rapidly diminishing South American forests
6. There have been many recent attempts to apply the mathematical models
of island biogeography to the practical problems of determining the size and
shape of natural forests and parks, in order to increase the numbers of species
preserved and to minimize the extinction process. This is particularly criti-
can in tropical reserves where many species normally exist as rare specimens
or in very low densities. Long-term monitoring of the population of ant birds
on Barro Colorado Island has provided tiuth of the fundamental data on which
the theory (by no means uncontroversial) of the size of tropical reserves has
been developed. . .
STRI research contributes to solution of practical problems of crop
productivity, pest control, disease vectors, and susceptibility of marine
organisms to pollution. The knowledge derived from our studies is often
immediately relevant to other scientists asking practical questions about
the management of tropical environments, but in all cases it contributes
to the fundamental question. of how life in the lower latitudes differs
quantitatively and qualitatively from that in the higher latitudes and,
most importantly, to the ultimate understanding of how events in one zone
may affect the quality of life in another.
PAGENO="0061"
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I 21~L~1
I !?if?1EE~
EE?JE?I
21Z11?i
I?'
IL~!?jf~j
I~Izj1~jI~
1 1~i~1~
BI~~
LJl~j~j
~IZ1I~
EE E7 E8 ES 7I~ 71 72 7~ 71.1 7~ 7E
PAGENO="0063"
57
-* SMITREONIAN TROPICAL RESEARCH INSTITUTE
VISITOR DATA FROM
JANtL~~RY 197)~ TO DEC~~ 1976
COUNTRIES REPRESEBTED U.S. STATES BEPPESEBTED
1. Argentina 1. Alabama
2. Austria 2. Arizona
3. Australia 3. California
~. Rahamas ~. Colorado
53tI~ii~ - 5. Connecticut
6. Brazil 6. Florida
7. Canada 7. Georgia
8. China 8. Hawaii
9. Colombia 9. Idaho
10. Costa Rica 10. Illinois
11. Denmark 11. indiana
12. El Salvador 12. Iowa
13. England 13. Kansas
llL. Fiji lt~. Maine
15. France 15. Maryland
16. Germany 16. Massachusetts
17. Ghana 17. Michigan
18. Guatemala 18. Minnesota
19. Honduras 19. Mississipri
20. India 20. Missouri
21. Israel 21. Mew Hampshire
22. Italy 22. Hew Jersey
23. Jamiaca 23. New Mexico
21e. Japan ~ Mew York
25. Kenya 25. North Carolina
26. Malaysia 26. Ohio
27. Mexico 27. Oklahoma
28. Netherlands 28. Oregon
29. New Zealand - 29. Pennsylvania
30. Nicaragua 30. Rhode Island
31. Panama 31. South Carolina
32. Paraguay 32. South Dakota
33. Peru 33. Tennessee
3k~ Santo Domingo 3l~. Texas
35. Sweden 35. Utah
36. Scotland 36. Vermont
37. South Africa 37. Virginia
38. Surinam 38. Wachington
39. Switzerlnnd 39. West virginia
to. United States of Americo tO. Wi~c~nsin
hi. Venazuela
PLUS: Dis;rict of Coluobia,
Puerto Hico, U.S. Virgiu
IsLarcis and the Cariel
PAGENO="0064"
58
-- UNIVERSITIES REPRESENTED - -. --
1. Albert-Ludwigs Universitat 51k. Universidad Nacional Autonema de Mexico
2. Antioch Graduate School of Education 55. Universidad Nacional de Costa Rica
3. Baylor University. 56. Univorsidad Nacional de Panama - - -
l~. Bennington College : - - - - 57. UnivePRidad Santa Maria la Antigua.
-5. Botany Hood College - - : - - -. 58. University of Aarhus
~ California Institute of Tecbnolo~r 59. Univert3ity of Alabama
7. - California Polytechnic University 60. University of Alberta
8. California State University 6i. University of Arizona
9. Cambridge University 62. University of Br~tiah Colu~bia
10. Canal Zone College - - - - - 63; University of California, Berkeley -
1k. Chicago~Artiantitute_- ~___ - - --:. 6it~ .ijniversity-of-California, Davis-- -. -- -*
12. College of ti~e Jirginlslands - - 65. University of.California, Los Angeles
13. Colorado College - 66. University of California, San Diego
l1~. Colorado State University - - 67. University of California, Santa Barbara
15. Columbia University 68 University of Chicago
16. -Cornell University 69. University of Florida
17. Deutaher Akaditnischer Austauschdienst 70. University of Ghana
18. Duke University 71. University of Glasgow
19. Du~uesne1l University 72. University of Gothenburg
20. Florida State- University *~- University of Guelph -
21. Harvard University-- - - .- - 71~. University of Idaho -- -
22. Jacksonville State University 75. University of India
23. John Hopkins University - - - 76. University of Iowa
2l~. Lewis at~d Clark College - - - - 77. University of Kansas
25. Massachusetts Institute otTechnology 78. University of London, Kings College
26,..~ McMaster University 79. University of London, Queen Mary College
2' McPherson College 80. University of Maine
- -28; MichiganStatè Universitf - - 81. University of Manitoba
29. Middle Tennessee State Univórsity 82. University of Maryland
30. New Mexico State University 83. University of Massachusetts
31. North Eastern University 81~. University of Michigan
32. Orebro University - 85. University of Minnesota
33. Oregon State University - 86. .University of North Carolina
31~. Oxford Universi~y - 87. University of Oregon
35. Pennsylvania State University 88. University of Pennsylvania
-36. Princeton University - 89. University of Pudget Sound
37. Purdue University 90. University of Queensland
38. Queens University 91. University of Rochester
39. Rollins College 92. University of Rhode Island
I~O. Royal Military College 93.. Uni~ersity of Saint Louis
Z~l. San Francisco State University 91k. University of Saskatchewan
1f2. Scripps Institution of Oanogrepby - 95' University of Ringapore
1~3. Stanford University - - 96. University of Stuth Florida
ii~. Swarthmore College 97. University of the South Pacific
I~5. State University of New 7or1~ 93. University of Tennessee -
t6. Tabor College 99. University of Utah
k'~ Tafladega College 100. University of the West Indies
- t8. Tel Aviv University 101. University of Washington
J~9. Teciple University 302. University of Wisconsin - -
50. Texas Lutheran College - 103. Vanderbilt University
- 51. Universidad de Cartagena - 1OL. Washingtofl State University
52; Universidad del Valle 305. Washington University
53. Universidad de San Paulo ic6. Yale University
107. Zoologisch Laboratorium der Rijkzuniverei-
teit te Groningen
PAGENO="0065"
59
OT~-NR oRGAHiz.;::o~;s
1. 0r~anization for Tropical Studies
2. U.S. Amy
3. U.s. rra~
L~ U.S. Air Force
5. U.S. Congress
0. U.S. Etbassy
7. U.S. Naval Hosnitals
8. U.S. Naval Research Laboratory
9. Anerican Museua of Natural History
10. Balbca High School -
11. Audubon-Societies-- -
12. Pansxa Canal Cdmoany
13. Gor~as Menorial Laboratory
l~. Gulf Coast Research Laboratory
15. Tropic Test Center
16. British Ezbaesy
17. United Nations
16. Boys Scouts of Arsrica
19. Eastman Kodak Co.
20. Paper Tech.. Corp~~~
21. Purina
22. Bonbay Natural HistorySociety
23. Instituto de Ruceo `Muodo Suboarino"
2h. Inter-Anerican Tropical Tuna Conmission
25. Ft. Kobbe Elenentary School
6. Association for Military Coaptroflers
~7. Musso- Mactonal de Panava.
23. Missouri Botanical Gardens
29. Bill Burmd Productions, Inc.
30. Instituto icterarericano de Ciencias Agricolas
31. Minisrerio de A~icu1tura y Ganaderia
32 Curundu Eleceotary School
.33 Tn-Valley High School
3k. Peace Corp
35. Centre National- de la-Recherchs Scientifiçus
36. Oregon Regional Primate Research Center
37. New Hacoshire Association of Conservation Districts
33. Pricer Ciclo Acenica
39. Secundania de Peconore
hO. Insuituto do Esseflansa Superior
hi. Fairfax Legd.Aid Society, Inc.
.h2. Miani Herald
l~3. "Sea Star' Study Ship
hk. Riugsdorff Carbon Corp.
h5. Tine-Life Books
Lincoln Park Zoo
Me~-r Tribes Mission
18. Italian. Eobassy
19. The Australian Museur
50. Morddeutsher Rundfunk
p5-549 o - 77 - 5
PAGENO="0066"
60
51 Pathology Associates Laboratory, ?.A.
52. Heinz Steinitz Marine Laboratory
53. Colegio Javier
5~. Florida State Museum
55. Pico Rivera High School
~6. Hispsniolan Research Institute
57. Arecibo Observatory
58. Harbor Branch Fotndations, Inc.
59. Royal British Na~j
60. Federal Aviation Agumcy
61. Asociacion Med~ca de Panata
62: ColsgioLaSaUe"
43. British Parliament
6~. Fewhouse News Service
65. Austrian Embassy
46. Center for Disease Control
67. Institute of Marine Research
68. Instituto da Cultura
69. California Academy of Sciences
70. New York Zoological Society
7?. Diablo Elementary School
72. Amy Officers Wives Club
73. Academy of Natural Sciences
7b. Zoological Society of Ciocinnati~
75. New York Botanical Gardens
76. Instituto de Botanica de Sao Paolo
77. Mtseo te Nistoria Natiaral del Peru
78. - iosoit~to de Ciencias :;aturales de. Colombia
79. Mt.aeo Nacional de Panama
80. Balboa Elementary School
81. Wolgang Bmyer ~oductions, Inc.
82. Kilvertone Wildlife Park
83. Royal Ontario Museum
81~. Ramsay Wright Zoo
85. Federal Highway Admioistrat~on
86.. Batefle Memorial Institute
87. Argonne Natural Laboratory
88. Austrian Consulate
89. Argentine Air Force
90. Nicaraguan Embassy
91. Ministerio de Desaroflo Agropecuario
92. Monks Wood Experimental Station
PAGENO="0067"
61
FFILOWS!iJPS AT STOT
1970 - 1977
* PDst-doctoral Fellows
Abele, Lawrence
Andrews, Madaleine
Breymeyer, Alicja
Campanella, Paul
Cooke, Richard
Cubit, John
Diener, Douglas
Glanz, William
Gliwicz, Z.
Graham, Jeffrey
Healey, Ian
Hespenheide, Henry
Hiadik, Annette
Janos, David
Karr, James
Kramer, Donald
Lubin, Yael
May, Michael
Meyer, David
Morton, Eugene
Ogden, John
Ranere, Anthony
Ritte, U.
Schemeske, Douglas
Smith, James N.M.
Todd, Eric
Warner, Robert
* Wells, Kentwood
Windsor, Donald
Pre-doctoral Fellows
Degree Cnnferring Institution
University of Miami
University of Kansas
Polish Academy of Sciences
Syracuse University
University of London
University of Oregon -
University of California, San Dic
University of California, Berkel~
Warsaw University
Scripps Institution of 0ceanogra~
University of London
University-of Pennsylvania
University of Paris
University of Michigan
University of Illinois
University of British Columbia
The University of Florida
University of Florida
Yale University
Yale University
Stanford University
University of California, Davis
University of Michigan
University of Illinois
Oxford University
University of California, Santa I
Scripps InstitutiOn of Oceanogra~
Cornell University
Cornell University
Augspurger, Carol
Fischer, Eric
Foster, Robin
Gyllenhaal, Charlotte
Heck, Kenneth
Hoffhan, Stephen
Kiester, A. Ross
Kropach, Chain
Lessios, Hans
McCosker, John
Pickering, John
Porter, James
Pratt, Thane
University of Michigan
University of California, San Di~
Duke University
University of Chicago
Florida State University
University of California, Santa
Harvard University
City University Of New York
Yale Universi.ty
Scripps Institution of Oceanogra~
Harvard University
Yale University
Rutgers University
PAGENO="0068"
Ramirez. William
Smith, Wayne
Strauch, Joseph
Tannenbaurn, Bernice
Toft, Catherine
Young, Orrey
Zaret, Thomas
62
Univer3ity of Kansas
State Univ. of N.Y. at Stony Bra
University of Michigan
Cornell University
Princeton University
University of Maryland
Yale University
PAGENO="0069"
RESEARCH PROJECTS CURRENTLY UNDER INVESTIGATION BY VISITING SCIENTISTS
ON BARRO COLORADO ISLAND AND ANTICIPATED END~POINTS*
NAME
Robin Andrews,
A. S. Ihind and
Stella Guerrero
Nicholas V. L. Brokaw
Roy Fontaine,
B. K. Candland
Robin Foster,
Charlotte Cylicnhaal-Davis,
Nicholas Brokaw
Nancy C. Carwood,
Carlos Iglesia
Nancy C. Garwood,
Vielka Quintero
Nancy C. Carwood
Bill Clonz,
Dan Glanz
Leaf Flushing and Payllid Abundance
Leaf Sprouting in Tropical Understory
Shrubs
Seasonality of Seedling Establishment
Community Ecology of Small Mammals in
Central Panama
ESTIMATED
~COMPLETION DATE
Indefinite
(Several Years)
Jan 1970
Mar 1978
mdc finite
(Several Years)
Jan 1978
Jan 1978
Jun 1977
Jan 1978
* Much of the research done by visiting scientists at BCI is short-term, and it is not
usually possible to make long-term projections on this aspect of activity. The role
of STRI in this work is to `see that it is of high quality, does not interfere with the
reserve status of the Island, and is compatible with on-going long-term studien.
PROJECT ` ` ~,,FUNDING,
Demography of a TropicalForest Lizard, Virginia Polytechnic
Anolis limifrons ` `` `Institute
Canopy Tree Regeneration in Treefall Gaps University of Chicago
of a Tropical Forest
Cabid Locomotion , NSF Fellowship
Regeneration in a large Treefall University of Chicago
NSF Fellowship
NSF Fellowship
NSF Fellowship
STRI
PAGENO="0070"
NAME
David P. Janos,
Laurie A. McHargue
Sally C. Levings
Sally C. Levings,
C. A. Toft, A. S. Rand,
Bonifacio De Le6n
Yael D. Lubin,
Julio Ja~n
Laurie Mdflargue
John Pickering,
Bruce Malmir
James K. Russell
James K. Russell
Douglas W. .Schmeke
Edwin 0. Willis
PROJECT ________________
The Role of Vesicular-arbuscular Mycorrhizae
in Succession
Seasonal Variation in Tropical Ant Behavior Harvard University/
and Activity NSF Fellowship/STRI
Seasonal Variation in Leaf Litter Harvard UnivOrsity/STRI
Arthropdd P~pulation
Defense Behavior of Termites in Relation to STRI
Predation by Anteaters
Nesting of Black Vultures in Panama
Reproductive Biology of the Wasp Polistes
Canadensis
Coati Socialization NSF Fellowship
Coati Social Structure NSF Fellowship
Plant-Animal Interactions in the Genus STRI.
Costus (Zingiberaceae)
Census of Ant-Following and Other Birds
on Barro Colorado Island
Effects of the Introduction of Cichla
ocellaris to Gatun Lake, Panama
FUNDING
STRI
STRI
NSF Fellowship
ESTIMATED
COMPLETION DATE
Sep 1978
Jan 1978
1978
Mar 1977
Sep 1977
Aug 1978
Aug 1978
Jan 1978
Mar 1977
Thomas Zaret,
Kim Wears
NSF Fellowship
PAGENO="0071"
CURRENT AND FUTURE RESEARCH PROJECTS CONDUCTED BY
SMITHSONIAN SCIENTISTS ON BARRO COLORADO ISLAND
NAME
Terry Erwin
Mason Hale
Charles Handley
*Egbert C. Leigh, Jr.
and Eric Fischer
Egbert C. Leigh, Jr.
and William Schaffer
Egbcrt C. Leigh,.Jr.,
Nicholas Sm~the and
Donald Windsor
Egbert C. Leigh, Jr.,
Elizabeth Leigh
C. Gene Montgomery,
1. D. Lubin, Jorge Gilpin,
Julio Jaen and Magaly
Ojeda
Stanley Rand, Stella
Gucrrcro, Steve Aynla
PROJECT FUNDING
Ground beetle populations on Barro Colorado Environmental Sciences
Island Program/STRI
Growth and Distribution of Lichens National Museum of
Natural History
Bat Populations on Barro Colorado Island National Museum of
Natural History
Evolutionary Theory STRI
Mathematical Ecology STRI
Ecological Balance of Barro Colorado STRI
Island
Physiognomy of Tropical Rain Forest STRI
Feeding Strategies of.Neotropica]. Ant- Exxon Foundation/STRI
eaters (Edentata, Myrmecophagidae), and
Effects of Malaria in the Forest Lizard Exxon Foundation,
)~no1ia limifrons National Science Foundnt~on/
STRI
ESTIMATED
COMPLETION RaTE_
Indetiiiitc
(Several Ycars)~
Indefinite
(several Years)
1982
August 1978
PAGENO="0072"
NAME _________________
Stanley Rand The Ecology and Behavior of Iguanas -
Clutch Size
Stanley Rnnd, C. Toft,
M. Clark
Ira Rubinoff, Ross
Simons
Robert Silberglied,
Annatte Aiello
Robert Silberglied,
Annette Aiello
Robert Silberglied,
Annette Aiello
Alan P. Smith
Nicholas Smythe, Gary
Stump, Bonifacio De Leon
Richard Thorington,
K. Hilton, K. Nagy
Richard Thorington
Richard Thorington
PROJECT FUNDING
STRI
Seasonal Fluctuations in Populations of Exxon Foundation/STRI
Forest Floor Anurana on Barro Colorado
Island
A History of STRI and its Role in Tropical STRI
Biology
Evolution of Reproductive Isolation in the Harvard Univeraity/STRI
Neotropical Butterflies Anartia fatima and
A. amathea (Lepidoptera, Nymphalidac)
Aggregation of Phalangiida (harvestmen) Harvard University/STRI
during the Dry Season
Population Biology and Genetics of the Harvard Univeraity/STRI
Butterfly Anartia
Ecological Correlates of Leaf Variegation STRI
Environmental Monitoring Project STRI
The Energetics of Free-Ranging Howler E.R.D.A./STRI
Monkeys on Barro Colorado Island
Howler Monkey Population and Environment Environmental Sciences
Program/STRI
Howler Monkey, their Social~Organizatiqn Environmental Sciences
and Environment Program/STRI
ESTIMATED
COMPLETION DATE
1977
1980
1978
1977
March 1977
Indefinite
(Several Years)
PAGENO="0073"
67
Mr. METCALFE. Do any other members of the delegation wish to
make a statement at this point?
Dr. RAND. No.
Mr. CHALLINOR. No.
Mr. JAMESON. No.
Mr. METCALFE. Dr. Rubinoff, thanks very much for that very fine
statement.
I did note that you were asking the Committee to increase its
limit on authorization for appropriation from $600,000 to $750,000.
We will review your request before a final decision is made.
On page 1 of your statement you stated the Canal Zone Biological
Area is an integral part of the Smithsonian Institution's Tropical
Research Institute.
Do you therefore think that the budget of the Biological Area
should continue to be included in the Research Institute's budget?
Do you think they should both be in one budget?
Dr. RUBINOFF. Yes, sir.
I think the interaction between the two parts of the Smithsonian
Institution's Tropical Research Institute are very close.
The work that is going on on the mainland is frequently carried
over to the Island. Comparative studies are being done.
The scientists might spend two days on the Island and three or
four days a week working on the mainland on a similar project.
The Island represents one kind of habitat and many studies
require comparative work, perhaps at a higher altitude, work on
the mainland, or some places closeer to the shore, so I think it
should be included.
Mr. METCALFE. Our jurisdiction is not the jurisdiction of the
Appropriation Committee, so as we take up the authorization limit
that has to be considered.
It is my understanding that part of the expenses of operating the
Canal Zone Biological Area are recovered by fees from those who
use the land.
What percentage of the operating costs of the Canal Zone Biologi-
cal Area are recovered in user fees?
Dr. RUBINOFF. In this fiscal year, Mr. Chairman, the operating
expenses of the Barro Colorado Island are $305,000; capital projects
which we have planned or are under construction are $21,000 for a
total of $326,000 in direct operating costs this year, of which we
expect about $50,000 will be recovered in the way of fees from
visiting scientists.
Mr. METCALFE. Thank you.
The Section of the United States Code which governs the Canal
Zone Biological Area is Section 79 of Title 20.
Do you think that the other provisions of Section 79 ought to be
changed other than the one figure which we have proposed to
change?
Dr. RUBINOFF. I believe that at this point we are operating very
efficiently within the other provisions of Section 79.
Mr. METCALFE. I refer you to page 7 of your statement.
You say that the General Accounting Office believes that indirect
costs associated with the Biological Area ought to be included under
the limitation of Section 79(e).
PAGENO="0074"
68
Do you agree with this opinion of the General Accounting~Oiflce? I
Dr. RUBINOFF. I think that indirect costs can be assessed.
However, as I said earlier, the interaction between the research
going on in the mainland or other areas of the New World and Old
World tropics are so close that it is a difficult assessment and some
formula will have to be used.
For instance, the amount of time I~think about the ~administra-
tion of Barro Colorado Island versus the time I spend worrying
about the rest of the STRI would be difficult to assess accurately.
Mr. METCALFE. You stated capital costs should be included in the
funds under Section 79(e). Should capital funds be included in the
limits under this bill?
Dr. RUBINOFF. I think so, sir.
Mr. METCALFE. In referring to page 7 of your statemeni~3~ou
indicated there should be no particular problems for the Biological
Area to stay intact under ths new treaty arran~gement.
Are you satisfied with your relationship with the government of
Panama?
And do you know of any reason why they would want to change
the status of the Island?
I think this goes pretty much to the heart of what Congressman
Snyder has said, and he will have his own time, but you might keep
his statement in mind as you prepare to answer that question.
Dr. RUBINOFF. We enjoy a very good relationship with the Repub-
lic of Panama; with a number of ministries, with the university;
and with various other agencies.
We have recently concluded a contract with the Ministry of
Health, which authorizes our operations throughout the Isthmus of
Panama.
We have cooperated with it and with United States based institu-
tions located in the Panama Canal on a number of environmental
projects in the Republic.
I do not anticipate that there will be any change in our oper-~
ations on the Isthmus if the status of the Canal Zone changes.
Concerning the Island itself, I might point out that there wasa
treaty for international, inter-American cooperation (the 1940 Con-
vention for Nature Protection and Wildlife Preservation in the
Western Hemisphere), which was signed by the United States and
by now has been signed by most of the Republics in the New World,
allowing them to cooperate on conservation matters and I think the
status of Barro Colorado would easily fall under that treaty which
has been signed by the Republic of Panama.
We are covered on a number of grounds, both formally and
informally, and I am reasonably certain that the future research
center of Barro Colorado would be preserved.
Mr. METCALFE. Both the Biological Area and the Research Insti-
tute located in the Canal Zone.
This being the case, to what extent are your costs determined by
the prices for goods and services by the Panama Canal
organization?
Dr. RUBINOFF. We purchase most of our commodities, expendable
construction materials and things of that nature, from the Panama
Canal organization, but not all. When items are in short supply or
PAGENO="0075"
69
are available locally at a lower price, we purchase them on the local
economy.
The exact percentage of these two I would have to provide for the
record. I don't have them.
Mr. METCALFE. You will submit that information for the record.
Thank you.
[Information about purchases follows:]
N N ~O
.: N C
~-1
.rl
~r tn tn
Lfl Cfl C
~ C N r~3
- ~
oz
U)
U) ~3 N C
~ 0 CO C)
N
LO 0' ~0
rn N If) ~1 N
LI If) C") `.0 "ZV
~
0' -
oc~ -
I-I **
U)
cd
cd
a)
~) `+~
~ 0 ~
o C)
N ~
-
cri ;i .~
C~5 ~) ~
o ~
PAGENO="0076"
70
Mr. METCALFE. Finally, are other elements of the Smithsonian
Institution, for example, the National Space Museum, subject to an
annual authorization process or a limitation on authorized funds?
Mr. JAMESON. No, Mr. Chairman.
Mr. METCALFE. I recognize the distinguished gentleman from
Kentucky, Mr. Snyder.
Mr. SNYDER. In response to the Chairman's question, you indi-
cated that the fiscal year 1977 budget was some $350,000 and that
approximately $25,000 was spent on capital improvements.
Could you break that down, the balance of the amount of money?
Dr. RUBINOFF. Yes, we have those figures.
Mr. SNYDER. I think we ought to have it in the record how you
spend the money.
Do you receive any other money from the United States govern-
ment, other than what you would be asking for in this
authorizathrn?
I know you said that some of your people have come in on study
grants and so forth from universities or the National Science
Foundation, or such as that, but I am talking about your operation.
Dr. RUBINOFF. I think at the moment there is one of our staff, Dr.
Rand, who has a grant from the National Science Foundation and is
working on malaria in lizards.
Mr. SNYDER. Nothing then for Project payroll; I gather than none
of what you are asking for is for project payroll, it is just the stable
operation together with capital improvements.
Are we looking at all of it for the stable operations?
Dr. RUBINOFF. Yes, we are.
Mr. SNYDER. Sometimes we have that problem.
I am not alleging that you are, I am just asking.
You, of course, addressed yourself to the Chairman's question
about the prospects of future operations after a treaty might be
negotiated and ratified, Lord forbid you don't have to comment on
my editorial comments but I jotted down that you were "reasonably
certain our status would be preserved."
I don't know whether or not "reasonably certain" is going to be
good enough if we go to the floor asking for an increased authoriza-
tion for you.
So I guess what I want to ask you now is what benefits would be
derived to the American taxpayer by your continuing any kind of
an operation there, if the United States government no longer
owned the Canal Zone or the Canal?
Dr. RUBINOFF. The United States is currently gaining benefit
from research that is going on in the Canal Zone and in the
Republic of Panama as much of our research is performed off Barro
Colorado Island.
Mr. SNYDER. I don't question that because of our presence.
But if we had no more tropical holdings--
Dr. RUBINOFF. As long as our contract continues to operate, I
imagine the export of benefits in terms of education of students in
the United States and in terms of the research performed would
still come north, so to speak, and be of benefit to the American
taxpayer.
Mr. SNYDER. You imagine?
PAGENO="0077"
71
Dr. RUBINOFF. I am sure of that.
Mr. SNYDER. I noticed in your statement that you talked about
there being more species of animals and more species of plants and
more species of birds in the Panama Canal than all the United
States and Canada.
What does that mean to the people living on the continental
United States if, in fact, we have no more presence down there?
Dr. RUBINOFF. Certainly, we do not have any areas in the true
tropics under the American flag that are any more secure than the
current status of the Canal Zone, and North America is very much
subject to the events that go on elsewhere.
We could isolate North America and the United States and still
very much have to suffer from the events going on elsewhere in the
environment.
For instance, we have had a very severe winter.
In the tropics, a large area of the tropics, we have had an
enormous drought.
You know that the Panama Canal Company has had a water
problem.
Are the events related?
Is the deforestation of a great area of Brazil affecting the water
systems and affection our weather?
Or are the events in the north affecting the tropical zones?
These things are interrelated. We cannot strictly work at North
American universities and hope to understand the global environ-
ment and make the kind of management decisions about the envi-
ronment that need to be made.
In many cases we can't pose the questions yet.
We have to continue collecting the data. We have a reasonable
chance to do it.
Mr. SNYDER. It is very interesting. I don't want to pursue it
anymore, however, in the interest of time.
It would be helpful if we are going to go to the floor to try to sell
it, in view of what is going on, if you could subsequently supplement
that answer, prowl around in the deepest resources of your mind,
and give us a lot of reasons why we should spend more money there
if we are going to lose the Canal Zone.
I do feel there will be a reasonable sentiment to the contrary.
I am not trying to be pessimistic. But, the Chairman and I have to
answer them at some point, if we go over there.
[The Supplemental answer follows:]
PAGENO="0078"
72
FUTURE STATUS OF BARRO COLORADO ISLAND
We believe it is essential for the United States to continue
fundamental research programs in the tropics' and that the benefits
derived from this research will not be affected by potential changes
in jurisdiction of the Canal Zone.
The Smithsonian Tropical Research Institute's Barro Colorado
Island facility is very much a national resource, used by scientists
supported by various Federal programs and by state university
systems. Through the years it has been a training and study area
for thousands of students from the United States because it allows
them to work more effectively than is possible at any other tropical
site.
The Smithsonian Tropical Research Institute is primari1~y
concerned with the support of studies that will help place the
ecological, evolutionary, and sociological processes occurring
in the tropics into a perspective relative to world ecosystems.'
Through the indiscriminate use of insecticides in the temperate
regions as well as the release of radioactive atmospheric pollutants,
worldwide effects have been produced and it can be expected that
the destruction of tropical forests and pollution of coral `reefs will
similarly have profound, but as yet unpredicted, effects on the -
earth's weather and ocean productivity.
The results of the ecological research conducted at STRI
are beneficial to the Republic of Panama, as well as to the United
States. Developing countries usually cannot afford to sponsor the
research necessary to accumulate the fundamental data on which
to base management decisions on environmental issues. STRTs
research can provide some of this information to the Republic
and, in addition, its scientific library, stiff expertise, and
fellowship programs provide a basis for technical interactions
with a variety of Panamanian organizations, agencies, and,
individuals such as the Ministry of Health; the Ministry of
Planning; the University of Panama; the Natural Resources
Division; the Director General of Marine Resources; the Institute
of Tourism; and the Gorgas Memorial Laboratory.
Good relationships already exist between~the Smithsonian
Tropical Research Institute and these entities and it is anticipated
`that they would continue if jurisdiction of the Canal Zone,1stransferred.
In addition, we believe two existing formal agreements wou[d further
insure the continued operation of STRI and of its Barro Colorado
Island facility should jurisdictional changes occur. The first
is an international convention, signed by the United States in
PAGENO="0079"
73
1940 ~i~iding for cooperation between the American States
for purposes of the preservation of flora and fauna and natural
areas. This convention was ratified by Panama in 1972. The
second is the contract signed by STRI in 1977 with the Ministry
of Health authorizing scientific operations throughout the Isthmus.
Certainly tropical research can be done elsewhere, and -
~--~---research~needs to be supported elsewhere since no single site
or habitat can begin to provide all of the scientific requirements.
However, Barro Colorado Island is unique because it has been a
reserve for more than fifty years; it has an inventory of the plants
and anim~a1s present; it has produced several thousand scientific
publications; and it is a foundation of knowledge that cannot be
reproduced elsewhere.
The combination of reserve and research station represented
by BCI can continue to provide critical scientific data and to serve
as a genetic reservoir in keeping with Thomas Jefferson's observation.
that "the greatest service which can be rendered any country is to
add a useful plant to its culture."
The United States is one of the few surplus food producing
countries in the world, yet most of its crops are not native. - - -
Wheat is of Near Eastern origin, corn of Mexican. Soy beans
come from China and cabbages from the Mediterranean. Economic
and social disasters, such as that created by the potato blight in
Ireland, occur when we resort to single crop agricultural methods.
To prevent this and to be prepared for long-term shifts in climate,
which may be unfavorable for certain staple crops, we must have
genetic reservoirs of plant species which the tropics, with an
extraordinary diversity of plant life, represent. The reserve
status of Barro Colorado Island will continue to preserve an
enormous number of plants for the future potential agricultural
and medicinal use of mankind.
A further advantage to the United States of the reserve on
Barro Coloradois the overwintering residence and safe haven
which the island, represents to migrating birds. Most of the bird
populations of North America, which are vitally important to
insact control~ .overwinter in Central and South Amer~ica. Without
adequate sanctuaries the United States may find itself lacking a
critical link in its ecosystem.
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74
It should also be borne in mind that the howler monkey
population on Barro Colorado Island is an important public health
sentinel because of this species' acute sensitivity to Yellow Fever.
Monitoring this primate population as part of routine Barro Colorado
Island studies provides public health authorities with sufficient
warning to vaccinate susceptible human populations against a
serious disease that has an 80% mortality rate.
Regardless of the flag under which the Canal Zone operates
we believe fhat the Barro Colorado Island facility of the Smithsonian
Tropical Research Institute will continue to offer substantial
benefits in education and science to the United States and to the
worldwide community.
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75
Mr. SNYDER. What generally is the nature of that operation, that
contract with Panama?
Dr. RUBINOFF. There is a copy of the contract which was inserted
in the record.
It authorizes us to operate anywhere in the Isthmus. It provides
us with the duty free privileges for the import of equipment, field
vehicles, etc. It gives us the privileges an international organization
such as the United Nations would have.
Mr. SNYDER. Of all the proposed capital projects you listed in
1974-1982, have the ones for 1974, 1975, and 1976 been
accomplished?
Dr. RUBINOFF. Yes, they have.
I think the tramway renovation is having the finishing touches
put on it this week, but it is essentially completed.
We can now call Barro Colorado Island from this Committee
room if you wanted to.
Mr. METCALFE. I think one of the members of the panel wishes to
make a comment.
Mr. SNYDER. Surely.
Dr. CHALLINOR. Mr. Snyder raises the question of how worthwhile
is is to invest the taxpayers' money in the Panama Canal Zone,
which we might lose.
The Smithsonian does a great deal of research under all sorts of
conditions, some of which are not as formal as this contract we have
with the Ministry of Health in Panama.
Part of our effort that enables different Smithsonian scientists to
work in different tropical countries is to maintain a good relation-
ship with those ministries engaged in research.
Keeping a low profile and publishing has relieved anxieties in a
lot of other countries, and allowed us to work in Brazil and
Venezuela, and many tropical areas elsewhere.
Therefore, the change in the jurisdiction over the Canal Zone
causing the Institution then to operate under a foreign jurisdiction
does not seem any more serious than the problems we face in other
countries where we have for years carried out successful research.
Mr. Metcalfe. Will the gentleman yield to me for a moment?
Mr. SNYDER. Yes.
Mr. Metcalfe. Dr. Challinor, will you submit for our record a list
of the various overseas facilities where we are conducting ecological
and environmental studies?
We know that a laboratory in Costa Rica is addressing itself to
this and doing tropical research, similar research to that of the
Smithsonian from which the world benefits.
Will you submit a list of those?
Mr. CHALLINOR. I will be happy to give a list of countries and the
facilities we are enjoying.
Mr. METCALFE. And the subject area which they are studying in
that research.
Dr. CHALLINOR. We will be happy to do so.
Mr. METCALFE. Thank you.
[The list of research areas follows:]
95-549 0 - 77 - 6
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76
SMITHSONIAN INSTITUTION
Cooperative Research with Universities and Other Organizations
in Foreign Countries
New Guinea - Wau Ecological Institute
Nepal - Royal Chitwan National Park
Ecuador - Charles Darwin Research Station, Galapagos
Venezuela - Department of National Parks
Brazil - National Institute of Amazonian Research, Manaos
~~Univ~ersidaddelValle, Cali
Egypt - American Research Center in~Egypt, Cairo
V
India - National Institute of Amazonian Research, Bangalore
Pakistan - National Research Council, Islamabad
Belize - Ministry of Fisheries, Balmopan
Tanzania - Serengeti Research.Instib~e
Bahamas - Bahamas National Trust
Aldabra - Office of the President, Seychelles Republic
Ghana - University of Ghana, Accra
Indonesia - National Institute of Indonesian Sciences, Jakarta
Sri Lanka - University of Colombo
Tunisia - Bardo Museum, Tunis
Yugoslavia - Federal Agency for International Technical Cooperation,
Belgrade
Kenya - University of Kenya, Nairobi
PAGENO="0083"
77
Mr. METCALFE. Proceed, Mr. Snyder.
Mr. SNYDER. Dr. Challinor, I do not have any problem with the
fact that the Smithsonian is doing good work around the world.
I just perceive that we have a peculiar problem with this situa-
tion because if I had to guess right now, and there was a vote in the
House of Representatives on the whole issue of the Canal Zone
treaty, you would be in bad trouble.
I don't think there is a lot of sympathy right now for General
Torrijos and for giving him too much, and there is going to be a lot
of speculation about us spending money, particularly for capital
improvements if, in fact, we are not going to end up in that
operation at all.
I do not think the resentment generally would be against your
operation, but I think we will have to justify it a little bit more
under these peculiar circumstances than if you were talking about
one of those operations somewhere else, where we were getting
some benefit from it.
The Washington Post recently carried a series of articles on the
Smithsonian's acquisition of property in Maryland. It seemed it got
the land and buildings with private funds and then got Federal
funds to maintain these lands and facilities.
Is there any similar pattern with your operations there in any
way or with any other facilities or properties of the Tropical
Research Institute?
Dr. CHALLINOR. Mr. Chairman, if I may reply to that, there was
no similarity at all.
This land had always been Federal land.
To the best of my knowledge, all the land that we use in Panama
has always been in the title of the United States government.
Mr. SNYDER. Thank you, Mr. Chairman.
Mr. METCALFE. Thank you.
Does the majority staff member wish to ask any questions?
Mr. MODGLIN. Yes, Mr. Chairman.
First, Dr. Rubinoff I might address myself to the question of the
relationship between the Canal Zone Biological Area and the
Smithsonian Tropical Research Institute.
The Smithsonian Tropical Research Institute was created by the
Board of Regents of the Smithsonian Institution is that correct, in
1966?
Dr. RUBINOFF. Yes, sir.
Mr. MODGLIN. Was there any explicit statutory authorization for
the creation of the Research Institute?
Dr. RUBINOFF. No.
Dr. CHALLINOR. The general authority, the sections in Title 20,
beginning with Section 41.
Mr. MODGLIN. The creation of such a Research Institute by the
Smithsonian Board of Regents is not unusual in the conduct of
business by the Smithsonian Institution?
Mr. JAMESON. There have been occasional establishments by the
Board of Regents, but it is not a commonplace activity.
Mr. MODGLIN. The Congress did recognize the Institute insofar as
you had money appropriated to the Smithsonian Institution with
the Research Institute in your budget?
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78
Mr. JAMESON. Yes.
Mr. MODGLIN. The regulations that govern the Research Institute,
are they codified in the Code of Federal Regulations or are they
Canal Zone regulations or what is the nature of those regulations?
Mr. JAMESON. I don't believe I can answer that.
I don't think it is codified in the Federal Register.
Do you know whether they are published down there?
Dr. RUBINOFF. I don't think so, except for specific authority
governing exemptions for certain things like the salary of the
Director which is controlled by the Secretary of the Army under the
Canal Zone Central Employment Special Regulations; they are
essentially covered by the Board of Regents.
Mr. MODGLIN. The Research Institute is principally located in the
Canal Zone, is that correct?
Dr. RUBINOFF. Yes.
Mr. MODGLIN. You have therefore obtained a land license from
the Governor of the Canal Zone in order to run that particular
operation?
Dr. RUBINOFF. That is correct, all of our physical facilities are
licensed directly from the Canal Zone government or subleased
through the various military organizations that hold the land.
Mr. MODGLIN. I take it from your answer to the question posed by
the Subcommittee Chairman, that you do not believe there is any
necessity for the Research Institute to be authorized specifically by
statute. You feel that the operation is satisfactory at the present
time?
Mr. JAMESON. It seems to be proceeding very nicely.
We have the annual appropriations hearings which go into some
depth on the Smithsonian Tropical research Institute.
It is a separate, discreet line in our budget.
Mr. MODGLIN. I might touch upon one other point, and that is the
necessity for increased funding for your operating and capital costs.
What aspects of your operating costs have undergone the greatest
increase in recent years?
Dr. RUBINOFF. Salaries paid to employees is the area that has
inflated the most.
We are covered, as you know, by the minimum wage law of the
United States, so that all salaries begin at $2.30 and go on up from
there.
Mr. MODGLIN. What factors, both on the Isthmus of Panama and
outside the Isthmus of Panama, are major determinants of your
increases in operating expenses?
Do you think most of them are legislative and statutory in
nature, or are they local increases in prices in Panama that bring
up the cost of operations?
Dr. RUBINOFF. I think that primarily legislative increases in
salary, and inflation in utilities would be the other major increase.
We have experienced enormous increases in the cost of electrical
power.
Mr. MODGLIN. Has the number of personnel positions in connec-
tion with the Canal Zone Biological Area undergone any major
increase in the last, say, ten years, and if so, why would that be?
Dr. RUBINOFF. Really not.
PAGENO="0085"
79
We have an analysis which we will include for the record if you
would like.
The essential increases have been in the area of protection.
I'\think we run from three to five game wardens in the past five
years.
This is necessitated by the increased number of people running
around the lake.
Mr. M0DGLIN. With respect to your capital expenses, what do you
perceive from that list that is included on the last page of your
testimony to be the most urgent of your capital expenses, the most
important?
Dr. RUBINOFF. I would think that the replacement of the dormi-
tory which was initially constructed in 1924 and which has rather
extensive termite infestation, would be the most important thing.
It is inadequate for a number of reasons, including the ones that I
stated. We are having more and more scientists who want to spend
longer periods on the Island, and the accommodations are just not
adequate for people who are coming to spend one or two years of
their life on a particular study.
Mr. MODGLIN. The dormitories mostly?
Dr. RUBINOFF. I would think that is the most important.
Mr. MODGLIN. Again, referring to the summary of proposed cap-
ital projet on the last pages of your testimony, how many buildings,
actual physical structures which are on the Island at the present
time, do you intend to replace?
Dr. RAND. A great deal depends upon the termites.
Mr. MODGLIN. I am sorry?
Dr. RAND. It is not a facetious answer, but a great deal of what we
will have to do in the way of replacing buildings depends on the
rate by which they are destroyed by termites.
Planned changes essentially include the dormitory, the dining
hall, and the half dozen buildings listed here, but it is not impossi-
ble that deterioration will force major rebuilding in some of the
others. -
Mr. MODGLIN. Will all the structures that you intend to build be
termite-proof?
Dr. RAND. They will be concrete structures.
Mr MODGLIN. Could you for the purposes of the record, describe
the condition of the buildings which you intend to replace?
Dr. RUBINOFF. The dormitory is a wooden structure, subdivided
into--
Dr. RAND. Providing beds for fifteen people.
Dr. RUBINOFF. I think in units of two beds for a partially divided
room.
Essentially, that is it.
It is a screen area, not air conditioned, and represents a hazard in
terms of fire and termites in this environment.
The kitchen and dining facilities are also wooden and need to be
rebuilt in a more sanitary fashion, or in a fashion that allows us to
make dining and living easier.
Mr. MODGLIN. One final question.
How would you characterize the need for these relacement
facilities?
PAGENO="0086"
80
As critical? Important? Nice to have?
Dr. RUBINOFF. Critical.
We run the risk of collapsing or breaking up without warning.
Mr. MODGLIN. Okay.
That is all I have, Mr. Chairman.
Mr. METCALFE. Dr. Rubinoff, the gentleman from Kentucky
wishes to ask another question.
Mr. SNYDER. Dr. Rubinoff, in your prepared statement, you made
the request that we raise the authorization to $750,000, or abolish it
altogether.
The Chairman wrote a letter to Secretary Ripley on April 13,
1976, to which he responded on May 3, and I suppose you have
copies of that correspondence.
An addendum to his response dated May 11, 1976, shows the
actual and estimated budget authority and outlay for 1974 through
1981.
Do you have that document?
Dr. RUBINOFF. No, I don't have it right here.
April 13, is it?
Mr. SNYDER. It certainly is.
(A document was shown to the witness.)
Mr. SNYDER. Now, that item indicated fiscal year 1978 has a right
substantial increase from 1977 which, I assume, was for some
capital improvements off your list.
Then it shows a dropping downS
Can you address yourself then to that?
Dr. RUBINOFF. Essentially, that is reconstruction of the dormitory
and kitchen which would be a one-time expenditure.
Mr. SNYDER. This goes only to* the $500,000 estimate as of 1981.
What is the necessity of raising it up above $600,000?
Dr. RUBINOFF. The reason we are requesting an increase to
$750,000 is because we have been advised, subsequent to the prep-
aration of these estimates, that we should be including the indirect
costs in our Barro Colorado expenses.
Mr. SNYDER. What expenses?
Dr. RUBINOFF. Indirect costs which were not assessed and applied
to these figures.
Mr. SNYDER. Where?
What are the indirect costs?
Dr. RUBINOFF. The costs of, say, a portion of my salary, the time
spent administering Barro Colorado Island, or what Dr. Rand does.
The administrative costs of our central office.
Mr. SNYDER. Here in Washington?
Dr. RUBINOFF. No, in Ancon.
Mr. SNYDER. Well, it sounds to me a lot like a part of what you
are saying is that a part of the expense directly attributed to Barro
Colorado Island is currently being paid by another budget.
How much of the direct cost of your salary and other people's
salary goes on another budget somewhere?
That is a question I asked you earlier.
Mr. JAMESON. Shall I try to answer?
Mr. SNYDER. If you want my support for this bill, you better
answer, because I will tell you with the answer I got right now, I
oppose the bill, and I will go to the floor and fight it.
PAGENO="0087"
81
T~want it honest; if you need the money and can justify it, I will go
and ask for you, but don't pull the wool over my eyes.
Dr. RUBINOFF. I apologize.
We have just been advised by the General Accounting Office that
we should be including indirect costs.
Barro Colorado Island is an integral part of the STRI. A scientist
may spend a day on the Island and four days off. We do not keep
track of is time in various places, as he pursues research.
We have been advised we should dQ that. An analysis is ongoing.
This is the reason we requested an additional amount. There has
been no attempt to deceive you.
Mr. SNYDER. What you are saying is that this submission which is
in front of you from Dr. Ripley is going to be changed before we get
this bill out?
Dr. RUBINOFF. That precedes the advice from the General Ac-
counting Office by a year, at least.
It is May 11, 1976.
The General Accounting auditors were in Panama last month.
Mr. SNYDER. You better send us something to get this
straightened out.
Dr. RUBINOFF. It is just a misunderstanding.
Mr. SYNDER. Let us get it straightened out.
Thank you, Mr. Chairman.
I have to leave now.
Mr. METCALFE. Thank you.
Pursuing the subject of the April 13th letter for 1977, it was
$399.000, and now you are asking for a figure of $750,000 as a limit.
For fiscal year 1978 in the May 11, 1976 letter you project
$607,000, but then for the following year, fiscal `79, you have
dropped it to $386,000, and then we come up again for fiscal uear
1980 to $427,000.
Is this beause of capital construction projects or more construc-
tion causing you to go down and up again?
Dr. RUBINOFF. I think what we are anticipating is general infla-
tionary increases.
This does not mean that we will spend it all in one year.
We are at the mercy of events we cannot control.
Two weeks ago a freighter, Scottish flag, going through the Canal
blew its engine in front of the Island and started to go aground.
It was anchored by the pilot.
After tugs got it under control, we discovered that it had our
electrical cable entwined. We had to have it fixed. We do not have
the bill.
I suspect it will be indemnified.
This could be a $10,000 or $15,000 splicing job, which includes
divers working weekends.
Or the same kind of event could be an act of God.
One of the trees sitting there could break the cable.
A tree in a clearing could knock down one of our houses.
We are asking for authority to spend the money if we need to. We
don't necessarily plan to spend any specific amount by 1980 or 1981,
because we cannot anticipate those needs.
PAGENO="0088"
82
Mr. METCALFE. Does minority counsel, Mr. Nicholas
Nonenmacher, have any questions?
Mr. NONNENMACHER. Thank you, Mr. Chairman.
I have about four questions.
I would like to ask, Dr. Rubinoff, this question, beause I think the
background needs a bit of clarification.
Could you give us in a couple of sentences the precise structure of
STRI and how the Biological Area on the Island fits under that?
I think there is a problem in that the facility at the Island
preceded the establishment of what is now the parent body, and if
you could address a few remarks to that relationship, it might
clarify the matter of the indirect costs.
Obviously, some of them are borne by the parent body which is a
creature subsequent in time to the Barro Colorado Island facility
itself.
Will you explain that in a little more detail?
Dr. RUBINOFF. That is correct.
The administration of STRI is carried out in our offices in town,
just below the Governor's residence in the Canal Zone.
It is a building we lease from the Panama Canal Company.
We operate marine labs on both coasts and on Barro Colorado
Island.
Visitors come to work on the Isthmus of Panama through
Smithsonian Institution support or using our facilities and are free
to go to Barro Colorado or to one of the marine labs to do their
studies.
Sometimes a piece of equipment is available at only one locality
and they will move from one to the other.
The accounting, the purchasing, the personnel records, are all
kept in the Ancon Building, so that the essential administrative
services are all handled at one point for all of our activities on the
Isthmus as well as our activities of staff working in Africa or
elsewhere in the New World Tropics.
We have a string of facilities including Barro Colorado Island. In
many ways, the parent organization is now a small, subsidiary part
of the Tropical Research Institute. The reason for this was that we
wanted to take advantage of the kinds of research we were develop-
ing in the fifties and sixties requiring comparative studies. There
was a need to see whether the results we were getting in the habitat
on Barro Colorado Island were valid at 2,000 meters altitude, or in a
tropical grassland, so we wanted to be able to support some scien-
tists off the Island.
Mr. NONNENMACHER. So apart from the work that is carried on,
the Tropical Research Institute itself was established solely by the
Smithsonian Institution in 1966, is that correct?
Dr. RUBINOFF. That is correct.
Mr. NONENMACHER. Without any Federal interventions or war-
rant or statute from the Congress?
In other words, the Smithsonian established the Tropical Re-
search Institute entirely on its own?
Dr. RUBINOFF. By the authority of the Board of Regents, yes.
Mr. NONNENMACHER. Then it took over operations which had
been authorized in the past by an Act of Congress, namely, the
Barro Colorado facility?
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83
Dr. RUBINOFF. That is correct.
Mr. NONENMACHER. For which you were able to get Federal
appropriations?
Dr. RUBINOFF. That is correct.
Mr. NONNENMACHER. Now, does STRI itself, this totally
Smithsonian body, get Federal funding other than for Barro
Colorado?
Dr. RUBINOFF.' Yes, it does.
Mr. NONNENMACHER. Is that something that came about subse-
quent to its establishment as a private organization?
Dr. RUBINOFF. That is correct.
Mr. NONNENMACHER. Are all the properties and facilities then
utilized by the Tropical Research Institute, apart from Barro Colo-
rado, Federal?
Dr. RUBINOFF. Yes.
Mr. NONNENMACHER. I gathered that from an earlier answer.
There are no private property of facilities whatsoever?
Dr. RUBINOFF. Yes, certain bits of equipment might belong to a
university, but, yes, essentially, it is Federal.
Mr. NONENMACHER. Thank you.
Could you tell us what support functions, if any, and at what
costs are provided to the Tropical Research Institute, and more, in
particular, to Barro Colorado Island, by the Panama Canal
Company?
Dr. RUBINOFF. Well, we buy such commodities as food, lumber,
fuel, and gasoline for our vessels--
Mr. NONNENMACHER. But all at your expense?
Dr. RUBINOFF. At our expense, yes.
Mr. NONNENMACHER. Dr. Rubinoff, is there any support whatso-
ever that they donate to your functions?
Dr. RUBINOFF. No, we pay.
In the early history of the Island, back in the `20s and `30s, they
were often helpful in giving surplus equipment, but those days are
gone.
Mr. NONNENMACHER. I see.
I have two more questions, the first one regarding the treaty
possibilities.
If the government of Panama should take over the operation of
the Zone, to whom would you report in the government of Panama?
I take it that your contract would give you a certain amount of
freedom, if not complete freedom, but under whose supervision
would you directly come?
Would it be the Minister of Health?
Dr. RUBINOFF. That is correct, although we are free to deal with
the other Ministries as we need to for the permanent exchange of
data and things like that.
Mr. NONNENMACHER. You feel you would be completely free to
operate in the eventuality of a treaty?
Dr. RUBINOFF. That is my opinion.
Mr. NONNENMACHER. My last question concerns the ecological
dangers of a proposed sea level canal.
Has the Institute done any work on that?
Has it been asked to do any work?
PAGENO="0090"
84
If it has, what findings have you come up with, especially in
regard to the dangerous, poisonous species in the Pacific entering
into the Atlantic?
Dr. RUBINOFF. We were never asked to do any research, but
because of our situation we did a lot of research that was relative to
the question back in the latter part of the sixties and early
seventies.
It is fair to state that as a result of the research conducted at the
STRI marine labs from 1965 on, the National Academy of Sciences
established a Committee for Ecological Research of an interocean
canal which subsequently recommended that a sea-leval canal not
be constructed beause there were potentially hazardous situations.
Dr. CHALLINOR was a member of that Committees. It was our
research, designed essentially to find out what the situation was
before a canal was built, which put us in the position of making
some kinds of predictions of what might happen if a canal were
built.
Of course, with limited knowledge these kinds of predictions are
difficult to assess, but it is most likely that the introduction of some
plants and animals from one ocean to another would have an effect.
Mr. NONNENMACHER. Are you doing research on this now?
Dr. RUBINOFF. On both oceans, but not directly, specifically as to
what would happen with a sea-level canal.
Mr. NONNENMACHER. You don't have a budget item proposed over
this period of years then, that you had to make such a study to
come up with the final determination?
Dr. RUBINOFF. I don't think we can make a final determination,
but I think we are going about it in the right way to find our more
about the ecology of the oceans in that area so that if and when a
decision is made to consider building that again, we will be in a
much better position to have a precise statement and we could at
least reduce the limits of our estimates of what might happen.
Right now, it is pretty broad speculation.
Mr. NONNENMACHER. Then at this moment the research you have
concluded to date would tend to mitigate against the sea-level
canal?
Dr. RUBINOFF. Without a biotic barrier, yes.
Mr. NONNENMACHER. Thank you very much. Thank you, Mr.
Chairman.
Mr. METCALFE. Thank you very much.
Will the members of your panel be available to answer any
questions that we propound to you in the future for the record of
this hearing?
Dr. RUBINOFF. Yes, Mr. Chairman.
Mr. METCALFE. Therefore, let the record show that, without
objection, the Chair will have a series of questions, which I would
like to submit to the witnesses for the record.
Dr. RUBINOFF. Yes, sir.
[The questions of the Chairman, and the answers, follow:]
PAGENO="0091"
Dr. Ira Rubinoff
Director
Smithsonian Tropical Research Institute
Box 2072
Balboa, Canal Zone
1. In tabular form, for the fiscal year 1976, show for both
the Smithsonian Tropical Research Institute and the Canal Zone
Biological Area (a) the total funds received from (1) the
Federal Government and (2) private sources, (b) the major
categories of e~pendituros, and the amounts of each, made out
of each of the fund sources, public and private, indicating in
some clear manner those specific portions of STRI expenditures
utilized for the Canal Zone Biological Area (some or all of
which you have characterized as indirect costs of the Area).
SMITHSONIAN TROPICAL RESEARCH INSTITUTE
Income and Expenditures - FY 76
c~. `~o,-~ ar~c~-~o~ ~ 4u~rv~-c
Salaries &
Benefits
Sources of Funds
Expenditures
FEDERAL
Salaries and Expenses
Repair arjd Renovation
CZBA Trusty
1, 502, 340
54, 139
48 153
FEDERAL
Salaries and Expenses
Repair and Renovation
CZBA Trust
* Sub-total
1,604,632
NON-FEDERAL
Grants and contracts
with U.S. agencies
Other
10,000
91,778
NON-FEDERAL
Grants and contracts
with U.S. agencies
Other
Sub-total
101,778
Tfavel All Other L~''
TOTAL 1,706,410
..
52,698
.. .
...
54, 139
...
54~ 139
52,698
Sub-total
1,117,667
*
50,748
423,605
1,592,020
4,000
8,587
...
15,954
2,558
46,891
6,558
71,432
Sub-total
12,587
15,954
49,449
77,990
TOTAL
1,130,254
66,70a
473,054
1,670,010
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QentlnnNc
BARRO COLOBADO ISLAND
Income and Expenditures FY 76
NON-FEDERAL
Gmnta and contracts
with U. S. agencies
Other
~`igures are drawn from those of the Smithsonian Tropical Research Institute and are not additions thereto.
~e ~ e~ ~ e ~
Expenditures
FEDERAL
Salarien and Expenses
Repair and Renovation
CZBA Trust
Sources of Funds
FEDERAL
Salaries and Expenses 29 1.490
Repair and Renovation
CZBATrust~J 48153
Sub-total 339,643
NON-FEDERAL
Grants and contracts
with U.S. agencies
Other _________
Sub-total __________
TOTAL 339,643
Travel AU Other Total
928
928
Salaries &
Benefits
132. 448
52.698
Sub-total 185, 146
Sub-total _________
TOTAL 185.146
158. 114 291,490
_________ _________ 52,698
________ 158.114 344.188
928 158. 114 344,188
00
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2. For the four fiscal years previous to 1976, show the same
data insofar as it may be available.
SMITHSONIAN TROPICAL RESEARCH INSTITUTE
Income and Expenditures - FY 75
Sources of Funds
FEDERAL
Salaries and Expenses 1,260,126
Repair and Renovation 75, 000
CZBA Trust-1~ 51,604
Sub-total 1,386,730
NON-FEDERAL
Grants and Contracts
with U.S. agencies 10,000
Other 68,458
Sub-total 78.458
TOTAL 1,465, 188
Salaries 6
Benefits
943,607
39,954
Sub-total 983. 861
Expenditures
FEDERAL
Salaries and Expenses
Repair and Renovation
CZBA Trust
NON-FEDERAL
Grants and contracts
wtth U.S. agencies
Other
All Other Total
Travel
40, 186
40, 186
290, 175
77,063
4,990
1,273, 968 00
77,063 ~
44.944
372,228
1,395,975
2,973
47,012
8,973
50,333
49.985
67,311
6,000
330 10,996
Sub-total 6,330 10.996
TOTAL 989,891 51,182
*a~ ~ \~ ~
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Qoe~tton No. 2
BARRO COLORADO ISLAND
Income and Expenditure9 - FY ~
Salaries &
Sources of Funds Expenditures Benefits Travel All Other Total
FE]~ERAL FEDERAL
Salaries and Expenses 239.634 Salaries and Expenses 132,285 12 107,337 239,634
Repair and Renovation ... Repair and Renovation ... ...
CZBA Trust2-) 51,604 CZBA Trust . 39.954 . ,** ________ 39954
Sub-total 291.238 Sub-total 172.239 12 107,337 279,688
NON-FEDERAL NON-FEDERAL
Grants and Contracts Grants and contracts
with U.S. agencies with U.S. agencies
Other Other
Sub-total . . . Sub-total ... ... ... _________
TOTAL 291.238 TOTAL 172.239 12 107,337 279.688
~rr~ç~ ~ ~ ~t' c
t~ ~ w-~+ c~) ~rc c~-~ u.-~ no# JeO~- ~O k~ ~r~.-#n~ j "~" ~t~k' ur~
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(co~m.)
SMITHSONIAN TROPICAL IIESEA1(C1I INSTITUTJ
Income and Expenditures - FY 74
Sources of Funds
FEDERAL
Salaries and Expenses 1,079,700
Repair and R19ovatton 45,000
CZBA Trust- 43,401
Subtotal 1,168,101
Expenditures
FEDERAL
Salaries and Expenses
Repair and Renovation
CZBA Trust
Salaries 6
Benefits Travel All Other Total
795,478 38,916 242,167 1,076,561
7,985 7,985
55,930 ... 2,387 58,287
Sub-total 851,408 38,916 252,809 1142.833
NON-FEDERi~L
Grants and contracts
* with U.S. agencies
Other
24, 125
40,758
Sub-total 64,883
TOTAL x,232,984
NON-FEDERAL
Grants and contracts
with U.S. agencies
0113cr.
19.603 ... 2,607 22,210
_________ 3,794 30,794 34,588
Sub-total 19.603 3,794 33,401 56,798
TOTAL 871,011 . 42,710 285,910 1,199,631
1/ The trust fund is a permanent appropriSlon not subject to the statutory limitation.
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uestlen Na. 2 (cot~rrs.)
Sources of Funds
FEDERAL
Salaries and Expensen
Repair and Rer3ovation
CZBA Trust
NON-FEDERAL
Grants and contracts
with U.S. agencies
Other
Expenditures
FEDERAL
Salaries and Expenses
Repair and Renovation
CZBA Trust
NON-FEDERAL
Grants and contracts
with U. S. agencies
Other
Salaries &
Benefits Travel All Other Total
l/ Figures are drawn from those of the Smilhsonian Tropical Research Institute and are not additions thereto.
2/ The trust fund is a permanent appropriation, not subject to the statutory limitation.
15A1(lto COLOItADO ISLAND
Income and Expenditures - FY i~ I,
175, 204
43,40i
Sub-total 218,60S
Sub-total _________
TOTAL 215,605
99,163 6 76,035 175,204
55,930 ::: ________ 55,930
155,093 6 76,035 231.134
Sub-total ... ... .. - . -.
TOTAL 155,093 6 76,035 231,134
00
00
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3. (a) Does either the Smithsonian Tropical Research Institute
or the Canal Zone Biological Area borrow any funds from any
sources for capital or operating expenses? (b) If there is
any borrowing, list any loans made to either~the entities over
the last five years, and delineate the experi~kitures made by
each entity showing the loan duration, interest ~~ates, and
the interest paid to date on any loans. (c) If the expenditures
were not made from loans, why did you prorate over their useful
life the costs of telephone installation and tramway renovation
instead of listing their full costs as expeudituros in the year(s)
these projects were accomplished?
Neither the Smithsonian Tropical Research Institute nor
the Canal Zone Biological Area borrows funds for any purpose.
An interim internal planning document prorated capital
expenses involved in the reconstruction of the tramways and the
installation of the telephone on Barro Colorado Island in order to
obtain a reasonable estimate of depreciation and a projection of
required replacement.
The telephone installation was originally to be accomplished
by the Panama Canal Company in its role as suppliei of public
utilities in the Canal Zone. Had this .been done the costs would
have beei amoritized to STRI over a number of years. In that
very restricted sense, STRI would have received a loan. However,
because the Canal Company refused to afford this project sufficient
priority to allow capital funds for the purchase and in~tallation
of the necessary equipment Smithsonian funds were used. The
telephone was charged to the year the contract to the Canal Company
was is sued (FY 76), as was the fabrication of the rail support and
procurement of the winch for the tramway. Installation of the winch
and control mechanisms were completed in FY 77 and charged to
the current appropriation.
95-549 0 - 77 - 7
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4. ~gulations
What are the rules and regulations which govern the
Smithsonian Tropical Research Institute and the Canal ZDne
Biological Area? How are the rules and regu]ations which
govern the two entitles the same? How are they different?
Who is the issuing authority for the rules and regulations
which govern each entity?
The Smithsonian Tropical Research Institute was established in
1966 by the Board of Regents of the Smithsonian Instituti6n. It is
governed by. the general provisions of the basic Smithsonian statutes,
as well as memoranda and regulations of the Smithsonian Institution
issued under 20 USC 41 ~ Administration of the Canal Zone
Biological Area (Barro Colorado Island), which is an integral part
of STRI, is subject to the same statutes and to the provisions of
20 USC 79a-e as well.
Both entities are further subject to Federal law governing the
uses of appropriated funds, the civil service as it applies to the
Canal Zone, and procurement among others; to the. Canal Zone Code
and related laws enacted by Congress; and to executive orders
issued by the Secretary of the Army and the Governor of the Canal
Zone. . . . . .
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5. User Fees
Over the last five fiscal years, what percentage of the
operating costs of the Canal Zone Biological Area have been
recovered in user fees? What percentage of the total costa
have been recovered in user fees? What formula is used to
determine the fees that should be assessed?
Barro Colorado Island fees are recommended by the Director
of the Smithsonian Tropical Research Institute and approved by the
Treasurer of the Smithsonian Institution.
No explicit formula is used to calculate fees, but existing
guidelines provide that user fees should (1) cover those costs of
* BCI whichincrease as use increases and (2) cover some small fraction
of fixed costs.
* In setting fees, fees charged at other field laboratories are
considered. Student fees are related to amounts granted as stipends
through fellowships from major U. S. universities and the National
Science Foundation.
6. Proration of Grants * S
Are any of the grants received by the Smithsonian Tropical
Research Institute partially or wholly assigned to the oosts of
the Canal Zone Biological Area, either pursuant to 20 U.S.C. 79d
or anpther section of the statutes or regulation? -
Liø~
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7, Capital Project Priority
The Smithsonian Tropical Resèarôh Institute's submission
to the Panama Canal Subcommittee on April 28, 1976, indicates
a need for eight repair and building programs for the
Biological Area in the next decade. Prioritize these programs
and characterize the importance of these, and indicate the
amount needed for each.
PRIORITY REPAIR AND RENOVATION PROGRAMS
1979: Replacement of dormitories originally constructed
in 1924 $125,000
The building is heavily infested with termites; its wiring is
obsolete; and room arrangements and ac~ommodations are
inadequate for scientistson long-term research projects.
1980: Replacment of dining hall and kitchen facilities with
more modern sanitary facilities $169, 500
Present dining facilities are part of the dormitory building
constructed in 1924. Because many scientists work On nocturn~l
organisms, it is important that sleeping quarters are separated
from noise-producing daytime activities associated with the
kitchen and dining areas. The structure is wooden, and
difficult to maintain at modern sanitary standards. The
kitchen is in a small wooden building adjacent to the dining
room-dormitory. It is difficult to clean, contains inadequate
storage, and is too small to accommodate modern food
preparation and dishwashing machinery.
1981: Replacement of current septic-sewage system with
modern, non-polluting sanitary treatment facil~~y $50, 000
A new facility would tie together the buildings into a single
sanitary system under one control.
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~ue~or~ 7
Reconstruction of the &~~nd floor of laboratory building_ $35, 000
The laboratory building was found to be dangerously termite
infested in 1976 and on an emergency basis the upper story
of this building was reconstructed, allowing a more efficient
apportionment of space and an energy saving, central air-
conditioning system was installed. The ground floor reconstruction
would permit further economies of space, cooling, and
dehumidification.
Construction of new long-term staff scientist residence $35, 000
Staff and post-doctoral student research interests vary from
year to year, but the observable trend is toward longer term
studies which frequently involve comparison of fluctuations in
the environment between dry arid wet seasons and between
successive years. Scientists, particularly those with families,
require more space and privacy than can reasonably be âccom-
rnodated under dormitory arrangements.
1982: Reconstruction of animal holding facility $35, 000
The present facility provides adequate space for keeping
animals necessary to research in captivity and providing
for their food and health care. However, the wood and/
screen structure is suffering the ravages of termites,.
carpenter ants, and dry rot, and should be replaced with
a concrete structure.
Enlarging plant growth facility $20, 000
Plant ecology is an essential program designed to learn how
the forest regenerates itself. A more substantial permanent
facility is required in the near future $20, 000
Towers and crosswalks ~... $25,000
The p~ocesses and activities of the forest canopy are the
least understood aspects of the ecology of tropical forests
because no safe and simple method of samjling and observing
has been devised. A series of towers and crosswalks between
them is proposed for sampling and observation of a reasonable
cross-section of the forest at 100-150 feet above ground.
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8. Increase in Visitors
Data submitted by STRI in 1975 and 1976 to the Panama
Canal Subcommittee indicate a great increase in 1975 in the
tiumber of visitors to the Biological Area. Why did this
great increase in the number of visitors occur?
The large increase in visitors to Barro Colorado Island
during 1975 can be attributed to several causes. The first of these
wasa highly successful series of weekly guided tours. This was an
experiment in public education aimed at the interested layman, both
American and Panamanian. Given by a bilingual guide in English
and Spanish, each tour included a hike in the forest a tour of the facility;
a lecture on the environment, its plants and animals; and an explanation
of the role of the Smithsonian Tropical Research Institute in studying
them. Though very popular, the tours have been curtailed drastically
in 1976 because of financial constraints and because of increasing
scientific use of the island.
The increasing scientific use of the island is another major
reason for growth in the number of visitors to Barro Colorado Island
in 1975. Subtracting visitors, numbering more than two hundred,
who came on tours in 1975, the number of visitors to BCI has shown
a smooth and regular increase over the last four years because more
scientists and students are performing research ther~. The reasons
for this are centered mainly on the growing interest in the United
States and some of its universities in the agriculture, climatology,
ecology, public health, and conservation of tropical parts of the world,
and an increasing need to study this region.
With rising costs throughout the world and decreasing amounts
óí money available for research, the opportunities for doing research
on BCI have become more attractive. As very large grants, which
* formerly allowed an investigator to build an individual field station,
are becomming fewer, more investigators are tiirning to established
* stations such as BCI where facilities are already available and are
less expensive on a per capita basis because of shared costs. In
addition, several tropical field stations such ~`~;Bimini, have been
* forced to close or to drastically reduce programs, as are the cases
of Ots in Costa Rica and Simla in Trinidad, primarily because of
rising cost factors. Thus, a decreasing number of alternative
facilities has also increased the number of people wanting to use
Barro Colorado Island.
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9. Authorization for Biological Area
How can it be assured that the authorizatidn limit for the
Canal Zone Biological Area is not being exceeded when the
appropriations for the Btelogical Area are indistinguishable
from appropriations for the Smithsonian Tropical Research
Institute?
The Smithsonian Tropical Research Institute budgets a specific
amount for Canal Zone Biological Area expenses each year within
the limits authorized by Congress. The accounting system of STRI
and the supervision of this system by both the Smithsonian Accounting
Division and the Smithsonian Office of Audits in Washington, D. C.,
assures adherence to the authorized limits.
10. Treaty Negotiations
Considering the contract signed between the Institute and
the Government of Panama, would a change in the jurisdiction
to which the Canal Zone Biological Area is subject alter the
basic benefits, contributions, or responsibilities of the Area?
The possible effects of a change in jurisdiction on the Canal
Zone Biological Area have been discussed with the U. S. Department
of State. Its staff believes that under an international agreement,
which will be part of a new fteaty, the rcscrv~ and .the research
status of Barro Colorado Island will be protected. Discussions with
Panamanian Government officials indicate their full appreciation
of the importance of Barro Colorado I~land as an international
conservation and scientific resource.
In addition, we believe two existing agreements would further
insure the continued operation of the Smithsonian Tropical Research
Institute and its Barro Colorado Island facility should jurisdictional
changes occur. The first is an international convention, signed by
the United States in 1940 and ratified by Panama in 1972 which provides
for cooperation between the American states for purposes of pre-
servation of flora and fauna and natural areas. The s~cond agreement
is a contract signed by STRI in 1977 with the Panamanian Ministry
of Health which authorizes scientific operations throughout the Isthmus.
Jurisdictional changes may effect operations such as procurement
sources and the compensation scale of employees, but would not
materially effect the quality of the scientific research or the benefits
of that research.
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Mr. METCALFE. To our witnesses I would like to express, on behalf
of the Subcommittee, our deep appreciation for your presentation
and for your meeting here with us, and for being able to give us
some answers to the questions that we have.
If there is no further testimony, the meeting of the Subcommittee
will stand adjourned, subject to the all of the Chair.
Thank you very much.
[Whereupon, at 3:10 p.m., the meeting of the Subcommittee was
adjourned, subject to the call of the Chair.]
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PROBLEMS OF CANAL ZONE RESIDENTS AND
EMPLOYEES
TUESDAY, APRIL 12, 1977
HOUSE OF REPRESENTATIVES,
COMMITTEE ON MERCHANT MARINE AND FISHERIES,
SUBCOMMITTEE ON THE PANAMA CANAL,
Balboa, Canal Zone
The subcommittee met at 9:00 am. in the Board Room of the
Administration Building, Balboa Heights, Canal Zone, Hon. Ralph
Metcalfe (chairman of the subcommittee) presiding.
Mr. METCALFE. Good morning. We have here this morning Con-
gressman Leo Zeferetti, who is a Member of the Panama Canal
Subcommittee. On my immediate right is Congressman Elwood
Hillis, a Member of the Armed Services Committee. Then we have
Minority Staff Member Mr. Nick Nonnenmacher and we also have
with us Mr. Benard Tannenbaum, a consultant to the Committee on
Merchant Marine and Fisheries, and we are extremely happy to
have him. We also have Mr. Keith Guthrie of the State Depart-
ment, who did an excellent job yesterday of briefing us on the plane
even though hindered by the noise of the airplane engines. His
briefing was excellent. Another gentleman here this morning is Mr.
Coleman Conroy, my legislative assistant. His duties go far beyond
those of a normal legislative assistant. He is active and is often
called into consultation whenever Mr. Terry Modglin, whom I am to
introduce now, is taken up with an issue and well-taken up. I
thought it incumbent to bring Mr. Conroy down to help in the
assistance. The charming lady to his left is Mrs. Carolyn Robinson,
who is a staff member.
Governor Parfitt, Ladies and Gentlemen, we are pleased to be in
the Canal Zone once again. We are pleased this morning to invite
the counsel of a dynamic Governor and a group of managers who
have kept the Panama Canal running in an admirably efficient
way.
There is much to be discussed today. The last occasion on which
the subcommittee formally heard Governor ParfItt was April of last
year. The last general oversight hearings of the subcommittee were
two years ago. The last subcommittee hearings in the Canal Zone
were three years ago.
While we have not had the Governor as a witness in nearly a
year, we have exchanged much correspondence on a variety of
subjects.
(97)
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I might add parenthetically that the Governor has always re-
sponded immediately to our requests.
Congress does have an important role as the legislature for the
Canal Zone, and we are here to see what laws are needed. We are
here to see if the present law is being administered in accordance
with the intentions that preceded it. We are here to determine what
the best framework for operating the Canal and Canal Zone ought
to be.
Having said this, I would like to give my two distinguished
colleagues an opportunity to make some remarks. We have a
distinguished member of the subcommittee, as I indicated before,
Representative Leo Zeferetti, to my left. We are especially pleased
that Congressman Elwood Hillis of Indiana, a member of the very
important Armed Services Committee, has been able to make this
visit with us. I am sure that he will have a number of very cogent
questions about the military side of the Canal. Gentlemen, do either
of you wish to make a remark?
Mr. Zeferetti?
Mr. ZEFERETTI. Thank you, Mr. Chairman.
As a new member of the subcommittee, I welcome the oportunity
to be able to sit in at these hearings and obtain firsthand informa-
tion. We are here to learn.
Governor, I want to thank you for being most gracious and most
hospitable to us last evening and I welcome the opportunity to hear
your testimony.
Thank you, Mr. Chairman.
Mr. METCALFE. He does that with such great ease.
Congressman Hillis.
Mr. HILLIs. Thank you, Mr. Chairman, I, too, am very happy to be
in the Canal Zone. I am here as kind of an observer, and I am here
to have the opportunity to learn what part the Canal plays in our
overall national security picture.
I, too, want to thank you for a very nice evening.
Mr. METCALFE. At this point I ask unanimous consent that
Congressman Elwood Hillis be allowed to sit with the subcommittee
and that he be given all procedural prerogatives due subcommittee
members.
Without objection it will be so ordered.
Governor Parfitt, we are now anxiously awaiting your testimony.
STATEMENT OF HAROLD R. PARFITT, GOVERNOR OF THE CANAL
ZONE, AND PRESIDENT OF THE PANAMA CANAL COMPANY
Governor PARFITT. Mr. Chairman and members of the committee,
I extend to you a warm welcome to the Canal Zone. I am certainly
pleased to be of assistance and trust that the information you will
gather during the course of these hearings will provide a useful
perspective of the Canal enterprise as a whole and in addition
afford you some insight into special problems we face in our day-to-
day operations.
Your interest in, your guidance of, and your support for the
Panama Canal and its employees are all most welcome in helping to
combat the morale problems which we now face. The tremendous
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99
uncertainties arising from treaty negotiations and the cumulative
effect of changes over the past two years in policies affecting
personnel benefits and living and working conditions have had an
adverse effect on morale. It is not possible to pinpoint specific
occurrences wherein this weakening of morale has thus far had an
effect on operations, but it is generally obvious that the traditional
pride of the Canal employee in his work has been adversely af-
fected. Inevitably, if not checked, this will erode productivity.
The most evident expression of low morale is the significant
increase in turnover of U.S. citizen employees which occurred
during calendar year 1976. Resignations by U.S. citizen employees
during 1976 totalled 290 out of an average employment figure of
3514, or 8.25 percent. Although the number involved is not alarm-
ing, the trend is of considerable concern. The Panama Canal
workforce has always been characterized by a high degree of stabil-
ity, but in 1976 the resignation rate was 30 percent over the average
for the previous 9 years and 57 percent over the average for the
previous 3 years.
Many of the vacancies resulting from increased U.S. citizen
turnover can readily be filled from the local labor market. Aside
from the increased cost due to replacement processing and break-in
time for new employees, and the reduced efficiency of operating
teams, such as at the locks, this turnover is of limited significance
for the agency. The hard-to-fill categories do concern us, however.
These include our Canal pilots, towboat and dredge masters and
engineers, nurses, medical officers, machinists and electricians, and
a few others. We are therefore carrying on an active U.S.
recruitment program for those positions which cannot be filled
locally. Obviously, substantially higher costs do result from this
method of filling our vacancies.
Recruitment problems have stemmed from publicity in the U.S.
concerning the treaty negotiations with the Republic of Panama.
Prospective employees are wary in seeking employment with the
Panama Canal when doubt exists as to the future security and
tenure of the positions and the conditions which might prevail
under a new treaty. Nevertheless, at the present time, we continue
to be able to recruit essential skills from the United States.
Let me emphasize at this point that the company's position is
that we should continue to operate on a sound, businesslike basis as
an ongoing enterprise, without attempting to anticipate the many
possibilities that might be considered in the treaty negotiations. In
that respect we are continuing with our ongoing capital programs,
and contemplate an increased level of expenditures for capital
replacements and improvements over the next 5 years. For exam-
ple, an important capital project presently underway is the widen-
ing and straightening of portions of the navigational channel
through Gatun Lake. When completed the project will provide
greater safety for the navigation of the larger ships that we are
seeing in ever-increasing numbers.
To return to the matter of morale, the uncertainties inherent in
the treaty negotiations have been exacerbated by several factors:
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Press releases in Panamanian newspapers presenting as fact
their versions of the content of treaty talks and attacking the Canal
Zone and Canal employees;
The January 9, 1977, incursions into the Canal Zone;
The Panama National Guard detention for several hours without
cause of one of our most active labor representatives, Officer Wil-
liam Drummond, President of the Police Union, and an outspoken
opponent of the treaty;
And a series of bombings in the Canal Zone last fall, one of which
involved the automobile of Officer Drummond.
Such incidents tend to alienate employees, harden their resent-
ment, and intensify their fear of post treaty conditions when they
might no longer have the protection and guarantees presently
enjoyed under U.S. jurisdiction in the Canal Zone.
I have long advocated release of information about the treaty
talks and last month I was successful in obtaining consent of the
U.S. treaty negotiators and the Secretary of the Army to release to
our employees a 15-point paper outlining assurances concerning
employee rights that constitute the minimum position of the United
States with respect to these issues. Employee response to the
announcement has been cautious and reserved to date. They are
generally appreciative for having been authoritatively informed;
however, there is a general feeling that the assurances are inad-
equate and leave many questions unanswered. They are hopeful
that this marks the beginning of a more fruitful exchange between
employees and U.S. negotiators.
[The material referred to follows:]
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ASSURANCES FOR PRESENT EMPLOYEES OF THE
PANAMA CANAL COMPANY/CANAL ZONE GOVERNMENT
UNDER A NEW PANAMA CANAL TREATY
(Given to Canal Employees by Canal Zone Governor Parfitt on March 15,1974
The following list of assurances for present United States citizen
and non-United States citizen employees of the Panama Canal Company!
Canal Zone Government are derived from the United States position.
They represent those assurances on fundamental iteu~s of particular
interest to Canal employees which would, as a minimum, be provided
in the context of any new treaty relationship. Obviously, all treaty
provisions are subject to negotiation, the ratification process, and
such Congressional implementing legislation as may be appropriate.
No formal~, comprehensive agreement has been reached between the
United States Government and the Republic of Panama regarding this
issue or any other.
These assurances are not intended to be final or all-inclusive.
Other areas of concern are continuing to be examined. These
assurances should, however, provide employees with a general under-
standing of the minimum level of benefits and protections being
sought.
1. Schooling and medical care provided by the United
States Government will continue to be available for United
States citizen employees and their dependents.
2. United States citizen employees will continue to be
p~ovided with adequate housing at a reasonable cost. Resi-
dential areas will be managed in such a manner as to maintain
a mix of United States and Panamanian residents.
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102
3. United States citizen employees and their dependents.
will continue to enjoy duty-free import and purchasing
privileges concerning items for private use. They will also
be authorized use of military service facilities.
4. United States citizen employees and their dependents
will be exempted from Panamanian tax on any income derived
from.
-- The Canal operation or other United States
Government agencies, and
-- sources outside the Republic of Panama.
5. In connection with offenses arising from acts or
omissions punishable under the Laws of the Republic of Panama,
United States citizen employees and their dependents will be
entitled to specific procedural guarantees, such as prompt and
speedy trial, specific charges, cross-examination of witnesses
and legal representation of choice.
6. United States citizen employees and dependents who
may be considered to be dual nationals will have the same
status under the new treaty as those of exclusive United States
citizenship.
7. Non-United States citizen employees automatically will
be covered under the Panama Social Security System, except
that those with five or more years of United States Government
service as of the effective date of the new treaty will have the
option to retain U. S. Civil Service retirement coverage in
lieu of transfer to Panama Social Security coverage.
8. Panamanian citizens will be employed in increasing
numbers at all levels of the management and o~eration of the
Canal.
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103
9. Increased Panamanian employment in the operation of
the Canal will not be used to. displace current United States
citizen Canal employees.
10. All eligible employees are guaranteed by current
regulation, reduction-in-force and reassignment right,, transfer
or function rights, and discontinued service retirement
following involuntary separation. In addition, the Civil
Service Commission will be requested to grant approval of and!
or waivers for "early optional retirement" or liberalized
severence pay coveragO for employees of Canal enterprise
activities which are scheduled for elimination, reduction or
transfer. Employees whose working conditions are so adversely
affected by the treaty that special consideration is appropriate
may also be included in this commission request.
11. Civil Service Commission approval will be sought to
provide any present Unite~1 States citizen employee requesting
such assistance with priority placement consideration for
appropriate vacancies in federal government agencies.
12. To the extent consistent with sound management, the
terms and conditions for the employment of non-United States
citizen personnel will, as a matter of policy, conform with the
general principles contained in the labor laws of the Republic
of Panama.
13. The Government of the United States will ask that
special placement assistance be offered by the Republic of
Panama to any non-United States citizen employee who may be
displaced' by reason of the treaty. `, . -
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104
14. The Canal management will conduct its relations with
recognized employee unions representing Canal employees in
accordance with Executive Order 11491, as amended, and/or other
mutually acceptable form of collective bargaining.
15. Recommendations, if appropriate, will be made to the
Office of Management and Budget for legislative action found
necessary to prevent an erosion of the general, level of
employee benefits and conditions of employment under any new
treaty.
Governor PARFITT. An additional step that I feel has had a
calming effect is the clarification of the matter of procedures for
U.S. citizen employees desiring to transfer to Civil Service positions
in the United States. In general, movement of U.S. citizen employ-
ees between the Canal Zone Merit System and the competitive Civil
Service is accomplished in the same manner as transfers between
two positions in the Civil Service. Considerable publicity has been
given to this information and two Company personnel specialists
have been designated to handle inquiries about transfers and re-
lated personnel matters such as transportation. Furthermore, the
company has subscribed to the Federal Research Service Report, a
private publication listing vacancies in federal agencies nationwide,
and this information is posted for public use.
From management's point of view, we do not want to lose any of
our valuable employees, and these measures are designed not to
encourage transfers but to give U.S. citizen employees the sense
that we are interested in their welfare and that they are part of the
overall Federal establishment and need not move rashly.
Another underlying cause for increased turnover among U.S.
citizen employees is the perception that there is an ongoing whit-
tling away of their benefits and living and working conditions.
Although in these days such a perception might be universal within
the Federal service, for the Panama Canal employee it has a special
significance. The development of the Canal's highly stable
workforce was a direct result of the stability of benefits and living
conditions, including housing in Company towns and shopping in
Company stores. The influence of the Company in the lives of its
employees is all-pervasive. For that reason, any change in benefits
or living conditions is perceived as a change in employment condi-
tions, a breach by the company of the incentive conditions that
originally induced the employee to accept stabilized employment
with the company.
There have been changes, some as the result of economic pres-
sures, and others to bring about greater equality of opportunity and
treatment for our non-U.S. citizen employees. Many of the changes,
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105
as you know, were made following the recommendations contained
in the GAO study in 1975. I would like to give you an update on
some of the more significant changes that have taken place.
CONSOLIDATION OF HOUSING
In February, 1976, a change was made to the housing regulations
to consolidate housing formerly assigned separately to U.S. citizens
and non-U.S. citizens. As a result of this change, non-U.S. citizens at
or above the NM-7 level already assigned family housing in the
Canal Zone can compete with U.S. citizen employees on an equal
basis for vacancies in U.S. community housing. There are more
than 190 non-U.S. citizens living in the Canal Zone who are at or
above the NM-7 grade level. Of these, 62, primarily policemen and
physicians, were already living in U.S. communities. An additional
six such special position housing assignments have since been made,
and 13 non-U.S. citizens have made the change to U.S. communities
under the new regulations, bringing to 81 the total number of non-
U.S. citizens residing in U.S. community housing. Also, as part of
the change, U.S. citizen employees who are below the NM-7 housing
eligibility grade cutoff were made eligible for housing in the former
Latin American communities, and 87 of them have taken advantage
of this opportunity and moved from Panama into these communi-
ties. Additionally, 60 U.S. military families were provided such
housing on a space available basis. I am pleased to report that the
consolidation of the housing to date has gone smoothly.
CONSOLIDATION OF SCHOOLS
A year ago last month we began Phase I of the consolidation of
students from our Latin American schools into our U.S. schools. 119
pupils in kindergarten through fourth grade were given special
English language training during the late Spring and entered U.S.
schools in August with the beginning of the regular school year. In
addition, 41 students from the phased-out grades took advantage of
the option to attend schools in the Republic of Panama, with tuition
and transportation costs borne by the Canal Zone Government.
Reports indicate that Phase I has gone well.
Phase II, involving 183 students going into grades 6 through 8 has
just begun and 169 of these students are undergoing the special
training to prepare them for entry into U.S. schools in August.
Another 14 students have opted for schools in the Republic of
Panama.
The third phase will involve approximately 300 students going
into grades 10 through 12, who will be offered three choices: they
may transfer to U.S. schools, opt for schooling in Panama, or, if
enough students so desire, may continue their education in their
present school until the last students graduate in December, 1980.
There has been very little difficulty with the consolidation of the
non-U.S. students into the schools. There have been, however,
strong objections raised by U.S. citizens against having their chil-
dren taught by non-U.S. citizen teachers. Thus, placement of the
teachers from the Latin American schools as those schools are
phased out, is very sensitive and requires special care and
attention.
95-549 0 - 77 - 8
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106
SECURITY POSITIONS
Another change that was made recently was the establishment of
new criteria for the designation of security positions. Under legisla-
tion implementing the 1955 treaty, there is to be equal employment
opportunity for U.S. and non-U.S. citizens, with the exception of
positions which require U.S. citizens for security reasons. Under the
new criteria, which were adopted on July 4, 1976, the number of
security positions was reduced from 1095 to 580. Additionally, in
February of this year, the Fire Division, after consultation with the
involved unions, acted to remove the security designation from all
fire sergeant positions. Previously seven had been designatd as
security positions.
EQUAL EMPLOYMENT OPPORTUNITY
In the area of human rights, our equal Employment Opportunity
program has been very active and may experience a substantial
increase in workload. The General Counsel of the Civil Service
Commission has recently ruled that non-U.S. citizens employed in
the Canal Zone are within the scope of persons protected by the
equal employment opportunity laws. Aliens employed by Federal
agencies in other overseas areas are not so covered. In light of this
ruling, the Company is preparing to conduct, on July 8, 1977, a
minority census to identify minorities among our non-U.S.
employees.
Although we had previously administratively extended to our
non-U.S.citizen workforce the opportunity to have equal opportu-
nity complaints heard within the agency, this action by the Civil
Service Commission obligates us to follow somewhat more cumber-
some procedures in processing complaints, including a right of
appeal to the Commission and to the courts. The new ruling applies
not only to our 10,000 non-U.S. citizen employees but also to the
more than 20,000 applicants for employment with the
Company/Government.
To complicate matters, there is considerable confusion among
employees and others concerning the applicability of the Civil
Rights Act to complaints of discrimination on the basis of citizen-
ship. As you know, the Civil Rights Act prohibits discrimination on
the basis of "national origin," meaning ancestry or ethnic heritage;
this particular act does not prohibit discrimination on the basis of
"nationality," meaning citizenship or current political allegiance-
although such discrimination is unlawful in certain contexts under
other laws.
Understandably, U.S. citizen employees who feel that they have
been treated less favorably than Panamanian employees and Pana-
manian employees who feel that they have been treated less favor-
ably than American employees do not make these careful linguistic
distinctions and, consequently, an increasing number of complaints
are being brought in the EEO framework which in the agency's
view do not belong there.
The Company is working with the Civil Service Commission to
ascertain how this problem is to be resolved, hoping thereby to
avert a situation in which practically every personnel-related deci-
PAGENO="0115"
107
sion in the Company/Government would be susceptible of challenge
as an EEO matter solely because employees of both nationalities
are involved.
These have been some of the more significant changes and con-
cerns in the personnel area. Other matters now being reviewed
include eligibility for home leave travel and repatriation, and new
federal wage system job-grading standards, which may adversely
affect some 800 manual employees. It is hoped that any adverse
impact of these actions can be cushioned by some form of
grandfathering.
UNIVERSAL TONNAGE MEASUREMENT SYSTEM
The Committee has expressed an interest in the Company's
attitude toward using the Universal Tonnage Measurement System
as the basis for payment of Panama Canal tolls. As you may know,
the Universal System is contained in the 1969 Tonnage Measure-
ment Convention which will come into force two years after 25
countries representing 65 percent of the world's commercial ton-
nage ratify the convention. At the moment, 30 countries have
signed representing some 55-60 percent of world gross tonnage. The
major holdout is Japan, with about 10 percent of the world's
tonnage. The United States, with approximately 4 percent of the
world's tonnage, has not yet ratified the convention, but in any
event the Presidential message recommending ratification by the
Congress specifically exempts the Panama Canal from mandatory
use of UMS.
The Company has reached no decision as yet on whether to
continue with the present Panama Canal tonnage system after the
1969 convention comes into force or whether to recommend a
change to a new or revised system in accommodation of the conven-
tion rules. Although the Company favors the concept of a universal
measurement system, the decision to change to a new toll system
will depend to a great extent on how the system would affect the
relative distribution of tolls among the individual ships using the
Canal. Earlier studies made by us indicate that adoption of either
convention net or convention gross rules would result in tolls
against individual ships significantly different from current tolls
even after adjustment in rates to equalize Canal revenue. The
studies also showed that the 12-year transition period would pose
serious problems for the Canal with respect to rate structuring and
revenue stability. Whether or not these adverse effects can be
satisfactorily minimized is among the questions currently under
study.
CANAL TRAFFIC
Concern has been expressed that the 19.5 percent toll increase
that went into effect on 18 November 1976 might have an adverse
effect on Canal traffic. Actually, since the date of the rate increase
there has been an increase in the total cargo tonnage transiting the
Canal, so there is no way to measure if any traffic has been lost
bcause of the tolls increase. There has been a slight reduction in
numbers of ships transiting the Canal this year as compared to the
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108
same period last year, but the number of large vessels is still
increasing, thus yielding a higher average toll per transit. As a
consequence, tolls revenues for the first 6 months of fiscal year 1977
are at target levels and in consonance with the projections used in
the justification for the tolls increase.
The traffic situation and tolls income picture could, however, be
worsened if the dry season continues much longer in its present
severity. The dry season months thus far are among the driest on
record here. Water inflows to the lakes have been extremely low,
with March being the second lowest of any month on record.
Unfortunately, this followed a short rainy season during which it
was impossible to fill the lakes before the onset of the dry season.
Last year the minimum draft restriction was 37 feet, which is the
allowance at the present time. However, we are now forced to
consider the possibility of a 35 foot allowable vessel draft, and we
have already advised shippers that the draft allowance will be
reduced to 35 feet, 6 inches on 3 May 1977. In addition to its obvious
impact on shipping, the water shortage also reduces our hydropower
production capability, significantly increasing the cost of electrical
power generation. Obviously we are looking for the onset of the
rainy season to maintain lake levels so that large vessel transits
will not be lost and hydropower generation can be resumed.
CANAL SAFETY
Transiting vessels safely with a minimum number of accidents
has been, and is, of continuing concern. Accident evaluation is used
as the basis for channel improvements, for more thorough vessel
inspection prior to transit, for revising training programs, and for
developing safer operating procedures. Programs of seminars and
discussions are periodically scheduled with locks personnel, towboat
personnel and pilots in order to improve the coordination of the
operating team. Channel redesign has been studied and is the basis
for new dredging programs.
Despite the foregQing, the accident record is not as low as we
would like, although it is generally lower than that of historic
levels. For example, between 1914 and 1974 there was an average of
one ship accident for each 292 ships transited. In the five-year
period 1972 to 1976, in spite of the increasing average size of ships
transiting, the annual average for accidents had improved to one
accident for each 406 total transits, principally because of improve-
ments in procedures and capital acquisitions such as tugs,
locomotives and lighting. Unfortunately, the average for the first
half of fiscal year 1977 was about 10 percent below the all-time
average, with an accident for each 267 total transits. However, this
is too brief a statistical sample to establish a trend, and, in fact, the
second quarter of the fiscal year showed an upward improvement,
with one accident for each 361 transits.
We will continue to take every reasonable measure to reduce
accidents, and to minimize the ever-increasing financial burden
which they impose.
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109
FINANCIAL MANAGEMENT
In the financial area, the operating results for the first 6 months
of fiscal year 1977 are consistent with budget and, barring any
major shortfall in traffic forecasted for the remainder of the fiscal
year, we expect to attain the $4.2 million net revenues projected.
Furthermore, we are still optimistic that the present toll rate will
permit a break-even operation through fiscal year 1979, including
payments to the U.S. Treasury in the amount of $9.3 million of
deferred liabilities from fiscal year 1976 and the Transition
Quarter.
NORTH SLOPE OIL
The potential for North Slope oil could have a profound impact
on future traffic and tolls. It now appears possible that some of this
oil could pass through the Canal in early fiscal year 1978, reaching
a rate of about 500,000 barrels-approximately 70,000 long tons-
daily. This translates to about three large tanker transits per day. If
this materializes, our tolls revenue could be increased by as much
as $27.7 million and $36.9 million in fiscal years 1978 and 1979,
respectively. Related costs would be relatively small. Therefore, this
development would have a very favorable impact on our net rev-
enues. Hopefully, we will receive sufficient notification to permit
appropriate planning and implementation of measures to accommo-
date this traffic.
CONCLUSION
The complexity of the issues and problems that abound in the
Canal Zone makes it impossible for me to cover the situation in any
depth in this opening statement. I have just tried to highlight those
matters that I believe are most important and of greatest interest to
you. Emphasis has been placed on morale and motivation of the
workforce which is so necessary to mission accomplishment.
Unfortunately, many of our employees are beginning to lose sight
of the importance of their work. The treaty negotiations per se have
been interpreted as a lessening of U.S. interest in the Canal and the
timing of the changes in organizational policies have been viewed as
a coordinated political effort to get rid of the U.S. citizen employee.
These attitudes and perceptions must be dealt with promptly,
directly and effectively. Management is dedicated to this end. The
Canal is an important artery of world commerce and its continued
efficient operation is obviously of considerable concern to the
United States. In this regard, our employees are our greatest asset.
We want them to know that.
Recent developments will assist management in dealing responsi-
bly and effectively with the challenges I have outlined. The im-
provement in the economy, for one thing, will help by taking some
of the economic pressures off the Company. The breakthrough in
having employee assurances released concerning the U.S. position
on employee rights is a positive step in the right direction. Too,
these hearings are most helpful. The presence of the committee, as
an expression of Congressional concern, demonstrates the impor-
tance attached to the Canal and its employees at the highest levels
of government.
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110
What this all adds up to is demonstrable appreciation for the key
role of the employee in the operation of the Canal. I am confident
that this will be most meaningful to our dedicated employees and
greatly aid in continuing the outstanding service to world shipping
that has always characterized operations of the Panama Canal.
Mr. Chairman, this concludes my prepared statement. I would be
pleased to respond to any questions you may have at this time.
Mr. METCALFE. Thank you very much, Governor Parfitt, for the
very informative and enlightening and very candid statement you
made to us. It has been reassuring, I can tell you that.
There are just a few questions on which I would like some
clarification.
I understand the Canal Company has established a complaint
office within the last year for Panamanian employees of the Canal
Organization to seek redress for their grievances. How does this
affect your operation? How is it moving?
Governor PARFITT. There is no difference between those employ-
ees and our American employees, sir. All the employees are alike in
terms of addressing their grievances. I see no change other than the
fact that some of the EEO complaints I alluded to in my statement
have the possiblity of snowballing because of the fact of the distinc-
tion between U.S. and non-U.S. Every issue, almost every personnel
issue, which involves a Panamanian and U.S. respectively, now,
could be deemed as an EEO complaint. This is of concern to us.
Mr. METCALFE. Since there is a lot of tension, more so than we
would normally have, if we were not in the process of negotiating
for a new treaty, by the mere fact that you have established a
complaint office, do you find a lessening of that tension, the appre-
hension, the lack of knowledge?
Governor PARFITT. Well, anything we can do to provide further
information is most helpful. I believe the worst situation is a lack of
information. It is that fact that has caused most of the stresses and
strains, the fact that people have not been informed to the extent
they would like to be informed.
The more we can do to advise them as to the internal policies,
changes, and rationale therefore and what's going on in the treaty
negotiations, the better off we are all going to be.
Mr. METCALFE. The Panama Canal Company has done an out-
standing job. What about the Panama Government? They have also
set up a complaint office, have they not, and, if so, would you
comment on that?
Governor PARFITT. I understand they have set up a complaint
office and I have some concern to the extent-with regard to the
extent to which Panama may attempt to become involved either in
the operation of the Canal itself or in the personnel policies and
practices of the Company/Government.
We have invited, in several instances, individuals of the Panama-
nian Government to come into the Company organization and see
what we are doing in terms of treatment of our employees. They
have refused to do so on the basis that they do not recognize us as a
valid governmental entity. Therefore, they continue to sit on the
sidelines and to criticize the equality of treatment within the
Company/Government, and I feel that continuation of that policy
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111
would be counterproductive to the relations between the Panama
Government and the United States Government.
Mr. METCALFE. Yes, especially in the light of the present ongoing
treaty negotiations. That is in my judgment in tune with the
present attitude and news that is emanating from Panama which
show not a cooperative spirit but one rather of suspicion and I
might even add antagonism.
Did I understand from the reading of part of your text, that there
has been an increase in the number of accidents in the Canal this
year?
Governor PARFITT. We have had a period of 2 months where we
had an inordinate number of accidents, October and December of
1976 in this fiscal year. So they distort the average in the statistical
analysis we follow. We think that is an aberration and is a very
small statistical trend. We don't believe this establishes a pattern.
As I pointed out, quite to the contrary in the first 3 months of this
calendar year we have had an improvement in the statistics.
Mr. METCALFE. What would you say was the cause of these
accidents? Is it because there have been maximum changes in
personnel? Do you have the necessary technical people to prevent
these accidents or could they have been prevented?
Governor PARFITT. I hope they could. I think the very nature of
the operation of the Canal, the facility that it is, means we are
always going to have a certain number of accidents. Certainly we
are trying constantly to keep them to a minimum. With the
increase in the size of the ships, the constraints of the locks
themselves, the wind conditions, the weather conditions, we are
always going to have a certain number of accidents iii~the waterway
and I don't believe that the statistics we discussed portend a
worsening situation. I think we are going to be able to keep it
within the bounds of historical experience.
Mr. METCALFE. Governor, when are you going to implement the
zero-base budgeting concept into the Canal organization?
Governor PARFITT. Prior to the receipt of the presidential guid-
ance on zero-base budgeting-this goes back now about a year-we
on our own initiative launched a trial, in effect, on zero-base
budgeting.
We took an element of the Company and we took an element of
the Canal Zone Government. It happened to be the Schools Division
in the Canal Zone Government and the Communications Branch in
the Company and we have gone through a rather arduous, detailed,
exhaustive zero-base budgeting technique. In the process thereof we
have learned a lot, and we believe we will be able to translate that
experience to fulfill the requirements of the presidential directives
on zero-base budgeting across the entire spectrum of the
Company/Government. We think it will be helpful.
Mr. METCALFE. You do offer certain priority for certain ships
which transit the Canal. As I remember, I think one priority was
for those that carried ammunition. Recently there was a question
about a vessel that was transporting perishable goods and it has
come to my attention and I am informed that priority was not given
to this vessel.
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112
Will you address yourself to that question, please?
Governor PARFITT. With the exception of passenger ships, we do
not give priority to anyone on transit of the waterway. The transit
is based on first-come/first-served within specific rules of the road. I
mean there are certain ships that cannot go through the Canal
except in daylight under clear cut conditions; that is, able to transit
gaillard cut without meeting another ship. Obviously if those condi-
tions cannot be obtained when the ship's turn comes, it has to wait
until they can be obtained.
Basically we treat all comers on a like basis. We do not make
exceptions, with that one exception which I mentioned, which is the
passenger ship on a limited schedule. We do make a special ar-
rangement for all passenger ships, without regard to nationality or
registry.
Mr. METCALFE. In the last few months the Canal Company
concluded an agreement with Panama concerning the export of
sugar from Canal Zone piers. What is the general outline of that
agreement? How is it working?
Governor PARFITT. Sir, we did not consummate an agreement.
Panama approached us with the proposition of providing certain
services across our piers for both molasses and sugar and we
responded to them and told them what we could do and how to
accomplish it, what the charge for services would be. Panama did
not choose to accept or even to respond formally to our initiative.
We understand that they are going to export their sugar through
one of their own ports. Nothing has developed on this proposal.
Mr. METCALFE. Now, in your presentation I don't know whether
you specifically addressed yourself to the question of what the
Panama Canal Company is doing to foster good relations with
Panama. I know it is an ongoing program, but would you expound
on that for us, please?
Governor PARFITT. Well, I think basically there are no new
initiatives at the present time. We continuously establish good
rapport with the Panamanian public by things we do for them
through private organizations, through liaisons which we have at
the lower levels of the Company and the Government.
For example, we have technical groups that get together and
cooperate on interchange of electric power, on technical problems
we may have in the provision of water and so forth. At the working
level we extend ourselves to accommodate the needs of Panama and
likewise normally they to us. Unfortunately, that same level of
relationship does not exist at the top levels because of the Panama-
nian insistence that there is no legal governmental structure here.
Mr. METcALFE. You may be able to answer this next question
rather succinctly. What has been the result of the Company's study
of docks and piers as was carried out this last year?
Governor PARFITT. We made an analysis of whether or not in fact
at this time it would be prudent to go to a port authority concept of
the way in which we handle our docks. In light of the treaty
negotiations and all of the other changes that are being effected in
the Company/Government, after receiving that study I decided to
shelve the study and put it aside and say it would provide some
good information and background and we would again address it
PAGENO="0121"
113
when we know a little more about what's going to happen in light of
a treaty. To answer your question, the study has been completed,
set aside as good information and a good basis upon which to adjust
and adapt to whatever evolves in the treaty.
Mr. METCALFE. I have received a number of letters and com-
plaints which are addressed to me as Chairman of the subcommit-
tee regarding racial discrimination in the Canal Zone. Would you
please respond as to what the nature of this is? I know that we have
had conversations socially and informally in regards to some of
these complaints. A most recent letter I received, for example, was
from a gentleman who was a constant complainer of violations of
his rights, and he thought that he was being wronged in a particu-
lar situation. Would you please indicate to us the nature of the
discrimination? I want to make it crystal clear that we think you
are doing everything possible to eliminate discriminatory practices
and we want to applaud you at this point for taking steps that I
recommended to you some 3 or 4 years ago in which I proved to be
right in regards to desegregation of the schools, and the removing of
the citizenship restrictions in housing. I want to get into that later
on during these hearings, but would you like to further state your
position?
Governor PARFITT. Well, let me say I believe the charge of racial
discrimination is grossly and inaccurately distorted. Certainly there
is no policy-there is every attempt on our part to remove any
vestige of discrimination in the Canal Zone. We do not think they
exist. Having said that, it is unfortunate that Panama has in the
world forums and in the press continued to charge the Canal Zone
with practices akin to apartheid without being specific.
It is my feeling that they are distorting the term "discrimination"
and in the minds of the recipient of that information to infer a color
discrimination when in fact in many cases the discrimination that
is discussed, rightly or wrongly, is differences of treatment of
Panamanian citizens and U.S. citizens, many of which are based on
law. The tax factor, for example. There is a difference in pay based
on tax factors by law. So is the Tropical differential. There is the
fact that we do not house all Panamanians as we house Americans.
So they translate these distinctions and differences which exist on
the basis of citizenship into one of racism and I don't think it is
proper. I think it is very upsetting to the good relationship to have
this continue.
Now, we do have from time to time charges, as any organization
does, of a pure, pure case of racial discrimination, and we address
them positively and directly. We take the proper action if it is
determined to be such. Basically, I do not think we are guilty of the
charge of racial discrimination.
Mr. METCALFE. Briefly, I just want to ask this question for
purposes of an evaluation. There was a drinking problem among
teenagers and Congress passed some legislation which would correct
that. Has there been any evidence that there has been any diminu-
tion of drinking among the teenagers? Has the law been effective?
Is it being implemented?
Governor PARFITT. I am not sure if I can answer that accurately.
We have made some other changes in the facilities that are avail-
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114
able to the teenager which have removed some of the ready avail-
ability and this has had an effect. From my own personal observa-
tion, there has been a diminution in the alcohol problem. But
whether to relate that to a change in the law, I am not sure. But,
nonetheless, there seems to be a diminution both in the drugs and
in alcoholism from what I can see. That does not mean we do not
have a problem. We continue to have a problem but it is not to the
extent that it has been in the recent past.
Mr. METCALFE. I have other questions, but I see the time is fast
fleeting and I certainly want to give the gentleman from New York
an opportunity to ask some questions.
Mr. ZEFERETTI. Thank you, Mr. Chairman.
Governor, I think we are all concerned about the morale of the
U.S. citizens working here and the increase in resignations. What is
the actual tenure? What is the average length of service for U.S.
citizen employees?
Governor PARFITT. I am not sure about the average, but basically
most employees come to the Canal to spend an entire career, and
leave normally when they are 62 years old, which is a mandatory
time of retirement if they have 15 years' service in the Tropics.
Normally people who come to work in the Panama Canal, in the
enterprise, come with a life commitment, so they are normally
lifelong employees. I think this translates into the effectiveness of
the organization, the fact that they are long term and therefore
very skilled in their work.
Mr. ZEFERETTI. What you are finding today then is that the people
who are coming, either spend a short period of time and then leave,
or leave after a long period of time because of the negotiations?
Governor PARFITT. There are two categories. One is that of the
individuals who have accumulated enough time to voluntarily re-
tire, who can be voluntarily retired before they are 62, if they are
55 and have 30 years' service. There are more of those who seem to
be willing to move out rather than wait out the 62 years.
But, more importantly, in my judgment, has been the number of
individuals who early on in their career look at the situation and
opt to leave, to go elsewhere, based on what they see unfolding in
the future.
Now, the numbers, yes, are not alarming.
The fact is, that in a stable organization the numbers have always
been low and even the numbers today are relatively low, but the
trend, the percentage increase cannot help but be of concern. We
are worried that this is going to be snowballing. We haven't got to a
critical stage yet, but we want to address that so that it will not get
to a critical situation. It is not today.
Mr. ZEFERETTI. When these people arrive, Governor, are they
people that have already been trained in the States and who have
come here as professionals?
Governor PARFITT. The answer is yes, sir.
Take the example of the pilots, although they are trained
professionals, they are not trained pilots, and we have a long
training period to adapt their experience and expertise in the
general field of navigation to the specifics of the Canal enterprise.
That generally pertains to most of our skills. To translate their
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professional background and knowledge to the actual situation on
the ground. That does not pertain to the medical profession or
anything like that.
But to the electricians and machinists and pilots and tugboats,
the thing there is the specialized knowledge that they have as a
base for the circumstances here on the ground.
Mr. ZEFERETTI. Is there anything similar in operations for the
Panamanian people-teaching them the same techniques, the same
kind of professionalism here in the Canal Zone?
Governor PARFITT. We have an apprenticeship program that deals
with many of the technical areas, such as the machinists and
electricians. It is a 4-year program where we bring in raw recruits
as it were, with base qualifications and teaches them these trades
and train them. That is providing a greater degree of input into our
technical field.
We do not have a similar situation in the pilot and tugboat
master force, which is of some concern to us. We have to look at the
world pool of people who are at sea to provide the source of input to
our training.
Mr. ZEFERETTI. The reason I ask that question is that when you
talk about the treaty that is apparently being structured it indi-
cates a complete pull-out at the end of a period of time. I am
thinking if there is no mechanism in place right now, how do they
make it happen themselves? Of course, if over this long period of
time the technicalities of the professions are not taught here, I
think it is a real problem that one should consider.
Governor PARFITT. This is true. I would think that the programs
we now have unfolding, which would take care of many of the skills,
the engineers, the technicians, the electricians, the machinists and
so forth, would not be adequate to bridge the gap that we referred
to in the fields of the tugboat operators and pilots. Some other
avenue will have to be found to provide the Panamanian input for
those areas, or they will have to provide or hire third-country skills
at the time they take over the operation.
Mr. ZEFERETTI. Staying on the subject of the employees for an-
other moment or two, the conditions that you are aware of that
have taken place already, in the negotiations; has that been trans-
mitted to the employees? Have they been notified of the written
conditions? Are they informed as to whether or not the Panama-
nian Government is in agreement with the conditions?
Governor PARFITT. Well, first, until the 15 Assurances I referred
to, until that time, the negotiations have been conducted in more or
less of a security mode. So the information available to the em-
ployee has been limited, particularily as it related to their perspec-
tives on employment conditions and so forth.
Until assurances were given to them, the employees felt they
were inadequately and only generally informed, which was a gen-
eral statement of fact.
Upon that announcement of assurances, they were announced as
being the position of the U.S. negotiators; they had not been
negotiated with Panama although I am sure they had been dis-
cussed. Panama has chosen through the press and official an-
nouncements to disassociate themselves from those assurances and
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has made some extreme statements about their acceptability and so
forth. So I would say at the moment Panama is on record as having
some objection to those conditions. Our employees viewed this as
meaning there is a long way to go.
Mr. ZEFERETTI. What about the guy who feels such a case exists
against him, wants to pick up and go?
Governor PARFITT. Nevertheless, as I see it, good or bad, the
restrictions that we have laid on them that are important to our
employees, leaves the individual with a situation wherein he wishes
that he had before him more facts so he could make a valid
judgment as to what was in his best interest. So I thought it was in
such interest to have the information good or bad, as sketchy as it
might be, and also in the interests of the organization because I felt
that once he knew in detail he could more appropriately deal with
it. The worst thing for him would be to deal with innuendoes,
suspicion and naked rumor, and this is what employees do until
they pick up a conclusion which is the worst conclusion they could
draw.
I think it is helpful to extend ourselves to get on the table as
much information as possible an ~l I am very pleased to see this
breakthrough.
Mr. ZEFERETTI. Governor, you use the word "security" down here
quite a bit. Who comprises the security force and what is it?
Governor PARFITT. The word "security," unfortunately, is used in
many contexts. I think if you were to ask us what is included in our
security force in the Canal Zone we would respond and say it is our
police force, uniformed officers that enforce the law, and we have a
protection division which is a security force that provides, like
private policemen would, a security guard on special facilities like
our locks and so forth, and we have in effect two security forces.
But I feel that perhaps you may be alluding to another statement
we made which relates to security positions, which is a term of the
treaty of 1955 where I indicated that it exclude from the equal
employment opportunity provisions of the treaty those positions
that are set aside for American citizens on the basis of security. The
implementing law established the fact that the entity, the organiza-
tion, could establish three types of positions, three types of security
positions. One was security of property, one was security of informa-
tion, classified information, and the other was a category so-called
continuity of operations, a group of people you needed to insure
under unusual conditions a continuity of operation.
Responding to that general language of the law, the entity estab-
lished-these are rough numbers of figures-approximately 2250
positions they set aside and said, "These must be occupied by U.S.
citizens," and covered the whole spectrum of the organization,
people such as policemen, the protection division, some in the locks,
and throughout the entire organization.
Over the years Panama has looked upon this as being discrimina-
tory and blocking their progression, the upper mobility of the
Panamanians. So, over the years management has responded to
that criticism by reducing, ever reducing and whittling away the
numbers, and when I arrived here 2 years ago the number had been
reduced from 2250 to roughly 1,080. There were still complaints and
criticisms and so we took another--
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117
Mr. ZEFERETTI. Was that an arbitrary or a self-regulating, deci-
sion to reduce that number on your own?
Governor PARFITT. It is within the prerogative of management to
determine here. No numbers were ever established. Only the con-
cepts and the definition. The numbers were left to the discretion of
management. As I say, we have now reduced the number from in
the thousands to about 580, and I am convinced that until all of
those are removed, Panama will charge that we are discriminating
to a certain degree bcause we are blocking certain positions.
I think we have responded to their main criticism because we
have opened up avenues of progression at least, so that there are
not blocks. People can aspire to higher positions and do not have a
layer of positions that blocks their upward mobility.
That is one of the things we have been trying to do in revising
these criteria for establishing security positions.
Mr. ZEFERETTI. Mr. Chairman, I hope you can tolerate and put up
with my taking up so much time because it is all new to me. I'd like
to ask a couple more questions if I may. You make a statement on
page two, that the press releases in Panamanian newspapers
present as fact their versions of the contents of treaty talks and
attack the Canal Zone and Canal employees. Would you comment
on that?
Governor PARFITT. Well, yes, they are in periods, this goes in
assigned periods when we have ups and downs. We seem to have
periods when we have a good relationship and we are getting along
well and there are periods when the Panamanian press chooses to
launch out-I will give you one example: During the January 9,
1977 riots they vilified the United States in general and Canal Zone
employees specifically and dredged up all of the complaints from
the 1964 riots and then charged periodically that Canal Zone
employees with inciting anti-governmental activity in Panama,
housing and protecting dissidents of Panama, providing them a base
to launch anti-government attacks, unfounded in many cases, in all
cases that I know of, charges against the employee, and the Canal
Zone in general and sometimes the U.S. in general. So there is a
constant beat down here. You live in a kind of a fishbowl with a
drum beat.
Mr. ZEFERETTI. Let me ask you a hard question: Are they anti-
U.S.?
Governor PARFITT. I do not think the Panamanian people as a
group are anti-U.S. at all.
Mr. ZEFERETTI. Is the press?
Governor PARFITT. In the press, in the main I would say yes. They
express it as anti-Canal Zone more than as anti-U.S. It is the thesis
built upon the proposition of the government that there is no
governmental structure in the Canal Zone, and there is no Canal
Zone per se, that this is Panamanian territory and it builds on that,
so there is a constant attack against the legitimacy of-in the first
instance the Canal Zone, and then against every rule or regulation
or law in the Canal Zone which is inconsistent with Panamanian
law or rule or regulations. It provides a constant forum of attack,
and in many cases they unfortunately transcend generalities and
pick individuals, which exacerbates the situation that much more.
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Mr. ZEFERETTI. Have there been many occurrences of violence
against U.S. citizens or anything like that?
Governor PARFITT. No. It has not translated itself into a great
number of cases of violence. We have instances, but as a matter of
fact, violence on the scene throughout Panama and here is rather
infrequent.
Mr. ZEFERETTI. One last issue. There has been quite a bit of
testimony in the area of human rights and human rights violations,
so to speak. Would you like to comment on that just a little bit?
There has been some heavy testimony, by one individual.
Governor PARFITT. Well, this gets into an area where I cannot
speak with any degree of knowledge or accuracy. I would think the
State Department can more adequately and accurately respond to
the questions of human rights treatment in Panama. I know there
are many charges that they do not provide protections on human
rights. I know it concerns our employees from the standpoint that if
jurisdiction were transferred that that same lack of human rights
would translate from Panama into the Canal Zone and this is the
source of many comments and concerns. But the validity and
accuracy of them I cannot, from personal knowledge, say.
Mr. ZEFERETTL Governor, thank you very, very much. You have
been very, very informative to me.
Thank you, Mr. Chairman.
Mr. METCALFE. The gentleman from Indiana, Mr. Hillis.
Mr. HILLIs. Thank you, Mr. Chairman. I have a couple of
questions.
I would like to ask the Governor, apart from your dual role as
Governor of the Zone and President of the Panama Canal Company,
I'd like your personal views as a general officer of the Army as to
the present and continuing value of the Canal to our defenses and
the current role and strategic position we find ourselves in-and,
with the growing power of the Russian Navy, do you rate the Canal
as important today as it was in World War II, or less important, or
more important from a strategic point of view?
Governor PARFITT. I do not believe that I am really qualified to
make a firm judgment in that area. It seems to me that the Joint
Chiefs of Staff should expound on that. The question gets down to,
in my mind, the question of whether it is vital or whether it is
important and if it is important, how important, and these are
shades of differences. I have kept myself abreast of military think-
ing in this matter and there is quite a diversity of thought. There
are some knowledgeable people in the military who feel that this
Panama Canal still serves a vital need. I think the official posi-
tion-I don't want to speak for them, or the JCS-is that it has
receded in value. It is still very important, but it is no longer a vital
link.
Certainly I would say from my knowledge here, I think that one
aspect that I can respond to and that is the charge that the Canal,
because of its constrictions, does not provide a ready means of
access to the Pacific. I think it is often overstated. The last statistics
I have seen on this is that the Navy consists of about 670, no 640
ships-of which I believe 13 cannot go through the Panama Canal.
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Mr. HILLI5. You are addressing the issue of obsolescence of the
Canal?
Governor PARFITT. No, I am addressing whether or not it is a
valid statement that you can transfer assets, Navy assets and so
forth from one ocean to the other readily through the Panama
Canal, and there has been a statement often times made that the
ability to do so has been reduced over time because of the bigger
ships. I am saying that although that is generally true in the world
fleet, as it relates to the Navy, there are only 13 ships and that
includes carrier ships that cannot use the Panama Canal so it is a
small number. The same thing is true with the world fleet. About
92 percent of all the ships at sea can go through the Panama Canal.
So it is sometimes overstated that today the Panama Canal is a
great restriction. Certainly it is a restriction, but it is not a great
restriction.
Mr. HILLI5. We in the Midwest, and particularily the people in
the East, are most concerned about having the availability of the
Alaskan fuel when the pipeline opens this year, and I was very
intrigued with your statement and testimony about the part the
Canal could play in that. It is a fact, a supertanker cannot negotiate
the Canal?
Governor PARFITT. That is correct.
Mr. HILLI5. Would you envision off-loading on the Pacific side into
smaller ships?
Governor PARFITT. We have talked to some of the oil companies
and they contemplate having a large supertanker anchored offshore
and it would be a floating storage and you would have smaller
tankers from Alaska to this floating tanker off the coast and then
you would have these maybe 60,000, 50,000-tonners which can get
through the Canal loading from that tanker that is anchored off
there and going through the Canal back and forth providing a
supply line from that storage point.
Mr. HILLIs. Into New Orleans?
Governor PARFITT. Into New Orleans and other ports on the East
Coast. As I say, the figure given to us is about 70,000 tons daily
when it reaches its maximum; we probably will begin to receive
that-if we receive it, it has not had a decision yet-we would
probably receive it late this year, late this calendar year.
Mr. HILLI5. This can also have strategic value as far as the
defense of our country is concerned?
Governor PARFITT. That is correct.
Mr. HILLI5. And the Canal would be very important from that
standpoint to us?
Governor PARFITT. Yes, I think so. Now there are other alterna-
tives to moving that oil. These get hung up on environmental issues
and so forth and there are many discussions going on about alterna-
tives which may later come on stream. In fact, we are not looking at
this as a long-term proposition because indications to us are that
some other alternatives will be developed over time. Maybe in 3
years or so some pipeline system or something would be ultimately
the answer rather than bringing it down through the Panama
Canal for a long duration. So we are looking at it as short-term--
Mr. HILLI5. At least in the Midwest they are generally talking
about a trans-Canada pipeline within 5 to 10 years. Plus you have
the problems with the pipeline crossing another country.
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Governor PARFITT. That is right. As I understand it, they are also
talking about a pipeline that partially exists from Long Beach over
to the middle of Texas and augmenting or expanding that. There
are serious environmental issues that become involved in this sort
of activity, and we think that certainly we cannot resolve those
issues to provide the flow of oil and the only alternative to get it to
the United States in our judgment that exists today is the Panama
Canal.
Now, the other alternative that has been discussed-and there
are political problems and other problems in this, is to transfer
assets. In other words, the assets from Alaska could go to perhaps
say, for example, Japan, and their assets from the Middle East
would come to us and there is a tradeoff, but our indications are
that there are so many problems inherent in these other solutions
that-the likelihood of our receiving the quantities I indicated are
quite good. We hope it is true because it means significant inflow of
revenues to us and with our high fixed costs revenues of that
magnitude translate very quickly into net profits.
Mr. ZEFERETTI. Mr. Chairman, will the gentleman yield for a
minute. We have a cargo preference bill that is pending before our
committee which would increase the imported oil cargo to the U.S.
How would that affect, do you think, the Canal Zone, if in fact that
became law? We are talking about 20 or 30 percent of our ships
carrying imported oil. Presently we are carrying only 4 percent.
Governor PARFITT. You refer to the fact that a mandate that U.S.
bottoms must carry--
Mr. ZEFERETTI. Must carry.
Governor PARFITT. My information is that the capacity exists in
the U.S. fleet to accommodate this concept that they are talking
about and that the law would, in any event, require that it be done
in U.S. bottoms.
Mr. ZEFERETTI. I was wondering about what kind of effect it would
have on the Canal itself. I guess it would increase your-no, I guess
maybe not.
Governor PARFITT. Not necessarily so. It would not necessarily
affect us, a fact that a lot of people do not understand is that our
largest commodity going through the Panama Canal is petroleum
and petroleum products, even today.
Mr. METCALFE. Thank you very much, Governor.
Because of the time constraint, we will not be able to have
questions of the staff as well as from Mr. Tannenbaum.
I now ask unanimous consent that we be permitted to submit to
you questions to which you may respond for purposes of the record.
If there is no objection, that will be the order and I regret because
of the fact that we are on a very tight time schedule the staff will
not have an opportunity to raise questions at this particular time.
I want to thank everyone for coming out and we will suspend the
testimony in lieu of the further questions that Members may
propound to you.
Thank you very kindly.
[Whereupon, at 10 a.m., the Subcommittee recessed.]
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[After a recess, the Subcommittee reconvened at 10:15 a.m. in the
Panama Canal Treaining Center, Balboa, Canal Zone, the
Honroable Ralph H. Metcalfe (chairman of the subcommittee)
presiding.]
Mr. METCALFE. The hearing will be in order.
We have the Latin American Civic Councils to lead off the civic
testimony this morning.
STATEMENT OF HON. RALPH H. METCALFE, A REPRESENTATIVE
IN CONGRESS FROM THE STATE OF ILLINOIS
Mr. METCALFE. In the past the U.S. Civic Councils have testified
first. Today we sort of reversed the procedure. We have asked the
Latin American Civic Councils to lead off the testimony.
Distinguished members of the Civic Councils, ladies and gentle-
men. The Panama Canal Subcommittee is here today to listen to
your concerns, your ideas and your petitions. Since we last heard
from you, many of you have written to the Subcommittee or have
been otherwise in touch with us. Of course, Governor Parfitt has
explained to the Subcommittee many of the problems and senti-
ments that you have so at least I am somewhat familiar with these
problems.
Nevertheless, we felt it necessary to receive testimony directly
from you. After your testimony, we hope to take positive and
constructive action to do what we can to alleviate some of the
difficulties you face. Of course, we recognize that we can only do so
much.
I am very happy that we have two distinguished Members of
Congress with us today to listen to your concerns. Congressman Leo
Zeferetti of New York at my immediate right is a member of the
Panama Canal Subcommittee and a representative of a congres-
sional district in New York which is very much concerned with
maritime commerce.
Congressman Elwo9d `Bud' Hillis deals with the Canal from the
perspective of the important Armed Services Committee. I would
like to give each of these gentlemen an opportunity to say a few
words.
Prior to doing so, let me identify the other people seated at the
table. To my immediate left is Mr. Terry Modglin, Staff Director of
the Subcommittee, of the Majority, and to Mr. Hillis' immediate
right is Mr. Nick Nonnenmacher, who is the Minority Staff Director
and we have Mr. Bernard Tannenbaum, who is a person whose aid
we have recently sought in helping us in the period of negotiations.
To his right is Mrs. Carolyn Robinson, who is a member of the
staff, and to her right is Mr. Coleman Conroy, who is my Legislative
Assistant, and I might add a few extra things besides that, including
being very active in having frequent conferences with Mr. Modglin
and myself. I am very happy and pleased that he could come down
and participate in these hearings, get a bird's eye view of what we
are planning to do and what we have done.
So, may I now open the floor to Mr. Zeferetti, the gentleman from
New York, for any opening statement that he may wish to make at
this time.
95-549 0 - 77 - 9
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Mr. ZEFERETTI. Thank you, Mr. Chairman. I just welcome the
opportunity, as a new member of the committee, to hear the
testimony and welcome the opportunity to visit Panama and to
personally view what is going on. Hopefully we can, through your
testimony and through the testimony of others, get a real feeling as
to the negotiations that are going on and the needs of the Panama-
nian people, and U.S. citizens. I want to thank you for coming
today.
Thank you, Mr. Chairman.
Mr. METCALFE. Mr. Hillis.
Mr. HILLI5. Thank you, Mr. Chairman, may I also say how happy
I am to have an opportunity to be here. It is also my first visit. I am
learning a great deal and I look forward to hearing your testimony.
I am sure it will inform.
Mr. METCALFE. I think it is proper now that Mr. Eugene Johnson,
who is President of the Congress of Latin American Civic Councils,
simply identify himself and then we will go to your right or to your
left.
STATEMENT OF EUGENE A. JOHNSON, PRESIDENT, CONGRESS OF
LATIN AMERICAN CIVIC COUNCILS
Mr. JOHNSON. Thank you very much, Mr.Chairman.
I am, of course, first of all, Eugene A. Johnson, President of the
Congress of Latin American Civic Councils.
I am also President of the Pedro Miguel Civic Council.
Chairman Ralph H. Metcalfe and members, Panama Canal Sub-
committee, the Committee on Merchant Marine and Fisheries.I
would like to extend the appreciation of the Congress of Latin
American Civic Councils to again be able to testify on matters
concerning our Latin American communities. Accompanying me
this morning are the following gentlemen: Samuel Blenman, Presi-
dent, Paraiso Civic Council; Clarence Gordon, President, Santa Cruz
Civic Council; and Phillip Henry, President, Rainbow City Civic
Council. I, besides being President of the Congress, of Latin
Americn Civic Councils, am also President of the Pedro Miguel
Civic Council.
We would like also to commend you, Mr. Chairman, for the
unique and positive manner in which you perform your duties as
Chairman of this distinguished Subcommittee. Your unbiased inter-
est and straightforwardness make us all aware that you not only
have great concern and interest in our problems, but that you
likewise make all effort to relieve the many tense situations here in
the Canal Zone.
Mr. Chairman, we must express our appreciation to the United
States Government for providing us with an insight into its position
as it affects Canal employees in the treaty negotiations. We refer
directly to the "Assurances for Present Employees of the Panama
Canal Company/Canal Zone Government Under a New Panama
Canal Treaty." This is the first time that we have had any concrete
statement as to the direction of the negotiations.
We would like to take this opportunity to address ourselves to the
assurances as derived from the United Sttes' position on treaty
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negotiations. Even though we realize that changes are inevitable,
the assurances project a dismal future, particularly for the non-U.S.
employees of the Panama Canal Company/Canal Zone Government.
Further, there are areas which are nebulous and in direct conflict
with our status as non-U.S. residents which have added to our
apprehensions and seem to threaten our very existence.
We are perturbed by the thrust of the "assurances"; however, we
will only discuss those points which we consider most bothersome:
a. We fear the loss of medical care to non-U.S. employees who opt
for Civil Service retirement, inasmuch as assurances have been
given only to U.S. citizen employees and their dependents for
medical attention under a new Canal Adminstration.
b. Another area of deep concern is that of the future of non-U.S.
students who will be in the Canal Zone school system when a treaty
goes into effct. Again assurances on this issue were given only to
U.S. citizen employees.
c. Still another area of preoccupation is that relative to the
application of Panama labor laws under any new treaty. The
implication is that there would be a dual treatment for employees
according to nationality since the Panamanian labor laws will apply
to non.-U.S. citizens whenever possible.
In addition, no definitive assurances have been given to non-U.S.
employees who may be displaced by land turnover or termination of
Panama Canal activities, specifically schools, housing and medical
care, and, an additional note, police and firefighting services and
postal operations.
Hundreds of families will be forced to relocate and readjust under
conditions that may prove adverse.
It is our opinion that our precarious plight could be remedied
should the United States Government view all employees of the
Panama Canal Company/Canal Zone Government, not as nationals
of any particular country, but as federal employees.
A further observation is that any treaty concluded under the
present guidelines will displace a significant number of employees
of the Panama Canal Company/Canal Zone Government, with very
little prospect, locally, for either comparable gainful reemployment
or employment at all. There is considerable apprehension among
the non-U.S. citizen workers of the Panama Canal Company/Canal
Zone Government concerning their future livelihood and their abil-
ity to maintain the present standard of living which we have strived
so hard to achieve under the most trying circumstances over the
years.
We continue to urge that, through your good offices, revisions in
the immigration laws be instituted to ease access to the United
States for non-U.S. employees and their dependents, and/or that
some other avenue through which these employees who have
dedicatd their lives to the operation of the Panama Canal, be
relieved of their anxieties for the well-being of their families and
themselves.
Sirs, we have addressed ourselves mainly to the 15 assurances
presented to the Canal Zone community by Governor Parfitt. This
we did in the interest of time; however, even though we are
extremely preoccupied with all aspects of the treaty negotiations,
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we are also very concerned with the present operations of the
Panama Canal Company/Canal Zone Government insofar as they
affect housing, schools, and upward mobility. These points we would
appreciate discussing with you, either formally or informally, at
some other time during your inspection visit.
Mr. Chairman, gentlemen, again I must express the gratitude of
our Civic Councils for the opportunity given us to appear before this
august body.
Mr. METCALFE. Thankyou very much, Mr. Johnson. We will not
entertain any questions right now. I think it will be better if we
move right on to hear from each one of the presidents who wish to
make a statement and then we will start questioning.
STATEMENT OF SAMUEL H. BLENMAN, PRESIDENT, PARAISO
CIVIC COUNCIL
Mr. BLENMAN. Thank you, Mr. Chairman. The Honorable Ralph
H. Metcalfe, Chairman, Subcommittee on the Panama Canal, Com-
mittee on Merchant Marine and Fisheries, House of
Representatives.
Dear Mr. Chairman: We sincerely appreciate the opportunity
afforded us by your honorable Committee on so many occasions, to
express our views on the very crucial issues whch affect adversely
the Latin American community.
A very striking contrast to previous years, we seem to see as a
people, the democratic spirit more and more in evidence in the
Panama Canal Zone, and we accordingly feel that it should be less
difficult for us now to be accorded some appreciable recognition as
employees of the United States Government.
We have studied with much interest and dismay the list of
assurances presented some time ago by Governor Parfitt to labor,
and civic council representatives. The difficulty with this list is that
it does not offer any meaningful protection to the non-U.S. citizen
employee, who may become displaced as a consequence of a treaty
between the United States and the Republic of Panama. However,
it refers at length to the benefits that U.S. citizen employees must
continue to enjoy in the post treaty era, to the exclusion of their
Panamanian counterpart. For. instance, schooling, medical care,
adequate housing, duty-free import, and even the use of miltary
service facilities.
We are happy to observe that the list of assurances is in accord
with the United States Government's position, in any treaty with
the Republic of Panama, and we are inclined to believe that it aims
at alleviating current fears and suspicions among employees, and
demonstrating to them the determination of the United States
Government to protect employee rights and privileges.
We sumit that it will be just and graceful to extend this protec-
tion to U.S. citizens and non-U.S. citizens alike.
In this regard, we suggest that certain exceptions contained in the
list of assurances be removed, with a view towards improved protec-
tion for non-U.S. citizen employees. We firmly believe that the
exceptional service rendered by our forefathers in the building of
the canal, and the continued faithfulness of their offspring in the
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service of that enterprise, are elements which should warrant us no
lower status than that accorded citizens of the United States. Yours
very truly, Samuel Blenham, Paraiso Civic Council.
Mr. METCALFE. Thank you very much, Mr. Blenman, for your
very fine statement.
We will now move on to one of the other presidents of the Latin
Civic Councils.
STATEMENT OF CLARENCE G. GORDON, PRESIDENT, SANTA CRUZ
CIVIC COUNCIL, CANAL ZONE
Mr. GORDON. Thank you, Mr. Chairman. I am Clarence G. Gor-
don, President of Santa Cruz Civic Council.
Mr. Chairman, members of the Subcommittee, thank you for
giving me thi~ morning the opportunity to submit for the record an
evaluation of the progress made since the Subcommittee on the
Panama Canal last visited the Canal Zone to hold open hearings on
the subjects of concerns of residents of the Canal Zone and employ-
ees of the Canal Zone Agencies.
Mr. Chairman, the Santa Cruz Civic Council wishes to express its
appreciation to you, and members of the Subcommittee, and Canal
Zone Governor, Harold R. Parfitt, for the significant changes made
on the issues of schools, upward mobility, and housing.
* Governor Parfitt's announcements on November 10, 1975, to
consolidate the housing of the U.S. and Latin American communi-
ties, to merge the U.S. and Latin American schools, and to reduce
the number of security positions in the Canal Organization, and the
implementations of these announcements in March and April, 1976,
are steps in the right directions.
Inasmuch as some officials may feel that some of the remaining
problems that are still of deep concern to us, as Panamanians, are
in house problems for the local Canal Zone Company/Government
and Civic Councils to solve, I just want to say very briefly that on
schools it is the Congress of Latin American Civic Council's desire
that the merging of the Latin American High Schools will be
completed by March of 1978 as the prolongation of the Latin
American High Schools beyond March of 1978, with a diminishing
pupil-teacher ratio, would only make it difficult to continue satisfac-
tory programs, which will not offer our children quality education.
With respect to housing for Latin American employees, the new
housing criteria implemented on April 7, 1976, and the Interim
Amended Housing Regulations approved on December 22, 1976, will
not permit a cross-section of Panamanian employees of all types of
jobs to apply for quarters in the Canal Zone in the future. These
new housing regulations will only continue to widen the scope of
resentment from the Panamanian employees who work with loyalty
and devotion to the Company/Government for an efficient oper-
ation of the Panama Canal for the benefit of world commerce
irrespective of the uncertainties that are ahead for these workers.
It is our Civic Council's view that the new housing policy which
permits a cross-section of U.S. citizen employees of all types of jobs,
and a selected group of non-U.S. employees to apply for Canal Zone
quarters, is an unfair treatment to other groups of non-U.S. employ-
ees, who are equally important to the maintenance and operation of
the Panama Canal.
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126
TREATY NEGOTIATIONS
As the United States Government and the Panama Government
approach closer to resolving their differences on a new Panama
Canal Treaty, it is the hope of all employees of the Canal Organiza-
tion that all fringe benefits gained over the years will be protected
and continue to be enjoyed by all workers in any new treaty.
The Santa Cruz Civic Council requests that this Subcommittee,
the Company/Governent, and others in authority to continue re-
viewing all programs implemented, so that both Panamanians and
U.S. citizen employees will share equitably in the operation and
maintenance of the Panama Canal.
Thank you.
Mr. METCALFE. Thank you very much, Mr. Gordon.
Mr. Henry, do you care to make a statement?
Are there any other presidents?
I am going to reverse the procedure and rather than me ask
questions at this particular time, I am going to ask Mr. Zeferetti, a
member of the Panama Canal Subcommittee, to lead off with
questions, and then we will go from him to Mr. Hillis, from him to
the staff people, and then, if time permits, to me because it is very
important that we have complete dialogue. It is of equal importance
that both of these new members who have not been to Panama
previously, who have not had the warm experience that I have
enjoyed both with the Latin Civic Council, as well as with the U.S.
Council, that they have the benefit of a full dialogue with the
members and therefore I am relinquishing for the moment my right
to ask questions. Because of the time factor, I want to make certain
they get to know you as well as I know both civic groups.
Mr. Zeferetti, the gentleman from New York.
Mr. ZEFERETTI. Thank you, Mr. Chairman, and thank you,
gentlemen.
I think perhaps some of what you said conflicts with each other.
In one respect Mr. Johnson and Mr. Blenman, you talked about the
nonexistence or lack of concern for equal housing, schools and
employment opportunities. Then at the same time, Mr. Gordon, you
refer to the Governor's assurances which would allow for this type
of change in the assurances. And, as a matter of fact that some of
these already went into place. It has been going on as far as the
schools are concerned and as far as housing is concerned.
I would like to clarify this please; the differences that we are
talking about.
Mr. HENRY. I am Phillip Henry, Rainbow City Council. These
gentlemen are talking about two different things. Mr. Blenman and
Mr. Johnson talked about the effects of the treaty. Mr. Gordon was
talking about the present operation of the Panama Canal Company
as it is now. Mr. Gordon was referring to the present housing policy
as it affects schools and upward mobility.
Mr. Blenman and Mr. Johnson are referring to the 15 points as it
would affect these areas with the implementation of any treaty
under the guidelines as we understand them.
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127
Mr. ZEFERETTI. Well, what steps do you feel should be taken to go
further beyond what the Governor has recommended at this par-
ticular time? In other words, you started with the first four grades
in school and you are acting on some specific changes the Governor
has outlined. Aside from the treaty where you feel there should be
changes, where you feel it should be in the treaty negotiations that
should be outlined to benefit your children and your housing
problems.
Mr. JOHNSON. One of the areas that we believe from the Congress
of Latin American Councils' point of view is that inasmuch as the
Governor has opted for one of the plans, you see originally there
were several plans which the Governor had used the prerogative of
opting for, plans A and B and C, I think. One of these plans he
opted for was to sort of gradually phase out the schools in years
extended into 1980.
We are saying in the Congress that rather than extend this-
because during that time probably we would have the signing of a
treaty anyhow-rather than extend it to 1980-as Mr. Gordon's
paper says-we are saying that it is open to us, grades 5 through 12
should be totally merged at this time-rather than to extend it over
a period of time.
Mr. ZEFERETTI. Have you the capabilities to do that right now?
Have the schools the capability to--
Mr. JOHNSON. From our point of view, yes.
Mr. ZEFERETTI. How about in your housing situation?
Mr. JOHNSON. Okay, in our housing situation, again the problem
that exists now that we are seeing a new treaty
we are saying that the position has been presented for a Grade 11,
only a certain group of people can apply for housing in what is
called the U.S. community. We have this distinction.
Mr. ZEFERETTI. Are we talking positions? What are we talking
about as the guidelines for acceptance? Are we talking salaries?
Mr. JOHNSON. Salaries.
Mr. ZEFERETTI. Is it a question of paying the rent or is it a
question of earning enough money to sustain, I guess?
Mr. JOHNSON.The fact that it is salaries means economics have a
lot to do with taking care of the rent for these houses in the U.S.
communities.
However, we have said over the years that regardless of a man's
salary the option should be clear for all employees to be able to
apply for housing in any community that he desires to live in, once
he works for the company, and right now we have a cutoff and the
people who make this type of salary, Grade 7 and above, are a
minimum-something like a hundred, 125 employees now in the
Canal Zone, and because of a reduced number we exclude who could
opt to apply for housing in the U.S. communities. But, because of
the salary cutoff, they do not have the opportunity.
Mr. ZEFERETTI. Mr. Henry, is it true that, under the existing law
there is a separation of salaries with regard to all the United States
citizens who work in the Canal Zone are given certain incentives to
be part of the system here versus the salaries of the Panamanian
people. So under the existing law isn't there that kind of differen-
tial any way? Are you saying that everybody should be the same?
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128
Mr. JOHNSON. Basically.
Mr. ZEFERETTI. I think the problem--
Mr. METCALFE. Will the gentleman yield to me?
Do I understand you, Mr. Johnson, in addressing yourself to the
question of the transition in education, that you would want con-
solidation to be all in one rather than two phases? Instead of going
to Phase 1, Phase 2 and ultimtely for `78 in Phase 3 before we get to
the twelfth grade you want consolidation in one move? Is that what
you are asking for, that it be done at one fell swoop?
Mr. JOHNSON. Yes.
Mr. HENRY. May I make some comment? Presently we will be in
the second phase, where in September we will have grades 5
through 8 going over. We only exist in the Latin American schools
now grades 9 through 12. And I think this was the area that Mr.
Gordon was addressing. Grades 9 through 12 will stretch out until
1980 which would, as we see it, present a problem as far as
programs and tracks are concerned. We do want one-shot phase in.
Mr. METCALFE. And in regards to the question of housing, you are
also advocating that that consolidation be speeded up and that it
not be phased in accordance with the present program as Governor
Parfitt has outlined to us and which the Company has adopted as a
modus operandi?
Mr. HENRY. Right now the present policy establishes a cutoff at
NM-7 for acquisition of housing in the U.S. communities. Basically
this is near to out. The Congress' position is that we should set at
an NM-4 level which would make housing in the U.S. communities
accessible to more non-U.S. citizens inasmuch as there is a limited
number of non-U.S. citizens in the Canal Zone community at the
NM-7 level.
Mr. ZEFERETTI. It's at that grade level, right?
Mr. METCALFE. Mr. Gordon, if you will further yield--
Mr. GORDON. One big problem is right now in the U.S. community
we have houses that should not be in the category for NM-7
employees and above because for those quarters, the rent is not as
high as some of the rents in Pedro Miguel and Santa Cruz quarters.
Now we see no reason why that some of these quarters should come
under the cutoff of the NM-7 employee. We have wooden structure
houses in the U.S. communities where the rent is as low as $16 per
every two weeks, and we couldn't see any reason why Panamanian
employees should be exempted from these quarters.
Mr. METCALFE. I am not taking any position in regard t the
statements that you have made. I would like to say that three years
ago I made the public statement that there was need to integrate
housing, to integrate education, to remove the security provisions at
that particular time.
I also said that the Canal Zone was trailing way behind the
southern part of the United States in terms of an amalgamation of
the people, their rights, and their duties and their freedom as well
as their ability to get quality education, jobs and housing.
The changes that were needed are being phased in in most
communities.
I would like for you to elaborate a little bit more, Mr. Gordon,
because what you are asking for is certainly very important and I
PAGENO="0137"
129
want to make certain that I hear more of your argument to
substantiate your contentions. I am not evaluating them, but I just
think for the record we need to have more argument to see if there
is and can we in effect have it. This is something that probably has
gone on, and will continue to go on, between the Civics Councils as
well as the Governor and his commission and his staff. I think this
is an opportune time to elaborate on it.
Mr. ZEFERETTI. I also feel if you have a phase-in progression in
place; it works and is active, there is no harm in looking for the
optimum wherever you want the best, but if it is working and you
have it set in place where it can be effective, then I think it is
something we have to look at real hard to see whether or not it is
working and if it is, to keep it in place. If it can be improved on,
that is something else too. But you know we all want to say "Give
us everything now, everything," but sometimes it is just not possible
that way because of mechanics.
Mr. JOHNSON. I would like to bring to the gentleman from New
York's attention that we are not in direct contrast to what you are
saying. We are not saying we want it right now because we are
talking about 50 years. We have been saying this to the Subcommit-
tee long before the gentleman Chairman has been Chairman. Way
back we said this to the members in the first recorded minutes. This
was taken at a time I was just a member, a floor member of this
group. And these positions have been time and time and we have
repeated them so often that the record is broken. So what we are
saying now is not that we are asking for those things you indicate
now. We have been asking for a long time. We have been saying
that we think it's unfair to exclude a greater number of employees
who should have access to housing, and to schools, because by using
this standard which is way out of proportion we say in effect we
have only a minute amount of noncitizens who can apply for
housing. By the same token, because these people can apply for
housing that means that we have only so many Panamanians who
can now, so, their children can be provided quality education in our
schools. What we are saying is that were this level to be dropped,
then the number of Panamanians will be greater, so we can see a
better balance. We are looking for that balance. Also, if we do these
things when a treaty is signed, we would have included more
people, we would have balanced the scale greater than we are right
now. Where if a treaty is signed right now, in the near future, we
would have excluded a great number of Panamanians who should
be included, in any provision, whether for housing or schools, or
what have you. So we are not saying tomorrow, because we have
been asking since yesterday.
Mr. METCALFE. Since I have the time, let me just say, as a result
of the questions I have propounded to you and the questions and the
statements of the gentleman from New York, I think we are
together in terms of what we are seeking and I don't want to
monopolize his time. I'll yield back my time to the gentleman who
has the time in the hope that he will pursue all of these questions,
and I am sure you will recognize Mr. Henry.
Mr. ZEFERETTI. Absolutely for us, please be assured this is a
learning process and a dialogue. We are getting acquainted and so
on.
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130
To get back just one moment to what you said earlier, even
though the goal is for a long period of time, it is nice to know it is
finally in place and starting to move. That is the point I was trying
to make.
Mr. Henry, please.
Mr. HENRY. Housing in the context of the treaty is one of our
concerns because the guidelines we have now indicate that certain
land turnovers will go to Panama. The rumors are that this in-
cludes a number of housing areas. Now this would displace people,
and the land that they would be on would be in Panama. The 15
assurances do not provide any bright future for these people. It
would imply that they would have to find housing accommodations
if the Panamanian Government decides this should not continue as
a housing area.
Mr. ZEFERETTI. Mr. Henry, what role did the Council play, if any,
in the negotiations with either the Panamanians or with ourselves?
What role do your people play in this when it comes down to
drawing up hard lines about what you feel the people need, whether
it be the Panamanian people or U.S. citizens?
Mr. HENRY. Basically, the same role we are playing now. We are
placing our concerns, our complaints, our aspirations to the authori-
ties that have some input to the treaty. We don't sit at the table
with the negotiators and present them a paper and say these are
the things we want. We have to appeal to authorities or agencies
that have that direct input in the hope that they will buy our
argument and see to it that these are included in the treaty.
Right now there is a feeling that the United Sttes Government,
by virtue of operating the Panama Canal, has a responsibility to us.
We feel we made this decision and we are here seeing to it that the
Panama Canal operates. The treaty is going to eliminate at least
more than half of the work force; then this is our preoccupation and
we are appealing to someone who can get this put into the treaty.
Mr. ZEFERETTI. I asked the Governor earlier this morning if he
thought over a period of time when the treaty becomes a reality
that the people involved, the Panamanian people themselves would
have the ability to be trained for some of the specific jobs that will
be necessary to carry forth the operations of the Canal. We haven't
really gone toward that end.
Mr. HENRY. At that time the United States Government will have
nothing to say about much of our training.
Mr. ZEFERETTI. I am talking about prior to that time. Let's say for
argument's sake-we will just throw out a date-say by the year
2000 we will get out of the Canal Zone and by that time we will not
operate it; it will be left to the Panamanian Government. Between
now and then, will the opportunity be available to the Panamanian
people to be trained to take over the complete operation of the
Canal?
Mr. HENRY. I suppose they could if the machinery is set up, but
that is another question. Will this machinery be set up? Will the
present employees of the Panama Canal/Panama Canal Zone Gov-
ernment who have great potential, be given this opportunity and
will they be given also the opportunity to be employed within the
Canal administration? At that time the persons who will have the
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131
say as to who is employed and so forth will not be the United States
Government, but will be the Panamanian Government.
Mr. ZEFERETTI. Then you feel that has to be part of the treaty
negotiations?
Mr. HENRY. I would urge that this be a part of the treaty so there
be no misunderstanding and that someone can sit down and, say,
plan the future for themselves and, most important, for their
children.
Mr. JOHNSON. I would like to add to that by saying that very
strongly this ties in with some of the things we have been saying
over the years.
In my paper I talked about upward mobility. Upward mobility is
based on this.
If 20 years ago more Panamanians were provided, given opportu-
nity, as is done now, more Panamanians sent to supervisory schools
as they are now, when that time comes, Panamanians would have
been qualified to hold the type of jobs needed possibly, to be in a
position to run and assist in the operation of the Canal, and this
machinery is in motion but we are again saying that we hope that
this thing is speeded up and more of us included.
Mr. METCALFE. The gentleman from Indiana, Mr. Hillis.
Mr. HILLIs. I find all this very informative, Mr. Chairman. I
certainly am impressed by Mr. Blenman's closing statement as to
the contribution all of you and your forebearers have made to the
Canal and its operation over the years. It seems to me, of course,
certain of these things have gotten under way, some of them
directly at the suggestion of our chairman, and over the years can
be phased in, can be worked in. But the fact that we are in this
treaty negotiation creates an air of uncetainty, does it not, and you
non-U.S. citizen employees would like to know what your status is
going to be, and want to be represented, and have those rights
clarified at this time in the treaty, and you want these things
speeded up, but you also want to know where you stand after the
treaty, is that right?
Mr. JOHNSON. Very much so.
Mr. HILLIs. That just seemed to be my feeling, as to where we
were. Mr. METCALFE. I recognize now, Mr. Terry Modglin, our
staff director, for the majority.
Mr. MODGLIN. Thank you, Mr. Chairman. I would like to pursue
three particular questions.
The first concerns easier access for Panamanian residents of the
Canal Zone to the United States.
Your representations in this regard, with respect to easier access
to the United States, are they related to the treaty or has this been
a long-standing aspiration of your communities? I would like to
establish that for the record.
Mr. JOHNSON. This has been a longstanding aspiration. The
record will bear us out on this. Way back, as we have talked with
the gentleman we have tried to establish-and this is a fact that
this has been an ongoing request to this Committee and to other
groups and so at this time we want to reemphasize the fact that we
look at this in the context that a treaty is soon approaching.
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Mr. HENRY. May I say some more on that? Though this has been
a longstanding request the treaty negotiations and the assurances
tell us thousands are going to be displaced and there is very dim
likelihood of any comparable employment or, as I said, any employ-
ment at all. We have precedents for this in the 1955 Treaty when
certain activities were curtailed which displaced several hundred
employees, but at that time the immigration laws were such that
there was easy access to the United States, and a number did go to
the United States. But a treaty under these conditions-people may
just go by the wayside, because there is nothing to do, no prospects,
nowhere else to go to seek anything.
Mr. MODGLIN. You are aware that in 1976 the new Immigration
and Nationality Act Amendments were passed and this changed the
basis for Western Hemisphere immigration.
I am wondering whether or not the implementation of that new
statute has yet had an effect upon individuals in your communities
who aspire to go to the United States.
Are there fewer or more Panamanian residents of the Zone going
to the United States? Any perceptible change?
Mr. HENRY. I think we can talk about that. I am not very
conversant with all this because I have not researched it, but I am
of the opinion that access has less immigrant stages. People are
going on other type visas. My feeling is that there is still a problem.
Mr. MODGLIN. If there is to be easier access to the United States
for people in your communities, what standard ought to be set to
effect this? Should the easier access be on a basis of persons born in
the Canal Zone or should it be on the basis of service in the Canal
Organization? What standards would you recommend be established
if there were to be some legislation to effect this particular change?
Mr. JOHNSON. The standard could include basically several of the
things you mentioned there and at this time because we are not too
familiar with the type of standards that could be used for easier
access. I would refain from replying further but I would hasten to
say that maybe some of the things you mentioned there should be
used as a standard for easy access to the United States.
Mr. MODGLIN. There was a time, was there not, when a number of
the individuals in your communities went into the U.S. Military
Service and effected U.S. citizenship from that perspective? Now, is
that still one of the chief means by which U.S. citizenship is gained
by residents of the community here?
Mr. HENRY. We still have a number of boys and girls who enter
the military services and they may eventually opt for U.S. citizen-
ship. At the same time we suspect that they may have trouble
getting immigrant visas because you have to be a resident of the
United States to enter the armed forces.
Mr. MODGLIN. The second point I want to address is the issuance
of the 15 Points. The 15 assurances delineate between Panamanian
Nationals and U.S. citizens in terms of disposition under a new
treaty arrangement. The remedy you suggested was that all Canal
employees be considered federal employees. Could you just elabo-
rate on the rationale, your rationale as to why all employees should
be treated in the same manner without respect to citizenship and
what you believe are the responsibilities of the U.S. Government to
you?
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133
Mr. HENRY. Our feeling as far as the treaty negotiations are going
and what we have heard there is an inclination to think of us as
Panamanian citizens and that Panama will assume certain respon-
sibilities for us as her citizens and it may be that these 15 assur-
ances were written in this light and because of that the negotiators
were hesitant to take a firmer stand in protection of the rights of
citizens of another country. We are saying that if, as in some
occasions, we are considered federal employees, then the assurances
would extend to us as federal employees rather than dividing the
federal employees-U.S. citizens, federal employees, non-U.S.
citizens.
Further, I would like to say what the 15 points does is that it
begins a new line of discussion with the same problem that we had
before-equality. We are saying that had the 15 points said all
federal employees later on at the negotiation table this could have
been worked out, but the way it is now, we find ourselves excluded
mostly, and because we find ourselves mostly excluded, and we find
quality begins again a new line, we say leave us alone and let's look
at this 15 points in a new context although it hasn't been accepted
by some of the parties. But let's begin here by saying that we are
talking about government employees, federal employees who make
the provisions that we do allow. And when we do this we will have
lumped everybody together rather than as we have done here, in
the 15 points. And this is where we would like it to be taken.
Mr. Modglin. One final point, Mr. Chairman. There has been a
good deal of controversy over the question of the United States
maintaining a full government in the Canal Zone with police, fire,
educational systems, et cetera.
I would like to, if I could, solicit your opinions as to the fairness of
the law enforcement in the Canal Zone and the system of courts
and I know in years past you have made some representations
about the jury system. So I would like to have your comments on
this aspect of life in the Zone.
Mr. JOHNSON. We have, ever since our forefathers have worked
for the government, the United States Government, and we have
understood the type of system here as basic to our hearts. We have
known that the democratic system, under the police and court
system that we have, like you mentioned. We requested jury selec-
tion for Panamanian employees. We view this as an income in the
continued safe operation of the Company. Now we are making a
projection about what could happen were another entity to take
over. But all we are saying is that democracy is what we have seen,
we have understood it this way, and some of us are part of this
democratic system of law enforcement and the judicial system
under the United States Government and we have expressed a
desire that this, if it were possible under any arrangement, be
continued. We don't know what would happen if somebody else
were to do differently but we feel as employees as we are that this
has been workable as a condition and we would like to see this
continued.
Mr. MODGLIN. Thank you for allowing me the time.
Mr. METCALFE. Yes, Mr. Blenman.
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134
Mr. BLENMAN. I would like to address Mr. Modglin, on the second
issue he asked. In my paper here I mention benefits to U.S.
employees continue under the treaty-housing and medical care.
We understand that if the treaty goes through that the schools
might go DOD. My question-what would happen to the children-
my kids, going to U.S. schools? Will there be any implementation in
the treaty allowing them to go there and finish their education?
Mr. MODGLIN. I don't think that I am possessed of the informa-
tion right now that would adequately--
Mr. BLENMAN. That is what I was referring to when I mentioned
that.
Mr. MODGLIN. To answer your question.
Mr. BLENMAN. When the treaty is signed, does that mean all the
kids have to go into Panama schools, private schools? Does that
mean kids in U.S. schools, if they are in 11th grade, will be able to
finish. I was wondering whether something could be injected into
the negotiations which allow them to complete schools?
Mr. METCALFE. Why don't you put that in the form of a recom-
mendation to us?
Mr. HENRY. In that same vein are some of our concerns. One of
these is the conflict in opting for U.S. Civil Service Retirement by a
worker or the Social Security in Panama, and medical care. Right
now a Civil Service worker gets Civil Service benefits, and Canal
Zone employees get medical care, health insirance, and so on.
Under the Social Security System, retirement system medical
care is a part of that retirement plan. Now, if you don't have that,
what happens to the person who takes U.S. Civil Service Retire-
ment and goes on? What happens to your health insurance and
your medical care? The 15 points say U.S. citizens will be assured
medical care. They do not see that non-U.S. citizens can be assured
medical care. Do we have a health plan or do we get into private
hospitals that are expensive. This is something that comes out of
the 15 ponts that needs clarification.
Mr. METCALFE. Mr. Henry, I want to make certain that we are
clear. Are you asking first that the Canal Company address itself to
these needs, and hopefully you will have a solution and be satisfied
with the response from the Company, or are you asking that in the
absence of that the negotiators address the problem. I am hesitant
to refer to the negotiations because you want an immediate answer
to your question as to whether or not the negotiators will make this
a part of the treaty. My problem is that we can't wait because we
have no idea of knowing whether or not the negotiators will address
themselves to this and will delineate the answers to your questions.
Do you understand me clearly? I mean as to whether or not you
would like to have the Governor and his Counsel address them-
selves to these problems?
Mr. HENRY. Are you saying the Governor and his Counsel address
himself to these problems with a view of later addressing the
negotiators?
Mr. METCALFE. Even if it can be done prior to it and assuming-
let's assume for the sake of time progress that the negotiators will
not address themselves to it-you will have the assurance that your
request has had some attention and maybe some solutions.
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Mr. HENRY. Well, you see, Mr. Chairman, right now we have U.S.
Army facilities, and we have health plans so what I am talking
about is in the contxt of a treaty as the 15 assurances are set up I
am saying actually what happens to medical care for someone who
says, "I want to continue under the U.S. Civil Service Retirement
Plan." Because there are no assurances as far as medical care is
concerned. I don't know what is going to be worked out for health
plan, whether we will have a Canal Zone Health Board, whether
there will be an option for stateside insurance companies, or what.
Mr. METCALFE. Mr. Henry, let me couch it in a little different
language. In other words, Governor Parfitt has issued a statement
of principles and of intentions of what he would like to see done. My
question is, would you like him to addrss himself to that question
and make that a part of his list of assurances?
Mr. HENRY. Yes.
Mr. METCALFE. Thank you. Do we have any questions from the
Minority Staff member, Mr. Nick Nonnenmacher?
Mr. NONNENMACHER. Thank you, Mr. Chairman I would like to
phrase this as delicately as I can because I think it is more than
just implied here. And I am well aware of the political ramifications
as it relates to you Panamanian citizens.
Mr. Johnson, you mentioned a duality, and, Mr. Henry, you
mentioned the displacement. Now, it seems to me there is a
"triality" involved here. I think you feel presently that there is sort
of a duality in relation to the U.S. Government in these assurances
in your present and potential positions, working under the present
Company regime. But I get the distinct impression you fear a
duality in relation to the Republic of Panama when and if that
government takes over. And this is why I use this word "triality."
I'd like to ask you, why do you fear a displacement from your jobs
in view of the great experience you people have?
Let me ask two questions: What jobs do you expect to be abol-
ished, and if jobs are not going to be abolished, do you fear a
displacement by other Panamanians without experience, whether it
be for political reasons or not? Why should that happen? Could you
elaborate, either of you elaborate, on this question?
Mr. HENRY. Under the present guidelines of the treaty, it says
that Panama will be sovereign within the Canal Zone and that at
that time a Canal Administration will be set up that will see to the
operation of the Panama Canal. It implies that all governmental
functions and all functions that do not have a direct bearing on the
operation of the Canal-that is, getting ships through the Canal-
will divert to Panama.
This wipes out, I would say, approximately half of the working
force in the governmental functions, the policemen, firemen, postal
service, and schools. And within the government operation, those
other commercial activities in the docks and piers in Balboa, ma-
rine bunkering, a lot of these activities are going to go. This means
that you will displace workers.
It seems to us that, first of all, all of these emloyees will not
necessarily be re-employed, since Panama already has entities that
assume these functions. We are abandoning the police; we are
abandoning the firemen; we are abandoning the postal system. They
PAGENO="0144"
136
do do some rebunkering and all things like that. So all that may
happen is that some of these functions will just extend themselves
and I can't see any way in which even one-third of the present
working force will be employed in these areas since we already have
a working force within the Panamanian Government to assume
these responsibilities.
Mr. NONNENMACHER. But would that same number of people be
able to handle what seems to be an expanded geographical area?
Would there literally be no need for additional people in the
Panamanian Government agencies to carry on?
Mr. HENRY. Yes, you would need some more.
Mr. NONNENMACHER. Would not you people be the logical ones to
keep this up? If not, why not?
Mr. HENRY. That is a very significant question as far as that is
concerned. I would prefer to go into the details of that at some other
time.
Mr. NONNENMACHER. Well, I think this is what I was trying to
say, that it is a delicate issue and I appreciate that, but I think the
record in some way should reflect this concern and I think your
answer does.
Mr. JoI~NsoN. May I just point out the fact that I appreciate the
fact that you continued in this context because some of the issues
that you raise are delicate in that sense and because of political
ramifications we would rather not discuss them now but during the
inspection visit perhaps you could talk to us about it and we could
answer your question.
Mr. NONNENMACHER. I appreciate your candor.
I would like to say on behalf of Congressman Gene Snyder, who is
the Ranking Minority member, and who is not present today, that
despite his very strong positon against the United States surrender-
ing the Canal and the Zone to the Republic of Panama, he has an
enormous respect for Panamanian citizens and especially for those
like yourselves and your forefathers who built that waterway and
have continued to maintain it to this present day. I would like you
to know that you have his respect.
Thank you, Mr. Chairman.
Mr. METCALFE. Thank you, Mr. Nonnenmacher.
Now we will ask Mr. Bernard Tannenbaum if he has any
questions.
Mr. TANNENBAUM. I think the questions you have just raised
certainly deserve a lot more discussion. If you prefer that discussion
in private, we would be happy to discuss it with you at your
pleasure.
Mr. METCALFE. Thank you.
Is there anyone in the Latin American community who is in the
audience today who wishes to make a statement at this particular
time?
If not, keeping in mind the time constraints we are under, I am
going to ask for unanimous consent that we be permitted to pro-
pound to you any questions that we did not have an opportunity to
ask you, and ask by the same courtesy that you write to us if you
want to expound on any question or if you want to raise any
additional issues.
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Hearing no objection that will be the order and I would like to
express my thanks and the thanks of the delegation for the very
splendid testimony and the very candid presentations that you have
made.
We are going to have a break now and I would urge that the
members of the Latin American Civic Council remain here while
we hear from the U.S. Civic Council.
We will take about an eight-minute break now so that we can
move right into the presentations of the United States Civic
Councils.
[Whereupon, at 11:35 a.m., the Subcommittee recessed.]
[After a recess, the Subcommittee reconvened at 11:45 a.m., the
Honorable Ralph H. Metcalfe presiding.]
Mr. METCALFE. The subcommittee will be in order.
I guess my job, in addition to presiding, is being a good
timekeeper and keep the time factor rolling along. We are pretty
much on schedule. To be exact, we are about three minutes behind
schedule.
You heard the introductions of the Members of Congress, as well
as the staff. I need not go through that. You heard my opening
statement which applied to both of the Councils so we can proceed
to get into the gutty issues with which we are confronted. We are
most anxious to hear from you.
We have before us a position paper and it has been brought to my
attention that each one of you will address yourselves to part of this
position paper.
It is also my understanding that Mrs. Patricia Fulton will be the
lead-off witness to proceed into the statement so that we can have
the benefit from hearing from all of the Council presidents.
STATEMENTS OF MRS. CHARLOTTE KENNEDY, PRESIDENT, CRIS-
TOBAL-MARGARITA-BRAZOS HEIGHTS CIVIC COUNCIL; MR.
HAROLD B. GREEN, JR, PRESIDENT, GAMBOA CIVIC COUNCIL;
MRS. PATRICIA FULTON, PRESIDENT, PACIFIC CIVIC COUNCIL;
MR. DALE WINDLE, PRESIDENT, GATUN CIVIC COUNCIL; AND
DR. MELVIN BOREHAM, PRESIDENT, COCO SOLO-FRANCE
FIELD CIVIC COUNCIL
Mrs. FULTON. I will not be the first reader, but let me make a
brief introduction.
The representatives of the U.S. Councils in the Zone met together
to plan a joint presentation so that you would not have to hear a lot
of repetition on some of our concerns.
We realize that as you look at our position paper that some of the
language may sound strong, but we are at a point where we feel we
have to be honest and we want to honestly portray the situation as
we see it here living here.
We realize we may be taking some personal risks in some of the
statements we are making, but we feel we have to make you aware
and put it into the record.
Mrs. Charlotte Kennedy, President of the Cristobal-Margarita-
Brazos Heights Civic Council, will be the first reader, followed by
Mr. Harold Green of Gamboa. I will conclude and Mr. Mel Boreham
95-549 0 - 77 - 10
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from the Coco Solo-France Field Civic Council will have a brief
statement.
Mrs. KENNEDY. Good morning.
Mr. METCALFE. Good morning, Mrs. Kennedy. It is good to see you
again.
Mrs. KENNEDY. Well, undoubtedly we will repeat many of the
things that Congressman Metcalfe has already heard but we felt
with the new members we must go back perhaps to the beginning
and give a background. This is our joint position paper.
The Panama Canal was created by United States taxpayers'
dollars, American ingenuity, engineering and medical expertise,
and dedicated labor, transforming a sparsely-populated, fever-in-
fested jungle into the eighth wonder of the world. In fact, the
Republic of Panama owes its very existence to the United States
and the Panama Canal. Anyone who has seen the Nicaraguan area
which was once considered for a Canal route can readily imagine
what Panama would look like today had there been no Canal built
there. Likewise, Panama owes its former prosperity to the United
States and the Canal Zone, not just from the annual railroad
annuity, but also from wages paid to Panamanian employees in the
Canal Zone, from purchases made by U.S. citizens and agencies of
the Canal Zone, and from the millions of dollars in foreign aid given
so lavishly out of United States taxpayers' money.
The U.S. citizen work force in the Canal Zone is comprised
largely of highly-skilled, dedicated, technical employees, who have
left their homeland, not for service in a foreign country, but in the
service of the United States Government under the flag of the
United States. Their outstanding record of accomplishments in
keeping the Canal running smoothly and efficiently has been due
largely to their sense of pride in their work, their sense of loyalty to
the United States, and their attitude of concern for their country's
welfare. These people believe strongly that the Panama Canal
cannot operate effectively or efficiently without a Canal Zone which
is under the jurisdiction of the United States-with U.S. laws,
courts, postal system, police and fire protection, and schools with
U.S. curriculum and U.S. citizen teachers. We believe that the U.S.
Government owes a strong legal and moral responsibility to these
loyal employees to protect their job security, their lives, their
property, and their families, while at the same time protecting the
tremendous investment of taxpayers' money in the Canal.
For the past three and one-half years, the U.S. Civic Councils in
the Canal Zone have been preparing position papers and formal
statements of community opinion for submission to Congressmen,
Canal Zone officials, Department of Army representatives, treaty
negotiators, and State Department officials. We have tried to main-
tain an attitude of rationality, calmness, and sensible perspective
on the subject of a new Panama Canal treaty with the Republic of
Panama. One of the many points we have tried to make so often, so
much so that we feel like "broken records," is that the U.S. citizen
in the Canal Zone feels very apprehensive about living under the
type of "legal system" now in force in the Republic of Panama.
We live next door to the Republic of Panama all year long; we use
our eyes and ears to observe what is going on there and we are not
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naive enough to believe that the Guardia Nacional, that mistreats
fellow Panamanians with arbitrary beatings, imprisonment, expa-
triation and murder, is going to give special treatment to those
"hated colonialist gringoes" who have finally come under their
jurisdiction. This attitude of hostility is encouraged and developed
by the government-controlled news media in the Republic of Pa-
nama. The actions of the Panamanian government during the past
year and a half have done nothing to sell the U.S. employee in the
Canal Zone on the idea of living under Panamanian jurisdiction.
Let us cite a few examples:
1. In January, 1976, a group of Panamanian businessmen and
professionals were exiled, contrary to the Panamanian constitution,
for their opposition to the Torrijos regime.
2. The student riots in Panama City in September, 1976, were
clumsily handled by the Guardia Nacional, so much so that the
disorder continued almost daily for a week and a half. When the
Guardia finally took decisive action, it was brutal.
3. The October bombings in the Canal Zone have been credited to
members of the G-2 of the Guardia Nacional, although members of
the U. S. Embassy speculated informally that Bill Drummond might
have bombed his own cars and participated in bombings at other
sites in order to gain sympathy for his anti-treaty stand.
4. An Air Panama pilot, officially charged with possession of
bombs to be used against the Panamanian government, told people
at Paitilla Medical Center that the bomb that exploded in his car
was tossed in there by a passing G-2 car. According to the Panama-
nian government's "official version," the man's wife was holding a
bomb in her lap-a somewhat incredible tale-when the bomb
exploded, injuring her seriously. Incidentally, his wife was sen-
tenced to five years in prison.
5. Guardia Nacional escorted groups of students into the Canal
Zone January 9, 1977, where American flags were burned and
Panamanian flags were raised. This last ritual seemed somewhat
unnecessary because Panamanian flags are already flying in the
Canal Zone.
6. William Drummond, while passing through Tocumen Airport
on February 11, 1977, en route to Washington on labor union
business, was detained by G-2 agents and questioned for about three
hours in the downtown Panama City office. When he tried to board
another plane the following day, he was detained for 15 minutes at
the foot of the boarding ramp, and seven friends who accompanied
him to the airport were also detained and questioned because one of
them took pictures of Mr. Drummond being stopped by G-2 agents.
The film was confiscated by the G-2.
It seems inconsistent with the stated refusal of our government to
deal with countries who have violated human rights that any
negotiations should be carried on with a government which is in
power illegally, and which has a record of frequent violation of
human rights. The Torrijos dictatorship has used extreme repres-
sion against political, professional, business, student and labor
groups. The expatriation of what is estimated to be about 1300
Panamanians and the murder of some 500 persons in a country of
only 1,700,000 inhabitants would compare to 168,000 expatriations
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and 65,000 murders in the United States. Definitive, authoritative
figures on expatriations and political murders are difficult to obtain
in Panama because of government secrecy and suppression of infor-
mation which the government does not want its people to have.
What exists now in the Canal Zone, after many attempts on our
part to send out warning signals and indications of problems to
come, is a "seige mentality" and crisis atmosphere. Now that one of
the Civic Council presidents whose signature appears at the conclu-
sion of this paper-Harold Green of Gamboa-has had recent
experience with arbitrary detention, arrest, interrogation and
search in the Republic, we are having real difficulty in maintaining
an attitude of composure and calm rationality.
In short, our people have told us that they are more rigidly
opposed than ever to living under Panamanian jurisdiction. The list
of 15 assurances, recently released by Governor Harold R. Parfitt,
spelled out for them the cold, hard reality that Panamanian law
would go into effect when the treaty was inaugurated, and many,
many of our people now tell us that "the day that the Canal Zone
police go, we go," and also, more alarmingly, "when the U.S.
workers see the day getting closer when jurisdiction will be handed
to Panama, you can expect to see the Canal shut down."
Last year, Dr. Richard Cheville addressed your committee not
long after the March sick-out, and he explained in his testimony
some of the factors that led us to the closing of the Panama Canal.
Morale at that time was extremely low; this year we have to say
honestly that our people are so demoralized that they are ready to
give up and quit-a shutdown of the Canal, if it occurs, will not
happen over a labor issue. It will result from apprehensive employ-
ees, who in their fear for their physical security, will simply leave
their jobsites, go home and pack their suitcases for repatriation. We
do not say this lightly; we do not say it as a threat. But we must
make the honest observation that our people feel so thoroughly
discouraged and so exhausted after several years' worth of worry
and insecurity-with nothing much to look forward to-that it
would not take much to get some of them to join a job action.
I will relinquish my place now to Mr. Green, the Bud Green who
was held up at the Tocumen Airport.
Mr. GREEN. Good morning. In contrast to our position as year-
round residents and as elected representatives of U.S. citizens living
in the Panama Canal communities, the treaty negotiators and State
Department officials have little at stake themselves personally,
other than to successfully negotiate a treaty which will, in their
minds, ease hemispheric tensions and get rid of chronic problems in
relations with Panama. When they finish their assignment, they
will move on to other missions, leaving us to live with what they
have arranged in treaty form. Generally, the treaty negotiators
come to Panama for short periods of time, followed by journalists
who become experts after a 3-day tour that includes standard
briefings by the Panamanian and Canal Zone governments. These
negotiators for the most part stay in isolation on the Island of
Contadora, and when they have consented to meet with Canal Zone
labor and civic representatives, they have said relatively nothing of
any significance on the treaty issue. We sincerely resent the fact
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that our services and the future security of our nation are being
negotiated under a cloak-and-dagger atmosphere, particularly since
the secrecy is unilateral.
Secrecy, in recent years, has been closely linked with dishonest,
illegi or shady dealings. We in the Canal Zone are hard pressed to
accurately define the secrecy attached to the Panama Canal negoti-
ations. Imagine our chagrin to daily read in the Panama papers
that a Panamanian Government spokesman is briefing Panama-
nian students, professional, business or labor groups on the
"progress of the negotiations." And the presidents of Costa Rica,
Colombia, and Venezuela seemed to be briefed regularly by General
Torrijos about treaty matters. Does the U.S. State Department
believe that the American people are not mature enough to prop-
erly accept and assimilate such highly important information?
Let us make clear that we are American citizens deeply con-
cerned with the present and future well-being of our nation. Our
opinions on what the U.S. has at stake in the negotiation of a new
Canal treaty are also affected by our conversations with Panama-
nian friends, our reading of Spanish-language and English-language
newspapers in Panama, and our understanding of the behavioral
traits of the Panamanian government-something which one does
not arrive at overnight or even in three days. Because of the
present situation in the Republic of Panama, many of us do not
"cross the border" as often, as freely, or even as nonchalantly as we
used to. Fear, apprehension, and deep concern for our personal
safty brought about by a succession of events in Panama, have
given us an increasing "locked-in" feeling in the Canal Zone. When
Panamanians are deported, or arrested, tortured and even killed for
having dissident opinions, and when even our own people are
subject to arrest in Tocumen Airport, in violation of existing treaty
agreements-the average U.S. citizen in the Canal Zone is not at all
enthusiastic about arbitrarily being subjected to the legal jurisdic-
tion of such a repressive government. As an additional item of
evidence, we have had numerous conversations with many Panama-
nians that you will never be able to meet. Our impression from
these conversations is that when the Panamanian government
officials speak today, they are not speaking for all the people. Let us
cite a statement made recently by an educated businesswoman from
Panama City.
Speaking to a Civic Council president informally, she said, "The
United States is a world leader and so is the Soviet Union. But the
United States has the advantage of liberty and freedom. Yet your
country is doing nothing to help promote the spread of liberty in
Latin America today. I understand that your government cannot
interfere in our internal affairs, but your government could with-
hold foreign aid and could stop giving military assistance to our
government. Our people are growing in their resentment of the
United States Government because they see your government sell-
ing weapons, armored cars, and other equipment to this govern-
ment that oppresses us."
The Panamanian people seem to be overtly silent because they
have no effective means that they can see with which to fight back.
However, the ever-increasing opposition to the dictatorial govern-
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ment of Omar Torrijos became glaringly evident during the past
September riots in Panama. Rumors have been rampant for months
in the Canal Zone and Panama that more anti-government riots
may be imminent in the months of April and May.
What effect does all this have on the operation of the Canal?
Right now it is having a disastrous effect on the quality of work
being performed because workers are "uptight" constantly about
physical and economic security. The pride in working on the Pa-
nama Canal that has been part of our historical heritage here since
the Canal's construction is now giving way to constant preoccupa-
tion with one's personal welfare. The recent arrests of U.S. citizens
at Tocumen Airport was not lightly regarded by our people, many of
whom wonder about their own safety in passing through this
airport.
The Panamanian government has not yet responded to the offi-
cial protest concerning their violation of the Air Transport Service
Agreement of 1949. Comments in the Panamanian press were that
the Panamanian government did not like the agreement, a senti-
ment that does not augur well for any commitments made in a new
treaty. The Panamanian government could decide, sooner or later,
that they "don't like the agreement" again.
On the subject of Tocumen Airport, let us add that our requests
for use of Howard Air Force Base as the point of air departure and
arrival from the Canal Zone were denied because "one arrest does
not justify the civilian use of this military air terminal." U.S.
residents who one year ago thought William Drummond was an
eccentric who made his own problems, have been so jarred by
events of the past year that now they identify fully with what
happened to him at Tocumen Airport. They reason thusly: "If it can
happen to Bill Drummond, then perhaps it can happen to me." Our
people are now asking us, "How many arrests are needed for
someone in our federal government to take steps to insure our
protection in travel by air to and from the Canal Zone."
Turning now to the subject of employee status under a new treaty
with Panama, we would like to respond to the recent list of 15 items
which the U.S. presumably proposes to submit at the negotiating
table. In spite of the fact that the Panamanian government has said
that this list of "assurances" would not be acceptable, we wish to let
you know the reaction from the U.S. community in the Canal Zone.
Assurances of U.S.-provided schooling and medical care, adequate
housing, duty-free import and purchasing privileges and exemption
from Panamanian income tax were good news to us, as you may be
well aware. The language regarding job assurances was somewhat
vague and left us wondering if we would be given help or if we
would not. The assurances seem to promise only what we already
have: "all eligible employees are guaranteed by current regulation
reduction-in-force and reassignment rights, transfer of function
rights, and discontinued service retirement following involuntary
separation."
We were also told that "Civil Service Commission approval will
be sought to provide any present U.S. citizen employee requesting
such assistance with priority placement consideration for appropri-
ate vacancies in federal government agencies." This is still vague
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and uncertain, and our people have had about all they can tolerate
of uncertainty.
The irony of the list of 15 assurances is that, in spite of advan-
tages which the U.S. citizen who might consider remaining here will
have over the locally-hired Panamanian citizen employee, our peo-
ple have such strong objections to the fifth item in that list, that
they have little interest in the other somewhat positive assurances.
The item which caught the exclusive attention of the U.S. commu-
nity reads like this: "In connection with offenses arising from acts
of omission punishable under the laws of the Republic of Panama,
United States citizen employees and their dependents will be enti-
tled to specific procedural guarantees, such as prompt and speedy
trial, specific charges, cross-examination of witnesses and legal
representation of choice."
Disregarding the fact that Panamanian government officials have
announced in their local newspapers that they would never allow
U.S. employees in the Canal enterprise to have a "status of forces
agreement", type of an agreement such as the U.S. military will
have, and assuming for the sake of argument that the Panamanian
negotiators agree to this assurance as part of the new treaty, who
will guarantee that the Panamanian government will consistently
comply with the request to give U.S. citizen employees these "proce-
dural guarantees"?
After reviewing the list of assurances, we would like to hear
something more specific and concrete, in language that we can
understand, concerning priority transfers to government jobs in the
United States.
In addition, we would like to express concern for two particular
job categories: teachers and policemen. At this point, teachers have
no transfer rights from the Canal Zone into the U.S. Civil Service
system, other than for jobs at Indian reservations. They have
worked faithfully and well in educating our children, and we are
distressed that they are left "out on a limb" when it comes to job
transfers. Those who do not chose to participate in the DOD school
system which will probably go into effect down here should be given
first priority for employment in the U.S. and assistance in obtaining
such employment. The men and women of the Canal Zone Police
Division are among those living under a "death sentence" because
treaty negotiators have made it quite clear that law enforcement
functions of the present Canal Zone Government will cease within 3
years after the new treaty goes into effect. The morale in this
particular division continues daily at an all-time low because these
employees only know that they will be out of a job soon; they know
nothing about any future employment that wil allow them to
provide for their families.
In general, our people were appreciative of the attempt to give
them some information about their status under a new treaty, even
if that list of assurances is rejected by the Panamanian government.
Nevertheless, our Personnel Bureau continues to have difficulty in
recruiting pilots, doctors, nurses, marine engineers, electricians,
tugboat masters, and other needed workers for the Canal enter-
prise. Our constituents tell us that June will witness another mass
exodus from the Canal Zone, further magnifying the task of our job
recruitment specialists.
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I will here relinquish to Pat Fulton.
Mrs. FULTON. During the past 3 to 4 years, while job security has
been a major concern for our people, they have been receiving an
"education" from the State Department concerning the treaty. In
briefings, newspaper articles, and informal discussions, the State
Department officials make clear these basic premises for their
argument that a new treaty is needed:
1. A Canal Zone is not necessary for the successful operation of
the Canal. They tell us that we wouldn't want to live in the Canal
Zone if Panama did not get the treaty it desires.
2. The countries of Latin America give full support to Panama's
claims for sovereignty over the Canal Zone and eventual control of
the Canal operation.
3. The turnover of the Canal to Panama is in the best interests of
the United States because not to do so would possibly involve our
country in another Vietnam-style guerrilla war.
4. Panama has a sincere interest in keeping the Canal open and
would not do anything to jeopardize the efficient operation of the
Canal.
5. The Canal Zone is an anachronism; it is a source of irritation.
Once the U.S. citizens are scattered throughout Panama City and
Colon, they will no longer be identified as "Zonians", thus easing
tensions and friction between the U.S. and Panama.
6. The economic growth of Panama depends on acquiring the
lands in the Canal Zone so that Panama City and Colon can expand
their business interests.
7. The denial of basic human rights within the Republic of
Panama is not a matter that needs to be brought into the treaty
negotiations. After all, Panama is one of the "developing countries
of the world," and such behavior is normal for such countries.
8. The State Department would not negotiate a treaty which the
U.S. Congress would not ratify.
The above concepts might be plausible to someone who has not
lived here, to someone who has little or no dealings with the
Panamanian government and its officials. They make the negotia-
tion of a new treaty with Panama under the Kissinger-Tack concep-
tual principles as the most logical course to follow. Permit us to
provide some responses to these concepts we have listed.
1. When the Canal Zone-U.S.-based legal system ceases to exist,
many, if not all U.S. emloyees, will leave because they prefer to
work and live under an orderly system of laws that guarantees
them justice and fair play. They are becoming increasingly resistant
to the thought of living under the Panamanian legal system as it is
now administered.
2. The countries of Latin America say one thing in public and
another privately. In the newspapers they pledge full support for
Panama's claims to the Canal. In private, to people such as former
Under Secretary of State William Rogers, they say that they are
satisfied with the course that the U.S. is taking in the Canal treaty
negotiatins.
From observation of the political behavior and egocentrism of
Latin American governments, one can safely say that Omar
Torrijos could not depend on his Latin American neighbors for
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monetary or military support in an open conflict with the United
States. Those other countries wish to preserve their own ties to the
United States in foreign aid allotments and commercial ventures.
They would not sacrifice their own interests for the sake of Torrijos'
"just aspirations" concerning the Canal. Rhetorical support is about
all that General Torrijos can expect from Central and South
America.
3. Turning over the Canal to prevent "guerrilla warfare" is not in
the best interests of the United States because:
a. construction of enough warships to provide a "two-ocean navy"
would be necessary in case Panama became whimsical in
permitting us access to the Canal for military vessels. The extra
cost in fuel for sending these ships around the tip of South America
would be astronomical.
b. The Moscow-Havana axis has been casting lustful eyes for a
long time toward our Canal as well as at other straits and
waterways of the world. Panama does not have the military
strength [even with the armored cars now in their possession] to
withstand an assault from any country that would choose to invade
and occupy it. The Panamanian people are not "fighters" by tradi-
tion; they have never fought a war of liberation. The average
campesino reasons in this way: "Why should I get myself killed for
the sake of a dictator? What will it gain me or my family? Abso-
lutely nothing. Therefore, I will simply adjust to whoever is in
power. One ruler is as bad as another."
c. The flow of Alaskan oil through the Panama Canal en route to
eastern parts in the United States will be in serious jeopardy when
Panama has control over access to the Canal and over the setting of
tolls.
d. Our first line of defense in the western hemisphere would
suddenly become Harlingen or McAllen, Texas [or perhaps Key
West, Florida.]
e. The threat of "guerrilla warfare" amounts to nothing more
than an attempt at political "blackmail" and appears to be contra-
dictory in nature, based on the actions of the State Department.
How valid is the threat if the State Department permits the sale
and assists in the movement of armed personnel carriers to the
Panamanian government? This military equipment was furnished
in two installments, the first in October, 1976, and the second on
March 5, 1977. This second installment, consisting of 12 armored
vehicles, was delivered under Canal Zone poice escort, to the Repub-
lic of Panama. What can justify the sale of military equipment to a
potential enemy? How does one explain this situation to a U.S.
soldier who may some day face his own death at the hands of an
enemy who is using equipment built in the United States and
delivered with the help of our own government officials? [One
rather weak explanation from the U.S. Embassy in Panama is,
"Well, if they don't buy from us, they'll buy from someone else. It's
better that U.S. industry gets the money and we can control the
supply of replacement parts."]
4. The Panamanian government is not noted for rational, logical
behavior, nor for extensive attention toward preventive mainte-
nance of government equipment. At this point, the Panamanian
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government, nearly bankrupt, needs money so desperately that we
agree they have a sincere interest in keeping the Canal open and
operating efficiently.
We further believe that the Canal will remain open and operating
efficiently even if the Pananamian government does not gain con-
trol of the Canal and the Canal Zone. Panama presently derives
about one-third of its national income [$256 million in 1976] from
Canal sources and they are not about to jeopardize that income by
foolishly attempting to sabotage the Canal. Any terrorist or guerilla
type action, if at all, will be aimed at targets other than the Canal.
In short, U.S. taxpayers are being required to sacrifice their tax
dollars, land and national security in order to protect the invest-
ment of multi-national business corporations.
One of the differences between U.S. control and Panamanian
control of the Canal and Canal Zone is the anticipated exorbitant
increase in tolls which Panama would levy. Any such increase
would seriously jeopardize the economic health of the Canal and
increase the cost of products in countries that can ill afford such an
increase. Sabotage and toll increases will hurt most of these Central
and South American countries who are supposedly solidly behind
the "just aspirations" of General Torrijos.
The lackadaisical attitude toward repairs and maintenance would
contribute to the mechanical and structural breakdown of the
Canal and appurtenances [unless the United States agreed to con-
tinue supplying parts and maintenance indefinitely.]
5. The "gringo" as he is often called here in Panama, will
continue to receive harassment, whether he lives in Panama or the
present Canal Zone. The United States has been a rather conve-
nient whipping boy for the Republic of Panama for years and years.
Criticism of the U.S. has always been used to distract the Panama-
nian's attention from the incompetence, graft, corruption, and poor
judgment of his own government. Besides, the average Panamanian
[when he permits himself to talk freely] does not want a treaty
signed under the regime of Omar Torrijos. Such a treaty would
reinforce the already crushing power of the Torrijos government on
the Panamanian people.
6. The economic growth of Panama will need more than a Canal
to restore it to health. The repressive atmosphere has inhibited
consumers from visiting stores and businesses, it has inhibited
investors from putting their money to work in Panamanian enter-
prises. The acquisition of Canal Zone lands for use by Panamanian
commercial interests still requires the intelligent use and exploita-
tion of these lands by competent businessmen. Such people are not
the ones in control in the Panamanian government today. The ones
in power are miitary men without adequate training in economics
and business management. At this point we will not even attempt
to explore the plight of the businessman in Panama who is weighed
down by a pyramid of government taxes and fees, a labor code full
of headaches for everyone, and abundant government red tape
necessary in order to operate a business in the Republic.
7. The denial of basic human rights within the Republic of
Panama is a matter that should be considered in the treaty negotia-
tions. President Carter has expressed repeated interest in the
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matter of human rights. If our country is to participate in a
metaphorical "marriage" by means of a treaty with another coun-
try, we should know just who that "spouse" is. Denial of human
rights is bound to make further problems for Canal employees later
on, no matter what nationality they are.
Rather than taking an amoral stance, our country should apply
its influence on the Panamanian Government, to the extent that
U.S. citizens [who do come under the legitimate concern of our
Federal Government] will not be permitted to live under such
repression. We cannot rightfully interfere in the domestic policies of
another nation, but we can let them know that they wil not receive
what they desperately want from us unless they make some
changes in that policy.
8. The State Department is negotiating a treaty which it is willing
to ratify. They make the assumption that they know what is in the
best interest of the United States" and that all other opinions are to
be considered ill-informed, unenlightened and out of step with
modern times.
In past years, civic leaders from the Canal Zone have presented to
you concerns they had about day-to-day items such as health care,
commissaries, substandard housing, and schools. We continue to
have such concerns, but in an important hearing such as this, when
your time is at a premium, we emphasize that our concern this year
is the survival of the Canal and the physical well-being of the Canal
operation.
U.S. citizens in the Canal Zone have been greatly disturbed in the
past year with the direction in which the treaty negotiations seem
to be going. They tend to feel powerless in the writing of a major
agreement between two countries, an agreement which will have
far-reaching effects on these workers as well as on the United
States as a nation.
Because of the political unrest in Panama today as opposition to
the Torrijos regime mounts because of economic and political prob-
lems, we know we live and work here with a certain amount of risk.
But at the same time we are concerned with the implications that
the treaty being negotiated with Omar Torrijos will have on the
United States. The behavior of the Panamanian Government in the
past year should be testimony enough in itself to give our Senators
and Representatives some serious reservations about the wisdom of
a treaty with a government that runs roughshod over its citizens'
human rights and that drains the national treasury to supply a
comfortable life style for numerous high-ranking officials.
A case in point is the current trip to Libya, during which General
Torrijos and 49 other dignitaries will expend govenment funds
while their nation is on the threshold of bankruptcy and the people
at home are exhorted to make "sacrifices" for the national good.
While all these things have been going on in Panama, State
Department officials have assumed that the Panama Canal worker
would stay in his place and patiently await the verdict on the
treaty. They can no longer make that assumption safely. If the U.S.
Government wishes the Canal to continue operating efficiently for
world commerce, it will need to supply employees who are willing to
work under the present tense and uncertain conditions. The U.S.
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Government may find them, but with some difficulty and probably
at great cost in financial enticements. It would seem to make more
sense to respond to the needs of the current work force and likewise
to avoid any haste in ratifying a treaty with Panama that promises
to bring even more headaches in the future.
For ourselves as U.S. citizens living and working thousands of
miles from our home land, we can say, "Pack us up tomorrow.
We're ready to go." But for the sake of U.S. commerce and of U.S.
national interests in general in the Western Hemisphere, we urge
you to examine the proposed treaty [whenever it is announced] in
minute detail. We urge you to visit here for more than three days,
to observe the situation with your own eyes and not to depend
solely on briefings by U.S. or Panamanian Government officials.
The new treaty with Panama will have long-range repercussions
that coming generations will have to live with. We urge you not to
ratify a new treaty solely because the State Department says that a
treaty is the cure-all to problems with Panama. The Russia-Cuba
axis and the American electorate are waiting to see which way the
treaty goes. A hasty decision on the part of our Congressmen
without giving deep and thoughtful study to the question would
please the former and infuriate the latter.
And now Dr. Mel Boreham would like to make a statement for
Coco Solo.
Mr. BOREHAM. Members of the subcommittee, I have a letter
presented to the Honorable Governor Harold Parfitt concerning
some of the points, the assurances that were given by the negotia-
tors, on their stand in our negotiation with Panama.
I think one of the things the subcommittee must realize is that
the Canal Zone represents a slice of Americana. We are pretty
much, I think, similar, analogous to a small town in the Midwest or,
say, one of the company-run towns of Montana with a population of
15,000. If you were to go to one of these areas in the United States
and tell them that next year they were going to come under
Brazilian jurisdiction, with Brazilian police and courts and so forth,
I think there would be a very great furor and people would
naturally leave that town and possibly go elsewhere.
I think that most of the U.S. employees of the United States
Government have decided that there will be a new treaty between
Panama and the United States. Unfortunately, many of our U.S.
citizen employees have a feeling that they are the expendable
persons in this regard, to this particular diplomatic solution with
the current Panama question.
This is especially true with regard to living under total Panama-
nian jurisdiction. I must express my great concern that many, if not
most, U.S. citizens and employees would choose to return to the
United States should that be a part of any treaty between the
United States and Panama.
Twenty years is a short time, as the reported date has been
talked about for the turnover to be around the year 2000. I think
the only way that such a mass, mass exodus may be stemmed is to
allow for the U.S. citizen housing and work areas of the Canal be
retained under the security of the U.S. Armed Forces.
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I believe that this condition must be considered as a minimum for
the continued presence of experienced-of an experienced Canal
Zone work force throughout the transition period of not 3 years but
possibly of 20 to 25 years. Should such security areas not be set up
for the U.S. citizen worker, those responsible for such unrealistic
living conditions must accept the consequences of the possible
ineffective functioning of the Panama Canal and its invaluable
service to worldwide shipping and commerce.
That is my prepared statement. I think that this is really and
truly a minimum thing. All of the people that I have talked to in
my town site and other town sites across the isthmus have stated to
me that should jurisidiction go to Panama, the turnover of police
and courts and so forth, that they would essentially pack up and
leave tomorrow.
I think this is essentially a reiteration of what was given in the
other position paper, but I just wanted to stress it in these particu-
lar terms.
Thank you very much.
Mr. METCALFE. Thank you, Dr. Boreham.
We have listened to your presentation. First, let me ask unani-
mous consent to enter the letter that Dr. Boreham had submitted to
us into the record. Not hearing any objection, it will be so ordered.
[The letter referred to follows:]
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COCO SOLO FRANCE FIELD CIVIC COUNCIL
,,oo. ";~ POST OFFICE BOX 1
COCO SOLO, CANAL ZONE
March 23, 1977
The Hon Harold R Parfitt
Governor of the Canal Zone
Balboa Heights, Canal Zone
Through: Civic Council Staff Officer
P.O.BoxM -
Balboa Heights Canal Zone
Dear Governor Parfitt
On the behalf of the Coco Solo France Field Civic Council and
the community we represent, I wish to thank you for your genuine
concern for employees of the Canal Zone and theirdependents. The
list of assurances released this past week isan excellent step
toward relieving some of the anxiety built up by the on-going neg-
otiations for a new U.S.- Panama treaty
A special meeting of our Council was held on March 22 in order
to discuss each of the 15 points of the list of assurances. I believe
that there is general acceptance of these points by most U.S. citizen
employees. It is realized that the wording is, out of necessity, a
bit vague and generalized, thus leaving certain questions unanswered.
I shall list below some of these questions under the number heading
of each point onwhichour council members expressed concern: *-
Point 1. With regard to medical care, will equivalent medical care
facilities be located on both sides of the Isthmus? Will there be
an Atlantic side hospital?
Point 2. What type of housing will be considered "adequate" and what
rental rates will be considered "reasonable" relative to our present
situation? Will water and electricity be purchased through Panama at
at their much higher rates?
Point 3. Will the military service facilities include gasoline stations,
fopd commissaries, auto repair facilities and APO postal service? Will
there be special rates for automobile license plates?
Point 5. How will procedural guarantees be enforced considering the
recent airport detainments of U.S. citizens? Will there be any special
liaison office to handle judicial appeals or complaints?
Point 6. Will there be demands that "dual nationals" be required to have
cedulas, Paz y Salvos, Panamanian passports, etc.? Will taxes and duties
be levied aoainst such persons? What type of documents will be required
by these U.s. citizens for travel to ~nd from Panama through Tocumen and
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border check points?
Point 10. Will any special "early retirement" plan be offered such as
was recommended during the negotiations of new treaty in 1967? This
plan would have given one years. extra credit for each five years service
and would have allowed reduced annuity retirement after a total of 15
years service credit. Will employees who find post-treaty conditions
not acceptable, be allowed to retire early under such a plan on a "vol-
untary" basis?
Point 11. Should a U.S. Government job freeze be in effect, could the
Civic Service Commission be requested to provide a waiver to Canal Zone
employees requesting such assistance in order to transfer into other
U.S. Government Agencies? Should Canal employees be placed under the
Department of Defense, would the current mandatory 5 year rotation back
to the U.S. be in effect for such employees?
Point 15. Will the current leave structure be changed? Differential?
As an employee benefit, will the railroad continue to operate as part
of the Canal entity under U.S. control, rates and fares?
I hope that you will find the above questions of interest with re-
gard to the request you made for comments on the list of assurances.
We realize that many of the questions listed above cannot be answered
now and will have wait until the actual treaty text is available for
study. These are just some of the concerns the community has at the
present time.
Sincerely yours,
~ ~
Dr. Melvin M. Boreham, President
Coco Solo-France Field Civic Council
Mr. METCALFE. I made a statement in the beginning of these
hearings in this building, in terms of my association over a period of
years, including recent years, with the civic councils. I feel as
thQugh I have a good appreciation of the attitudes of both the civic
councils groups.
I am reminded that in the last hearing when I came down with
the Committe on Appropriations, Mrs. Pat Fulton was kind enough
to invite, among others, members of our delegation to her home and
we found the visit very enlightening. So, therefore, I will not again
attempt to monopolize the questions because I certainly want to
yield as quickly as possible to the new members so that they will
have their full opportunity, as well as the staff, to ask some
questions. However, I would like to ask a few very brief questions.
The first one is: Do you think that you have been kept-have
been kept adequately informed of the US. treaty negotiations? I
think you addressed yourself to that, and you felt as though you
had not been given an adequate reception.
Mrs. FULTON. We only know what the Miami Herald tells us. And
the Panama City Star and Herald.
Mr. METCALFE. What would you recommend be done to keep you
better informed. What is your recommendation since you are not
being informed?
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Mr. GREEN. I believe we should be entitled to the same thing that
is presented on the other side of the fence. If a Panamanian
statesman can brief Panamanian professionals, students and so
forth on the subject of the treaty, I believe our statesmen should be
likewise briefing us.
Mr. METCALFE. Has there been any reduction in non-U.S. teachers
in the school system as of now?
Mrs. KENNEDY. I don't believe so.
Mr. METCALFE. I interpret that as meaning no appreciable reduc-
tion; is that right?
Now would you comment on the morale of the U.S. citizens? This
is probably redundant because I think the whole statement that you
have given is on the questions that I am asking and I believe that
you have satisfactorily indicated what you conceive is the morale of
the United States citizens living in the Zone.
May I ask, what can be done to improve this low morale, assum-
ing, of course, that I understood you to say the morale is very low.
Mr. GREEN. In that particular instance, the U.S. citizen ought to
be given positive assurances-not proposed assurances, but positive
assurances. The way we look at this at this particular point is, our
negotiators are basically taking a community, that is basically a
U.S. community, and placing it under the jurisdiction of a foreign
government. Even under our own Constitution I don't believe they
have the authority to do this. Therefore, there has to be some
means to get the citizen in the Canal Zone that does not desire to
remain under the jurisdiction of this particular government out of
the Canal Zone.
Mrs. FULTON. Let me comment on that also. There are situations
in Panama which are not related specifically to the Canal Zone. We
feel very vulnerable in that sometimes wh rn there are government
problems the government leaders will divert students or if there are
already disorders they will send it into the Canal Zone and use it as
a distraction. Plus, we are worried about what happens when
Panama gets the treaty, because the Panamanians in power have a
lot of animosity saved up. It is a paranoid fear, I admit this. But we
have had an accumulation of tensions. It has not come over a
weekend or even a month. It has been accumulating.
So, one, when Panama gets the treaty, there are fears of what are
they going to do to us. They have been waiting. Okay. If Panama
doesn't get the treaty, we are told, "Watch it, you are going to get
it," you know. "They are going to take it out on you" because their
patience has come to an end.
We have the situation at the airport which to some may seem to
be an isolated example and people may wonder why we are making
a big point of it but with the present emotional condition of the
average worker here, you see, we are worried about going out to the
airport. Now people are talking about taking friends out with them,
watching to see if they get on the plane, which may sound a little
silly. We've assumed for years that a Canal Zone resident can go to
Tocumen, and can come back with no problems. But now our people
have doubts, and that lingering worry. Taking pictures. After the
recent arrests, it seems that we can't even take pictures anymore.
A lot of things have accumulated and we are now in the Canal
Zone worried about our jobs, and about what's going on in Panama,
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and how it will affect us. If the American in the Canal Zone had
been able to look at Panama in the last couple years and say it's
steady, it's even, it's calm, with no problems, then I don't think you
would have this morale problem today. But there have been some
disturbing things going on and our people react to these events. This
is next door. Some of them have relatives who live over there. Some
of them may have property, and perhaps intend to be retired there.
So there is some concern for our well-being.
Mr. METCALFE. Mrs. Fulton, of course, you statement was very
clear and it just enunciated with a great deal of clarity your
feelings, but I am concerned about what Mr. Harold Green has
given as a response to the question as to what can be done in order
to build morale. Of course, your response was that you needed to
know and have the assurances. Now I don't think anyone has those
assuranëes, can have those asurances, in light of the ongoing treaty
negotiations, which seems to be contradictory to a realistic ap-
proach, and this disturbs me as the chairman and one of the
members of the committee.
I will now yield to the genteman from New York, Mr. Zeferetti,
for any questions that he may have.
Mr. ZEFERETTI. Thank you, Mr. Chairman, and may I thank you
for a litany of the history of what is going on. I think it is very
important and it is excellent testimony.
We are going to be here for 3 days. I don't think we are going to
solve all the problems that are here, but I don't want you to feel we
would be negligent in our observations or our appraisals of what is
going on.
I feel very strongly about the need for some sort of communica-
tion. However, there seems to be a gap in information channels.
The Governor this morning made reference to that and talked
about a large group of people suddenly leaving and going back for
the first time and the large numbers that are there and they are
prevalent, and I think what you expressed just a minute ago to the
chairman, talking about the inability to know what tomorrow might
bring, is of great concern to all of us. It should be, and I think
maybe these are avenues that we could work towards getting some
solution anyway in a short period of time.
You seem in your testimony also to relate specifically to the
Embassy statements and the State Department statements and yet
you are not that happy with the kind of responses you have been
getting from both agencies. Why don't you go a little bit further into
that and give us some of the experiences?
Mrs. FULTON. I am trying to understand the question.
Mr. ZEFERETTI. In other words, you talk about getting responses
from the State Department answering some of the problems you
bring forth and the kind of responses you get. The same thing with
the Embassy where you went and talked about the airport incident
and when you talk about the Canal and what the needs are, the
kind of response you get.
Do you feel there is a lack of understanding there also, or is it
just a political type of motivation rather than the consideration
because of the employees?
Mrs. FULTON. Well, let me give some credit where credit is due to
be perfectly fair. For the past year and a half there has been an
95-549 0 - 77 - 11
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attempt by some people in the Embassy specifically to get to know
the Canal Zone personnel. It has not been overwhelmingly success-
ful, but some have done it, and have made opportunities available
to have Congressmen here. I have had some discussions to, one, find
out what their thinking is and, two, to share some thoughts from
our side. They look at the matter in a broad spectrum. And when
we bring up problems that we see specifically in Panama, we're
interested because we are living in this, we are going to be part of
the neighborhood shortly. I am told "Well, no, no, no, it is not as
bad as it is in Chile, Brazil, Mozambique, wherever."
My argument is, I don't care what they do in Argentina or Chile.
The Canal is here."
So there is a way of thinking. I think they are beginning to listen
a little, but they've got the problem of writing the treaty and we
don't. So we're told we've got to be realistic and that this is all going
to work out. We say trust us, we live here. Embassy people come
and go, they don't live here for 30 years, and some are glad to go
when they go. And we're going to be stuck with what they negoti-
ate. Our meetings with Ambassador Bunker have been frightfully
disappointing. Perhaps he can't say anything, but it's disappointing
to come to a meeting for some crumb of information, and then to
receive double-talk. In response to these vague phrases such as,
"you'll get taken care of," we're becoming rather cynical.
Mr. ZEFERETTI. Well, I think we must be fair to the other side, the
Panamanian people; they haven't had communication either.
Mrs. FULTON. Could I make a suggestion? This has been brought
up maybe informally in testimony at other times, I don't know, but
our means of communication in the Canal Zone is limited to
Southern Command, what they put out to their people, the South-
ern Command TV station, which is making it more and more clear
that first there is the military, and then we come along after. We
have the Spillway, which for economic reasons only, has limited
space and perhaps for policy reasons cannot go into in-depth report-
ing. They only give us information on the Company. So we depend
on what the Miami Herald chooses to put in its paper, what the
local papers choose to tell us. I started buying them just to find out
what they are saying. What we need, and I am not talking about a
chatty, gossipy sort of little newssheet, but we need something here
for an honest open communication of facts, materials, data, argu-
ments and so forth. It is not here; we don't have it. So rumors go
rampant. "I saw so-and-so doing so-and-so," or "my husband at work
found out thus and so"-and you know what happens to rumors,
they get out of proportion. We trade gossip, we trade rumors, we
speculate-sometimes fears and worries build up that are totally
groundless.
The Governor was very effective in installing a hot line. We are
very grateful for this. Now you can call the phone number and ask
if there is truth to a particular rumor. But the answers to many of
the questions are not always published regularly, so people say "I
had this question too; what is the answer?" We have a need for very
simply some kind of a newspaper. And I know there is the economic
issue and so forth, but if you talk about communications you are
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only told things officially, you know, through company memos or
through the Spillway.
Mr. ZEFERETTI. Have formal recommendations been made to our
Embassy or the State Department or communicated to the negotia-
tors as to what you want in a treaty arrangement. Have you
recommended something?
Mr. BOREHAM. I think looking at this completely realistically, you
can have any kind of treaty you want, unless you have secure areas
for people to live and work, you don't have them. I think it is as
simple as that.
Mr. ZEFERETTI. Have you taken the time out to do this formally?
Have you put this down where you say "These are the things that
should come forward if the result is a new treaty.
Mr. BOREHAM. Your subcommittee can generate legislation, is
that correct?
Mr. ZEFERETTI. Yes, it can.
Mr. BOREHAM. What I would like to see is something arising from
your subcommittee that would guarantee the employees unilater-
ally, from the United States Government, the Civil Service
Comission, certain written guarantees as far as job placement, as
far as guarantees about work, not only after the treaty, but for a
certain period prior to the treaty or after the treaty comes out. This
is something that would be very, very, beneficial for the employee.
He would know in a way that these are assurances by the Civil
Service Commission, by the United States Government, and he
would be guaranteed that he could plan his life.
Mr. ZEFERETTI. There are laws already in place.
Mr. B0REHAM. Yes, there are.
Mr. ZEFERETTI. What I am saying to you, sir, is that to help us,
and give us the educational background of your experiences here. In
order to negate some of those fears, a formal presentation could be
made to the chairman of the committee before we can address
ourselves to anything like that, should we welcome that kind of
thing.
Mr. BOREHAM. That could be done right now, and maybe work on
them.
Mrs. FULTON. We have brought them informally.
Mr. ZEFERETTI. I would like to see some of these things formally
in place.
Mr. BOREHAM. Some of these things should be expressed by your
subcommittee through the congress to the State Department as far
as minimum conditions the employees will accept in a treaty.
Mrs. KENNEDY. And we have presented statements from our civic
councils to the negotiators through Ambassador Bunker on several
occasions, and they must have a very large file in the wastebasket
now becase we have never heard from any of this.
"Father knows best."
Mrs. FULTON. When we bring up the problem of sovereignty, it's a
very emotional issue, we are told, "Look, so many presidents have
supported this, it is part of the package, and agreements, and it is
settled. So the feeling is, that in the first place, don't even mention
it. And so now we are just frankly saying, okay, keep it in place and
our people are going out of place and somebody has got to run the
Canal.
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Mr. BOREHAM. The Canal is run by human beings. We have no
clout with the negotiators as civic councils, as organizations, as
private people. I think we have got to rely on you, it has got to come
from our recommendations through you. But I think that, as you
mention, this is something that shuld be written in a formal
manner through your subcommittee.
Mr. ZEFERETTI. I think beyond that, with the new admnistration
the question of human rights violations in Latin America and other
countries deserves attention. I think it is imperative it be spelled
out. Where there have been violations let them be brought forward.
If in fact these things are going on, there has to be an understand-
ing by our government; that they have to be recognized as such and
addressed. This responsibility lies with you bringing it forward, and
it is a little refreshing at this point that you are doing it because so
far-we just started these-as far as I am concerned you are the
first ones who have said it out loud. Everybody is saying something,
but nobody is saying anything.
Mrs. FULTON. Everybody is afraid.
Mr. BOREHAM. You have the company and the labor force and
secret negotiations for a period. Okay, that is okay, but we the
workers have not been included in the negotiations. Secret or not. I
understand the negotiations have to be made in secret because
otherwise compromise really can't be accomplished. However, I
don't know how it could be done, but there should be some appropri-
ate representative of the employees that has some input to the
negotiators and, like I say, I have no idea how this can be done, if it
can be done by legislation through the subcommittee or what, but
we should have some input.
Mr. METCALFE. Will the gentleman from New York yield for a
moment? I would like for the record to show that as chairman I
have written to Ambassador Ellsworth Bunker asking him to ad-
dress himself to the general question of dual nationality. We have
also written to the Ambassadors for public assurances on these
points of agreement that we are concerned about, so I want the
record to reflect what we have done and our concern in these areas.
Our concern is reflective of the input that you have given in our
hearings and our visit, as well as our correspondence. Thank you
for yielding.
Mr. ZEFERETTI. Thank you, Mr. Chairman.
One of the fine things here is our chairman of this committee who
has been around. He knows the problem and has addressed it in
many different ways.
Again I thank you for your testimony and hopefully we can really
learn more as we go along. It is just the beginning for me and it is
still an education. But I am sure we will get the kind of understand-
ing I feel so very strongly about.
Mr. METCALFE. As the chairman, I would like to also have the
record to show that the committee is vitally concerned with all of
your concerns and your fears and uncertainties. I believe that when
the 95th Congress was reorganized, because of my seniority I may
have had a chance to be before another subcommittee. I preferred
to remain as chairman of the Panama Canal Subcommittee because
of the background that I have been able to acquire and my deep
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concern for the United States citizens, as well as our relationships
with the Panamanians. My concern as far as the United States'
prestige and the rightfulness of the treaty negotiations and the
allaying of fears that have permeated and have been intensified
over a period of years is also great.
I wanted you to know that our committee and the Subcommittee
on the Panama Canal is genuinely concerned and that is the reason
I am so appreciative that these two new members were able to come
down and get first-hand information, to get to know you, to get to
know your problems and what constitute your fears.
I would like to call on the gentleman from Indiana, Mr. Hillis, for
any comments or any questions he may wish to ask.
Mr. HILLIs. Thank you, Mr. Chairman. I would like to ask Mr.
Green if you could detail briefly for the record this incident that
took place concerning your arrest by the Panamanian regime.
Mr. Green. Briefly, we went to the airport, myself and six others,
to see that Mr. Drummond made his departure from Tocumen
Airport. Now, we observed him going through the terminal and into
the security area and we went up to the flight deck which is an
open area. It is an open deck where you can see all the airplanes.
You all came in through Tocumen, so you are aware of--
VOICE. We came into the Canal Zone.
[Laughter.]
Mr. METCALFE. We traveled by military aircraft.
Mr. GREEN. There is an open deck where you can observe the
airplanes which is no more than maybe fifty yards from the open
area. And Mr. Drummond was detained at the airplane by the G-2
people, and one of our people with us took a picture. There were no
signs prohibiting this at the airport. We are used to being able to go
to an airport and take pictures of the airplanes taking off, or of
people at the airport.
The flash of the camera was spotted by one of the G-2 and it was
shortly thereafter they came up and rounded all of us up. They gave
us no reason for it. They made no explanation and they took us
down into the security room and-that is right-there was no
identification either except one fellow kept telling us he was police.
We asked them what we had done and they didn't understand
English. They took us down to the security room; they detained us
for approximately a half an hour. We asked to use the telephone on
four different occasions. They absolutely refused any use of the
phone.
One of the individuals that was with us did not get picked up
because he happened to be in the terminal section of the building.
He came back into the Canal Zone. The police demanded the film
from the camera that took the pictures and they would not let us
out of the area until the film was surrendered.
Not having surrendered the film voluntarily, they decided we
were all due for a body search. And it was at that time that the film
was taken. After the body search then they allowed us to depart.
Then we came back to the Canal Zone.
Mr. HILLIs. They took the film?
Mr. GREEN. They took the film.
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158
Mr. HILLIs. Is this an isolated instance or are there other in-
stances of harassment?
Mr. GREEN. No, there are other instances. I don't know as we can
document them, but there are incidents, for instance, for people
driving into the interior, their cars were stopped. If they have any
groceries or any liquor or what-have-you, that may be confiscated,
and then they are allowed to proceed on their way.
Mr. HILLIs. Mrs. Fulton, I have a letter here which you wrote to
Congressman Snyder concerning American flag material. Mr.
Chairman, I would like to offer this letter for the record.
Mr. METCALFE. Let the record show that this correspondence will
be entered into the record unless there is objection. Hearing none it
will be so entered. Thank you.
[The information follows:]
~L1acjfic Qihiir Qlmutci!
3,~L 0). ~TLiox 41
~~~[i,i~' 4~Iet~~ts, (c~,u:,l Esnt'
March 11, 1977
The Honorable M. G. Snyder
2330 Rayburn House Office Building
Washington, D. C. 20515
Dear Representative Snyder:
I am enclosing a photo of a piece of fabric I bought today in a
Panama City store, Importadora Selecta. Selling for 3 yards for
~l.00, the remnants of this red, white and blue fabric were folded
loosely and displayed in a pile of other remnant scraps.
`Poor taste" is an understatement for describing the sale
of U. S. flag material in such a manner. One friend of mine was
told that the fabric was meant for "dust rags and car-washing
cloths." I am enclosing a copy of my receipt to verify my purchase.
I bought the cloth so I could possess evidence of the kinds of
things some Panamanians are doing in their war of nerves against
the United States. It was indeed an emotionally painful experience
for me to see fabric with the American flag design tossed over in
a corner with other odds and ends.
Because you have a reputation for unabashed patriotism, I
thought you would be interested in this provocative development.
U. S. citizens in the Canal Zone who are aware of this textile
store's action have become understandably upset. A 10th-rate
country is rubbing our noses in the dirt with actions such as these.
We feel helpless to do anything here because a noisy American in
Panama finds himself in a Panamanian jail.
Sincerely,
Patricia Fulton (Mrs. James L., Jr.)
President, Pacific Civic Council
PAGENO="0167"
159
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Mr. HILLIs. What is the story behind this material that you have
photographed here?
Mrs. FULTON. I was told by somebody else that U.S. flag material
was being sold at a textile store in Panama City and that people
were told to use the material for dusting and for washing cars. So I
wanted to confirm it, for you hear some pretty wild stories and I
wanted to find out for myself. The store was selling the fabric for 3
yards for a dollar. So a friend of mine and I walked down to this
store. It was in a rather seamy section and there was a Guardia
outside the store. I did not go in with the idea of making a scene,
because I am not a good sprinter and I could not have made it back
to the boundary in time. So we strolled around the stores trying not
to be obvious that we were there to get the flag materials. It was
there as you walked in, it was all wadded up in a big pile, and with
some assorted other textiles.
We pretended to look at some drapery material and I strolled
over and asked how much the flag material was.
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160
They had it cut in various lengths. It was not for the purpose of a
flag. It was odd lengths. I imagine you have seen the picture I
submitted of a left and right-handed flag. It has a block of stars in
one corner and a block of stars in the other. So I paid 80 cents plus
four cents tax for my piece of material and the manager came over
and spoke to me in English.
He said, "What are you buying this for, for the parade?"
And I said, "No, not the parade."
I lied and said we have been getting it for the Scouts and he said,
"Oh, we have had a lot of calls for this lately."
I said, oh, and I didn't pursue the discussion any further. I just
took my material and left, and I have been told by others including
one Panamanian man who was visiting the Canal Zone that he was
told the same thing, that the material was for washing and dusting.
I did not pursue that line. It was a sensitive situation. I am not a
D.A.R. flag-waver, but I love my flag, and it was very obviously flag
material; it was not bunting as the Southern Command Network
said.
No way could that have been one of those little red, white and
blue decorations for the 4th of July. It was flag material.
Mr. HILLIS. Do you know the source of the material, where it can
be found?
Mrs. FULTON. The Southern Command News came out and said
that it was purchased in the United States, you know, as yard
goods, excess from the Bicentennial, which may be true. But my
contention was with the very tenuous-type situation between the
two countries right now. The man, even if he bought it in a case lot
and didn't know what he was getting, once he opened that box and
could see it, there is no doubt that is an American flag. It would be
in extremely poor taste to put it on the market and to display it
with a pile of bluejeans, scrap material. It did come from the United
States, and I am told the U.S. wholesaler is the one who should be
condemned. But the Panamanian storeowner was a responsible
businessman. He knew the difference.
Mr. HILLI5. But, as far as you know there was no government
involvement in this.
Mrs. FULTON. No, no. This is just an example of the kind of
harassment. And it adds to our powerlessness. There is nothing we
can do about it. The burning of the U.S. flag, because it happened so
rapidly on January 9, adds to our powerlessness, because there is
nothing the Canal Zone police could do.
Mr. HILLI5. Did you bring this up with the Embassy or the State
Department? Did they do anything about this?
Mrs. FULTON. Boy, did we ever. The State Department, the
Embassy, did lodge a protest, about the burning. Have you told
them about the note that I got on this?
Mr. METCALFE. I don't think so.
Mrs. FULTON. This was a part of the popular sentiment. A group
of Panamanians led by the Guardia came in on a Sunday. Very
quickly, they came into the Zone, put some flags on lightpoles,
burned some U.S. flags, in at least two different places in the Canal
Zone, while the people were asleep, fishing, at church at the time.
There were no papers printed the next day, so the word did not
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161
come out in the papers, but the word started getting around the
Canal Zone because we put in a vocal protest.
I got an anonymous note. I am told it came from the Atlantic
side. I have no idea to this day who wrote it. All I am told is what
was in the note. It said, "Tell Pat Fulton to tell her friends at the
Embassy if there is no official protest by Friday"-now, this was on
a Wednesday at 11 o'clock-"there will be a people's protest on
Saturday. We will burn semiofficial RP flags, may ask for hard-
ballers' help at the border-and they signed it the "Tit-for-Tat
Committee." They promised more details later.
Well, I immediately called the Embassy, the Governor's office, the
Information Office, and I went to the police station so that if
something came out of it at least they would have the information.
There was a news release that came out the same day from the
administration as a comment on the situation and by Friday there
was a protest published in the newspaper. A protest had been made,
there was no people's protest, and I'm glad there wasn't.
But to me it was evidence of a segment of our population that is
very, very patriotic, and if you want to call them radical, okay, but
they have had about all they can take. This group will get triggered
off by some incident like this, and their actions could generate some
international incident. But it is this kind of thing that happens fast,
it's over, and the U.S. citizen feels helpless, there is nothing he can
do. Our administration has limitations because we are here between
two countries, and the Embassy says, "Well, you know how things
are." This is why I asked Congressman Metcalfe when he was here
in January if you congressmen would at least make some state-
ments. It sounds like a pathetic gesture, but it means something to
us. If you know and you are aware, and you are concerned, you do
not have to threaten or even promise an investigation, but you are
concerned, you are aware of this crisis and somebody in Washington
knows. Because our people live in a highly structured situation here
in the Canal Zone, and beginning with the Governor on down, we
are given information that trickles down from the top to the
bottom, and when there was no communication or acknowledge-
ment given from the upper levels, we assume that they don't know
and don't care. Maybe that's not true but this is the pattern of
thinking after you have lived here for a number of years, and what
you get officially is little. And so you can be of real help to us with
little or no risk or jeopardy to yourselves.
Mr. ZEFERETTI. I just want to ask one question. Is there any
working agreement between the police force on the Canal Zone and
the police force on the Panamanian side?
Mrs. FULTON. There is cooperation but that coooperation can be
withdrawn. The Guardia if it chooses may not cooperate. I'll give
you one specific thing that sort of disturbs us now. In the Balboa
Police Station apparently in an attempt to promote a liaison there
is a Guardia major who has an office, an office with secretaries,
files, the whole bit, with access to our files. As things are set up
now, our detectives used to be able to go into Panama freely-
plainclothes for surveillance, whatever. The Canal police do nothing
until they check with this man. If this Guardia official says, "I don't
have time to take up that project," they don't move, and so now the
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162
Guardia is saying, "Our answer to the problem is more Guardia in
the Balboa Station."
Now, we have had a counterpart who worked for the Canal Zone
police force. He has a seat and a pay telephone, and he has no plush
office. The office is inconsequential, but there is sort of an encroach-
ment, a creeping movement, that the Army officials are considering
joint patrols with the Guardia. This does not affect us unless we
drive to a military installation, but it's a little disturbing because
we interpret them as moves for change of sovereignty before the
treaty goes into effect.
Mr. ZEFERETTI. Is there a reciprocal type of arrangement as far as
arrests and as far as jurisdiction goes? It is strictly zone versus--
Mrs. FULTON. Well, they cooperate sometimes. The Canal police
have been very ~good about trying to cooperate, but the Guardia,
they may cooperate; they may not. They may be very slow in
answering a phone call.
Mr. ZEFERETTI. Mr. Green said he was held and you say there was
no identification. You said there was no identification He wouldn't
tell you who he was. He wouldn't tell you what his name was.
Mi~. GREEN. He said he was police, but he wouldn't show any
identification.
Mr. ZEFERETTI. How did you react? Did he use a gun to stop you?
Mr. GREEN. No, but since I was in Panama I acted like I was in
Panama.
Mr. FULTON. Just the fact that somebody comes over to you and
says, "Get against the wall," do you get against the wall?
Mr. GREEN. Basically, yes. If you have ever been to the airport,
you will notice there is a preponderance of Guardia Nacional armed
troops at the airport. I don't propose myself to question their
authority at that port.
Mr. ZEFERETTI. This gentleman was in civilian clothes?
Mr. GREEN. Yes.
Mr. ZEFERETTI. And he stopped you and he said, "I want to see the
camera," or, "Identify yourself."
Mr. GREEN. He tried to take the camera. Initially we would not
give it to him because he would not identify but then they took us
down to the little private anteroom.
Mr. ZEFERETTI. He never said, "You are under arrest," or--
Mrs. FULTON. Can I give you one more example of how they
violate the agreement? The Guardia, if they arrest a Canal Zone
policeman for whatever reason, they are supposed to inform the
Canal Zone police but they do not.
There was a Canal Zone policeman who incidentally is a Panama-
nian National. But he supposedly, with arrangements set up by the
Guardia liaison in the police station, went to Panama to get a
hunting license and he thought it was just an innocent business
trip. He walked into the police station; he was approached by
counterintelligence; they took him into a room. He was held from
somewhere between 36 to 48 hours. The Guardia lied that they
didn't have him. We didn't know where he was.
Now, there was an active effort on the part of a number of people
and our police officials, thank God, who went and they got him.
Now, this man was held in a dark room with men walking around
PAGENO="0171"
163
and around him asking him questions. One cup of coffee and one
bathroom trip was all he was allowed.
Fortunately, somebody with him in the police station, got out and
got back into the zone, but the Guardia lied, and they have done it
before.
When U.S. citizens are being held, the Canal Zone people call and
say, "Do you have a person by the name of so-and-so in custody?"
They can choose to say "no."
I know a high school student whom I had as a student who was in
on a marijuana arrest.
The only reason the parents found out he was in jail was because
a janitor knew the boy who was arrested with him and on his own
prerogative he called this family and said the kids are in jail. It's
iffy, very, very iffy, and our people are saying we don't want to live
with it.
Mr. METCALFE. If I may interrupt at this time, since I am the
timekeeper, I must say it is now time for us to adjourn. I do not
propose that we adjourn, but I just want you to be cognizant of the
time factor as we ask questions. I think this question of Guardia
conduct has been explored extensively. I don't mean to cut you off. I
just want to direct your attention to the fact that time has run on,
and that we be prepared to stay and have staff also ask questions.
Mr. HILLIs. Just brief for the record, Mr. Chairman, do you have
the name of the person who was held?
Mrs. FULTON. Yes.
Mr. HILLIs. Would you give that for the record or would you
submit it?
Mrs. FULTON. I would rather submit it. The man's life is in
danger.
Mr. HILLIs. Mr. Green, was there anyone in your party who
understood or could speak Spanish? In other words, was there a
possibility of lack of communication when this police officer said to
you that he didn't understand English? Was it just obvious there
was no intention to communicate. I think that's all I have.
Mrs. KENNEDY. One of the most frequent violations in Panama is
listed under the heading of disrespect to a Guardia and that
disrespect can just consist of just being there. Being alive. They
don't like anything to do with disrespect.
Mr. GREEN. There is one closing comment I would like to make. It
is just a flat statement. I think it should be remembered the
Panamanians do not have the market on national pride. We also
have considerable pride.
Mr. METCALFE. Mr. Modglin.
Mr. MODGLIN. I'll be very brief, Mr. Chairman. I would ask the
panel when you focused on the fifth, tenth, and eleventh points of
the 15 assurances in your statement, do you see any particular
points of the 15 assurances which are particularly helpful to you as
citizens of the U.S. community?
Mrs. FULTON. Schools, housing, hospitals, are all very nice. We
appreciate them. It's ironic that our people forget all those things
when they see that number five.
Mr. MODGLIN. How did the U.S. citizens relate to the so-called
labor annex that was written by the representatives of organized
labor in 1971 with respect to work assurances?
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164
Mr. GREEN. Is this the one that permits early retirement and so
forth?
Mr. MODGLIN. Yes, that is the one to which I am referring.
Mr. GREEN. I think we react well to that because it gives them an
excellent opportunity to get out of here.
Mr. MODGLIN. That was precisely my next question. Do you
believe employees who, under the new treaty relationship, find that
their jobs are not abolished should receive the same treatment as
those citizens whose jobs were abolished? Should they all be treated
the same or are there different categories?
Mr. GREEN. No, they should all definitely be treated the same.
Mr. MODGLIN. Why? What is your rationale?
Mr. GREEN. Again I go back to the original statement I made
about how I feel. I feel what is being attempted here is a turnover of
jurisdiction to a foreign government. The American citizens have
not come down here to be employed by the Panamanian Govern-
ment and he did not come down here to live under the jurisdiction
of a Panamanian Government, and I feel that if you are contem-
plating turning a U.S. citizen over to a foreign government you
should have some provision whereby he can make his own determi-
nation to leave at the time the jurisdiction is turned over.
Mr. MODGLIN. If, under the new treaty relationship U.S. citizens
were considered subjects of a status of forces agreement and contin-
ued for the most part under U.S. jurisdiction, that is, under military
jurisdiction, would that same reasoning, would that still apply?
Mr. GREEN. Yes. I personally have 23 years' federal service and I
will not remain in the Canal Zone to be placed under any court
system of the Republic of Panama. I am not used to that type of a
system, and I will not subject my family to that type of a system.
Mr. MODGLIN. One more question, Mr. Chairman. This morning
the Latin American Civic Councils suggested all employees of the
Canal organization, regardless of nationality, be considered as fed-
eral employees for the purposes of job transfers, et cetera, if there
were a new treaty agreement. How do you relate to that particular
view? Should Panamanians and U.S. citizens be considered in a like
manner with regard to these kinds of protections?
Mrs. FULTON. I think the problem is going to come from the
Panamanian Government. We can say yes, we can extend these
things but the Panamanian Government who has been waiting to
extend their authority say, "oh, no, no, no, these are our people."
We have seen this coming from the Panamanian Government for
some time. We knew that when the crunch came we were not too
happy with things but the non-U.S. employees were really going to
be left in the cold; there are people who are going to get political
jobs in the Canal entity whether they have the ability or not,
because they have relatives who are in power. And when the
governor made the announcement of the 15 "assurances" it was like
a bucket of water in the face for the non-U.S. "We should have
known these things were coming," they said.
Mr. MODGLIN. In your own views on this particular matter,
should the Panamanian employee be considered under these bene-
fits listed in the assurances?
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165
Mr. GREEN. Considering the human rights aspect of it, I think
certainly they should. There are some of them who are earmarked
to lose their jobs, and there are some of them who do not want to
work for the Panamanian Government and I think they should be
given the 4opportunity to the same as the U.S. citizens. They've
dedicated their time to the Canal enterprise and I think they should
be taken care of as well.
Mr. MODGLIN. That's all, Mr. Chairman.
Mr. METCALFE. Mr. Nonnenmacher.
Mr. NONNENMACHER. Thank you, Mr. Chairman, I'll be brief, too.
One of you ladies referred, I belive it was parenthetically and not in
the statement, to sort of a tightening-up on the Armed Services
radio and TV network. I am interested in this because Congressman
Snyder received a letter from Diana Davis, President of the Cristo-
bal Women's Club enclosing a letter she had written General
McAuliffe concerning this, which letter I would like to ask the
Chairman to introduce into the record, and ask you to enlarge on
this from your standpoint. She indicated it is not a very serious
thing, but it is indicative of another one of these things that are
happening. Would you like to comment on that?
Mrs. FULTON. I would like to comment on that. When I was an
English teacher at the high school I had representatives of the
Southern Command Network talk to my students, so I learned a
little bit more about their working policies. They made it quite clear
that the funding is based on the number of military here in the
Zone, and so people of the Canal Company are just sort of eaves-
dropping when they turn on the TV, or the radio. Because of treaty
commitments and pressure from the Panamanian Government,
they have to be very careful. They are not a news-gathering agency,
no advertisements, and so forth. But they recently have made it
quite clear that the military gets priority in things like the inter-
view program "Que Pasa" and general information things. If you
send in ads to the radio "Swap Shop" they tell you first priority
goes to DOD people and military people and then to Canal Company
people. This increases our feelings about, pardon the expression,
frankly, being the illegitimate children in the Canal Zone. The
Secretary of the Army is our chief stockholder, and we get the
impression that the military are the favorites. As we say, God
created the military people on the sixth day, rested on the seventh,
and created the rest of us on the eighth. So this thing with the
Southern Command is just another thing where they say, I'm sorry,
you're out there in the cold, and we don't care. It could be a lot of
their international relations, but there's a feeling of being really
isolated and really alienated. We had a real problem with them last
September when there were riots going on, stone throwing, tear gas,
looting and the Southern Command was very calmly saying, please
avoid areas of heavy traffic congestion in Panama.
Now there were new people here who took that literally. We
know it's a code-stay the heck out, you are going to get your head
bashed if you go in. But they were saying avoid traffic congestion,
which to someone from New York City or New Orleans would say it
is a long traffic line or something, somebody broke down.
PAGENO="0174"
166
We have raised enough fuss about it that I think they have
altered the policy somewhat. But we are still getting the feeling now
that we are really out in the cold.
Mr. METCALFE. Mr. Nonnemacher has asked that this letter from
Miss Diana Davis be entered into the record. Unless I hear an
objection, it will be so ordered.
[The material follows:]
~U1~ QIr frdrni mrnt's ~`1I1uh
Building 8151, Hillview Terrace
Margarita, Canal Zone
P.O. Box 3, Margarita, C.Z.
Telephone Crintobal 1702
March 14, 1977
Honorable Gene Snider
House of Representative
Washington, D. C. 20515
Dear Sir:
I am enclosing a copy of my letter addressed to
Major General NcAuliffe concerning a new unprecedented
programing policy of the local Armed Forces Radio and
T. V. Network.
U~.7tnile on the surface the problem may seem small, the
implication to the U. S. community in the Canal Zone
is of considerable importance and therefore, I
respectfully direct your attention to the final
paragraph of page 2.
Respectfully,
Diana Davis
President
Cristobal Woraants Club
PAGENO="0175"
167
Zltt1c (lirisichni ~1flnnutn's Olinti
BuIlding 8151, HiilviowTeuace
Margarita, Canal Zone
P.O. Box 3, Margarita, C.Z.
Telephone Crixtobal 1702
11th March 1977
Lieutenant General D. P. Mc Auliffe
Commander-in-Chief
Ti. S. Forces Southern Command
Dear Sir:
On February 22, 1977, our publicity chairman, Mrs. Jean Stone,
telephoned SCN to request that a representative of The Cristo-
bal Woman's Club be interviewed on SCN's "Que Pasa" program
in order to explain and advertise The Cristobal Woman's Club
Annual Fashion Show to be held on April 30th.
Lieutenant Fortenherry, who took the call, advised Mrs. Stone
that because of a new policy she would be required to submit
her request through the Panama Canal Public Information Off ice--
a new requirement applicable to U.S. civilians residing in the
Canal Zone. Lieutenant Fortenberry further said that a tele-
phone call would probably suffice; but when Mrs. Stone called
the Panama Canal Public Information Office, she was told to
submit the request in letter form. Mrs. Stone duly submitted
that request in a letter dated February 24, 1977.
On March 1st, Mr. Frank Baldwin, Panama Canal Public Informa-
tion Officer, telephoned Mrs. Stone to inform her that her
request had been denied. Upon being asked who denied the re-
quest, Mr. Baldwin replied that it was Colonel Lopez. He
added that Colonel Lopez had inquired whether there were any
military persons in the Cristobal Woman's Club and whether
it was a philanthropic organization. Mrs. Stone replied af-
firmatively on both counts. Not only were there military
wives enrolled in the Club, but last year's president was
from the military. It is well known that The Cristobal
Woman's Club's contributions to charity are considerable.
The fashion show in question is a non-profit activity.
Mr. Baldwin submitted the foregoing information to Colonel
Lopez, recommending that he reconsider the request. In spite
of the satisfactory replies to Colonel Lopez' questions,
however, the Colonel once more rejected the request. Although
there were no reasons given for the denial, Mrs. Stone had
PAGENO="0176"
168
Lt. General D. P. McAuliffe 2 11th March 1977
the distinct impression that non-military U.S. citizen groups or
any groups that include U.S. civilian citizens were persona non
grata on SCN television and radio. If this be the case, it re-
presents an unprecedented change in policy in the Canal Zone--
a most untimely change at that. It seems to us that the U.S.
Forces Southern Command is deliberately setting out to provoke
ill feelings between U.S. civilian citizens and armed forces
personnel.
In his letter of March 9th, Colonel Antonio Lopez advised Mrs.
Stone that SCN-TV would after all grant "on a conditional basis"
the requested `Que Pasa" appearance. lie cautioned, however,
that the program could be pre-empted "should there be a request
from an activity with a higher priority by virtue of being more
clearly related to the military community."
Colonel Lopez then adds:
During the current transition period there are a few
uncommitted QUE PASA spaces during April. Thus we
find ourselves able to offer an appearance to you.
This seems to imply that ui future all SCN-~TV programs will be
closed to U.S. civilian citizens in the Canal Zone.
Although we aopreciate Colonel Lopez' granting our request, al-
beit conditional, we deplore the institution of a new policy
that cavalierly disregards the unique conditions existing in
the Canal Zone. Fort Clayton is not Fort Dix. The U.S. com-
munity in the Canal Zone has no other local media.
It would be edifying to see the U.S. armed forces accord as
much consideration for their fellow Federal employees as they
often do for our foreign friends. As fellow Americans, we
appeal to your sense of fair play. I respectfully request
that you review the new policy of our local armed forces radio
and television network. I believe that you will find our re-
quest eminently just and reasonable.
Sincerely yours,
Diana P2. Davis
President
CC: Major General H. R. Parfitt, USA
Mr. Frank Baldwin
Col. Antonio Lopez, USAF
Hon. Daniel J. Flood
Hon. Gene Snider
Sen. John Stennis
Sen. Strom Thurmond
PAGENO="0177"
169
Mr. NONNENMACHER. On page twelve of the prepared statement
mention was made of multinational business corporations interests
being protected. It reads exactly, "in short, U.S. taxpayers are being
required to sacrifice their tax dollars, land and national security in
order to protect the investment of multinational business corpora-
tions." There was no expansion upon that.
I would like to ask Mr. Green to comment on that and, if possible,
to give us any first-hand information you have from American
citizens who work for any of these multinationals and who live in
Panama that would substantiate this charge. We have heard this in
the United States too, of course.
Mr. GREEN. Unfortunately, I do not have information with me
although we could probably provide it at a later date. We have been
told, if my memory is correct, when Mr. Blacken came into the
Canal Zone, to address the community-what was it-a year and a
half ago or so-he mentioned the fact at that time that if we do not
negotiate a treaty there is great concern that the Panamanian
national feeling will be vented out on American business in the
Republic as well as throughout Central and South America. This
seems to be a scheme that they are using for the present negotia-
tions to protect U.S. business investment in Central and South
America.
Mr. NONNENMACHER. Thank you. I do have one other question
There has been mention of the fact that currently teachers here
would have the right to transfer only to Indian reservations. Is
there any specific suggestion you would like to make for legislation
that might expand upon that opportunity for teachers here, should
they go back to the States?
Mrs. FULTON. Well, I am aware that in the States schools are
usually on a county basis, or State school systems, but if legislation
can be set up to assist them in getting the teaching job that they
choose or perhaps in getting a slot somewhere in the Civil Service if
they do not want to be a teacher, but, as it is now, they are left out
in the cold with nothing.
Mr. Nonnenmacher, I would like you to expand on this in a
further statement to be included in the record.
[The material was not available at time of printing.]
Mr. HILLIs. You have made the assertion here about there being a
mass exit of some kind, possibly. Have you taken any poll or done
any sort of a survey? Do you have any kind of evidentiary fact you
could put into the record about what percentage of people are
seriously considering this?
Mr. FULTON. Okay, let me tell you why it is difficult to get
definite facts. Our statements are coming from daily conversations
and from a knowledge of living here of how people think. We know
that events that have happened in Panama and in the Canal Zone
have been extremely disturbing to our people. The immediate
reaction was "I want to withdraw, I want to get away." But some
people who are looking for a job may not walk around talking about
it. A union man was telling me last night, that the unknown
quantity are those fellows who are going to go to the States on
vacation this summer and they are not going to tell us they are
looking. They may find a job and they may send a letter back
saying, "Pack me up. I am finished."
95-549 0 - 77 - 12
PAGENO="0178"
170
Now, we knew the people were disturbed last year after the sick-
out, and we had no idea what was coming in September and
October in the riots and bombings, but we knew that because 1976
was the Bicentennial people were going back home on the excuse of
a vacation, the bicentennial celebration. We knew they would be
reading their want ads and getting interviews and checking around
for jobs. A number of these people did not come back. Some came
back, packed up and left. One man in my neighborhood got a job in
Houston and he could have gone to work the day after he applied.
He came back, packed up, and in two weeks he was gone.
A number of others came back and with this continual feeling of
discontentment aggravated by riots, bombs, bomb threats, et
cetera-we are talking to each other about this all the time. It is an
obsession, and so many people who are going to be looking, maybe
they don't know if they have got a job, but they don't want the boss
to know they are trying to cut the cord. They want to keep the job
here, but they are going to go to the States. If they find something
good, they will come back, pack up and leave. If they don't, they
will come back but keep looking.
Our people are very, very upset. In fact I have been kind of
surprised at the extreme reaction to this number five item in the
assurances. We have heard about it a long time. The State Depart-
ment says you are going to Panama. Face it. In three years you will
be gone. This was not the first revelation, but it's like our people
froze, saying, "We don't want it." And so with the accumulation of
events you are going to see more people go.
Mr. NONNENMACHER. May I ask one more question, Mr.
Chairman?
Something you just said reminded me of a concern that some
have expressed, and that is, even though from what we have heard
that the Canal Zone would be phased out over a 3-year period, there
is talk, as I say, that it could be done by executive action overnight.
Could you give us any basis on which you people fear this? I don't
mean suspicion, but I mean a legal, specific basis.
Mrs. FULTON. We had joint patrols in 1975 between the Guardia
and Canal Zone police that just happened. There were problems and
*repercussions, and thank God, they finished it. This was partly due
to traffic control during the Christmas season, but it just happened,
it was done. The lease of France Field which was never described in
Panama as a lease was called a reconquest of their land. But this
was done by executive order.
Within the Canal Zone we have been in a situation where it's
authoritarian, it's been set up this way. We are fortunate to have
the Councils to have an opportunity to express opinions, but things
can be done with paperwork while we sit up and we watch. There
has been a growing feeling of paranoia, and we have the feeling that
if they can do it once, they can do it again. We hear constant
stories, and I only call them rumors, for example, that Fort Amador
is going to be vacated and that the military and the Guardia is
going to take over. We're told, no, no, no, that's after the new
treaty. I was told by someone who personally talked to the man
that a civilian military architect was called to Building Eight in
Amador, which is a CIA building, and asked, "Give us an estimate
PAGENO="0179"
171
on what it is going to cost to clear this building to get ready for the
Guardia. Now I have no Knowledge of when, or where, or what. But
this man was asked to make an estimate. Why do it unless it is
needed. So we are very concerned about an executive order.
This committee was helpful in getting a resolution passed about 2
years ago asking that no major changes be made by executive order
before a new treaty.
Mr. METCALFE. Mr. Bernard Tannenbaum.
Mr. TANNENBAUM. Thank you, Mr. Chairman. I just have one
question.
On page three, and then again on page ten, you make two
statements. On page three you say "the Torrijos dictatorship uses
extreme repression against political, professional, student, and la-
bor groups, and you reference expatriation of 1,300 Panamanians
and murder of 500 persons. Then on page ten the statement is that
the countries of Latin America say one thing in public and another
in private. Can you bring out the source of these statements?
Mrs. KENNEDY. I think the statement on page three was taken
from a speech that was given by a prominent Panamanian Rotarian
on Flag Day, the fourth of November, 1976, before a combined group
of Panamanians, members of the Rotary Club, the Lions Club,
Kiwanis, the 20-30 Club, and the Junior Chamber, and he is the one
who gave those figures. At any rate, the figures came from a source
in Panama.
Mrs. FULTON~ I had a personal conversation with William Rogers
in March, 1976. We were discussing this isssue and he indicated in
sort of backstage conversation that privately the Latin American
countries say, "Fine, no rush." Plus from my own reading of the
newspapers and watching their behavior I know that they cannot
get together on coconuts, oil, chOcolate, coffee, anything for very
long. But the statement was made by Rogers that, yes, the United
States was told by Latin countries, "yes we are satisfied with the
way you are going, we're not in that big a hurry."
Mr. METCALFE. The chairman is going to ask unanimous consent
that all members of the delegation, the staff as well as Members of
Congress, be able to keep the record open of these hearings to have
any correspondence and the same will be extended from the people
who have testified here today. Hearing no objection, it will be so
ordered.
[No correspondence for the record was exchanged.]
Mr. METCALFE. I have observed in the four years I have been
coming down here that we have been scheduling these meetings and
it becomes clear to me, unless I am misinformed by a lack of
knowledge, that the only time the specific councils come together is
when we bring them together.
This is done simply because of the commonality that both groups
represent civic personalities. Is there any consideration given to
some dialogue between the Latin American Civic Councils and the
United States Civic Councils? From the testimony that we have
heard, from your concerns, it appears to me there are many areas
where you have mutual concerns and that there needs to be this
human resources exchange between the two of you. I would only
ask you to give consideration to this proposal.
PAGENO="0180"
172
Mrs. KENNEDY. Mr. Chairman, we do have joint meetings with
the Latin American civic councils at the Governor's executive
meetings. They were on Mondays. There have been too many things
happening. We had one in March, which is the first we have had
since the 27th of October, but we had in the interim meetings with
various Congressmen, with the personnel committee from the Board
of Directors, with the Secretary of the Army, and those were all
joint meetings.
Mr. METCALFE. I understand you do have joint meetings.
Mrs. KENNEDY. Yes.
Mr. METCALFE. Do you discuss your own agenda at those meetings
so that there is a mutual understanding of the concerns of each
group?
Mrs. KENNEDY. No.
Mr. METCALFE. I don't mean in advance, but I wonder whether at
least your own agendas are included apart from the scheduled
discussions you have.
Well we are running very late, and certainly I want to express on
behalf of the delegation our profound thanks and appreciation to
you for giving us all the information and testimony. I think I speak
for our two new members, as well as those staff members, when I
say this has been most informative. Thank you very much for your
presentations.
[Whereupon the Subcommittee adjourned.]
PAGENO="0181"
PROBLEMS OF CANAL ZONE RESIDENTS AND
EMPLOYEES
WEDNESDAY, APRIL 13, 1977
HOUSE OF REPRESENTATIVES,
COMMITTEE ON MERCHANT MARINE AND FISHERIES,
SUBCOMMITTEE ON THE PANAMA CANAL,
Balboa, Canal Zone
The subcommittee met at 9:00 o'clock a.m. in the Panama Canal
Training Center, Balboa, Canal Zone, Hon. Ralph Metcalfe (chair-
man of the subcommittee) presiding.
Mr. METCALFE. The Panama Canal Subcommittee is here today to
listen to your concerns, your ideas and your petitions.
Since we last heard from you, many of you have written to the
subcommittee or have been otherwise in touch with us. So at least I
am somewhat familiar with your problems.
We felt it necessary to receive testimony directly from you. After
your testimony, we hope to take positive and constructive action to
do what we can to alleviate some of the difficulties you face. Of
course, we recognize that we can only do so much.
I am very happy that we have two distinguished Members of the
Congress with me, today, to listen to your concerns. Congressman
Leo Zeferetti, who is sitting at the extreme left of this table, a
Representative from New York who is a member of the Panama
Canal Subcommittee, and a representative of the Congressional
District in New York which is very much concerned with maritime
commerce.
Congressman Elwood "Bud" Hillis, from Indiana, deals with the
Canal from the perspective of the important Armed Services Com-
mittee, of which he is a member. We are delighted that he, too,
could join with us.
I would like to give each of these gentlemen an opportunity at
this time to say a few words if they so desire. Congressman Zeferetti
Mr. ZEFERETTI. Thank you, Mr. Chairman. As a new member of
this subcommittee, I welcome the opportunity to hear your testi-
mony. I have known some of you in Washington. I would hope our
dialogue will resolve some of the problems we have heard here
yesterday.
We, the Members of Congress, are very concerned. Hopefully,
together we can work together to find the necessary solutions.
(173)
PAGENO="0182"
174
Again I welcome the opportunity to meet you, socially and individ-
ually in testifying.
Thank you, Mr. Chairman.
Mr. METCALFE. Thank you. The gentleman from Indiana, Mr.
Hillis.
Mr. HILLIs: Thank you, Mr. Chairman. I, too, am very happy to be
here and have the opportunity of gaining personal knowledge about
the total situation that exists here in the Canal Zone and in
Panama, and I look forward very much to hearing your testimony
and I can assure you it will be a very important part of the
experience that I have had here.
Thank you, Mr. Chairman.
Mr. METCALFE. Thank you.
You will notice there are six groups testifying today. We are
trying to allot twenty minutes for each one of these groups. Some
may go over that time, some may yield some of their time to others.
I will be watching the clock very carefully to make certain that
those at the tail end won't be shortchanged, so we can maintain our
schedule.
I am so delighted to see so many of my friends, those who have
helped us tremendously in their presentations at other hearings.
Some have even journeyed to Washington to give us the benefit of
their thinking, which has enabled us to be able to come forth with
legislation. Certainly it has enhanced our knowledge as to what the
situation here is, what constitute your concerns are as they relate
to this unusual period in our history where we are in the process of
negotiating a very, very important treaty. I am so delighted to be
with you again and to have you with us so that we can hear from
you.
According to my schedule, the National Maritime Union of Amer-
ica, the Panama Canal Division, AFL-CIO, will be the leading
witness, and you may bring anyone to the table with you, Mr.
Simpkins. You may identify yourself, and identify the members
that you have with you, if they need any introduction.
STATEMENT OF TALMAGE E. SIMPKINS, EXECUTIVE DIRECTOR
OF THE AFL-CIO MARITIME COMMITTEE, ACCOMPANIED BY
RENE LIOEANJIE, REGIONAL DIRECTOR FOR THE NATIONAL
MARITIME UNION IN LATIN AMERICA AND THE CARIBBEAN,
AND EDWARD A. GASKIN, ASSISTANT REGIONAL DIRECTOR
Mr. SIMPKINS. I am Talmage Simpkins. I am Executive Director
of the AFL-CIO Maritime Committee. With me are Rene Lioeanjie,
Regional Director for the National Maritime Union in Latin Amer-
ica and the Caribbean, and Edward A. Gaskin, Assistant Regional
Director. I believe we can stay within the time frame. We have a
brief statement.
We are appearing on behalf of the National Maritime Union,
which represents approximately 7,000 workers in all phases of the
operation in the Canal Zone. These members are spread throughout
the Panama Canal Company, Canal Zone Government, Department
of the Army, Navy, Air Force and the Armed Forces Non-Appropri-
ated Fund activities. These workers are employed in practically
PAGENO="0183"
175
every bureau. We have enumerated here the Marine Bureau, the
Civil Affairs Bureau, the Health Bureau, the Engineering and
Construction Bureau, the Supply and Community Services Bureau,
the Transportation and Terminal Services Bureau, and the Person-
nel Bureau.
We must again express our appreciation to you for taking time
from your busy schedule to come here and hear us and the various
problems.
Many improvements have been made over the past few years in
the labor-managemenib area as to equality of treatment and recogni-
tion for all workers. While we have some continuing problems,
none, however, compare with our concerns generated by the "List of
Assurances" for present employees of the Panama Canal
Company/Canal Zone Government which are being considered for
inclusion in a new Panama Canal Treaty.
We have not in the past, nor do we intend to now, take a position
on the Canal Zone treaty negotiations. Our position has continually
been to do what we can as a labor union to look out for our
members and leave the treaty negotiations to those expert in that
field. Therefore, the following comments are not intended to reflect
on the treaty per se but to what labor guarantees for the protection
of all Canal Zone employees are contained therein.
It is our understanding that these enumerated assurances are a
minimum and that they have not been finalized and are not all-
inclusive. It is our further understanding that no formal, compre-
hensive agreement has been reached to date on these issues be-
tween the United States and the Republic of Panama.
The largest group of employees outside of the Canal Zone
Company/Canal Zone Government, those that work for the Defense
establishments, are not mentioned in this list of assurances. This
omission leaves us with the hope that their existing system of pay
and employment will remain the same. Since the 1955 Treaty of
Mutual Understanding and Cooperation between the United States
and the Republic of Panama, the non-U.S. citizen workers' wages
have been adjusted upward to more closely equate' with the U.S.
citizen worker. This gave recognition, among other things, to the
fact that from the very outset there was established throughout the
Zone and in the terminal cities of the Republic a United States cost-,
of-living economy. Today the City of Panama is the second highest
cost-of-living city in the world.
To move backward to the time where the discriminations and
unequal treatment existed would benefit no one. Again, we repeat
our hope that this group of employees' omission from the list of
assurances is an indication that there will be no change there.
Our understanding of these "assurances" for the employees cov-
ered is hampered because they are extremely vague and obscure,
thereby unclear as to their meaning and how they will be imple-
mented. For example, what is the meaning and intent of "to the
extent consistent with sound management"?
The explanation that these "assurances" will provide the employ-
ees with an understanding of the minimum level of benefits and
protections being sought is extremely disturbing because they once
again establish two classes of employees, each with different bene-
PAGENO="0184"
176
fits and protections. Through all of the vagueness, this point comes
through very clear.
The unequal treatment which had been perpetrated in the Zone
between U.S. and non-U.S. workers since the very beginning is the
basis for the many ill-feelings that exist and the confrontations that
have occurred. To attempt to continue these discriminations
through treaty arrangements leads us to the belief that their
inherent injustices were not recognized. All employees, regardless of
nationality, on the Canal Zone Company/Government payroll at
the time of any new treaty should be covered and protected equally.
This can be accomplished either administratively or through imple-
menting legislati9n that is agreed to by both parties to the treaty. If
one segment of the employees can be protected, then all of the
employees can be protected. All that is necessary is the desire to do
so.
The NMU has been, since its arrival in the Isthmus, committed to
seeking equity in treatment for all workers in the Zone. In our
continuing effort, we have been assured by all concerned that all
Canal Zone workers would be fully protected under any new Pa-
nama Canal treaty. We were further assured that these protections
would, among other things, extend the continuation of the existing
wages, fringe benefits, working conditions and labor guarantees.
When President Shannon Wall of the NMU met with General
Torrijos in February of this year, his assurances regarding protec-
tions for all workers were more gratifying than the so-called fifteen.
We must, therefore, question where the decision to treat citizen and
non-citizen employees differently came from.
Our suspicions become more acute when we remember the efforts
to get the U.S. minimum wage coverage for non-U.S. citizens and
how much more difficult it was because of the opposition by some
within the Department of the Army and the Canal Zone
management.
It is most obvious to us now after reviewing this List of Assur-
ances that it is absolutely essential that a labor representative be
appointed to the treaty negotiating team not only to assure that
adequate labor protections are included but that they are extended
uniformly to all workers. We have prepared ourselves in anticipa-
tion that labor would be invited to participate in these negotiations.
When these treaty negotiations first started, the AFL-CIO estab-
lished a Canal Zone AFL-CIO Committee on Panama Canal Treaty
Negotiations to develop the conditions which should prevail for the
workers engaged in Canal operations and related activities. The
NMU participated in the development of these labor guarantees. It
was then and still is our wish, as it is of the AFL-CIO, that these
conditions be made a part of any treaty covering the Canal Zone.
In capsule form these guarantees would cover:
1) Employees whose jobs would be eliminated.
2) Employees who would continue to work for the reorganized
Canal function.
3) Employees who choose not to work for the restructured Canal
organization.
4) The recognition and development of the principles of collective
bargaining.
PAGENO="0185"
177
In conclusion, we shall mention two items that are outside of the
treaty negotiations that we ask and request your help on:
Continued inclusion in this year's minimum wage legislation for
all workers in the related activities in the Canal Zone.
The second is enactment of H.R. 1355. This is legislation intro-
duced by Congressman Frank Thompson that would extend the
Service Contract Act to the Canal Zone. Currently, the employees of
private contractors within the Zone are not covered by the labor
laws of the Zone or of the Republic of Panama. Because of this,
these workers only receive minimum coverage under safety and
accident prevention requirements imposed by Canal Zone authori-
ties and coverage under the Fair Labor Standards Act.
Enactment of H.R. 1355 will help correct this situation.
We thank you, Mr. Chairman. That concludes our statement. We
will attempt to answer any questions that you and the Committee
may have.
Mr. METCALFE. Does Mr. Lioeanjie or Mr. Gaskin wish to make a
statement at this time?
Thank you very much, Mr. Simpkins, for your very fine state-
ment. I would like for you to elaborate a little on your request that
labor's representatives be a part of the negotiating team. Is that
structurally possible as the negotiations have been proceeding, and
will continue to proceed, for your request to be granted. What
reaction have you had? Have you expressed this desire prior to this
testimony?
Mr. SIMPKINs. Yes.
Well, we have had regular meetings of the AFL-CIO on this
subject. In an executive council meeting in Miami in February of
this year, President Meany expressed that desire after a group of
the unions representing the workers here in the Zone had appealed
to him for help in that area.
The fact the negotiations have been going on for some time we do
not think would handicap us in terms of catching up.
Mr. METCALFE. With respect to the negotiators, have you gotten
any reaction as to how they interpret your request? I think it is a
reasonable request. I am talking about the possibility of adding to
the team a labor representative. Would that disrupt this flow of the
negotiations now?
Mr. SIMPKINs. It would be our thought we would only concern
ourselves with these labor guarantees and therefore not really
interfere with the basic treaty.
Mr. METCALFE. I understand that, yes.
Mr. SIMPKINs. We have, over the years, since the treaty negotia-
tions first started, or pLcticularly prior to Bunker becoming the
ambassador to handle thi se, we met almost on a monthly basis with
the negotiating team, and expressed to them our desires and went
into detail as to the enumerated labor guarantees that we were
seeking.
Mr. METCALFE. Assuming that your request is not granted, do you
feel that our negotiators, especially Ambassador Linowitz who has
been added to the team, can express these points that you have
mentioned in your paper? You would rather be there yourself,
would you not?
PAGENO="0186"
178
Mr. SIMPKINS. We would rather be there, yes.
Mr. METCALFE. You haven't fully answered my question yet.
Mr. SIMPKINS. No. We would feel much more comfortable if we
were there because, as I said earlier, at one time we met almost on
a monthly basis with these people and then all of a sudden they
disappeared and just recently we have picked up contacts with
them again but nowhere near to the degree that we would like.
We think that if we had someone there, they could more clearly
explain what we had in mind for the protection of the workers.
Mr. METCALFE. I think it is certainly worthy of consideration.
Who would be the proper authority to issue a list of assurances to
the employees of the Defense Department in the Canal Zone?
Mr. SIMPKINs. Well, I would definitely think the stockholder, the
Secretary of the Army, and the Governor.
Mr. METCALFE. Do you seek such a list of assurances?
Mr. SIIvIPKINS. Yes, we do.
Mr. METCALFE. Do I understand that the recommendations of the
AFL-CIO do not make a distinction between U.S. and Panamanian
citizens?
Mr. SIMPKINs. They do not make that distinction.
Mr. METCALFE. I am going to refrain from asking too many
questions because of the time frame. Both the Members of Congress
are on their first visit to Panama, and I want to make certain that
they and staff have an opportunity to ask some questions. I will
first yield to the gentleman from New York, Mr. Leo Zeferetti, for
any questions he may wish to ask the panel.
Mr. ZEFERETTI. Thank you, Mr. Chairman.
Gentlemen, yesterday we of the delegation had an opportunity to
meet with the Ministry Office of the Panamanian Government. One
of the things that I inquired about during our conversation was the
question of the assurances and the question of labor and the people.
The people should have some sort of input and communication with
the government. The Ministry Office informed us that they had just
formed a new office which would communicate with the labor
unions at their request. This office will go over some of the condi-
tions of the negotiations and at the same time opening up avenues
of communication. If that is true-and you are shaking your head,
therefore I would assume that is true-then I find that to be
rewarding because in one sense we are getting certain things done
that our own persons are not, and that is information.
What concerns me most is the fact that those unions that were
contacted have not agreed with the assurances. I would like you to
comment on this.
Mr. SIMPKINs. Rene attended a meeting with General Torrijos
when Shannon was here in February.
Mr. ZEFERETTI. The unions disagreed with the assurances.
Mr. LI0EANJIE. With the 15 points? Yes, we do disagree on them.
Mr. SIMPKINs. You are speaking of the assurances from the
Republic?
Mr. ZEFERETTI. Yes. No, excuse me. The fifteen points that were
laid out by the Governor's office for the treaty.
Mr. LIOEANJIE. Yes, but we do disagree with the 15 points. We
made that clear to the people assigned by the General to form this
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committee. We believe that since 1903 the non-U.S. workers have
been subject to discrimination. We have established here in the
Zone an American company, so all of the employees should be
protected by the United States. These 15 points, especially number
12 and 14, show clearly they want to go back and have two
standards, one for the U.S. citizen and one for the non-U.S. citizen,
and that's the reason we are saying that whatever is coVered, it
must be covered all the same. Otherwise you go back to the gold and
silver statement.
Mr. ZEFERETTI. Was there ever an attempt made by the unions to
get together with the Governor, to go over some of these things
prior to their release, or is there any protection under your
collective bargaining agreements? We are supposed to have some
sort of latitude here and we are supposed to have some sort of
communication between us before you put anything forward.
Mr. LI0EANJIE. Let me call this to your attention. We don't have
collective bargaining we just have recognition. The Governor always
calls us in for consultation. However, what he tells us is limited,
until not too long ago, when he came up with these 15 points.
Mr. ZEFERETTI. And now you are advocating that you also sit in
on the treaty negotiations in order to fulfill some of those
obligations.
Mr. LI0EANJIE. Right.
Mr. SIMPKIN5. There was almost a period of 11 years when we
heard from absolutely no one as to what was going on in terms of
these negotiations, as they would eventually, reflect on the workers
here.
Mr. ZEFERETTI. That is pretty much what we have been hearing
since yesterday and today, that nobody gets told anything. I just
want to tell you that since I also sit on a subcommittee with
Chairman Dent on the minimum wage and I will take that message
back, and make sure we take a look at it. Again, I welcome you and
appreciate your testimony. Thank you very much Mr. Chairman.
Mr. METCALFE. We are very happy to have with this delegation
Congressman Elwood Hillis, who is a member of the Armed Services
Committee. I now recognize the gentleman from Indiana.
Mr. HILLIs. Thank you, Mr. Chairman. I appreciate your state-
ment very much. Since our visit here, particularly in the hearings
of yesterday, we heard of certain fears that people in the Zone have,
and reports of violations of human rights generally in Panama,
such things as exile, disappearance of persons, and so forth. As we
look forward in the future to the Republic taking control of the
Zone and the Canal, do you feel that your organization will be able
to continue operating as a free trade union, both collectively and as
to individual members? Will your organization continue to be viable
and be able to exist and do what you are doing today?
Mr. SIMPKINs. We believe so.
Mr. LI0EANJIE. This guarantee has been given to us several times
by General Torrijos. And we do believe we will be able to operate as
freely as we do now, no question abOut it.
Mr. HILLIs. In the Panamanian economy-I am not familiar-do
you have collective bargaining? Are there free labor organizations,
a free labor movement?
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Mr. LIOEANJIE. Yes, we have.
Mr. HILLIs. it is not different from what we know it in the States?
Mr. LIOEANJIE. The same principle as the States.
Mr. HILLIs. If these guarantees have been made, you will be able to
function much as you do now?
Mr. LIOEANJIE. Yes.
Mr. METCALFE. Next, the Majority staff member, Mr. Terrence
Modglin.
Mr. M0DGLIN. Thank you, Mr. Chairman. I just have two very
quick questions. Following up on Congressman Hillis' statement
and questions, there is one piece of legislation that is before the
Panama Canal Subcommittee right now which deals with the
Smithsonian Institution and the Canal Zone Biological Area. The
Biological Area has a contractual arrangement with the Panama-
nian Government which it feels will protect it under any new treaty
arrangement. My question: Is there any contractual arrangement
that exists between the National Maritime Union and the Panama-
nian Government at the present time?
Mr. SIMPKINs. No.
Mr. MODGLIN. My second question is this: Does the National
Maritime Union support all aspects of the so-called labor annex
that was drafted in 1971?
Mr. SIMPKINs. Yes.
Mr. GASKIN. May I say that you will note that the AFL-CIO list of
assurances protections for employees, that they are also asking that
as part of the labor annex that the continued recognition of the
labor unions here for these employees will continue during the
effect of the treaty. In other words, we are asking that this also be
included in the annex. So I believe that we have a double-barreled
protection as far as continued treaty operation here.
Mr. METCALFE. The Minority staff member, Mr. Nick
Nonnenmacher.
Mr. NONNENMACHER. Thank you, Mr. Chairman.
I note your concern for what you call the continued maintenance
of two classes of citizens, as it were. Can you comment on the
problem that the United States Government faces in trying to do
something for the members of your unions who are actually Pana-
manian citizens who, under the Republic of Panama's control,
would be still Panamanian citizens?
I pick up different reflections of this problem here. If we at this
point try to give guarantees for people who will be shortly coming
into the complete control of their government, should Panama take
the Canal Zone and waterway's control, doesn't that put us in the
position of trying to create, or perpetuate perhaps, a second class
among only Panamanians? You mentioned very pointedly the exist-
ing problem, that the United States economy has forced itself on
Panama City by virtue of the American dollar and all that goes
with that. I think you see the drift of my question. This situation
does exist. Is there any way around that? Can the United States
really guarantee anything for the Panamanian employees who by
citizenship are already bound to Panama's laws in the first place?
Mr. SIMPKTNS. It would be a mutual agreement by both parties in
the treaty. Therefore, it would not have the appearance or in effect
be an imposition on one of the two parties in this treaty.
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Mr. NONNENMACHER. May I interrupt your answer, which I
appreciate? I should preface this by saying that my chief concern
has been, and that of Congressman Snyder, frankly, not what
happens during a continuing treaty but what happens from the
termination date. After that.
Mr. LIOEANJIE. I thought that's what you meant. You have no
control after 25 or 30, 40, or maybe 20 years after you turn control
of the Canal over to Panama.
Mr. NONNENMACHER. None, you mean no American control?
Mr. LI0EANJIE. No American control. Until control is given over,
everyone must be treated equally. That is the responsibility of the
American Government.
Mr. NONNENMACHER. Do you treat that as a question to be
addressed when that time comes?
Mr. LI0EANJIE. Yes.
Mr. GASKIN. May I say that we have no problem, because even
the chief negotiator for Panama agrees that in Panama we have
precedents for this in that when they took over Fuerza y Luz
several years ago these employees were making a much higher wage
scale than the average worker in Panama on the labor code and
special legislation was passed by Panama to give these people
continued protection of all they had won over the years under the
kind of enterprise they were in. So we are saying that these
workmen who are in the Canal Zone can be given good protection
providing both governments agree. And any administrative setup or
labor laws or combination of labor laws as agreed upon by the two
parties will remain in effect during the life of the treaty, and we
have been given adequate assurance from them that they will go
along with this, and we hope that from the American side they will
also go along with this. That in this way we believe that all the
employees, regardless of citizenship, can be protected equally.
Mr. NONNENMACHER. Mr. Simpkins, we are aware of the fact that
the labor movement is one of the key targets for Communist
penetration throughout the world-in the United States, Costa
Rica, Bolivia, what-have-you. Would you care to comment on the
extent of Communist penetration in the labor union movement on
the Isthmus, either in the Zone or in the Republic, or both?
Mr. SIMPKIN5. All right. Rene could tell you that because he has
been here and is very active in just about everything.
Mr. LI0EANJIE. I have not noticed any penetration of Communists
in the labor movement. Maybe I have not looked for that penetra-
tion in Panama. You must understand that the National Maritime
Union represents many percents of the Panamanian labor force in
the Canal Zone. We are not a local. We are a division of the
National Maritime Union. So we can't answer your question.
Mr. NONNENMACHER. We know there is Communist penetration
in the American labor union movement. That was the purpose of
my question. You certainly consider it minimal if they are there at
all.
Mr. LI0EANJIE. If they are.
Mr. SIMPKIN5. As a matter of fact, the history of the National
Maritime Union contains a very large chapter about how they
fought the Communists out in the fifties. They had physical
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takeovers and taking over buildings as well as people. They had a
struggle.
Mr. NONNENMACHER. I am aware of that. There is no question but
that people in the labor movement are as cognizant of the dangers
of Communist penetration as any single group in the world. I wish
more businessmen were aware of it. Thank you, Mr. Chairman.
That is all.
Mr. ZEFERETTI. Will you yield for one further question?
Gentlemen, one of the things we heard yesterday too from the
U.S. Citizen Council group who were present, was that we had an
apprehension because of the change of jurisdiction from the tradi-
tional U.S. system. The criminal justice system that you have here,
versus what would be a reality if in fact this treaty goes into effect.
I would like you to comment on the Union's reaction to that and on
your members' reaction. Because there seemed to be a great deal of
fear that once the U.S. judicial system left, they would be in the
hands of someone they could not cope with.
Mr. LIOEANJIE. You must bear in mind that the National Mari-
time Union represents 98 percent non-U.S. citizens. But what you
are referring to, I can't see no-I don't see no problems with that.
All over the world you have bases and American citizens work on
these bases. They have operations on these bases. And they fall
under special status of forces agreement. So I don't see any problem
with it. As I said before, we represent 98 percent non-U.S. citizens,
those residing in Panama and a small percentage in the Zone. I
don't see any problem.
Mr. METCALFE. The Merchant Marine and Fisheries Committee,
recognizing the great importance of the treaty negotiations, has
brought onto the staff a consultant in the person of Mr. Bernard~
Tannenbaum. We are happy to have him here to assist us in these
very crucial times.
Mr. Tannenbaum, do you have any questions that you wish to
ask?
Mr. TANNENBAUM. Well, the one thing I am most concerned about
is whether are you concerned about a third level of disparity by
virtue of the treaty consummation, if and when one is consum-
mated. In other words, will not the new Panamanian employees
who come into a new Canal entity create a third layer of disparity
in conjunction with the existing employees who are Panamanian
citizens and those who are U.S. citizens?
Mr. SIMPKINs. That is at the date of the treaty, as to whenever
they would take over? We hear the years 1990 and the year 2000.
What would happen after that?
Mr. TANNENBAUM. Well, I know there is a lot of concern that
there will be some displacement of employees by virtue of the
treaty and assuming that is the fact, these new employees frcim
Panama, would they come under the protection of the minimum
wage levels that you have now achieved for yourself or would they
come in under the minimum wage levels of the local Panamanian
economy?
Mr. SIMPKINs. We would anticipate they would all be treated the
same, regardless. We cover that-the AFL-CIO position paper on
this covers this very well, as to those leaving, those staying, and
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those who wish to leave and those that are fired and those that
stay. And then also the establishment of collective bargaining
which we feel we could handle, could handle a good deal of that
problem through that mechanism.
Mr. TANNENBAUM. You are not concerned with this issue them?
Mr. SIMPKINS. Not immediately.
Mr. TANNENBAUM. You don't believe this is a major issue?
Mr. LIOEANJIE. As we mentioned before, the Canal is going to
continue to operate under U.S. jurisdiction for how many years
they decide. We believe that the new employees who will be
working for the Canal entity, United States Government employees,
should get the minimum wage. But as long as they are employed by
the U.S. Government-in other words, we don't want to see employ-
ees of the Canal leaving through attrition and other employees
being hired under a different wage. We consider that they must
have the same wage.
Mr. METCALFE. Any other questions? Thanks very much, gentle-
men. We appreciate it. A pleasure always. Next we have the
American Federation of State, County and Municipal Employees,
Local 900.
Mr. Mauge, will you introduce those who are present with you,
and you can give us briefly the format. Are you going to make the
total presentation? Will the others make presentations or will they
be there to strengthen you, since you need so much strength? I say
that facetiously.
Mr. MAUGE. Right. The gentlemen here present along with me
are Mr. William H. Sinclair, who is the Area Director of the
American Federation of State, County and Municipal
Employees,AFL-CIO. On my right we have Mr. Robert S. Goldson,
who is a Vice President of the Pacific Region of Local 900, and
yours truly, Saturnin G. Mauge, President of Local 900.
STATEMENT OF LOCAL 900, AMERICAN FEDERATION OF STATE,
COUNTY, AND MUNICIPAL EMPLOYEES, REPRESENTED BY
SATURNIN G. MAUGE, PRESIDENT; ROBERT S. GOLDSON, VICE
PRESIDENT, PACIFIC REGION; AND WILLIAM H. SINCLAIR,
AREA DIRECTOR
Mr. MAUGE. On behalf of the 3,300 employee-members of the
Panama Canal Company-Canal Zone Government which our organi-
zation, Local 900, American Federation of State, County and Mu-
nicipal Employees AFL-CIO represents, we extend warm greetings
and welcome to you and the members of your subcommittee. We
welcome another opportunity to appear before you to ventilate a
few important concerns which affect our membership. Specifically,
there are (1) the list of assurances for present United States citizen
and non-United States citizen employees of the Panama Canal
Company-Canal Zone Government which is derived from the United
States position, and (2) the proposed amendment of the Fair Labor
Standards Act to establish a $3.00 minimum wage.
Article Five of the Eight Principles for the Negotiation of a New
Panama Canal Treaty between the United States and Panama
signed by Secretary of State, Dr. Henry A. Kissinger and Foreign
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Minister Juan Antonio Tack on February 4, 1974, states ". . . Arti-
cle 5. The Republic of Panama shall have a just and equitable share
of the benefits derived from the operation of the canal in its
territory. It is recognized that the geographic position of its terri-
tory constitutes the principal resource of the Republic of
Panama . . ."
The Honorable Ellsworth Bunker in a letter dated February 7,
1974 to Governor David S. Parker states, ". . . The Secretary and I
fully recognize the vital contribution that employees of the Zone
and Company are making to the continued efficient operation of the
Canal, and are attentive to the need to treat these employees fairly
and judiciously. Appropriate arrangements will be made to ensure
that their rights and interests are safeguarded. Whatever the
changes agreed upon in the final treaty that will affect employees,
they will take place over a period long enough to obviate or
minimize personal hardship . . ."
The references alluded to earlier were cited to focus attention on
the inadequacy and prejudiced nature of the assurances for present
employees of the Panama Canal Company-Canal Zone Government
under a new Panama Canal Treaty as 80 percent of the workforce
comprising of Panamanians and other nationals find that hardly
anything substantive in terms of wages, working conditions and
fringe benefits are guaranteed by these assurances for them. The
assurances, if accepted as written by the Panamanian negotiators,
will legalize discriminatory practices in labor-management relations
which were prevalent in the Canal Zone before the 1960's. Our
organization in its twenty-seven years of existence has been waging
a constant battle for equality in terms of human dignity and
recognition that all employees of the Canal enterprise should be
treated fairly and judiciously. The assurances, instead of providing
the minimum level of benefits and protection for all employees, are
parochial and selfish in their nature and scope. Thousands of
dedicated and loyal Panamanians and other non-U.S. employees of
the Panama Canal Company-Canal Zone Government who were
given assurances in previous pronouncements about their job situa-
tions now find their futures are pawns at the negotiating table. We
believe the Panama Canal Company-Canal Zone Government, by
the nature of its structure, operation, and longevity, must continue
to treat its employees alike. It cannot, at this stage of the game,
abandon some of its employees under the guise of nationality or
political expediency. Hundreds of loyal employees have become
demoralized, depressed, and forlorn because they erroneously
thought their employer would have protected them during the
storm. Today, they find themselves as the emperor did with new
clothes. It is not too late to correct this anomaly. Our organization
is meeting with the Panamanian negotiators to insure that all
employees will be treated with equity and justice. We believe the
Company-Government should do likewise for all its employees with-
out regard to nationality, sex, race or creed.
Our second concern is to seek support of the members of the
Subcommittee on Merchant Marine and Fisheries in promoting
legislation that will increase the Federal minimum wage to at least
$3.00 an hour. As the members of the subcommittee are aware, the
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wage structure of the Panama Canal Company-Canal Zone Govern-
ment is based either on the Federal minimum wage of $2.30 an hour
for employees whose recruitments are locally derived, or the Gen-
eral Schedule rate for employees whose recruitments are from the
continental United States. As more Panamanians aspire and obtain
higher paying jobs, their overwhelming numbers negate and jeopar-
dize their ability to receive comparable pay like their United States
counterparts doing the same jobs for a Federal agency in Continen-
tal United States. Hence, it behooves the native worker to continue
to earn a wage, i.e., the Federal minimum wage, that is consonant
with modern living in our highly technological community. The
Canal Zone workers are sophisticated by the nature of their employ-
ment skills and aptitudes in promoting an operation that has extra-
efficiency, the Panama Canal. The standards of living of the em-
ployees must continue to rise. These employees should share in the
benefits the Canal derives. One way to guarantee this aspect is
through a higher minimum wage. For this reason, we ask your
consideration and support in promoting this piece of legislation as
the welfare of the families of these workers is within your bailiwick.
We wish to thank the members of the subcommittee for another
opportunity to apprise them of the concerns and aspirations of
Canal Zone workers.
We quote from Henry Wadsworth Longfellow's "Hope", a fleeting
thought,
"What else remains for us?
Youth, hope and love.
To build a new life on a ruined life,
To make the future fairer than the past,
And make the past appear a troubled dream . . ."
Thank you again for your attention and interests.
For the Executive Board of Local 900, Saturnin G. Mauge,
President.
Mr. METCALFE. Thank you very much. I think you set some sort of
record for brevity, Mr. Mauge. My first question is do you support
the AFL-CIO recommendations on treaty negotiations?
Mr. MAUGE. Yes, sir, we do, with some modifications.
Mr. METCALFE. I'll get into those modifications. Do you find any
positive aspects in the 15 assurances that were issued?
Mr. MAUGE. Yes. I think Number 10. Number 10 was the only one
that speaks of all eligible employees?
Mr. METCALFE. Would you read Number 10?
Mr. MAUGE. Yes. Number 10 says this: "All eligible employees are
guaranteed by current regulations, reduction-in-force and
reassignment right, transfer of function rights and discontinued
service retirement following involuntary separation.
"In addition, the Civil Service Commission will be requested to
grant approval of and/or all waivers for "early optional retirement"
or liberalized severance pay coverage for employees of Canal enter-
prise activities which are scheduled for elimination, reduction or
transfer.
"Employees whose working conditions are so adversely affected
by the treaty that special consideration is appropriate may also be
included in this commission request."
95-549 0 - 77 - 13
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Now, this is the only article in the 15 assurances where there is
not the specificity of having either Panamanian or U.S. citizens.
And that is our complaint. Our complaint is that the labels should
not have been omitted and the word "all"--
Mr. METCALFE. Should not have been omitted, did you say?
Mr. MAUGE. I said the labels that they have used of U.S. citizen
should be eliminated and the word "all" should have been used.
Mr. METCALFE. That is a recommendation of which I think we
will all be mindful and cognizant.
Now, having said that you do support the AFL-CIO recommenda-
tion on treaty negotiations, with some modifications, and having
known of the great causes that you have espoused so eloquently and
intelligently over a period of years, in seeking what you consider is
just and fair treatment, I want you to know that we have heard
during this particular visit, and it has been stimulating to us, that
the Panamanian Government and, to a great degree, the Panama-
nians who live in the Zone, as well as the U.S. citizens, are now
talking in terms of oneness.
I refer you historically back to the building of the Canal, when we
started out on a `very discriminatory basis by paying the U.S.
citizens in gold and paying in silver the Antilleans and those who
came in and who were able to withstand the heat and the malaria
in order to build this world wonder. Most people have minimized
that contribution. I mean, people talk about the money of the
United States. They say if it hadn't been for the money and the
engineering and expertise of the U.S., the Canal would not have
been built.
I contend that without the Antilleans who actually did the
laborious work, the Canal would not have been built, even with all
of the experts and money.
Now we are seeking a goal, a goal that our President has been
talking about in terms of human rights, of oneness of all the people
in the Canal Zone and in Panama. But I notice that on page 2 you
still have some doubts and some rather strong language, too, in
regard to assurances. You say if the double standard is accepted as
written by the Panamanian negotiators, "it will legitimatize dis-
criminatory practices and bring back labor-management relations
which were prevalent within the Canal Zone before the l960s." You
further say "Our organization, in its 27 years of existence, has been
waging a constant battle for equality in terms of human dignity and
recognition that all employees of the Canal enterprise should be
treated fairly and judicially. And these assurances, instead of pro-
viding the minimal level of benefits and protection for all employ-
ees, are parochial and selfish in their nature and scope."
Now would you please elaborate and would you please try to
bring some clarification to that point? You are unhappy, or am I
reading this wrong? Am I interpreting this wrong? If you still have
not achieved your goal, how do you propose that your goal be
accomplished?
Mr. MAUGE. What we are saying in synthesis is this. We feel that
the assurances that were given should be given for all employees.
The reason why the statement is made to discriminatory practices
before 1960 is the fact of the situation that you spoke about of
having the nomenclature of "separate but equal" philosophy here.
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Now we feel the assurances that are given here, if accepted as
written, would mean that we would be agreeing with the U.S.
Government of treating the U.S. citizens as a special class. This is
something that I have had to live with as a boy and I continue, even
as a man, to feel I am a second-class citizen. I resent this. I resent it
openly and I think the average Panamanian worker resents that.
He would like to be treated as a human being. Let me put it in
these simple terms. lie thinks whatever the other man has, he
should have. These assurances are wonderful in terms of the spe-
cific people that they are protecting. But what happens to the other
guy?
Take it percentagewise. Eighty percent of your work force are
Panamanians, yet there is a list of asurances that comes out here
that gives almost blanket coverage for the 20 percent.
Now the 80 percent says to themselves "but after all, I know I am
a Panamanian citizen. I live in Panama; I have loyalty to Panama
but I also have loyalty to the U.S. Government, and many times I
have had to undergo a lot of hardship in order to protect the
interests of the Panama Canal Company. Why am I not protected?
Why could not an assurance be where a mutual agreement could be
made that all employees, whether that person is a U.S. citizen or
that person is a non-U.S. citizen, is protected?" This is the thrust of
our complaint.
Mr. METCALFE. Thank you.
Mr. SINcLAIR. I would like to make a few comments for the
committee.
First, because of our international union structure here (in the
Canal Zone) we have two local unions. One representing Panama
Canal Company employees and one representing U.S. Armed Forces
employees. So, for the record, we would like you to know that our
membership encompasses the entire Defense Department structure
here, including the Canal administration. I was asked yesterday by
our treasurer, Mr. William Lucey, to submit to you a letter which-
Mr. METCALFE. I have the letter.
Mr. SINcLAIR. I won't read it again, but I just wanted to let you
know that he wants to go on record making it clear that all the
AFL-CIO people are not going to tolerate anything less than
equality.
In addition to this, now, I want to bring to the attention of your
committee something I don't think we're really focusing on, at least
I have not heard it yet. The problem is before us. The problem
before us is that whether we like it, or not like it, we have a United
States' State within the State of Panama, and with this we have
United States laws, Federal laws, decrees, et cetera, which can be
applied.
The way I understand it, and I might be wrong, but if I am wrong
you can please correct me-the way I understand it we are-
whatever we have now is based on one word: jurisdiction.
The political jurisdiction of the United States provides what we
have now. The way I understand it, the point of jurisdiction is no
longer an issue. The jurisdiction, the political jurisdiction over this
territory will be in the hands of Panama, not at the end of the
treaty, but at the beginning.
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And at the beginning of this treaty, when we get this political
jurisdiction question in operation, it wll be an entirely new ball
game. Because a number of the things that we would like to hold on
to here-let's face the facts of life-are incompatible with the facts
on political jurisdiction.
And with that, even in the operation of our union. Let no one fool
anybody. There are not going to be United States unions here such
as we have today. The AFSCME does not have in its own constitu-
tion the authority to organize outside the continental jurisdiction of
the United States. Consequently, if a treaty is signed, if we have
political jurisdiction tomorrow, AFSCME will have to restructure
its organization in the Canal Zone or Canal area.
I see ourselves working here not as an integral part of the
AFSCME, as we do now, through direct contact with Washington
(because this~will not be under U.S. jurisdiction) but rather, through
the Public Services International Secretariat, which is a worldwide
group of public workers. Our own constitution would have to be
amended. Any other U.S.-based union here will have to go through
the same process. What cannot be accepted by Panama, without
amending its own constitution is the right of foreign unions, includ-
Ing mine, to operate within its jurisdiction as we operate today. So
that's another situation we have to cope with. The way we see it
again, this question of political jurisdiction will cause a
restructuring of wages and benefits. We asked in one of our meet-
ings with the Panamanian negotiators, that suppose somebody
advises us, by reading the papers, that there has been a 10-percent
increase in the United States, and we went before this committee-
call it what you will, the Board of Directors of the new entity-5-4,
with the majority ratio U.S., and we go before them and say we
want a 10-percent increase. We say we heard about this 10-percent
increase, we got a telegram, we got a call from headquarters, from
London or someplace, we read it in the papers. And my question to
them is: What does the United States of America say this time?
They would probably say "We have the sources." What does Pa-
nama say? Well, we would not identify the sources .the same way. It
could not be read that way. We could not even identify it by saying
"in the United States there has been a 10-percent increase, we have
the right to demand this obligation here," because the question
comes up-"how?" The negotiators brought out that this enterprise
will be similar to another United Brands enterprise. This United
Brands is under Panama jurisdiction. It comes under Panama's
laws. The negotiators of that union cannot go into the Company and
say, "because in Massachusetts or in Boston or wherever the head-
quarters is located today, there has been a wage increase, we
demand one." No, they have to get in there and fight it out based on
whatever we have locally. They use the term "United Brands." We
use the term "U.S. enterprise within the scope of another country's
jurisdiction, which is what this term `editing' may mean." We talk
about a mini-code made up of extractions of laws or regulations,
paralleled to what we have now under the United States structure,
and certain extractions from the Panama Labor Code. The fact still
remains, gentlemen, that if we get a mini-code, that mini-code will
be subject to the concept of the Panama Labor Code. Unless our
PAGENO="0197"
189
story is wrong, and everything else, this is what we're heading into.
And I think that unless we realize this, we will not be doing
ourselves a service. This is where we stand today. And whether they
are citizens of the United States, or Panama, whoever works for
this enterprise will be under that. We have been told, we have been
assured, that the military, based on their overseas status-of-forces
agreement, will have this separation. U.S. citizens will be U.S.
hires, continuing as if nothing will happen to them. They will rotate
as they rotate around the world today. But the non-U.S. citizens of
the military will come under the local prevailing conditions which
they are saying depends upon whatever the entity agrees to. And
this entity, the way we understand it, cannot be anymore a U.S.
Federal personality once the issue of jurisdiction is clarified. So this
is an entirely new ball game. We are prepared to play it. And we
have said before that with the management of the Panama Canal
Administration, as it is now, our local unions, fighting with all their
resources, have made some advancements under that system. We
are saying now maybe the Panama Code is no good either. We don't
know. But we are going to use it. And if this mini-code comes in, we
are going to use that, too. It's a new ball game. I stop here for any
questions you may want to ask.
Mr. METCALFE. Thank you very much, Mr. Sinclair.
Let the record show unless there are objections that the letter
that was addressed to you will be entered into the record at that
time.
[The information referred to follows:]
PAGENO="0198"
190
~MuNICIPAL~, American Federation of State, County, and Municipal Employees
eLo.(6. 1625 L Street, N.W., Washington, D.C. 20036
Tetephone (202) 452-4800
Telex 89-2376 ________________
P.O. Ba~ 477
&6b~, C,~e6 Z~,.
T.l.phee: e~Ib~ 52-5881
52-2623
April 12, 1977
The Honorable Ralph H. Metcalfe
Chairman, Subcommittee on the Panama Canal
Merchant Marine and Fisheries Committee
US House of Representatiyes
Washington, D. C. 20225
°~"~`°" Dear Mr. Chairman:
J,oILBoes,J~. The general policy of the American Federation
Ooosnts,Cs!. of State, County and Municipal Employees, AFL-CIO has
~ always been to support its Canal Zone affiliates in
E~,I5.5okkOd their efforts to attain equality for all employees
Ms!!5~,II!. in all aspects of labor-management relations.
EOOS5 ~ Messrs. Jerry Wurf, International President; and
Ss!tioso. Md. William Lucy, International Secretary-Treasurer of
our Federation, have asked me to convey to you and
cholnLeedth your Subcommittee that this continues to be our
7dSdd, Ohis overall policy.
GeMdWMsEhtn Accordingly, we strongly urge all US government
Hd,,isboo,Ps. federal agencies in the Canal Zone to adhere to the
LyN5K~bh~h concept of equality for all employees, rather than
promoting or agreeing to separation of personnel
Dbtbsir Mi~h, policies which would be tantamount to the legalization
R~b,tj.Ob~b~~k of discriminatory labor-management relations.
Mr. Lucy attended a meeting held recently at
Jsophe.edn AFL-CIO headquarters where he, in behalf of our Federa-
etSIs,N.Y. tion and its Canal Zone affiliates, underlined our
~ inflexible position on this score.
N~eysm,Ny union that cares
PAGENO="0199"
191
Consequently, National AFL-CIO is also cognizant
of our view and cannot but advocate a similar position
for all its members in the Canal Zone, without regard
to nationality.
Very truly yours,
William H. Sinc air
Area Directó~
WHS/dms
cc: AFSCME
Local 900
Local 907
PAGENO="0200"
192
Mr. METCALFE. I would like to make a correction for the record. I
think I mispronounced the word Antilleans. I want to be sure the
record reflects that.
I believe that our conferences with the Panamanian Foreign
Ministry that we were assured that the rights and the benefits may
have implications on jurisdiction. I only say that to indicate to you
that we are moving in the direction that had been presented to us
at this particular time by Mr. Sinclair, which is very important. We
don't minimize the importance of it.
I have no further questions. I would like to now recognize the
gentleman from New York, Mr. Leo Zeferetti.
Mr. ZEFERETTI. Thank you, Mr. Chairman.
Does the union have a collective bargaining agreement?
Mr. MAUGE. No, we haven't.
Mr. ZEFERETTI. How do you function?
Mr. MAUGE. Advise and consent. And advise means consenting
before you're advised.
Mr. SINcLAIR. We just say yes, sir; no, sir; and so on.
Mr. ZEFERETTI. Let me make a correction for you. The minimum
wage legislation is before the Standing Labor Subcommittee and it
is in the Education and Labor Committee and not in the Marine
and Fisheries Committee.
Mr. MAUGE. We know that. We are asking your support.
Mr. ZEFERETTI. How many people do you have who are working at
the minimum wage level here now?
Mr. SINCLAIR. I couldn't say exactly. Someone could answer that.
But it's a great percentage of the workforce.
Mr. SIMONEAU. The minimum wage affects the lowest grade levels
adjusted up to the minimum wage, and the higher wage grades are
added onto that. I don't know exactly how many people work at the
lowest wage.
Mr. SINCLAIR. But, sir, may I just add here, we do know, of course,
that it affects the great majority of the non-U.S. work force.
Mr. ZEFERETTI. Have you seen the legislation itself that was put
together-that was introduced by Chairman Dent?
Mr. SINCLAIR. We haven't seen the text of it, but we have heard of
it.
Mr. ZEFERETTI. If you like, we will send you copies so we can get
your comments. I would like to relate back to some of the things we
have talked about here-discrimination. Discrimination has been
brought up in about three different ways. Do you find it discrimina-
tory in any other way rather than just non-U.S. citizen/U.S. citi-
zen? Do you have problems with it in any other way?
Mr. SINCLAIR. Well, I think discrimination starts there. It's based
on the question of nationality.
You see what we have here, gentlemen is--I read sometime ago
where in the States, "in the South, they love the blacks but they
hate the race. In the North they love the race, but they hate the
blacks."
You have a situation here where it begins with nationality. They
have discrimination everywhere in the world but here in the Canal
Zone you will see a white man and a black man drinking together,
and this is common. So the answer is yes and no. Discrimination-it
PAGENO="0201"
193
exists-just the same as any place in the world and we are not
naive enough to believe it will ever be eradicated from here.
Mr. METCALFE. That is a pessimistic attitude. I don't think Mr.
Mauge would agree with that.
Mr. SINcI~IR. That's the way it is.
Mr. MAUGE. He didn't mean to go so far.
Mr. ZEFERETTI. Do you have any means like in the National
Maritime Union, where you have assurances that the continuation
of the unions will go forth, and that these types of meetings and
negotiations will go forward in the event of a treaty?
Mr. MAUGE. Yes. Actually, you kow, we have what is called a
charter to operate in Panama. Our sister Local 907 also has that
and there is a dockworkers union which will also speak today. They
have that and we can operate right now in Panama, we don't have
to wait for a treaty. We can operate with the Panamanian Govern-
ment as well as with the Canal Zone Government. And they have
unions operating in Panama. They have some problems like any-
where else. The problems are usually solved through negotiations or
consultations.
Mr. ZEFERETTI. What is your feeling regarding the point of the
treaty? What will happen at that particular point? You addressed
yourself to the transition period. What happens after that? Do you
throw everything out in the wind?
Mr. SINCLAIR. You are going to have unions, you are going to have
workers, and workers in unions.
Mr. ZEFERETTI. Do you think you can be effective at the conclu-
sion of that?
Mr. MAUGE. And I think we will be stronger. You know right flow
we can't strike, according to Federal laws, but when you change
jurisdiction we will have that kind of power.
Mr. SINCLAIR. In fact, you'll have the benefits in Panama you
don't have in the Canal Zone. I don't see-it's a new ball game. We
loved our father, but he died, and now we have to live without him.
We love what we have-maybe I shouldn't say that, you'll call my
attention to that. I said the other night, you've come here so many
times, the members of the committee, its chairman, you know how
good this whole thing was, you know the bad conditions. Fine, if we
can have it; but the ball game is changing as you see. We are not
going to waste our time crying over the past. Whatever talent we
have, we are going to use it constructively, and we are going to use
whatever we have before us, whether it's the Labor Code or mini-
code or whatever, we are going to use it. As I have often told
Panamanian Government officials in our meetings, we are going to
use it better than anybody has in Panama. So we are prepared to
teach a few people some things. Because if we took that treaty of
1903 which everybody says is no good, using it successfully then I
think we can use anything else.
Mr. METCALFE. Thank you. I recognize the gentleman from Indi-
ana, Mr. Hillis.
Mr. HILLIS. Thank you, Mr. Chairman. I just have one question.
I have found the discussion very interesting. I would like to
understand, under the Panamanian law do they recognize a mini-
mum wage and if so, what is it?
PAGENO="0202"
194
Mr. MAUGE. In Panama the rate structure is based on the ability
of the industry to pay.
Mr. HILLIs. A sliding minimum?
Mr. MAUGE. A sliding minimum. It depends on the industry.
Mr. HILLIs. You are talking about a $3 minimum wage, U.S. Will
there be a comparability in Panama or where does this come in.
Mr. MAUGE. I want to refer I think to a question you asked the
former organization. In the sense that we are speaking of two
periods. We are talking of the transition period to, let's say, the
suggested year 2000. We are asking for all that kind of protection
for the year 2000 and I think what Panama is saying, special
legislation, or mini-legislation, will be legislated into the Panama-
nian assembly to cover this 10th province as they say now, but that
would be to the year 2000, or the suggested year 2000 maybe.
Now after that goes, that is another ball game. So I think the
question you are asking is, the $3 minimum, once we get it, we feel
that will carry on the protection until that time that Panama takes
over the entire thing.
Mr. SINcLAIR. This point is not really clear here, and this is what
is confusing everybody. We're confusing this point. I think it will be
clear enough for us to see what's ahead. If a treaty is signed today
calling for Panama's political jurisdiction, and that we have laws
that do not provide for the same minimum wage, then this is what
we are facing. What may elapse between now and 2000 is that those
who may be picked up under the treaty, as of now, and go on as
long as they are employed, we have been told, they will be pro-
tected. But the way I understand it, the minute that treaty goes
into effect and the political jurisdiction is established, goodbye U.S.
Federal laws.
Mr. METCALFE. Unless there is an assurance.
Mr. SINcLAIR. And that assurance is very difficult, for as I said,
it's a question-let's not get into that. I don't believe in stories. I
believe in what I think is facing us.
Mr. HILLIs. For the record, do you think Panama can pay the $3
per hour minimum wage if they took over the jurisdiction of the
Canal?
Mr. SINcLAIR. The way I also understand it, I might be wrong
again, I don't foresee the $3 being the established minimum. Those
who are picked up as of the day the treaty goes into effect, and
make $3 an hour minimum, will have it. But I also see this
enterprise saying henceforth, the new employees will be under a
new law. At that time it will be up to the unions. If we're strong
enough and raise enough hell, we may be able to make sure we get
that minimum. But that's it. We must get that money. As fast as we
can; I can foresee the guy going under a new treaty retaining the
minimum that he has, but I can also see trouble for the employees
hired after that.
Mr. MAUGE. Because if he didn't get $3, or somewhere near that,
we'd close the Canal.
Mr. METCALFE. The last time the question of the minimum wage
came before Congress we had an appreciable amount of letters from
the Zone complaining about not being able to meet those new laws
if they were passed for the domestics.
PAGENO="0203"
195
Would you address yourself to the domestics and the minimum
wage?
Mr. MAUGE. I think the domestic question is a simple thing. One,
that the average worker here would like to get the highest wage
possible for his duties and his responsibility according to the posi-
tion that he holds. If he believes that that principle is inherent to
his right, I think he should believe that the same principle stands
for the domestic. She's a human being and she has the same
aspirations, the same ambition and she should also have the same
standard of living that is consonant with modern times.
Now we could never agree with any exclusion of the domestic.
The way I see it, if you want a domestic then you should pay. If you
can't pay, then do the work yourself. The person is a human being,
and she has the right to earn the highest wages possible.
Mr. METCALFE. Thank you, Mr. Mauge.
Mr. SINcr~IR. Just a minute, sir. We believe in "do unto others as
we would have them do unto us."
Mr. METCALFE. Now I will recognize the majority staff member,
Mr. Terrence Modglin.
Mr. MODGLIN. Thank you, Mr. Chairman.
You said, gentlemen, that you agreed with the recommendations
of the AFL-CIO on treaty negotiations, with some modifications.
One of the provisions in that AFL-CIO recommendations document
was that the administration, the new Canal administration, shall
provide adequate community services for all of its employees to be
maintained at standards existing prior to the entry into force of the
treaty.
Do you agree with that particular----does your local agree with
that particular provision?
Mr. MAUGE. That is why we said there is some modification
because as the situation is, we just got through the schooling
situation that is not completely settled. We have the housing
situation that is not completely settled and we think we have some
new thoughts on those things and before we can just get a blanket
agreement, those things would have to be worked out to our
statisfaction where you would not have this subtle type of discrimi-
nation going on.
If the schooling and the housing and those other facilities are
equalized for everyone then we will go along with it.
What we are saying is, we cannot agree to any sort of legal
document that will try to maintain the thing that we have been
fighting for all over the years. You know, fighting against discrimi-
nation, and then to have it legalized, then we can't change it.
Mr. SINcLAIR. You see, in essence, Sir, even if that document were
to be included, in toto, in an annex, that itself would provide some
discrimination in pay, the tax factor, and security positions, which
we cannot buy. We are advocating equality. We have told both sides
that very clearly. Notwithstanding all the rights-we have some
rights, too. We have told the AFL-CIO that we are not going to go
under the AFL-CIO umbrella legalizing any form of discrimination.
And I think they have that message quite clear.
Mr. MODGLIN. For your members in the Canal Zone who are
employees of the Defense Department, do you believe they should
PAGENO="0204"
196
have a list of assurances and protections in the treaty? If so, who
should issue those assurances?
Mr. SINCLAIR. The way I see this, the treaty negotiators should
have some broad guidelines. I am saying broad guidelines. I don't
believe they should get down to list from one to one million points.
Give us some broad guidelines under which we can build up our
own thing. In other words, let me get back to the question of
negotiations. We should be able to say under these broad guidelines
we want so and so. But I am not too confident to have anybody sit
down and tell us exactly what we are going to have to live with.
Just give us the broad guidelines.
Mr. METCALFE. You just want to participate.
Mr. SINCLAIR. That is right. We just want broad guidelines.
Mr. MODGLIN. Mr. Sinclair, in view of your statement regarding
what I believe you regard as the inevitability of Panamanian
jurisdiction and, I gather, labor law, do you think the Government
of Panama ought to have, or does have any responsibility for those
particular assurances to Canal employees?
Mr. SINCLAIR. They will have to, because they are partners. This
is a partnership. The Panamanian Government and the U.S. Gov-
ernment. The employees will be employed first by the military,
which have responsibilities here, and second by this administration
or entity, whatever it is. This entity would comprise a partnership.
We are told it is an entity made up of the two States, Panama and
the United States.
One thing that is not clear in our minds is whether it will have a
Federal personality.
So this entity whether it is composed of five Americans and four
Panamanians or vice versa, this entity has to, this waterway will be
providing "x" amounts of dollars for services. That entity has the
obligation to provide equal services and benefits for every employee,
regardless of nationality, color, creed, et cetera, et cetera, et cetera.
So that entity is the one that must have the responsibility.
Mr. MODGLIN. The implication of your particular belief of total
equal treatment, the implication I get there is that that means
application of Panamanian labor law or U.S. labor law to all
employees related. to the Canal organization--
Mr. SINCLAIR. Once the jurisdiction has been established, it won't
be a choice. They have said, you may take a section of the U.S.
labor law and put it, in toto, but you cannot have that law, per se,
because it conflicts with the Panamanian Constitution.
So you are not going to have a choice of U.S. and Panama labor
laws. If you carve out the whole U.S. Constitution and put it in and
say these are the rights I want in Panama, or any other country in
the world, but you cannot identify it as such, because it goes against
the (Panamaniam) Constitution.
Mr. MAUGE. I think what the Panamanian Government has in
mind is to use some aspects of the Federal law here but don't call it
that because we will have new legislation that will cover the Canal
Zone area and that would also cover the judicial and also the labor
code and other matters.
Mr. MODGLIN. Sir, is my perception correct that you are not
necessarily advocating that Panamanian labor law be applied, but
simply regard it as inevitable?
PAGENO="0205"
197
Mr. SINcLAIR. What we are saying is, whatever that entity comes
up with, whatever the instrument, that's what we are going to deal
with. And I still feel that from a legal standpoint, a constitution is a
constitution. Whatever that mini-code says, it is still subject to
Panama's law. It has to be that way. There is no other way.
Mr. MODGUN. Mr. Mauge made reference to point 10 of the 15
assurances, as to what all eligible employees are guaranteed by
current regulations, reductions in force, et cetera.
Do you believe that particular provision should apply to Panama-
nian employees of the Canal entity as well as U.S.?
Mr. MAUGE. I am saying anything that you give should apply to
all employees. We just want to be fair.
Mr. SINcLAIR. We are going to stick up for that. And if you want
to hear a secret, I want to tell you a secret, publicly. We are hoping
that you will not abandon your citizens, then we will stick to
equality. This is a public secret. If you abandon your citizens, then
the whole ball game is over. So we are going to ask you not to
abandon your citizens, because by not abandoning them, you are
helping us.
Mr. MAUGE. We have something to compare with.
Mr. METcALFE. Thank you.
The minority counsel, Mr. Nonnenmacher.
Mr. NONNENMACHER. Thank you, Mr. Chairman.
Mr. Mauge, at some point, here you say, "Thousands of dedicated
and loyal Panamanian and other non-U.S. employees of the Pa-
nama Canal Company/Canal Zone Government who were given
assurances in previous pronouncements about their job situations
now find their future are pawns at the negotiating table."
I think that concept of pawns at the negotiating table very
adequately sums up the feeling that everybody has given us who we
have heard so far, and we don't expect to hear anything different.
Mr. Sinclair, in the very last statement you made, your public
secret, you hope we don't abandon our own citizens' rights.
Mr. SINCLAIR. That is right.
Mr. NONNENMACHER. Speaking on behalf of Mr. Snyder who is
the ranking minority member and whose position is well known to
all of you, he, like you, feels jurisdiction is the name of the game.
Only here he probably would say sovereignty is the name of the
game. He feels giving control of the Canal Zone to Panama would in
effect be abandoning our citizens, were they to choose to remain
here. Ultimately-and again I go back to the point I made-our
concern is the continuing neutrality and defense of the Canal,
permanently-because it will always be vital to the United States
as well as to the free world and world trade, as well as to world
security and freedom. For this reason we feel Panama should not
get the Canal. That is the basic fundamental starting point.
I think I could also say on his behalf that sometimes U.S.
Congressmen feel that they, too, are considered by the State Depart-
ment as nothing more than pawns to be ignored in the negotiations,
and kept ignorant of the ultimate goals that they have. I think that
the fight the Congress has put up in the last 2 years over this issue
has made the State Department wake up to the fact that there is a
voice of the American people up there in Washington that does
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198
speak, and this committee does represent the people on this issue
most specifically.
I would like to ask a very key question here. I do not know which
other union leaders present came out after a meeting with Presi-
dent Torrijos in favor of a new treaty. I know you are one, Mr.
Sinclair. I don't know if you are, Mr. Mauge, or any others here.
But in view of the fact the question was asked by Congressman
Hillis regarding a minimum wage in Panama, and in view of the
fact that we received the answer that there was a sliding minimum
wage (although we did not get a specific figure-and that is what I
am going to come back to in a moment) I would like to ask a general
question before getting into some specifics. Are the Panamanian
union leaders who are on record favoring a new treaty which
ultimately would yield control of this entire Zone and waterway to
the Panamanian Government, are these same labor unions there-
fore going on record a favoring lower incomes for their union
members?
Is my question in any way inaccurate?
Mr. SINcJ~IR. The way the question is framed, it is difficult to
answer. Let me go back-first, in our mind there is no question
about Panamanian sovereignty-Panama has always been sover-
eign in the Canal Zone. Panama has ceded the use of certain rights
in the Canal Zone to the United States as if it (the United States)
were sovereign.
Mr. NONNENMACHER. I would differ with you on that.
Mr. SINciAiR. What I am saying here is as far as we are con-
cerned. You have asked the question. I will give you the answer.
There is no question about who owns this land. That is Panama.
That is a legal position. Panama ceded her rights and said "You
shall have these rights, blah blah blah, as if you were soverign."
Panama is also saying "We want back our jurisdiction," It is none
of our business to tell Panama not to get back its land and so on.
That is Panama's right. We will get away from that. Our dealing
here is with the labor situation. We are saying under what we have
now, we want the most. That day our father dies, a new ball game
starts, and we are going to play it, and we are going to get the most
there too. That's the way we operate.
Mr. NONNENMACHER. I appreciate your forthrightness, and I am
sure you would recognize the equal forthrightness of Congressman
Snyder and those who feel just to the contrary.
Mr. SINcr~&IR. The greatness of the American system is that we
can disagree.
Mr. NONNENMACHER. Right, but regarding the Zone's status-
since approximately 1826 it has been a concern of the United States
Government that there be a canal from the Atlantic to the Pacific.
Thereafter, successive Presidents, beginning with Ulysses S. Grant
and Rutherford B. Hayes, specifically sought control and ownership
of a strip of land somewhere across the continent for an
interoceanic canal, and that desired goal of ownership was specifi-
cally mentioned in presidential messages long before Teddy Roose-
velt came on the scene. But that is another subject and you have
given me your opinion.
Now I would like to get specific.
PAGENO="0207"
199
Can you tell me, or provide for the record-and you might need
the cooperation of the other unions present-the comparative wages
at present, the comparative minimum wages at present in the Zone
and in Panama for specific employments such as a government
clerk, a teacher, a dockworker, a metalworker, a merchant seaman,
a policeman, and anything else you would care to include in such a
list, so that the record would show what minimums at this particu-
lar moment pertain to these various categories of employment.
Mr. SINclAIR. First, there is no comparison with the United
States and Canada, those two countries of the free world. No other
country in the world, including this continent, has anything similar
to the U.S. in dollars and cents as far as a federal minimum wage is
concerned.
The last time I saw a legally written document-and I will try to
get that-the minimum wage was set at 40 cents as the lowest that
employees should earn in Panama. Then it slides, depending on the
ability of the industry to pay and the capital, et cetera, et cetera.
It's sort of like Puerto Rico that has a sliding minimum, which goes
up. But nobody in any part of the world, excepting Canada, as far as
I know, has a minimum wage that is higher than or equal to the
United States. We are saying that until this jurisdiction is changed,
we are talking to our employer, which happens to be the United
States. Get the point? So we are saying whatever you pay, you pay
us. If tomorrow that is not there, we will be saying to somebody pay
us a minimum wage. We'll have to seek a higher minimum with
this new ball game we're playing. But every minimum is lower than
the United States for every one of the jobs you mentioned.
Mr. NONNENMACHER. I appreciate that, but would you not admit
that Western Germany, Great Britain, France, Belgium, other coun-
tries in Western Europe have a minimum wage much higher than
the 40 cents you mentioned?
Mr. SINclAIR. Yes.
Mr. NONNENMACHER. Would you please provide for the record
some comparison however for these specifics, regardless of the fact
that your answer in general covers it.
Mr. SINcLAIR. What we will do for you is, I will get the exact
minimum they have, and mail it to you.
Mr. NONNENMACHER. We would like it for the record.
[At the time of publication, no document had been provided.]
Mr. SINclAIR. I just want to show you something. I was shocked
out of my wits when I was comparing the salaries of prime minis-
ters. Indira Ghandi was getting $400 a month, I see, and she was the
prime minister of the biggest democracy in the world. When I saw
her salary, $400 bucks per month, I said "she needs a union."
Mr. NONNENMACHER. The previous witness from the NMU
pointed out that the America economy has impacted itself upon this
area of the world to the point that Panama City has the second
highest cost of living in the entire world. Following the train of
questions I presented to you and your answers, would you think
that the removal of the United States' control over the Canal Zone
would cause an enormous drop in this cost of living at the period
when the treaty ends.
PAGENO="0208"
200
Mr. SINcLAIR. The cost of living. You have noted that about the
cost of living in the Zone, and it's probably higher in Panama. I
don't agree with that statement of Panama being the second highest
city because we have information prepared by a local bank here, I
think the Continental Bank, with headquarters in Geneva. They did
not list Panama as No. 2. There were many other cities, Tokyo and
Buenos Aires, and a few others. In Buenos Aires, we understand,
one drink, a highball, is very high. Panama is not the second
highest but I have been to almost every capital city and others in
Latin America. I have found prices in those countries higher than
Panama and in the United States, in many places.
Mr. NONNENMACHER. I think the record should show that, and I
think, Mr. Chairman, that the NMU should have the right to
defend their presentation that Panama City has the second highest
cost of living, in view of the fact it is in their statement and is now
challenged. That is all I have.
[The information supplied by Mr. Sinclair may be found on p381;
the source of the National Mature Union's statistics was the March
17, 1977 Miami Herald.]
Mr. METCALFE. Now, our distinguished consultant, Mr. Bernard
Tannenbaum.
Mr. TANNENBAUM. For many years there was concern, and still is,
and, properly so, because of the discrimination in the Zone in
treatment and pay benefits between Zone employees, who were
Panamanians and U.S. citizens.
Now what about the disparity between the Panamanian Zone
employees and the Panamanian Government employees who hold
similar positions: postal clerks, policemen, teachers, and so forth?
Now this income gap is even greater than the disparity in the
Zone. It is maybe 300 or 400 percent and maybe more than that.
Isn't this a considerable cause of friction between Panamanian Zone
employees and Panamanian Government employees, and and hasn't
this created a great political problem for the Panamanian
Government?
Mr. SINCLAIR. I don't agree with you on that. You have some
people in Panama working for very high wages for certain jobs.
Whether $2,000 or $3,000 per month, you only have so many. So you
have to look at the guy who's got the right to have the job. Also in
the Canal Zone, you have only so many jobs. I understand there are
40,000 or 50,000 people looking for jobs in the Canal Zone, but they
can't get them because they are already taken.
Mr. TANNENBAUM. I am not being judgmental. I am just saying,
doesn't it create a cause of friction?
Mr. SINCLAIR. I have heard of this but I have never found it.
Right now I feel that I should make three times what I'm making,
and maybe there's somebody who is doing a job like mine for three
times what I'm making. But I haven't got his job, you see, I have
mine. So one day if that job becomes vacant, and I can qualify for it,
I will apply for it. I am not going to die because he's making more
money than I'm making.
So I don't agree with that theory. I don't think that the worker in
Panama would cut his brother's neck over here because he's mak-
ing more money. He may want the job, but that's all.
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201
Mr. MAUGE. Another thing I don't think many people recognize is
that although the Panamanian worker seems--well, is earning
some wages lower than in the Canal Zone he has certain benefits
that the Panama Canal worker doesn't have. For example, low cost
housing. The Canal Zone workers cannot qualify for low cost hous-
ing, which a Panamanian worker gets at a very moderate price.
And he has certain medical benefits. He gets certain subsidies in
terms of price control, controls put on staple items when you add
that. Because I have found in a study we made among Latin
American unions where we find that Latin American unions ask for
more social benefits than wages. You will find the wages in Latin
America are low but the social benefits are high. Opposite to the
American economy where the wages are high but you are paying a
high price also for the social benefits. So sometimes you put the two
things together, I really wonder who is coming out winning or
losing.
Mr. SINcr~IR. Let me give you an example. I went over a contract
about a week ago. And from just this one item I bring to your
attention-insurance. Where the employee here pays 40 percent of
the premium on his life insurance policy, and the agency pays 60
percent. In this contract I'm talking, about each employee has a
$40,000 life insurance policy. He doesn't have to pay a nickel for
premium cost. So in Latin America a lot of people prefer not to
have the dollars and cents because this is where you pay your taxes.
They prefer to have the fringe benefits where you don't have to pay
taxes on fringe benefits. I have read-I have been through some
contracts in other Latin American countries and here's one you
people might be interested in. The question of vacation-a guy says
"I earn a salary 12 months a year, I pay my rent 12 months a year,
my car payments 12 months a year-so when I get my months'
vacation, I have no money reserved to go on vacation, because the
money is already committed. So they have contracts in the public
sector, I have seen them, where they get a month's bonus to go on
vacation. So a guy can really enjoy his vacation. For him to pay out
each month for his rent and his car and so on, then to spend $1,000
or $2,000 for travel for himself, he harms himself economically by
the time his vacation is over. The agency says, okay, in addition to
that we'll give you this additional month's pay at one time. In
Panama we're talking about 13 months. In Uruguay they have 14
months. So you talk to these guys, and you show them your wages,
and they'll say keep that. We like what we have here." So it
balances out.
Mr. MAUGE. For example the transportation cost. The worker
here has to pay his own transportation. In many of the contracts
the company pays the transportation to and from work.
Mr. NONNENMACHER. Are you really saying, sincerely saying,
there isn't a tremendous disparity between Zone employees and the
Panama City employee? The postal clerk who does the same compa-
rable job in Panama City and the Zone, that he has a wage benefit
in terms of housing or what-have-you that is comparable, and the
standard of living is comparable to that of the Zone employees?
Mr. SINclAIR. Let's use the words nearly comparable. What we're
saying here is nearly comparable. Taking wages of dollars and
cents.
95-549 0 - 77 - 14
PAGENO="0210"
202
Mr. TANNENBAUM. I don't believe it is nearly comparable and
there is, whether you are willing to admit it now for the record or
not, a tremendous disparity and I do believe that this creates a
cause of friction. We have heard there is a tremendous amount of
friction.
Mr. SINcI~IR. Who has told you this in Panama?
Mr. NONNENMACHER. Just looking behind you, the faces that are
nodding, yes.
Mr. SINcr~IR. Never mind them.
Mr. MAUGE. The people in Panama?
Mr. TANNENBAUM. With the people in Panama, there is a prob-
lem, and it is a problem that has to be faced. It is not one that can
be ignored.
Mr. SINcr~IR. Well, look. I might right now envy you gentlemen
around the table for the salary you are making as Congressmen, but
I don't hate you or question your right for making so many
thousands a year.
Mr. TANNENBAUM. You may be a unique individual in that you
don't bare any hatred or discrimination, even if it is practiced on
someone else in your favor. The point is, there are people who do
feel hatred because of discrimination of any kind.
Mr. SINcI~&IR. I don't think we have reached that point where, as
some guy said many years ago, if we were to get the minimum wage
in Panama, there would have been some sort of war between the
workers. You've had the minimum, had amendments, had in-
creases, and there's no war between the workers here in Panama,
and the Canal Zone.
Mr. TANNENBAUM. You say there is no friction at all.
Mr. MAUGE. There might be some.
Mr. SINclAIR. Every man has some envy. But I don't think we
have envy to this point, that I am going to try to kill someone
because he is making more money than I am making.
Mr. METCALFE. May I interrupt? I think what we are doing is
going over and over the same point and I think the points have been
established both from the interrogator, Mr. Tannenbaum, as well as
from your own very strong views. I think we are clear on that so if
we could, in the interests of time, proceed to other questions that
you may have. I have no intention to cut your questioning off at all.
Proceed with your questions.
Mr. TANNENBAUM. I have no further questions.
Mr. METCALFE. Mr. Nonnenmacher has another question.
Mr. NONNENMACHER. Mr. Sinclair, I was very interested in your
presentation of that concept of a special bonus for vacations. You
were not referring to Panama, were you?
Mr. SINcI~AIR. No, I was not.
Mr. NONNENMACHER. Mr. Mauge, did you say Panama has a 13th
month?
Mr. MAUGE. Yes.
Mr. NONNENMACHER. In what regard? Do you get an extra bonus
in effect? What is that for if it is not for vacation?
Mr. MAUGE. The idea is you work for an industry, the industry
makes a profit. Since you are helping to make the profit, you should
also participate in some of the benefits.
PAGENO="0211"
203
Mr. NONNENMACHER. A profit-sharing plan.
Mr. MAUGE. Right.
Mr. SINCLAIR. Actually, any employee who works is given a 13-
month, salary divided into three parts. A third in April; a third in
August, which goes to a savings bank for housing development; and
the other third at Christmas, December 15.
Mr. NONNENMACHER. Is this applicable under law to all
enterprises?
Mr. SINCLAIR. All employees. Including government employees.
Mr. NONNENMACHER. Including government employees.
Mr. MAUGE. That is right.
Mr. NONNENMACHER. I am glad you said that because I was going
to ask it. That leads to my next question. Believe me, I do not
begrudge you that, that 13th month. But does this not have some
direct bearing on the fact that the Panamanian debt is such that
almost 40 percent of the budget this year is going to debt servicing?
It raises the question of deficit spending. Again, I say I don't
begrudge you receiving this but where is the money coming from for
the Panamanian Government-you are not a government econo-
mist obviously-but where is the money coming from to pay this
extra money to government employees as a bonus which is in effect
a higher salary when you are already in debt so deeply? This is one
of the chief concerns of those of us in the States who are worried
about what will happen to the Canal Zone under the Government of
Panama when its own economy is so rocky? This is an extremely
high debt service, is it not?
Mr. SINCLAIR. Well, every country in the world owes money,
including the United States. I understand the Communist world
owes $50 billion to the Western world. This is a trend of life. If the
Panamanian worker had been earning money, rather than fringe
benefits, we can say that the 13th month would have been divided
into 12 months. I can say the same thing to you. Aren't the salaries
in the United States bringing up the hundreds of billions of deficit,
and everything. If you had the answer, I'm sure you could sell it to
everybody. But no country in the world today, that we know of, is
breaking even. And many times I ask the very same question
"where is the money coming from?" I don't know, but I believe it
will be from the United States since your country is always helping
other countries with their economic woes.
Mr. NONNENMACHER. That's why we have inflation.
Mr. METCALFE. Thank you very much.
We have used all the time for this session. I now declare a 10-
minute recess. Please set your watches and be back here in 10
minutes.
[Whereupon, the subcommittee recessed at 10:30 a.m.]
[Short recess.]
Mr. METCALFE. The hearings of the Subcommittee on the Panama
Canal will come to order.
Next we will hear from the Canal Zone Central Labor Union
Metal Trades Council, recognized to represent the affiliated organi-
zations which have individually been granted recognition.
Mr. Al Graham and the others, would you please identify your-
selves and then introduce those who are here at the table with you?
PAGENO="0212"
204
STATEMENT OF ALFRED GRAHAM, PRESIDENT, CANAL ZONE
CENTRAL LABOR UNION AND METAL TRADES COUNCIL; AC-
COMPANIED BY: WILLIAM R. DRUMMOND, PRESIDENT, AF&GE,
LOCAL 1798; AND RALPH SHEPPARD, PRESIDENT, AMERICAN
FEDERATION OF TEACHERS, LOCAL 29
Mr. GRAHAM. Mr. Chairman, I am Alfred J. Graham. I am
president of the Canal Zone Central Labor Union and Metal Trades
Council.
To my right is the president of AF&GE, Local 1798, Mr. William
R. Drummond, that is the Canal Zone Police, and also the legisla-
tive chairman of the Central Labor Union, and to my left, Mr.
Ralph Sheppard, president of the American Federation of Teachers,
Local 29.
The CLU-MTC wishes to thank you, Mr. Chairman, and members
of the Panama Canal Subcommittee, for this opportunity to express
to you our views and concerns on pressing labor matters.
1. Panama-U.S. Treaty.
The 15-point list of assurances presented to Canal Zone labor and
civic groups by Governor Parfitt fall far short of our expectations.
Some of the points raise more questions than they answer. Some
points do not define themselves in strong enough terms. Other
points speak to laws already on the books that are not policed by
the U.S. Government to the detriment of U.S. citizen employees.
Point 10 is, for the most part, a rehash of present Civil Service
regulations. Point 10 could and should be an accurate copy of the
Canal Zone AFL-CIO labor annex. We again seek your support to
assist us in securing a labor annex in any Panama-U.S. treaty.
2. Point 16.
The CLU-MTC would like to see a point added to these assur-
ances. Point 16 would state that the Panama Canal Company-Canal
Zone Government will seek legislation in the United States Con-
gress to permit priority admission to the United States of any non-
U.S. citizen employee and his family, who as a direct result of any
treaty between the United States and Panama, could reasonably
find his personal and family welfare in danger as a result of the
nature of his job while employed by the U.S. Government.
3. Harassment of Labor Representatives by the Company-
Government.
At the last regular meeting of the CLU-MTC the body voted to
send our legislative chairman, Mr. William Drummond, to the U.S.
to speak to the Congress on matters of interest to us. Mr. Drum-
mond was refused permission to do so by company-government
officials. This was the first time in Canal Zone labor history that a
very old agreement between management and labor was broken.
We wish to express our resentment toward this type of gagging. We
ask that the Panama Canal Subcommittee instruct the governor to
stop this sort of activity. It is bad enough that U.S. citizens in the
Canal Zone do not have the regular outlets such as a free press or
radio to express ourselves without the U.S. Government attempting
to stop us in our desire to speak to the U.S. Congress.
PAGENO="0213"
205
4. Fair Labor Standards Act Problems.
As you are well aware, the 1938 Fair Labor Standards Act had a
decided thrust toward the protection of the workers of the United
States. This Act was amended in 1974 to bring Federal employees
under the coverage of the law as of May 1, 1974 among other
provisions. The local administration felt that the Canal Zone area
should be exempt from the provisions of the law accordingly ap-
pealed to the Comptroller General for such a determination. In
November of 1974 he issued a ruling that the Canal Zone was
indeed intended by the Congress to be an included area.
It is the contention of this body that having received such a
ruling, the local administration should have immediately applied
the FLSA provisions and begun the retroactive compensation of
employees. Instead, some bureaucrats here chose to ignore the
Comptroller General ruling and decided to fight the law in the
courts. Obviously, the U.S. Government could not sue the U.S.
Government. Rather, the local administration withheld payment
and hoped that employees would sue for their entitlements. At such
a time, the applicability of the law would have been challenged.
We cannot stress enough that such actions were tantamount to
the impoundment of funds by the Nixon Administration--an
executive branch agency decided that it would not enforce the law
as promulgated by the legislative branch. In defense of our former
President, at least he was elected to his position and felt that he
had a responsibility to a national constituency. What defense can
these local bureaucrats have for their high-handed usurpation of
legislative power? Is it the job of the local administration to attempt
to precipitate a constitutional conflict?
It is only since November of 1976 that the local administration
has acknowledged its FLSA responsibilities-2-1/2 years late. This
change occurred not because of a change of heart locally, but
because the international leadership of one of our member unions
interceded with the Secretary of the Army. It would seem that we
should be overjoyed that we are now to be covered, but our joy has
been tempered by the manner in which the law is being applied.
The Personnel Bureau of the Panama Canal Company has seized
upon the exemption provision of the law to remove as many people
as possible from FLSA coverage contrary to the thrust of the
legislation and the specific directions of the Civil Service Commis-
sion. I quote from Federal Personnel Manual Letter No. 55-7:
"Numerous judicial J)recedents have firmly established the princi-
pies that:
"1. FLSA exemptions must be narrowly construed and applied
only to employees who are clearly within the terms and spirit of the
exemptions; and
"2. The burden of proof rests with the employer who asserts the
exemption.
"Thus, if there is a reasonable doubt as to whether an employee
meets the criteria for exemption, the employee should be ruled
nonexempt."
Apparently, the Panama Canal Company intends to frustrate the
employee's legitimate desires to be covered by the law by exempting
them and then making them appeal to the Civil Service Commis-
sion for redress. An illustrative example is that of the fire officers.
PAGENO="0214"
206
Even though the cutoff line betwen nonexempt and exempt fire
officers is clearly stated by the Civil Service Commission to occur
between company officers and chief officers, the Panama Canal
Company has exempted all fire officers and has made the company
officers appeal. In discussions prior to making the appeal, the union
representing fire officers brought forth the information that the
exemption being applied locally was not applied at any of the more
than 100 Federal installations where its international union has
locals. This was ignored. When the "reasonable doubt" issue was
raised, the response was, "There's no doubt in our minds."
It is this obstinate "make-me-do-it" attitude of the local adminis-
tration to which we object.
Chairman Metcalfe, you are aware of the police, fire and teaching
personnel's retroactivity question which you have so kindly sought
to resolve through the Comptroller General. We understand that
even though his ruling has not yet been issued, the Canal Zone
Government is expecting to have to compensate the employees
retroactively. The position of the employees has not changed drasti-
cally from that which was presented to the local administration.
Why is it that the local administration's bureaucrats refused to face
these issues responsibly when they were originally brought to their
attention?
When I speak of this frustrating and obstinate attitude, I am
reflecting also on the experiences on two other issues which one of
the CLU-MTC affiliates has had in the past year. In June of last
year, the fire officers union applied for retroactive compensation for
fire officers who were appointed to temporary promotions in excess
of 30 days. This compensation is provided for employees in the
Panama Canal Personnel Manual. Their claim was initially denied
on the basis that the appointment orders were not on the proper
form and that the employees were, therefore, only detailed to these
positions. They have countered that permission to detain an em-
ployee in excess of 30 days is supposed to be applied for in advance
and that no such paperwork, on the right form or the wrong form,
has ever been completed.
Therefore, they feel that in the absence of any of the proper
paperwork, their claim should be determined on the basis of the
available evidence. This includes, in addition to the faulty
paperwork, a statement from the fire chief that they were indeed
temporarily promoted and the fact that subsequent to their claim,
the proper paperwork has been filed and the employees are being
compensated. So where are they on this issue? After making these
points in October of 1976, they received a non-answer on January 3
and asked the questions again seeking specific answers January 27.
They still have not received a reply despite telephone requests for
one.
The second instance is even more astounding inasmuch as they
are trying to gain a benefit which is provided for by the Fair Labor
Standards Act, is endorsed wholeheartedly by the fire chief and
which can save the Canal Zone Government money. From our point
of view, it is a morale-building measure which will permit our 24-
hour workday firefighters to have a more normalizd lifestyle. It is
known as "early relief and trading of time." After the fire chief and
PAGENO="0215"
207
the union were told by the general counsel's office that applicablee
regulations did not expressly permit it, the union's international
headquarters received a determination from the Civil Service Com-
mission that the practice was, in fact, permissible. When the local
union president took this ruling to the general counsel's office, he
was told that it looked okay, but that "while `no' opinions can be
given over the telephone, `yes' opinions require a memorandum."
On March 18 the fire chief sent a memorandum to the effect that he
wanted to institute the practice in accordance with the letter from
the Civil Service Commission. As of this time, three weeks later, no
answer has been received.
As we prepare to enter the era of collective bargaining here in the
Canal Zone, we ask that you direct the local administration to quit
playing games with us and to deal with us responsibly and honor-
ably. The low morale of the workers will never be raised and labor-
management relations will continue to be strained at best until this
disrespectful attitude towards the workers which pervades the local
administration is changed.
Thank you very much, Mr. Chairman.
Mr. METCALFE. Thank you, Mr. Graham.
Do any other members wish to make a statement or shall we go
right into the questions?
Mr. SHEPPARD. I desire to make one statement.
Yesterday I understood the question came up: What do the
teachers actually want in connection with the treaty?
Well, the first thing we want to maintain high quality education
in the Canal Zone, with the fact the majority of teachers came here
with career intent in the Canal Zone. There is little opportunity at
the present time in the United States for teachers to be hired in the
majority of communities. The teachers here in the Canal Zone are
an exluded group not eligible for transfer rights to other U.S.
Government teaching positions in the Department of Defense or the
other agencies that do hire teachers. The thing that we do want is
full transfer rights to other equally qualified jobs outside of the
* teaching field, full lateral transfer rights to DOD schools in other
areas, and for teachers remaining here in case of a new treaty, we
want the maintenance of present basis of pay scale, not a lower
scale should another agency take over the operation of the school
system. We specifically want to have continued operation of higher
educational facilities such as the Canal Zone College in case a new
treaty does come in. It would not be covered under another entity
such as the Department of Defense schools.
The other thing is, I have a letter dated September 8, 1975 from
Governor Parfitt which told us there would be further consultations
between the administration and the unions when a contract ws
concluded between the Washington,D.C. schools and the union in
Washington, toward obtaining an increasing reasonable comparabil-
ity between the teachers pay scale here and their working time as
compared to the Washington, D.C. scales. An initial consultation
with the superintendent brought a flat "no" answer with the only
thing that perhaps we could submit a package. We feel the superin-
tendent of schools should be asked to negotiate or to consult with us
in good faith. V
PAGENO="0216"
208
Thank you.
Mr. METCALFE. I would like to comment on Point 2 that Mr.
Graham has mentioned. This is one of the crucial issues. This is in
regards to the easing of the admissions, a matter twice pointed out
in your paper.
Mr. Sheppard, initially to interrogate you in regards to the
present status of the teachers, you indicated there is no adequate
program established as of now for teachers who wish to leave the
Canal Zone, who, and when they leave the Canal Zone teachers
system, attempt to be employed in the United States. Did I under-
stand you correctly?
Mr. SHEPPARD. There is no provision for a teacher to transfer here
to any other U.S. Government teaching position. We are not eligible
for direct lateral transfer or transfer to DOD schools, for instance.
Mr. METCALFE. Is it because of regulation or is it because you
have not engaged in any dialogue with the Panama Canal Company
to make certain that this can be corrected so that, like other civil
service employees, engineers and the highly technical people, teach-
ers can find jobs in the United States?
You are saying that the teachers are different from that. They
don't have the same privileges, is that right?
Mr. SHEPPARD. That is correct. We are an excluded group and
under civil service regulations we are not eligible. It is due to the
fact that teachers who are hired here on other than a competitive
basis, such a the other organizations. They are hired on a fully
qualified basis rather than under a competitive basis under civil
service regulations.
Mr. METCALFE. Let's say we get into the question of quality
education. Will you give us some information on how many of the
students, if any, who graduate from the Panama Canal school
system are eligible to enter college and are qualified to do so?
Mr. SHEPPARD. There is a very high percentage. I would say in the
Canal Zone school system-- and I do not speak for the present
Latin American system where they had a track system and many of
the students entered other tracks but in the U.S. school system we
have a fully qualified system where they go through and are eligible
to compete in U.S. colleges and many, many of our students do go
there. Either through taking their first 2 years in the Canal Zone
junior college-- we don't call it a junior college, it is a 2-year
college here--the students do enter the Canal Zone College or
they go directly to college in the United States.
Mr. METCALFE. I talked to a lady last night and she indicated just
the opposite, that there is no provision where the students were
qualified to enter the United States institutions. I know of excep-
tions of course to the contrary. That is the reason I raised that
question.
Mr. SHEPPARD. Are you speaking of the two systems as we
previously had them, the Latin American system and the U.S.
system?
Mr. METCALFE. I would like to include both of them, if I may, so
we could have the distinction. I am concerned about the students. I
am concerned that they go to school and I am concerned as to
whether or not they are sufficiently educated to the point where
they can enter a school of higher learning in the United States.
PAGENO="0217"
209
Mr. SHEPPARD. I can speak for the U.S. school system is a fine
school system. The quality of the teachers is very high. The stu-
dents who graduate from that system are excellently qualified to
proceed with higher education.
Mr. METCALFE. What about the Latin schools?
Mr. SHEPPARD. I have not had the opportunity to thoroughly sit
and study the Latin schools. Under the track system, as you know,
many of the students in those schools elected tracks that led to
other than college preparation. They led into vocational training
and I have heard all of the pros and cons that have been presented.
The best knowledge I have is that this system was established in
approximately 1953 due to the fact they wanted to have a school
system which would enable those students to go into Panamanian
culture.
Mr. METCALFE. Mr. Sheppard, how is the consolidation of the
school system going? Is it going smoothly? What's your opinion?
Mr. SHEPPARD. The merger of the system appears to be progress-
ing in a smooth manner. At the present time the grades through 8
grade, the merger has taken place, although the first two that we
will have coming into junior high schools will be in September this
year. Up to this time kindergartens through fifth grade have been
merged but there was a very small number of students and teachers
involved in that part of the merger.
We certainly look forward to giving every opportunity to the
students who do come into our school system.
Mr. METCALFE. Yesterday in our meeting of the civic councils it
was proposed very strongly that they accelerate this integration
program rather than proceed on the basis of phase 1 and phase 2
progressing into phase 3.
Do you think the integration program should be accelerated?
Mr. SHEPPARD. Was that the Latin American Civic Council or the
U. S. Civic Council?
Mr. METCALFE. The Latin American Civic Councils.
Mr. SHEPPARD. I understand it was in the Latin American civic
groups - in the communities themselves there was a lot of debate as
to whether they should. accelerate this or whether they should not
and I believe at the present time the Governor has left the decision
up to the Superintendent of Schools based on the students and the
parents desires within the Latin American communities.
They would have another poll taken this coming year to deter-
mine whether there are enough students who desire to remain in
the system they are now in until they graduate or whether those
students should be given the opportunity to come into the United
States ; students-
Mr. METCALFE. Are you in a position to indicate from your point
of view and from your perspective whether or not, with your
knowledge as it exists of the integration program to date, there
should be an accelertion of the integration program or rather
should we follow the guidelines that have been established already?
Mr. SHEPPARD. I believe the guidelines as they have been estab-
lished should be followed because this gives the students within the
Latin American schools the opportunity to make their choice so
that they will move at this time or later and I understand many of
PAGENO="0218"
210
the students who are in the track system leading toward things will
be in a totally unsatisfactory program if they do change.
Mr. METCALFE. If it's accelerated.
Mr. SHEPPARD. If it's accelerated. That some of the students who
were in the 10, 11 and 12 grades at the present time will not be
given the opportunity to finish the program that they desire to
finish.
Mr. METcALFE. Do you have an opinion as to whether or not a
student must be educated by a U. S. citizen? As a recall the figures,
I believe one-third of the teachers, the Latin American teachers
hope--
Mr. SHEPPARD. I have very strong opinions on the fact that U. S.
black students should be educated especially in the social studies
areas, by a U. S. teacher, not by a Panamanian teacher, who
perhaps has been indoctrinated. I do not want to take the chance
with our students that they would be indoctrinated into a philosphy
that is foreign to our concepts.
I am speaking particularly of the social studies area.
Mr. METCALFE. I think that is very important that you bring out
as to what the various studies do and not put this on a racial basis
or citizenship basis, because you've got good teachers among the U.
S. citzens who are teachers as well as some of the Panamanian
teachers who are very good. Right?
Mr. SHEPPARD. I don't believe I heard you right.
Mr. METCALFE. I am saying that teaching experience, if it's on the
basis of the knowledge possessed, as in the social studies area where
the chosen teachers would have that background and experience
and feeling for the subject matter, provides the best qualified to
teach the various subjects, but the choice of teachers should not be
based upon nationality classification, either United States or-
Mr. SHEPPARD. I am thinking that in the areas such as perhaps
mathematics it probabably doesn't make any different who teaches
that subject based strictly on better citizenship.
We have the problem in elementary schools of the child being
exposed for a full day where undoubtedly the philosophy other than
the United States philosophy would be advanced.
Mr. METCALFE. Thank you. Mr. Graham, what is the best means
for labor in the Canal Zone to communicate with the United States
negotiators?
Mr. GRAHAM. At one time we had the idea that by reforming the
Pancom Committee which we have requested-this is an AFL-CIO
committee-which for the most part has representation of all the
different local unions in the Canal Zone, that we would use that as
an instrument to contact treaty negotiators. In other words it would
be an AFL-CIO input into the treaty rather than the local unions
struggling to do it.
It would be done actually on the Washington level with natural
backup by our people here in the Canal Zone and the professional
labor people from the AFL-CIO handling the case for us.
Mr. METCALFE. That is very similar to the testimony we pre-
viously heard where Mr. Tal Simpkins of the National Maritime
Union has indicated that they wanted to be participants and
negotiators.
PAGENO="0219"
211
Do you concur in that thinking?
Mr. GRAHAM. Yes, very much. I would like to see a member of the
Pancom Committee in fact on the negotiating team whether it be
the Chairman or someone else in this committee.
Mr. METCALFE. How are the collective bargaining talks between
labor and the Canal Company going?
Mr. GRAHAM. We have a problem with that. The Secretary of the
Army has not appointed someone to take Mr. Veysey's place so as a
result the Canal Zone Civilian Policy Coordinating Board cannot
meet. As it is a collective bargaining issue for the Department of
Defense as well as the Panama Canal Corporation -the Canal Zone
Government issues-everyone down here in those agencies has to
agree to the collective bargaining proposals that we have put to the
company government and the military, and that is what has
stopped right now, waiting for somebody to become the chairman of
this committee so that the company/government and the Depart-
ment of Defense can present them with our collective bargaining
proposals.
Right now we are sort of in limbo waiting for something to
happen.
Mr. METCALFE. Thank you. I yield to the gentleman from New
York, Mr. Zeferetti.
Mr. ZEFERETTI. Thank you, Mr. Chairman.
Mr. Sheppard, if you would, it is the history of Civil Defense, that
under the merit system, never to accept any lateral entry of anyone
going from one branch to the other, be it teaching positions or
anything else.
Do you have any support from the civil service groups, even
under the umbrella of the National Teachers Association; or any
other group to give you support for that kind of lateral entry under
the civil service umbrella?
Mr. SHEPPARD. Speaking within the same field, the teaching field,
I believe there is precedent. In fact, that when areas or jobs are
done away with on a reduction-in-force that a stopper list has been
established and people have been hired from those stopper lists
prior to any new recruitment from outside of the services.
The talks have been negotiated by the schools here with the
Department of Defense where they have indicated it is possible that
they will give cnsideration to teachers here prior to recruitment.
The thing we would like to do and get your support in is an
additional little push from outside so it becomes more, if possible, a
mandatory thing that they consider the teachers here prior to
recruitment.
Mr. ZEFERETTI. Did the other teachers' organizations back that
kind of movement, for the national teachers' groups?
Mr. SHEPPARD. Yes, the American Federation of Teachers, the
National American Federation of Teachers does back the position
that we should get initial consideration.
Mr. ZEFERETTI. Thank you. Mr. Graham, maybe you can give me a
little bit of insight in to the area of your negotiations, so that some
of the points you bring out here and some of the opposition you
have had even to comply with law.
PAGENO="0220"
212
Which local government did you negotiate with? How is that
done? What is the structure of the Army?
Mr. GRAHAM. Normally it is kind of a slip-shod situation. Nor-
mally it is the personnel bureau we deal with, or Mr. Simoneau the
labor management specialist with the Governor, and we will bring
up those things. Occasionally we have meetings with the Governor,
actually, shirt-sleeve meetings, and we present our problems to him.
This, in one way or another, will get the ball rolling. We won't get
an answer at all or we will get some kind of an answer. On big
issues like the FSLA, of course, and the coordinated federal wage
system, we seem to run into blockades. If any of these things are of
financial benefit to the employee.
We are not asking that the United States Government become
crooked and pay us something we don't have coming, but when we
have it coming we want it and we don't understand why it takes 2-
1/2 years for this agency to do something that the Federal Govern-
ment and the United States has already done and accomplished.
Mr. ZEFERETTI. Do you have an appeals board? Do you have
anybody you can go to, other than the structure that's already in
place. In other words, when you were refused, under the law, did
you have a place to go, could you write to somebody, or could you
visit anyone?
Mr. GRAHAM. We get opinions from the commission; we get
opinions from the Comptroller General. Then, of course, if you want
to get really wild you can get a member and make him a grievance
and go through a Canal Zone board of appeal type situation and
hope you can get some kind of a class action-which, of course, is
ridiculous because nobody is ever going to do it. So really it is very
difficult, particularly without a collective bargaining posture, which
we don't have.
Mr. ZEFERETTI. There has been a change since 1974. What do you
do when there is a change in the people who do the negotiating? In
other words, this goes back to 1974 when there was different
Governor, I don't now whether you were here then or not.
Mr. SHEPPARD. We would do it through the personnel bureau
which is normally a constant operation here in the Canal Zone.
They would be the ones who would make up their minds whether-
Mr. ZEFERETTI. My point is, sir, that they continued to refuse the
acceptance of review under the law at that time and there was a
continuity from one director to the next.
Mr. GRAHAM. The director remains the same. You could say from
one governor to another.
Mr. ZEFERETTI. From one governor to another or to the next?
Excuse me.
Mr. GRAHMN. You see it is not always the governor's fault. These
things zero in on the General Counsel. It always seems to end up
there and that is where it dies.
You can pass a law-for instance the Federal Wage System by
Congress specifically excluded the Canal Zone. It stated that right
in black and white. But this man will take this law, because it is
going to result in a down-grading of 1,300 people, if he can get away
with it, and find nowhere in there that it says that you can't do it
administratively, so that is how we do it.
PAGENO="0221"
213
Then you have the FSLA, which says you must do it, but he will
nitpick every bloody sentence in there to see if somewhere we can
stretch it to include people who shouldn't be included in the
exemption policy or what can we do in general to delay the whole
operation?
Now, imagine the expense of this to the company? You owe 2-1/2
years of retroactive pay and the employees are going to start
screaming, so we have to pay a bunch of accountants overtime to
run the computer to pay people you should have been paying in the
first place, and you would have saved money right off the bat. So it
goes on and on and on.
Right now we have the D.C. problem here. For years we have had
a very generous agreement with the Washington, D.C. office for the
school teachers and so on like that. They come into a City Govern-
ment in D.C.
"Barn, there's the paragraph I have been looking for, by God. Now
I can stop them from getting that money."
Mr. ZEFERETTI. It seems to me though there would have to be
some sort of mechanism put into place to enable you to have a place
to go, whether it be the Governor's office direct or another appeals
board system.
Mr. SHEPPARD. We can go to the Governor's office and as Con-
gressman Metcalfe can tell you we quite often have to go to him.
The Panama Canal Subcommittee in fact in the last few years
has been the only thing we can do to apply pressure to get us things
we actually do deserve.
Mr. METCALFE. I regret exceedingly that because of the number of
witnesses who must testify, to give us a chance to interrogate, that I
will have to now invoke the five minute rule.
Proceed.
Mr. ZEFERETTI. One more question, Mr. Chairman.
It is a question of Mr. Drummond's denial to speak before the
Members of Congress, as the legislative chairman of your particular
group. I would think he would be the proper person to come down
and give that kind of testimony.
What was the reason given for his refusal?
Mr. GRAHAM. Mr. Drummond is right here.
Mr. ZEFERETTI. I am directing it to any one of you who wants to
respond.
Mr. DRUMMOND. Congressman Zeferetti, when this thing was
brought up there was a lower level indication to me, in which I
appealed the decision not to allow me to go to the States, that the
Company/Government had been more than generous in the past, in
my individual case, in giving me leave to go to the States, either
extending leave when I didn't have it or giving leave without pay or
some similar type provision.
I strongly emphasized that I wasn't acting as an individual, I was
acting as a representative of the employees and that it was a case
with this particular committee, or subcommittee, which was of the
Appropriations Committee, that there was a great need for the
employee to be represented there.
Mr. ZEFERETTI. Excuse me. Was your group asked to come down
and testify or send a representative to testify?
PAGENO="0222"
214
Mr. GRAHAM. The legislative chairman had indicated to the body
that he had requested to testify. He came before the body. The body
approved his going.
Mr. ZEFERETTI. Go on. I'm sorry.
Mr. DRUMMOND. At the Governor's level and also at the lower
level I indicated there had been a mix-up in the person who was
going to testify. One of the witnesses, a man by the name of Philip
Harman, and myself, were being evaluated, one or the other, and
during the conversation with the committee counsel or committee
assistant, it seemed to me apparently that Mr. Harman would
testify.
I indicated to the Governor then that there was a mix-up there
but it was not an overriding problem, and so I requested that I be
allowed to participate in this hearing.
Mr. ZEFERETTI. Who chose Mr. Harman?
Mr. DRUMMOND. I believe the assistant counsel of the subcommit-
tee for Mr. Long did.
When I arrived in Washington, D.C. the problem was resolved by
allowing Mr. Harman and myself to testify.
Mr. ZEFERETTI To come back over here?
Mr. DRUMMOND. Yes. In any case the issue was, either resigning
or going AWOL in order to testify. I strongly indicated to the
Governor that considering the fact that you have got taxpayers here
that should be represented, and they are not being represented,
certainly the agency is not going to represent them on this particu-
lar matter which happened to be human rights, I felt a vested, stong
indication that I should go to the States, regardless of whether or
not the Company/Government gave me permission to go.
I had two choices to make, either resign or go AWOL. I chose to
resign to go up there. I felt there was a great need there and-I
resigned.
The Company has now said that since I performed duty subse-
quent to submission of the resignation, I withdrew it. I withdrew it.
Now, it is my understanding I am going to be charged AWOL for
that period of time that I was off the Isthmus and the day I got
back.
Mr. ZEFERETTI. You say under your agreement they gave you the
right to have these type of individuals go down and testify?
Mr. GRAHAM. Oh, yes. The metal trades has had this with the
Panama Canal Company since 1913. It has never happened before.
As legislative chairman that is his job. He is our lobbyist and when
the body votes to send him up the company has never ever re-
stricted his activities and we have had people up there over a year
straight in the past off the Isthmus and have never had any trouble.
Mr. DRUMMOND. I would like to extend further that there was a
protest that was going on for several weeks, and the whole
Company/Government knew that I had every intention of going up,
from my supervisor on up.
The Labor Management Relations man was informed a week, two
weeks before.
Mr. SIMONEAU. Let the record show three days.
Mr. DRUMMOND. I am not talking about formally; I am talking
about informally.
PAGENO="0223"
215
Mr. ZEFERETTI. I don't want to take up any more time, but I will
speak to the Governor and to the people. I would just like to find
out a little bit more.
[The following information was provided by Mr. Drummond:]
April 17, 1977
STATEMENT OF EVENTS SUMARIZED BY WILLIAM R. DRUMMOND
BEFORE THE HOUSE PANAMA CANAL SUBCOMMITTEE ON APRIL
1~J, 1~77 IN BALBOA, CANAL ZONE; ACTIVITIES THAT LED
TO MY RESIGNATION FROM THE CANAL ZONE GOVERNMENT.
1. In February 1977, while inWashington, D.C., I had been
informed that the House Appropriations Committee, Foreign
Assistence Subcommittee, had intentions of holding "Human
Rights" hearings in March of 1977.
Because I was to shortly return to the Canal Zone, I did
not then directly contact the Staff Coun~l of that Sub-
committee on this matter. However; I was able to con-
firm that these hearings would be held, and I made ar-
raingements to contact the Subcommittee indirectly.
2. Upon my return to the Canal Zone, I telephoned the Sub-
committee's Staff Assistant, Mr. Donald E. Richbourg,
who instructed me to write to the Chairman for an invit-
ation. I did so soon after making this telephone contact.
3. I set about informing various members of the Police Union
that I intended to testify on this matter, and my reasons
for the merit of this action.
I informed several members of the Central Labor Union, and
several U.S. and Non-U.S. Canal Zone *Civic Council leaders
of the importance of these hearings, and I indicated tbat
at least one Civic Council representative should also at-
tend these hearings.
PAGENO="0224"
216
-Page Two-
L~, I held a C.L.U.-M.T.C. Legislative Meeting, to report on
my activities in Washington D.C. and I also brought out
the fact that this hearing was to be held, and the merits
of attending it.
5. In Mid-March 1977, The Canil Z~one Governor formally pre-
sented a list of labor issues to the Canal Zone Labor
Unions. One day after this event occurred, the Canal Zone
Balboa District Police Commander, M.P. Gordon, held a
meeting on this subject at the "Police training center'.
I attended and spoke at.that meeting. I clearly brought
out at that meeting that I intended to testify, along with
several "Panamanian exiles" at this hearing in Washington.
6. Soon thereafter, the Canal Zone Police Union held a meet-
ing to authorize my departure to Washington during the
time that this hearing was to be held.
7, Also after the Canal Zone Governor had presented his list
of labor issues; the Central Labor Union-Metal Trades
Council held a meeting and voted to support me at these
hearings. I clearly brought out in this meeting that I
would have no problem testifying. (Just prior to sub-
mitting my request to the C .L.U. -M,T . C., I was informed
by Mike James, a Director of the Canal Zone Public In-
formation Corporation, that Mr. Phillip Harman had been
selected to testify at these hearings. I informed Mr..
James that for various structural reasons Mr. Harman
could not ideally represent the various labor and civic-
council units within the Canal Zone on this matter. I
further assurred Mr. James that th~ problem would be
easily resolved when I got to Washington, D.C.)
I also gave this same assurance to the members of the
C.L.U.-M.T.C. prior to their voting on this trip.
PAGENO="0225"
217
~Page Three-
8. At a Local 1L~, A.F.G.E., where I was an invited guest,
I again brought out that I would testify at this hearing.
9. Also, soon after the Governor released his labor paper,
I discussed this hearing matter with the labor relations
specialist for the Governor, Mr. P. Simoneau. Mr. Simoneau
has indicated that I am in error in recounting this meet-
ing. I see no need to argue the issue.
The point that I make is that prior to submitting formal papers
requesting leave in order to attend these hearings, Canal Zone
Mana~gement was fully aware that I was going to the States to
testify at these hearings, not as an individual but as a rep-
resentative of labor.
1. On March 23, 1977 I submitted a formal leave request for
March 27, 1977 through April 8, 1977.
2. On March 25, 1977, my leave request was turned down. I
immediatly set about appealing this decision up to and
including the Governor.
3. At the level of the Lt. Governor on down I was informed:
a. The agency had, over the last several years,
been more that fair in granting me leave in
the past.
They had indicated that my activities in this
regard were causing a disruption in proper or-
der within the police division and that a line
had to be drawn sometime.
They had indicated that I had not been invited
95-549 0 - 77 - 15
PAGENO="0226"
218
-Page Four-
at these hearings.
b. I in turn, informed these supervisors that I
was not acting in the capacity of an individ-
ual but rather as an elected representative
of the police union and the Central Labor Union-
Metal trades Council.
This matter was of extreme importance to all
Canal Zone employees and the Congress as well.
Mr. Harman could not speak for labor in the
Canal Zone and that this problem could be
easily resolved when I got to Washington.
L~, The Governor repeated much of the same position that I
had been told by his subordinates and further stated:
a. Aftet this matter had been fully staffed, he
had made the decision not to grant my leave
request.
b. He emphasized that there had been no outside
influence in this matter.
c. He suggested alternate ways in which he felt
I could present my views at this hearing
When I spoke to the Governor I repeated the above and
stated:
a. Even discounting all of the above the residents
of the Canal Zones as tax-payers, had a right
to ensure that their view, given its best face,
was presented to the Congress.
PAGENO="0227"
219
-Page Five-
b. I brought out the extreme importance of the
jurisdiction and jubject matter of this sub-
committee hearing.
c. I stated my strong belief that my duty, as a
government employee was to the U.S. tax-payer
first and to the agency second and that any
further action that I may take on this matter
would be based on that premise.
6. On the 26th of March 1977, I submitted a copy of my resig-
nation to the Lt. Governor at his home.
7. Soon after I took this action, I met with the President
of the C.L.U.-M.T.C., Alfred Graham, and several other
Labor and Civic leaders; all of who admonished me for
taking the action that I did. They demanded that I with-
draw my resignation and that I report for work that same
night. I was informed by Mr. Graham that the C.L.U.-M.T.C.
had a long standing agreement on this matter, and that if
allowed to stand, I would be the first representative in
the history of the Canal to be refused this courtesy. He
further stated that this action would severly damage the
Canal Zone Labor movement.
I agreed to return to work that evening and requested Mr.
Graham to contact Mr. Simoneau and inform him of my in-
tentions.
8. On March 30, 1977, after discussing this matter and the
content of my presentation with Mr. Donald Richbourg, I
was invited to testify at these hearings.
9 * On April 11, 1977, I met with Police management and, the
Civil Affairs Director, Mr. Cotton.
PAGENO="0228"
220
-Page Six-
At this meeting, I was formally told that the Governor
had set my resignation aside because it was unclear of
my intent, and that I was being carried in the statuse
of leave without pay until my return to the isthmus.
(A.W.O.L.) I was further informed that I would be charged
administratively for the time period that I had been absent,
unless I reaffirmed my intent to resign. I was given un-
til Thursday, April 14, 1977 in which to make a decision.
10. On Thursday, April 14, 1977, I returned to my position
as a Canal Zone Policeman.
Respectfully submit d,
William R. Drummond, Chairman
Legislative Corrirnittee
Central Labor Union-Metal Trades
Council.
Chairman, House Appropriations Subcommittee
cc; Chairman, Panama Canal Subcommittee
President, C.L.U.-M.T.C.
PAGENO="0229"
GEORGE H. MAHON. TEX.
Mr. William R. Drummond
P.O. Box 1994
Balboa, Canal Zone
Dear Mr. Drummond
This is in further regard to your reque~t of Chairman Long that
you be given an opportunity to present testimony to the Subcommittee
on Foreign Operations Appropriations.
The Subcommittee plans to hear public witnesses on Wednesday,
March 30, 1977. Due to the Subcommittee schedule and the large number
of witnesses requesting to appear, we are by necessity limiting each
witness to ten minutes.
In light of the brevity of your proposed appearance before the
Subcommittee and the previously scheduled appearance of Mr. Phillip
Harman, we recommend that you submit a prepared statement which will
be inserted in the record at the appropriate place.
Sincerely,
~ ,2JL7
Donald E. Richbourg
Staff Assistant
Foreign Operations Subcommittee
221
2~A~LJ~J ~
Congre~ of the ~Aniteb ~`tate~
~ou~c ot 3L~epre~entatibc~ jc
Etommittee on ~ppvopriation~
~ ~ 20515
March 23, 1977
PAGENO="0230"
222
Box 1090
Balboa, Canal Zone
March 26, 1977
To: Governor Horold. R. Parfitt
Through: Canal Zone Police Division
Dear Governor Parfitt:
Please be assure~ that I have taken into very serious consHe~'ation
our conversation regard.ing ey request fir tise-off to testify.at the
Huean Rights Heerin~s in Washington, a iatter of greet concern to rosHe~
in the Canal Zone.
As you k~iow, I e~4e a oouoitcent to the Canal Zone Central Labor Unit
the Canal Zone Police Union en~, sore recently, to a weul&-bo refu~oe fr~*
Paneea to represent their interests at these hearings. Delegat~s to the
Central Labor Union, for instance, gave their unanisous consent that I H
ropresent that organization as its Legislative Chairean. And. whereas th~
U.S. Governeent cay lightly consHer the life of the aforeeentione~
Pana~nian, 1 cannat. Moreover, thirteen years ago I took an oath to
the U.3. taxpayer first, the Agency seeon~, an~ sy fa,ily an.~. so thlr~. P
belIeve ac, therefore, when I state thot I cannot, in ~oo4 faith, 4eviet,~
fros that oath or froc the coe~iteents eentjone~.
I oust reluctantly sub~itto you ~ resignation effective 11:00 P.~1.
of March 27, 1977. I a~, however, that I expect to return to the C~nn1
Zone on or about April 8, 1977, when I shall definItely apply for re-
instatecent to oy present position in the Canal Zene Police. I sinccrei~'1
hope that you will favorably oonsi~er cy apo1icatI~n,
It sheu]A go without saying, sir, that labor offte~als. and. civic
council 1ea~ers are very `iwet cequainte~ wLth the extre~e pressur~ nrsse
being applied to negate the ~evistating thruet of these hearings, in-
olu~ing even the seall part that I eight have in testify1n~. With sincer
respect, therefore, for your past eons~Aerat1ons, I reocin
Sineerely yours,
W1lli~ 8.. Druonor~.
cc: Se~stcr J355C Heles
Congre~s~a-i Clarence 0. Long
Con~ressean John M. Murphy
Congrossian Ralph H. Metcalfe
Congre~ssan Daniel Flo~
Mr. Alt'ree~ J. Grehai, Pres,, C.Z. Central ~ber Union
Mrs. Patrteia Fulten, Pr~zi~ent, Pa~Ifjo-si~e.:C~v~o Councils
Mr. Ralph Shepoer~, Pros. AFT Local 29
PAGENO="0231"
223
Canal Zone `C&~r~uT~L~abor Union
and Metal iirades council AFL-CIO
Box 47f~,Ba1boa ~Heigf~s, C. Z.
April 21, 1977
William R. Drummond, Chairman
Legislative Committee
P.O. Box 1990
Balboa, Canal Zone
William F. Kessler, Chief
Canal Zone Police Division
P.O. Box M
Balboa heights, Canal Zone
Dear Chief*
Your letter to me dated April 20, 1977 proposing to discipline
me is in violation of P.C.P.L regulations Chapter 751, Sub-'
chapter 2, section 2-1~d.
Since the action in question that I took was given to me by
right of the Congress of the United States, I have decided to
file an tmfair labor practice against the Company/Government.
I make the above statements so that you as a Company/Government
official may be put on notice of my rights and the administrative
action that I am taking to protect those rights.
* Sincerely ours,
~L~i ~
William R. Drummond
PAGENO="0232"
224
CANAL ZONE GOVERNMENT
CANAL ZONE
Balboa Heights, Canal Zone
EN REPLY REFER TO: May 3, 1977
CAPL
Officer William R. Druinmond
Through: District Police Comm
Balboa Police Station
Dear Officer Drummond:
My letter of April 20, 1977, which you received on April 20, 1977,
notified you of my proposal to suspend you from duty without pay for
five (5) workdays for unauthorized absence from duty.
You were advised that you had ten (10) calendar days in which
to answer the charge, either orally or in writing. You chose not
to respond. I have reviewed all the evidence as outlined in the
proposed letter, and I find the facts fully support your suspension.
It is my decision, therefore, to suspend you from duty without pay
for five (5) workdays, effective May 12, May 13, May 14, May 15, and
May 17, 1977.
You have the right to appeal this decision at any time after
receipt of this letter but not later than 15 calendar days after the
effective date of the suspension. Any such appeal must (a) be in
writing, (b) be addressed to the Civil Affairs Director through me,
and (c) state specifically the facts upon which your appeal is based.
You may submit affidavits, statements or other evidence in support
of your appeal.
A copy of this notice and all related documents shall be placed
in your of f3~ial personnel folder.
Please acknowledge receipt of this letter by signing, dating
and returning the enclosed copy.
Sincerely yours,
W. F. Kessler
Chief, Police Division
PAGENO="0233"
225
Canal Zoné~ ikil~itabor Union
and Metal !Trades coun~ii, AFL dO
Box 47l,~Ba1boa ~Heights, C. Z.
April 21~ 1977
William R. Druminond, Chairman
Legislative Committee
P.O. Box 1090
Balboa~ Canal Zone
Gordon~i. FrickD Director
Personnel Bureau
P.O. Box ~I
Balboa Heights~ Canal Zone
Dear ~Tmr. Prick:
It is with deep regret that I lodges through this 1etter~ an
"Unfair Labor Practice' against-the Canal Zone Government based
upon the following P.C.P.L regulations:
711.~'2a The Conipan Government shall not:
(1) Interfere with~ restrain, or coerce
an employee in the exercise of the
rights assured by this chapter~
(6) Refuze to consult with a labor
organization as required by this
PAGENO="0234"
226
* ~Page Two-
* chapter..
Specifically pursuant to chapter 711, Subchapter ii', sub-
section 1~~3 (Consultation Procedure)
a. ~n_consu1tation sha1L~cc~.
~Th~ior_to establishing or ~p~ifying_aT1ypp~~ or procedure
that is w nith ~ manag-
ment shall initiate consultation with labor organizations that
have been granted recmgnition in the unit(s) of recognition
involved ,--~-" (emphasis added)
Those areas affected under section I4~1. ares
(3) Labor-~anagement Relations
(6) Leave Scheduling
(7) Prodedures for handling grievances and appeals
from adverse personnel actions.
On March 25% 1977, acting as the Legislative Chairman of the
Central Labor ~ion~I~eta]. Trades Council, I was refused the
right to `~léave'~ in order to testify at a Congressional Hear-
ing scheduled to be held in Washington, D.C. on i~arch 30, 1977.
On April 20, 1977, I received notice that the Company/Govern-
mont has proposed to d±scipline me for asserting the above right.
As you lnxow, the Company/Government has a long-standing agree-
ment with the C,L.U.-M.T.C, in granting its representatives
leave in matters such as these. No prior consultation was
made in the repudiation of thIs agreement.
Further; soon after exercising the above right, it iS fl~ under-
standing that labor and management entered Into a subsequent
agreement. to resolve this matter to the best interest of both.
The action taken by the Company/Government on April 20, 1977
has repudiated thIs subsequent informal agreement. (I repeat
PAGENO="0235"
227
-Page. Three-
that it was management and not labor that broke this agreement.)
uk'. Frick, I wish -to point out I have used the term "right"
rather than "privilege" for the simple reason that by statute
the Cop y/~overnmcnt c~mnot refuse ~r Canal Zone resident
from presenting a grievance -to the "Govei~rirnent", the Congress
of the United States, regardless of whether that individual
has been requested or not, In ny case the facts speak for
themself; I.did testify at the hearing in question.
I base -this assertion on the Canal Zone Code, Title 1, Chapter
3, -Personal and Civil Rights
section 31. Rights ~nd guarantees
(3) "I~ws abridging the freedom-of speeoh~
---and petition the Government for a
redress cf greivances are ~ (em-
phasle added)
I wish to further assert that pursuant to P,C.P.M. regulations
Chap-t$r 751, Subchapter 2. ~
section 2~4
a. "DIsciplinary action shall not be taken
in any case where the sole basis for
it Is the employee's exercise of
rights granted by law or regulation."
For the Co~ipany/~overn~snt to now propose disciplinary action
against me f or exercising a right given me by statute, they
not only deny me the rights given me by the agency, but they
also deny me the rights given rime by the Congress of the United
States.
I am requesting that you sue your offioc to effect the following
1. Set* this disciplinary action aside; and
PAGENO="0236"
228
~Page Poiir~
2. Formally include the above rights in the
P.C.P.M. (labor~nanagemem~t chapter) so that
other Canal emnployees will not be faced
with the same problems that I have; and
3. I be given two days adinthistr~ative leave
for the tine that I arent testifying before
the A~~ropriations Committee, and April 11,
1977, the date that I met with Canal Zone
management formally on this matter.
Th~ic1osed is a more detailed swnmary of events regarding this
matter.
Sincerely yours~
2~LV ~
William R. Drurmnond
IP~i7Li2ii
PAGENO="0237"
229
G~ c~I- c~ 9~( ~/.
March 28, .1977
The Honorable Harold W. Parfitt
Governor, Canel Zone
Balboa Heights, Canal Zone
Dear Governor Parfitt:
As elected leaders of U.S. citizenn in the Canal Zone, we are most
concerned that our people be represented competently arid responsibly
in local issues, ard where possible, he represented in Washington, D.C.
as well. .
William Drummord was given the opportunity to represent us in the
presentation of documented testimony in Human Rights hearings now being
held in Washington. We believe that the denial of his request for
leave without pay was the direct result of pressure from the State
Department. This non-elected body of individuals consider Mr. Drurriniord
a source of irritation in Canal treaty matters because he presents
documented views that do riot jibe with their own views on Panama and the
Canal treaty. . .
We believe that Mr. Drunimond~s hastily submitted resignation was
a result of duress; he felt he had a duty to perform in representing ps
as the Human Rights hearings and yet he did not want to be AWOL while
in Washington. In view of the fact that Mr. Drurnmond went to work after
submitting the resignation and that he did not sign an official resig-
nation form, we believe his resignation should be negated. In addition,
we request that he be placed ori `leave without pay" ~tatus, something
that is granted to other less controversial employees without incident.
Our people believe in free speech and the free discussion of all
sides of an issue. The State Department in this instance has attempted
to stifle what they consider dissent. If their bureaucratic meddling
is effective in this instance, in order to be rid of an "irritant", we
will take this matter to the Legislative Branch of our government.
In the meantime, as word of Mr. Drun~mond's being refused leave
is in circulation, you can expect serious repercussions among the
already restless Canal ~orkforce. ... .
PAGENO="0238"
Respectfully submitted,
2
230
Harold B. Green, Jr~~
President, Gaxnboa C~i4ic Council
Cc: Seriatc'r John McClellan
Senator Strom Thurmorid
Senator Jesse Helms
Congressman John Murphy
Congressman Ralph Metcalfe
Congressman Gene Sny~ier
Congressman Robert Dornan
Congressman Daniel Flood
Mrs. Patricia Fulton
President, Pacific Civic Council -
c~
PAGENO="0239"
231
Public Witnesses - March 30, 1977
Room 11-303
* Time * Remarks
1. Norris Amita.~ 10:00 A.M. Executive Director, American Israel
Public Affairs Committee~
2. Wallace Campbell 10:10 A.t1. President-Emeritus, Foundation for
Cooperative Housing, International
3. William Cotter 10:20 A.M. President, The African-P~nerican Institute
4. }~enneth Macten 10:30 A.M. Chairman, Advisory Coranittee on Overseas
Cooperative Development
5. Lois Van Valkenburgh 10:40 A.M. Executive Secretary, Citizens Coranittee
for UNICEF
E. Carl tiarcy 11:00 A.M. Attorney, Representing U.N. University
7. Pt~iilip Harrian 11:10 A.M. Director of Information, Canal Zone Non-
Profit Public Information Corporation
8. John Bullitt 11:20 A.M. Treasurer, New Directions
9. James Morrell 11:30 A.M. Associate, Center for International
Policy
10. * Chris Baker * 1:40 P.M. Director, Planning, Credit Union
National Association, Inc.
11. Human Rights 2:00 P.11.
12. Alan Rubin 2:40 P.M. President, Partners of the Americas
13. Rev. Collins 2:50 P.M. Office of the President, Special
Assistant for Federal Relations,
Georgetown University
14. Carmen Votaw 3:00 P.M. Overseas Education Fund, League Of
Women Voters
15. William Drurnmond 3:10 P.M. Chairman, Canal ZoneCentral labor Union -
Metal Trades Council Legislative Committ~~
PAGENO="0240"
232
It seems a little incredible to me.
Mr. DRUMMOND. I think it is, too. I feel that these employees have
a right to be represented.
Mr. ZEFERETTI. I don't think you should have to pay the penalty
for being legislative chairman of an organization. I don't think
there should be a penalty imposed on you if you represent United
States citizens here.
Thank you, Mr. Chairman.
Mr. METCALFE. Thank you, Mr. Zeferetti.
The gentleman from Indiana, Mr. Hillis.
Mr. HILLIs Thank you, Mr. Chairman. To save time I would like
to request that the Governor and his representatives be given an
opportunity to submit for the record a written position of their side
of the issue.
Mr. METCALFE. I don't know whether the Governor heard you, but
you are making a request for unanimous consent that the Governor
have an opportunity to give a written response to this question
involving Mr. Drummond's trip.
Mr. HILLIs. Yes, to present their side.
Mr. METCALFE. Unless there is objection it will be so ordered.
[No material was received at time of printing.]
Mr. HILLIs. Mr. Graham, I have a question:
On point 16 which you brought up, which is a human rights point,
as I understand it, perhaps you don't know, but how many people
do you believe would actually be covered by this, or might seek
priority admission to the States on this basis?
Mr. GRAHAM. Our biggest concern here was the Canal Zone police
who are affiliated with the Central Labor Union and Metal Trades
Council. These people at the present time are being called traitors. I
think there is a word called "venda patria" or something of that
nature, as a result of their jobs with the Canal Zone policemen.
As a result of their jobs as Canal Zone policemen, with the
emotional issue over sovereignty, these people are in completely bad
shape. If the United States leaves, it is very likely that these people
could face a little bit of trouble.
Outside of the police department there may be others but that
was the crux of our argument here, it was the Canal Zone police.
Mr. METCALFE. Thank you.
Mr. Modglin.
Mr. MODGLIN. Just one question, Mr. Chairman.
Do you concur with the other groups of organized labor who have
excepted themselves from this concept as presented in the assur-
ances of some guarantees for United States citizens and other
guarantees for non-U.S. citizens?
Mr. GRAHAM. We always support guarantees for all employees.
There is no question about that. Whatever guarantees are given to
one, if it's legally possible, should be given to the others.
Mr. MODGLIN. That is all, Mr. Chairman.
Mr. METCALFE. Thank you. Mr. Nonnenmacher.
Mr. NONNENMACHER. Thank you, Mr. Chairman.
I would like to address a brief question that I hope Mr. Drum-
mond can briefly answer, in view of your restrictions on time, Mr.
Chairman.
PAGENO="0241"
233
To put the question generally on an earlier point I raised on the
subject of Communist infiltration in the labor movement on the
Isthmus, in the Canal Zone or in the Republic of Panama, could
you, Mr. Drummond, give us what your personal opinion is-not
your opinion but the facts that you may have ascertained in your
duties as a policemen. I don't mean confidential material. Both as a
member of the police force, and as a member of the labor movement
in this area, do you have any knowledge of any extensive Commu-
nist infiltration into the labor union movement, any labor organiza-
tion, any labor union whatsoever?
Mr. DRUMMOND. I cannot give a precise figure on the infiltration
of the Communist movement in Panama in the labor forces. I feel it
is extensive, based on my experience in the labor force for five
years. I believe that the Minister of Labor, Mr. Ahumada, is
considered to be a Communist.
I don't know if he is a professed Communist. In the banana region
of Panama it is a well known fact that it is deeply infested with
Communists. I have been given quite a bit of information, some
formal, some informal, that the Communist movement is increasing
in Panama and I assume it is also increasing in the labor move-
ment, and I am talking about both formal and informal
documentation.
I would be glad to furnish a later date to the committee if they
care to have it inserted in the record.
Mr. METCALFE. I think it very important Mr. Nonnenmacher,
that this matter be included because his answer is only his opinion,
and it needs to be documented.
Let the record show we will welcome such substantiating testi-
mony from you, Mr. I)rummond.
Mr. NONNENMACHER. I would only like to add an addendum to
that request. The former chairman of the full committee, Mrs.
Sullivan, was quite concerned with any Cuban influence anywhere
in the Republic of Panama, and I would ask if you have any new
iformation in that area, if you will provide that also.
That is the only question I have.
Mr. METCALFE. It is so ordered unless there is objection.
[The information referred to follows:]
95-549 0 - 77 - 16
PAGENO="0242"
234
April ~ 1977
STATEMHET OF WILLIAM R. DRUMMOND
LEGISLATIVE CHAIRMAN OF TifE C.L.U.-N.T.C.
MADE TO
THE HOUSE PANAMA CANAL SUBCOMMITTEE
IN RHEPONSE TO THEIR INQUIRY OF COMMDNIST INFLUENCE IN THE
PANAMA LABOR FORCE.
Dear Hr. Chairman:
in replyto the subcommittee's request to supply them further
information on the Communist movement in labor in the Republic
~f Panama, I have enclosed the following analysis
At the Panama Canal Subcommittee hearing held on April 13, -
1977, in Balboa, Canal Zone, I stated that the Minister of
Labor and Social Welfare, Adolfo Ahumada, was a well known
Communist and that, in the area of the banana plantations, the
communist movement is known to predominate.
I further stated that this movement ham been progressive over the
last eight years, becoming more and more viable.
To be sure, only a very small percentage of the labor force in
Panama can honestly be considered idiôlogica]. communists. Even
less can be recognized as professed communists, This is due to
the fact that the vast majority of Panamanians are anti-communist.
This being the case, you may wonder how it is possible for the
communists to have control of a large protion of the labor force
within the Republic?.
The answer is simple. They offer the employee a better deal and
for the last pJ.~ht years they have been able to come through on
PAGENO="0243"
235
their promises. The communists have, since 1970, taken up each
labor benefit, before it was implemented, as their own, preempt-
ing their competition, and they have had the full support of the
Minister of Labor, in liege with Romulo Escobar Betancourt, Spec-
ial adviscr to General Torrijos, and Juan Materno Vasquez, Chief
Justice of the Supreme Co~irt, to help push the government into
implementing these benefits. In several cases, along with the
Ex-Llinister o~-~La~or, Dr. RolandO ~urgas and author of the new
labor code, Minister Ahurna~a is personally recognized as the spon-
sor of theme benefits. Minister of Government and Justice, Jorge
Castro has helped to enforce these labor benefits upon industry.
The Panama government, in turn, was able to gain support of their
own objectives as long as the work force could be satisfied.
The leadership of the different Unions in Panama went to those
persons, communists and/or opportunists, who had the ear and sup-
port of the Labor and C-overnment ministries.
One clear enmaple of this partenership can be found in the person-
age of Domingo Barria, a well known Communist Union organizer.
Mr. Bmrria masterminded the one large Central Labor Union in Panama,
now called, the "Central .De Trabajadores De Republica De Panama.
(C.T.R.P.)
Who in labor can argue against a winning combination such as this?
Benefits for all; a chicken in every pot. All one need do is de-
nounce imperialism, the oligarcgy, fachism and of course the Canal
Zone. Let me give you just a few examples:
A. On February 28, 1975, Mr. Barria participated in
the Permanent Congress of Latin American Workers
Union Unity (CPUSTAL), a communist front activity.
Over 20 countries participated in this Latin Azer-
ican reunion, including representatives from as far
- away as Palestine.
PAGENO="0244"
236
Dr. Rolando Nurgas, Ex-~inister of Labor, opened the
session. The Panama delegation consisted oft
1. Central National de Trabajadores Panamenos
2. Federacion de Trabajad~res de Prensa,~adio,Cine,
Teatro,Television y Espectaculos, de la Central
Istmena de Trabajodores
3. - Confederacion de Trabajodores tie la Republica de
Panama del Consejo National de Trabajadores,
Organizadas tie la Republica de Panama(CONATO)
1~, Federacion Sindical de Trabajadores de Panama
The deligate from Cuba, Roberto Vega, spoke in the
name of the full Congress of Latin American Workers
Union Unity (CPUSTAL)
Juan Campos spoke for the "Federacion Sindical Nundial".
Domingo Barria spoke for the `Central National tie
T~ab~jadores". Comauriist Russia also participated
in covering this function that was held in Panama.
(See news article #1 enclosed) -
B. In the "Iratutino", 7-26-75 an article entitled "Acts
in Honor of Cuba", appeared. The. Cuban Ambassador
is shown addressing a group organized by the "Anti-
Fascist Committee", a communist front organization,
in a "Political-Cultural Act", The past Rector of
the Panama University,. Dr. Rosulo Escobar Bethancourt,
is identified as presiding over the "Anti-Fascist Corn-
- mittee,"and in fact is one of its founders.
* Dosingo Barria also addressed this-group. (See article #2)
PAGENO="0245"
237
C. ~nthe "Estr~,lla de Panama", 3-19-77 an article
appeared in which the communist front organization
"CONADZZOPAZ" takes up the cudgel of Race Discrim-
ination, in this article, Panama is attempting to
distort treaty related items as racial discriminat-
ion against Panamanians. The celebration is "In-
ternational day for the elimina~tion of all forms of
disc'rimination".
Dr. Pedro Brin Martinez, a member of the U.N. corn-
Inittee for the ellimination of all forms of racial
di~crimination was a featured speaker at this rally.
His connection to Canal Zone labor becomes clear, when
one studies this recent Panama U.N. protest. (See ex-
aple #~3)
D. In the "Estrilla de !anarna", 3-17-77, an article
appeared entitled "Council of Peace had a meeting here'.
"In a simple but solemn act various professional,
farmer, ~kg'~, student and civic organizations met
at the "House of Journalists" on the 15th of March.
The meeting was held to salute "Dr. Samuel Zivs", Vice
President of the Soviet Jurists Association and Nath-
aniel Hill, permanent representative for Latin America
before the ~~Jd Council of Peace.
Dr. Car~iilo 0. Perez, a well known communist in Panama,
and the President of "CONADESOPAZ", the Panama com-
ponent of the World Council of Peace, a soviet organ,
spoke at this meeting. Ironically, Dr. Perez was a
recent recipient of a State Department grant. Also
mentioned at ths meeting was Carlos Wong and Profesór
Pedro Lowa~a, members of the "Frente do Trabajadores
de la Cultura". (See example #`~)
PAGENO="0246"
238
E. In the "Dominical", £~..2I~~77 an article appeared entitled
"Concentracion obrera en Puerto Arrnuelles", Labor Rally
in Puerto Armuelles, the so-called banana plantation
area of Panama, is set to celebrate r~y 1,-1977, In-
ternational Labor Day.
Pulga~ncio Castillo, a member of the "Federacion National
de ~Trabajadores Panamenos" and the "Cornite Perisanente
de Unidad y Defensa de los Intereses Populares de
Chirique", will sponsor the organization of this rally.
(See example #5)
F. In the "Star ~Herald", 1~-23-77 an article appeared
entitled `New Union Chief to be Installed". This
article indicates that there will be an installation
of new officers of ~PanaTnabs National Federation of
Democratic Workers".
Minister of Labor, Adolfo Ahumada, and other top gov-
ernment officials and Unions were in attendence.
Luis A. Anderson, Secretary General of Local 907, A,
F.S.C.L~.E., the U.S. Armed Forces Worker's Union in
the Canal Zone, was installed to replace Gerardo Nendez
as the Chairman of the Federation.
"The Federation also forms part of the powerful Panama
Workers Federation". (See example #6)
The above news articles are, of course, only a very amall sample
of the `1'art~nership~' created between Labor, Government, and
the. Com~umist objectives in Panama and the Canal Zone. Not all
particiDants are professed comrnumists. However; if one helps
perpetuate the goals of that organ, does it really matter?
The United Nations has, in its Internatisnal Convention en the
Elimiriaticr. of All Forms of Racial Discrimination, Fifteenth
session, dated iovember 3, 1976, roprinted the essential laws
PAGENO="0247"
239
governing `~rade Unions within the Republic. (They are included
in this writting for easy reference.)
It should be carefully noted, in this reference, that all trade
imion activities in Panama exist at the disci~etion of the Panama
government. -
It should also be noted that the charges and allegations contained
in this document are the latest examples of the consistent system
used by the Panama government in which it has destroyed and/or
taken over various private enterprises within that country.
In almost every case industrial . earnings are restricted
or frozen by government decree or by supply and demand.
The government then encourages employee demands for
increased wages and benefits. The government steps in
as the einDloyee's champion and arbiter. When the part-
icular industry cannot financially meet these demands,
the government assumes control at a fraction of the
value of the industry. -
The generally poor economic trend in Panama has been causc~,
to a great degree, by the above circumstances.
Enclosed is a recent example of this problem:
On April ~ 1977, ~r. Jativa, a panamanian, presented
himself at the Balboa police station. ?~. Jativa is
the owner of a tool shop in the Republic of Panama.
He stated that he could no longer tolerate the economic
pressures put upon him by the Panama Government, and
he further stated that he was not seeking political
asylum, but that he was not leaving the police station
until he was locked up. He persisted in his demand,
until he was arrested for distul-bing the peace.
That eVening, him wife tried to get him to leave, but
to no avail. He refused to leave his cell.
-ft--
PAGENO="0248"
240
Obviously', on the whole, most businessmen in Panama do not take
the same course of action as Hr. Jativa, however; this man's
case is not unusual.
Last year alone, many hundredo of businesses in Panama were taken
over, or v~ent bankrupt because of the Panama government's labor
arid business policies.
Nany past examples say be giann to substantiate these facts, but
none of more importance to the United States than the one that is
unfolding in the U.N. today; the Canal enterprise is the obvious
target. -
Compare the circumstances that have evolved in the U.N. claimes
made by the Panama government against the Canal Zone agency, and
the Panama take-rover of the Boise-Cascade seisure of 1972, (The
specificity of this seizure may be formed in the House Panama
Canal Subcommittee hearing report No. 92-1629)'
In both of these cases, the labor force is used to put forth claims
against a particular industry. Also, in both of these cases, if
history is any indicator, there is a clear lack of forceful action
by our Executive Branch~ to protect the interests of this industry
as the problem begins, and as it evolves.
The tools for this protection is clearly outlined in these House
hearings:
1. "Subcommittee inquires prior to the July-August
hearings on the Boise-Cascade seizure indicated that
there v-as ample evidence that the State Department al-
lowed violations of the spirit and intent of President
Nixon's policy.on exuropriations outlined in a state-
ment of January 19, 1972.'
`~`There was also evidence that the State Department per-
mitted violations of the laws of the United States by
not e~crpisthg its responsibilities in ths case."
PAGENO="0249"
241
"The Congress exDressed its position in these matters
in a law passed in March of 1972, which concerned it-
self with loans approved by the Inter-American Develop-
sent Bank. This law stipulates that the United States
would deny loans to any country which had e~ropriated
or~geized ow~e~shi~ or controL of uronerty owned by
any U.S. citizen or Coz-noration."
2. "---The Provisional Junta Government of Panama,---
according to the authors of this law, repudiated or
nullified their contract with that company makingt~g~
ineligible for ~&aer5 can su-osorted financial loans."
Ironically; the Chairman of that House committee went on to state:
~oim~Cascmde is not receiving the full supuort of
the American Governnant and its rights under internat
ional law ure not being observed * this may be on1y~~
~ginning of a series of seizures by the Provisional
J~~g Govenwnent o~ Panama which could ultimately deter
iorate i~te~~tates control and oneration of the P~gpa
Q~na1.
I~ow reflect, if you will in 1977, the active part that Mr.
Anderson, Chairman cf the "FederaCion of Panama's Democratic
Workers', and Secretary General of Local 907, A.F.S.C.M.E., an
afiliate of the A.F.L.-C.I.O., rlayed in Panama's protect to
the iJ.H. against discrimination within the Canal Zone.
Pros personal knowledge, I an aware that this organization has
3een, for at least the last year, urposfully soliciting Canal
Zone employee grievances, and turning them over to the Panama
Labor and Foreign Ministries. It should be obvious now, after
the nwblication of this U.H. protest, for what use these griev-
ances were to be used.
I wish to point cut here, that during this ease period, I had
en several ocoassions brought-this problem, and its solution
to the attgation of the Canal Zone Company/Government.
PAGENO="0250"
242.
I submitted one case to this subcommittee last year, in which
the grievant had been approached, on several occassions, by
these same people for just such a purpose as described above.
Fortunaic* for the Company/Government, this grievant was in-
terested in stlving his problem and not in being used.
Also reflect, if you will, that all of the above is just a
minute example of what our country can ex~pect from the Panama
government once it is installed as a partener in the Canal
enterprise.*
This then is the direction that the communist movement in the
Panama Labor fopce is headed. It is the same direction that
this leftist Panama government is headed.
The question should not be asked "wriat degree of strength does
the communist movement have in the labor force in Panama. -.
Rather, we should be asking, when is our Execiftive Branch going
to forcefully protect U.S. interests against this leftist con-
trolled Panama government.
Enclosed is a list of Inter-American Developement Bank Loans
that have helped these people to carry out thier objectives
against United States interests in this area. Also enclosed
is a single example of the type of propaganda used against us.
Respectfully submitted,
William R. Drummond
PAGENO="0251"
243
~ E ~
i~'ws ae vein.te ia~ses en.
:nt~Te50 de CPUS TAL
El 27 4e *feb~ero a las deración de Trabajadores de Panama, del Conseio
G:30 p.m., en el Palacio de Prenna, Radio, Cine, Nacional de Trabajadores
Legislativo Justo Arose- Teatro, Television y Es- Organizados de Ia Repü'
mans en la ciudad de Pa- pectáculos. de is Central blica de Panama, (CONA'
namá, fue inaugurado por Istmefla de Trabajadores, TO), FederaciOn Sindical
SE. Dr. Rolando Murgas, ConfederaciOn de Traba- de Trabajadores de Pans-
Ministro de `irabajo y jadores de is Rep~ib1ica (Piivn a La Pig. 10, No. 101)
Bienestar Social ci V Con-
aejo del Congreso Perma- ~ - `-S. ~ ~ -
nente de Unidad Sindical
de los Trabajadores do
* - America Latina, (CPUS _________-
TAL), con la participaeiOn
de delegados obreros de ::
Argentina, Bolivia, Bra- 101
* eu, Costa Rica, Cuba, Co'
loinbia, Chile, Ecuador, mA, miernbros de la pren-
El Salvador, Guayana I sa, radio y televisiOn de
Francesa, Gu at e m a 1 a, Paramá y de paises de
Guadalupe, Ho n d u r a s, America ~.atina Y is U'
* Mexico, Mirtinica, Nica- mon Sovictica.
rague, PanamA, PerO, Re. * El delegado de Ia Ceo-
püblica Dominicana, u- *. tral de Trabajadores de
ruguay-y Venezuela. Tam- . Cuba, Roberto Vega, ha.
- biOn asiste is represents- bló a nombre de CPUS-
dOn de los trabajadores . TAL, el dirigente Juan
-. tie Puerto Rico y tie Pa- Carnpos -In limo a nornbre
lestina. dc~ la -Federa"ón Sjnr1~r'l
En Ia sesión inaugural - ~~i~2j y ci dirigent~-
&sistieron ~oo personas Domingo Barria a ruin-
entre funcionarios del Go- bre de Is Central Nacio-
bierno Revolucionario, ~ni. . nal de Trabajadores Pa-
fra elba 1 Lic. Damián nameOos.
Castillo Contralor Gene- * El 28 de febrero se
~ ral do is RepOblica dele- fectuó sesiOn plenaria de
gados f.raternales de la 8:20 am, a 12:30 p.m. e
Central Nacional tie Tra-- - h~zo iiso de is palabra el
bajadores PanameUos, Fe- delegado de Puerto Rico,'
___________________________ ci dcl Guayana, El Salva-
S S dor y se nombraron las
comisiones de trabajo. De
2 a 3 p.m. ci Sr. Contra-
br de Ia Repüblica, Lie.
DamiAn Castillo, recibiO a
los delegados tie CPUS-
TAL.
El congreso tie CPUS'
TAL serA clausurado a
las 12 meridiano del do'
mrngo 2 tie marzo en ci
S ` Paiacio Legislativo y a
*este acto se invita a los
- funcionarios del Gobier-
* - - no Revolucionarin. miern-
): bros de Ia prensa. radio,
~ televisiOn y a todos los
- . trabajadores eli general.
- ~* S
PAGENO="0252"
244
7-7-.~-~~
`ACTOS...
Valorb ei apnrte `in la re-
- -. yniuclIn cubana a la incha
/ `-.~. :`~- ~ contra ci imperiaiiscno y
- - -` c'. "P - qcndCc plasroada la solidari..
-` *---- - ---.,------- -V I. - : dad y la hermandad cabana-.
I - . panamefia.
a. -
in
El Dr. Pedro Goezbiez Pileiru Erebajodor Ercanrçzdo deCoha en Panamb, durante au interven....
don en ci ucla pnilttco-cultccrai organizado par ci Comitci Nacional Anhifascistas de PanamS
en ci Paraninfa da in Univeraidad da Panama, en conmemaracitn ai Xxii anivcrsurio dci A-
anita ai Coartel Moncada qua marco ci Inlcto de Ia resoiuribcc cubana.
~n(~'° r~nr0i~ ~ p. ~ i-~
/ ~ ~ ~ ~\ ~L ~)1~
"Ei Moncada cc. obSo marco ci camluu cia in Incje,s-,,deucia dldtr perciciameate co;c in
racionai y is ilteracibu para q5 pueblo `e cad:, nina qua aTrIb gesta dci "Moucad:,".
can oueva dsp-i en ci devenir de ouestrss poet-leap castrO Duo ci hector qa- era
usa vez ncds qua nn tmportan cuba pequags ui i'-f~ cL:c'lu J imporlant,c cañalar qua lace
ne dispose a lucicar par ci blenesta r da so t.n.t-lu, apr ci res~' 75 anus en piano corazOn de
cole de sun rccnrsos naturates p la plcna soc.eraumauactc.uot," nciastra cludad, a las faidas
As! capresO en pane tic c-oados par ci Cc-ocllci Naclo- del Cerro Ancon, una jun-eu-
so discurso dcl Dr. Pedro aol Anttfasclstade Panama. tud hernica, lajuventud pa-
Cnnzdtez Pthciro, Ecaba. Duraccle in mañana se tcabma nameoa, so lanzo at cumba
jadar Eucar~ada de Ia Re- lievado coo romerla at bus- ,e hasta Ia runcerte, con ci
pOblica do Cuba en Panamci, to do los apbslcles Macen ~ fin. cL la.rar majorca dlas
* al agradecer ci acts dice- Mar11, en Ia Plaza parras, para ci pueblo pauumeau.
tuadn ci jceves en Ia nache Donctogo i3arnladaluCea. (Paca a a Paq. 6-B)
en ci Parautufo de Ia Unt- tral Nuclonai de Trabajado ____________________________-
versidad dci Panarod, con rca, Mao nun de Ia palabra
molten de Ia ceiebraclOu en el acts palIttcu-cnlturai
dci XXII Aniversarlo del cetebrado en ci Paraninfo
* asalto al Cuartei Muncada de la Uotverstdad.
en Santiago de Cuba. El Rector cia to Universi-
El ucla foe ongantzadopor dad de panamO, Dr. Escu-
Cnmttd Nactasat Anti- bar Rethanconrt is hizo pun
fascists cia PaaamO,queprc. ci cocnltd organizodor. Do-
side ci Rector cia la Uoivcr- mote so intervenelbo dena-
nidad, Dr. ROmuto Esco- rrotlb ma expostclOa qua
bar itethancourt, para coo- destacb Ia herotca partial-
memorar tocnbldn us ant- pactOn de Victorlano Loran-
vemsarlo mds de Is batafla an en Ia balalta delPocotede
del Pucote cia Caltdonta. Callclorcta, huce 75 000s,fc-
El del juan-es ccc la npche cha ccc qua lasaconteclmlen.
foe mo de ion actos progma- lou histbricos hlclerancoln _________________________-
En so tumno, ci Dr. Con-
zdiez 510dm ai barer en
recuento histOrico `In la iu-
cica ilbcrtarla dcl puebincu-
bann mani!estS, nCI,ba fun ci
faltlmo dc ouestros poises
qua sc liberO dci yoga colo-
nial, iran Ia giorinsa gue-
rca de ins Dicz AOos, lot-
dada por Carios Manuel
do Cdspcden en 1811 y rca.
nudada en 1815 do,, rennva-
do vigor baja la sabia cot-
duccilca `In nuentro Apicutot
José Mar11."
Continua ci Dr. GonzSIcz
510dm coo ci recneotn hIs-
thnico y scñaia qua "en ci
acm 1953, cOo dci Centcna-
rio dci ApOstol, is sltuacllo
en nuentra pals pasaba por
attn tic las clapas moOs os-ta-
ras para roeslra pueblo."
CootlnOa diclends, "on
produce ci 20 dejaltoiages-
Ia `Ic bloucada. Us pufiado
de jOvenes se dtspuso a ta-
mar ci cuartel Moocoda en
Sootlago de Cuba. capital do
in l°movioctade Orlaaie, Co-
on do Ia revnluclbnconnncs-
Ira palo.
Yo en in parte final dci su
dtscttrsn dtjc ci Emeba~adar
Encorgado do Cccba enPaoa.
md~ "cuando aquIeo Pica-
coO recordamos a loshOrces
qua sucumbleron ante ins
mourns dcl Cusrtei Moocada,
rcaftrmaeoos taocbtJn ci do-
rccho dc vnestropnmblooai-
costar lo soberaccia picoa
nobre so principal rccursn
naluroi, ci Caoai `Ic Jcaoamd
p a cxltrpar deilottivamente
in prcseocia colunlalleta do
Eslados Uoidas en partc do
no torrilorlo."
Tcrminic ci Dr. Gnozdlez
Pliiclmo a ion gritos do, "vi-
sa ci 26 do julie, glortacter-
no a Ion hOrc.es y ,cndrtlres
del Moocads. Viva Ia lucha
del pueblo pauomcOo pair ci
rescale de ia snberanfn cs
Ia liamada Zoos dal Canal."
DespuSs do Ian Icierven-
clones da ios orzdares as dc
sarrotib en espcatdeutoar-
tIsttcn qua coatO cnn Ia par-
ticipaclOn de to Panda tie-
pobllcaua, Sooios D!az ylno
Conlores del Poebto, Ito- -
in Dicardi y ci Tatter Sn-
nora VIctor Jana,
`~lif~isterio do ~`ia
CONTR/BUYENTE EL
EL PLAZO PAPA PAL-
S/N RECARGOS, N//N)
PAGENO="0253"
245
LA ESTRELLA DE PANAMA Sábado, 19 de Marzo de 1977 ~
~, 9
Dia Internacional de
DiscrilniHaciOn Racial
Ccii ci patrócinio dci. Sinciai;,conla colaboración ganadores del Concursu de
CONADE.SOPAZ,iaCasa del deiLicenciado Seba~tián Carteics par ci l)octor
Periodista servirá de Quiros, representante de Ia Garlos Ozores Typaldos.
marco, para ia celebration Caja de Ahorros. Vicenuinistro de Relaciones
del `1)ia Internacional pars Los organizadores de Exteriorcs.
la ElirninaciOn de todas las estas actividades 7. ActuaciOn del "Teatro
Formas de conmerñorativas a tan Popular" de i)1GEDECOM.
Discrimination". con is importante fecha que se 8. ExpositiOn de Afiches.
asistencia de Su Excelencia gutan con los prograiflas do 9. Brundis.
Doctor Carios Ozores Naciones Unidas pa ra El ado tcndrá iugar en Ia
Typaidos, Viceminis~ro de realzar, adepiIis ci Decenin Casa del Pcriodista, a las
Relaciones Exteriorcs, contra ci flagelo de Ia 7:00 p.m.
entidaci estatal quo, Discriminación Racial en ci
.siguiendo ins preceptos Mundo (1973-1983) son los
e stable ci dos en Ia distinguidos profesionales
Conve~nción International Lic. Pedro Brin' Martinez,
que rige esta materia, ha I)ircctor dci Departamento
organizadb una serie de dc Org'anismos,
actividades tcndientcs a Conferencias y Tratados .~
resaitar tan singular fecha. Internacionales y Miembro
En ci mencionado acto se del ComitO de Naciones
prcmiarO a los ganadores en Unidas para Ia ElimunaciOn
ci Concurso de pintura, do todas las formas dc
don d c pa rt 1 tip a ron D er minac n i~acial las ~ f~u~ f?~~ ~`d~
difercntes artistas Licen as Aminta Ouijadi ls~- ~ I
nacion ies con ifichcs Dra aria I ibel C ui dia ...!`~ ]
aiusivos a Ia f. cha ,s en ci quc d r n ad \i n stcri() de a I Jr ~
resultó triunfador ci joscn .iaciones Extcriore~ y ci j
pinror panarnelo Edgardr S e 00 r C a r iii s N u lie s'
Lamparero, haciéndcsc ~iicmbro de Ia
acrcedor a Ia sums dc CONADESOPAZ, quienes
trescientosbalboas, donados han preparado ci .~iguiente .. . -
por ci Ministerio dc p~-ograma en ausiOn a Ia
Reiaciones Exteriores. En fccha: - .* -
scgundoiugarfucescogidoci l.Apcrturacfcl Actopor Ia . .
afiche prcscntado per ci Licenciada Maria Isabel
conocido pintor Guardia de Mann. -.
liermenegildo ZaidIvar, 2. Paiabras per ci .Seiior ~ ~
cuyo preinio será de .ciento Luis Anderson, Sccrctanio
cuncuenta balboas, donada General dci Local 907. - -
per Ia Caja de Ahorros y, ci 3. lntervención Musical. .
tercerpremio, lo mercció Ia 4. IntervcnciOn de un
obra dci pintor nObel Carlos d c i.e g a do d e 1 . . .
Rodriguez. El jurado de cstc CONADESOPAZ.
concurso cstuvo compuesto 5.- Pa I a b r a s p0 r ci
per coincides pintorcs Lirenciado Pedro Brin
panamelos, encabezados per Mar~incz.
Mario Caivit Aifredo 6 Premiaci n a los
PAGENO="0254"
246
LA ESTRELLA DE P4NAMA - Jueves 17 de Marzo de 1977 Pagina31~.32..
Conse~o d~
la Paz tUVO~
reuniOn aqui
En un acto sendilo perQ
solemne, varias organi-
zaciones profesionales,-
* campesinas; obreras,
estudiantiles y cIvicas Se
* dieron cita en Ia Casa-del
Periodista ci dia mai~tes ~l5
del ~presente mes, para
saludar a los seilores Dr.
Samuel Zivs, Vicepresidente.
dela Asociación de Juristas
do Ia Union SoviOtica y ar
Licenciado Nathaniel Hii~
Representante permanente:
* por America Latina ante ci
Consejo Mundial de is Paz.:
Las do~ distinguldas
personalidades hacen un
extenso reccirrido por csté.
continente, para promover y'
explicar todo lo relacionado
coneipróximo Congreso del
Conscjo Mundial de Ia Paz,
qué se ceiebrará en~.
Varsovia. S
Además dc las:
organizaciones asistentes,
acompailabana los visitantOs
ci Dr. Camio 0. Perez,
Presidente dei~
CONADE.SOPAZ en Panama;
ci Reverendo profesor de Ia:
USMA, Pedro Lowana y ci
pocta Carios Wong,.
irjembro prominente dci-
Frente deTrabajadores dela.
Cuitura. El doctor Samuel-
Zivs tomO Ia palabra pars
folicitaral pueblo panamefio:
porsudenodada lucha por ci -
rescate de su plena.
soboranla en la Zona dcl
Canal, bajo ia gula
revolucionaria del lIder
máaimo del proceso.
panameilo, General Omar
Torrijos Herrera. F,xplicO ci.
Dr., Zivs Ia trascenciencia.
que tienc pars Ia hurnanidad
is celebración del Congreso
Mundial dc ia Paz `en
Varsovia, precisamente
ahora quo se celebra ci 60
Aniversario de la RevoiuciOn
SoviOtica y otro aniversario
deiaderrOtadelfascismo en
~Europa. -:
El Dr Camilo 0. Perez -
ilustrOa los aslstentes sobre
ci trabajoque viene -
realizando en Panama ci
CONADESOPAZ,CiUe agrupa
a todos los hombres, sin
distingo, de raza, color,
religiOn o credopoiltico en ci
* afándeiograrqueia Paz sea ,
un hccho cierto como vital
ingrediente pars ci
desarroilode las naciones y
pueblos dci mundo. Rizo un
llamadoa findequcel mayor~
nOmerodepanameñOS
* PasaniaPSg.11,No.1i3~
firmen ci "Liamado dO
Estocoimo", que en su
esencia reciama Ia paz
mundial a través del
..dosarmc general. * El Dr.
CamioO.PérezdestacO quo
Vcnezueiay i'anarni sonias
naeioncs latinoamericanas ~.:
* seOaiadas para redactar un -
documento sobre nuestro
* : continentc en ci mcncionado
~Congreso-y agrcgO quo Ia
`DelegaciOn panameOa
* asistonteal cOnclave, a más
de quo será integrada por
~hombrcs representantes do
* todoslosestratos socialosy
prouesionales, deborâ
* presentar ci documento
* sobre Panama, relacionado
con nucstra lucha por ci
rcscate do nucstra soberania
enia Zona dcl Canal, io cual
conatituiri un alto honor
* paraladeicgaciOn,ya que so
espora en Varsovia - Ia
asistenciadcmásdo dos mil
* . delegados do todo ci mundo.
El Doctor Samuel Zivs
seguirá con destino a Ia
* hormana Repiblica do Costa
Rica, cumplicndo iguai
misióny do aliIseguirá viaje
hacia Ia ciudad do Nucva
York. Miontras tanto, -Ia
* CONADESOPAZ so prepara
* para Iicvar a cabo unà
- reuniOn amplia on is
* Univcrsidad Santa Maria Ia
* Antigua, relacionada con ci
menCionado congreso. La
fecha do eats reunion so
avisara oportunamento.
- I1it~.
PAGENO="0255"
247
"DominicaI"-.LoRe~~~bIica-Domingo, 24 deAbril de 1977
C©~r~dth~ ~hr~à
~ P~r~ Ar~ie~s
DAVID (Por On~simo rein con delegaciones es~ dores un representantedel
* - LeLcano>.~Sertt en la cia.. peciales de todos los-pm.. dores ~tin representante de
dad do Puerto ~~fla3 tea do in provincia proce.. la CONATO y uno del Co..
la magna concentrael8n o~ dentes de Siixllcatos, A.. mtt6 do Defensa do los In..
brera del lo~ do Mayo,Dfl~ sentamientos Campeslnos tereses Populares0
liternacional del Trabajo Ligas Agrarias, Profeslo..
segdn declar8 en uuestra nales, estudiantes y otros CasttUo eixfatlz6 quo -
-` redacci&i el dirigenteFul.. grupos representatives do ambas 1nstltuciono~ estt!n
genclo Castllio, qalen fj~.. la comunklad provincial, trabajaxxlo con rnuclio en..
died qua in Confederacldn El Sr, CastUio nos de.. tusiasrao en in prepara-
Nackn~al de Trabajadoren clard asf mtsmo~ quo am- cldn do esta concentraci&i
Panarnei~os y el Comit~ Per. bas tnsUtucianes est&i cc.. obrera en Puerto Armue..
manente de Unidad y De.. ordlnaixlo tcxlo lo relaclo.. lies, quo dernostrar~ una
* fensa de los Jatereses i'o.. nado a transporte y alan- yes mLs Ia unkind quo e-
pulares de CbIr1qu1~, se ban cida a los parucipantes ziste entre la clase tm-
- - responsabillzndo absoluta- en la concentracldn, has.. bajadora cbiricana y in
meats per in organlzacl&i ta el momentodeclardCas..- conclencia exlstente en..
de dichos actos, quo conta- tIUQ fungirthi como era- tre tales grupos0
e~i Ch~rk~
- DAVID (Per On~simo nes estasemana, a plants -
Lezcano).- Altos dirigen.. y cultivos de Crtricos do
tes del Comit~ de Defensa Chiriquf, y Ia hermosa re-
de IaRevoIucj~,nCubanavi- gi~n de as tierras altas.
~ sharon esta provincia el Entre las empresas vi-
pasado fin de semana en sltantes se incluy~ el mo-
comparira del Vicepresi- demo molino de los Asen-
dente Encargado de laPre- tamientos Campesinos en
sidencia de a Asacnblea Bugaba, Ia Fábrica de Rq-
* Nacional de Represenfan.. pas en et Corregimiento
tes de Corregimientos ~, de Progreso, las plantacio.. -
otros altoafuncionarlosdel nes de la Corporaci~n A.. -
organismo legislativo. zucarera de Panama, las
Los distinguidos visitan- viviendas rurales do Joe
tee seiiores Jose Antonio Asentamientos Campesi..
* Gill Noa y Orlando PCrez nos. de Chiriquf y el Muelle
Fonte acompa(jados porlos Fiscal. - - -
representantes paname~ios -
visitaron dj~tj~t~~ Jugares Los funcionarios -cube-
de Interes en Ia provincia. nos expresaron agradeci..
Entre ellos fueron inclui- miento por las atenclones
dos el nuevo ln~enio de A-. recibidas durantesuestada
lanje que j~j~j0 operacjo. ~n Ia provincia chiricana.
PAGENO="0256"
248
~ J2:~f~ó [~r~Lb
PANAMA, R. P., SATURDAY, APRIL 23, 1977
New Unioii Qiièf
* To B e installed
The new officers of Panama's National
Federation of Democratic Workers evil! ho
`installed tonight, in ceremonies to be hctl
in. the oession mall of the `~entro dcl
E.tocactor," located at the corner *betwcema
harry Ens aod Capitait Posamfa Streets in
the Industrial Dev~tspmcn!.
.Attendieg the ceremovirs, whtch get
* underway at 7 p.m., will he the Minister
of Labor and Social Wetfare Adotf'a
* Ahomuda. other to~ government officials,
rrpresCatattveo of private companies and
Ta be installed is chairman is Lots A.
* /sndcrsomm, Secretary General of Local 03?,
Armoevi Forges Workera Union, who re
~ases Gerardo 7-tenmiga.
The National Federation of Democratic
Workers is formed by several local onions,
* iactastiog Local 007.
* The Federation also forms part of the
powerful Panama Worhers Federation.
PAGENO="0257"
249
~ERD/C/8
page 24
The indigenous people of the country are free to use their mother tongue in
their relations with one another. Even at their congresses, held with the
assistance of government authorities, the indigenous language is widely used, and
interpreters into Spanish are provided~ Schools form the exception, because Indian
students are generally prohibited from using their own languages in communicating
with one another. It is claimed that this measure, which compels the child to use
Spanish, helps to achieve better training in the language.
ARTICLES OF TEE 1972 POLITICAL CONSTITUTION INSTITUTMIG -
ANON-DISCRIMINATORY SYSTEM OF ENSLOYRENT
IN THE REPUBLIC OF PANAMA
Article 59. Work is a right and a duty of the individual; hence, the State is
obliged to elaborate economic policies designed to promote full employment and to
ensure to every worker the necessary conditionsfor a decent existence.
Article 60. All workers in the service of the State or of private or public
enterprises or of private individuals shall be guaranteed a minimum wage or salary.
Employees of enterprises specified by law shall participate in the profits thereof,
in accordance with the economic circumstances of the country.
Article 61. The law shall specify the methods for periodical adjustments .of the
minimum wage or salary for workers, in order to meet the ordinary needs of the
worker's family and to improve its standard of living, in accordance with the
particular conditions of~ each region and of each economic activity; it may also
determine the method of fixing minimum wages or salaries for each occupation.
In. the case of piecework, the minimum daily wage shall be guaranteed.
The minimum wage or. salary may not be seized, except in the case of obligations
of support, in the manner prescribed by law. Similarly, a worker's tools ox
equipment may not be seized. . . . .
Article 62. An equal wage or salary shall always be paid for equal work under
identical conditions, regardless of the person who performs it, without distinction
as to sex, nationality, age, race, social class or political or religious ideas.
Article 63. The right of association shall be recognized for employers, wage-earners
and professionals of all classes for the purposes of their economic and social
activity.
The Executive shall have an unextendable period of 30 days to approye or reject
the registration of a union or association. -
The law shall regulate all matters pertaining to Executive recognition of
unions or associations, whose legal personality shall be determined by the
registration. .
The Executive may dissolve a union or association only when. it deviates
-permanently from it~ purposes and the competent court so rules in a final
judgement.
The governing bodies of such unions or associations shall consist exclusively
of Panamanians. .
95-549 0 - 77 - 17
PAGENO="0258"
250
CERD/C/8
pagu 25
Article 64. The right to strike shall be recognized. The law shall govern the
exercise of this right and may make it subject to special restrictions in public
services which it shall designate.
Article 65. The maximum working day shall be eight hours, with a working week of up
to 48 hours; the maximum duration for night work shall not be more than seven hours,
and overtime shall be paid at a higher rate.
The maximum working day may be reduced to six hours per day for persàns bver
14 and under 18 years of age. Work shall be prohibited for persons under 14 years
of age, and night work for persons under 16 years of age, except in cases specified
by law. The employment of persons under 14 years of age as domestic servants and
of minors and women in unhealthy occupations shall also be prohibited. In addition
to the weekly period of rest, all workers shall be entitled to paid holidays.
The law may prescribe a weekly period of rest paid in accordance with the
economic and social circumstances of the country and the interest of the workers.
Article 66. All stipulations which imply a waiver, diminution, impairment or
relinquishment of any recognized rights of workers shall be null and void and,
consequently, shall not be binding on the contracting parties, even if they are
expressed in a work contract or any other agreement. The law shall regulate all
matters pertaining to work contracts.
Article 67. Protection shall be afforded to working mothers. A woman who is
pregnant shall not, for this reason, be dismissed from her employment, whether
public or private. For a minimum of six weeks p~eceding the birth of her child and
eight weeks thereafter she shall have compulsory leave with the same remuneration as
she was paid while working and shall retain her employment and all the rights
provided for in her contract. When the wo~king mother resumes her work, she may not
be dismissed for a period of one year, except in special cases prescribed by the
law, which shall also govern the special conditions of work for pregnant women.
Article 68. Hiring of foreign workers which may lower the working conditiond or
living standards of Panamanian workers shall be prohibited. The law shall govern
the hiring of foreign managers, administrators and executives, technicians and
professionals for public and private services, preserving at all times the rights of
Panamanians in accordance with the national interest.
Article 69. No worker may be dismissed without just cause and without the
formalities prescribed by. law. The law shall specify justifiable causes for
dismissal, special exceptions and the compensation payable.
Article 70. The State or ~rivate ente~prises shah provide workers with vocational
training free of charge. The law shall prescribe the manner in which this service
is to be provided.
Article 71. Trade union training is hereby instituted. It shall be provided*
exclusively by the State and by Panamanian trad~ Nnion organizations.
Article 72. Any disputes arising in relations between c48ital and labour shall be
submitted to labour jurisdiction, which shall be exercised in conformity with the
law. . .
PAGENO="0259"
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CERD/C/6 .
page 26
Article 13. The law shall govern relations between capital and labour, placing
them on a basis of social justice and establishing special State pubtection for
workers.
Article 74. The rights and guarantees established in this chapter shall be
considered as minimum rights and guarantees for workers.
The Panamanian Government's action with regard to th~' labour system is based
on the Political Constitution and on recommendations by the International Labour
Organisation.
In Panamanian legislation, the aim is to promote public sdministrative action
"Capable of guaranteeing the rights of the wage-earner and of assuring the employer
that the worker will perform his duties correctly."
The original draft of the 7anamsnian Labour Code was prepared by experienced
Panamanian specialists on the basis of studies by the International Labour
Organisation.
A. Ministry of Labour and Social Welfare on the former pattern - i.e., of more
control over labour - is inconceivable; it most be a genuine instrument of over-all
development, and must bear in mind its interconnexions with monetary and financial
policy, and with the objective of obtaining ever greater returns from the activities
of Panamanian workers and entrepreneurs.
The leader of the Revolution~ General Omar Torrijos Herrera, has said that, in
the problems of development, th~ worker is a vital element. -
The Ministry of Labour has responded to Panama's need for a balanced solution
to social problems, particularly those which arise in worker-employer relations
which, for 66 years of Republican life, were not considered as an integral part of
the process of national development.
It is interesting to note that, in Panama, provision is made for co-ordinated
action with the private sector - in other words, a consts~nt, fruitful dialogue takes
place between enterprises and trade union organizations.
The Tripartite Council sri Trade Union Freedom is the body responsible for
ensuring the widest possible freedom for trade unions, chiefly through the proper
application of the legal previsions which protect the workers' right of association,
in keeping with ILO Conventions No. 87 and 98 (Art. 32). The tripartite structure
of this Council enables workers and employers to take their decisions independently
on matters of professional organfzmtion.
In labour matters, the institutional requirements of the Labour Code and the
Organic Law and Regulations of the Nini~try of Labour are enforced in order to
safeguard the rights of working men and women, whether manual or white-collar
workers, in their efforts to make a living.
The Ministry of Labour and Social Welfare cannot make distinctions or establish
unfair priorities. The lowliest worker and the wealthiest employer both enjoy the
same right. .
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252
CERD/C/8
page 27
The Minister of Labour, Josd de la Rosa Castillo, stated in July 1970:
`The experience of all Panamanians teaches us that more than 90 per cent
of labour conflicts are due to the lack of communication between the man
sitting with collar and tie in his office and the man toiling in the factory or
on the land that he tills - a situation that we aim to solve in a programme of
true social justice, clearly understood by employers sod workers".
One essential aspect of workers' education is the training of skilled labour,
for which there is a pressing need in Panama.
Collective bargaining or trade union contracts for workers constitute one of
the methods used in the legal relationship between the employers and the employed;
the advantages of this practice have become fully apparent and may be defined as
follows:
"A collective or trade union contract is a contract between one or more
trade unions and one or more employers underwhich the trade union or trade
unions undertake, on their responsibility, that some or all of their members
will carry.out specified work for the remuneration stipulated for each of the
members".
Dissatisfaction must be sought out and eliminated before it becomes
irreconcilable discord; it is necessary, in an open and wide-ranging dialogue
between employers and workers, to find formulas for agreement more through
conviction than through authoritarianism.
"Perhaps the most important difference to be solved in this field of social
integration is the marked contrast between those who are ~iorkers and those who
are entrepreneurs. Means must.be found `to ensure that those who are workers
will also become entrepreneurs, although on~ lesser scale, by acquiring shares
in the enterprises in which they work, thus avoiding the marked differences
which were so common in the past but which have no place in today's world of
broad participation of the individual in development. In this way, those who
wish to save and acquire capital can do so, and those who wish to consuae all
the product of their labour can also do so."
"In the field of employer-worker relations, any increase in the power of
one of the groups calls for the self-discipline which comes from a full
understanding of the social function of the enterprise and of available
resources".
Wage increases must be consonant with price levels and with the productivity
* of the worker.
A proper understanding of human resources is a fundamental requirement in all
national economic and social programmee, for such resources represent the driving
force behind development and the benefits of their work must, in turn, be channelled
towards them.
The inter-relationships between the various aspects that govern the life of
man in society clearly show the importance of the structure and dynamics of
population in creating the supply of manpower. As stated earlier, Panama is
* essentially a young country, with a very large population under 15 years of age and
a substantial proportion of permons of working age. On the other hand, the impact
of social, economic and cultural factors, such as education, food supplies, medical
assistance, social security,. employment availabiliiies and technological
development, also add to the impact of purely demographic factors in determing the
size and pattern of the working population.
PAGENO="0261"
253
CERD/C/8
page 28
Panama has a number of sources of useful data for studying manpower.
Nevertheless, in the analysis given below only the data from national censuses will
be used, in order to provide the most up-to-date and comprehensive picture of
Panama's human resources and, so far as possible, of its development in recent
years.
TRADE UNIONS IN THE PANAMA CANAL ZONE
Efforts to form trade unions of non-United States workers in the Canal Zone
began in 1925 with the establishment of the first trade union, which was composed
mainly of West Indians and was called the Canal Zone Silver Roll Employment
Association.
Since then, workersThave continued to unite in various trade unions, according
to the type of work they perform and the company or organization in which they are
employed.
At present, there are three trade unions of non-United States workers in the
Canal Zone, namely, the National Maritime Union, whose membership includes persons
of many nationalities employed in shipping and whose operations extend all over the
world; Local 900, whose members are employed in civilian work; and Local 907, whose
members are employed by the armed forces of the Canal Zone. The latter two trade
unions are affiliated with AFSCIM and AFL-CIO in the United States.
At present, the main protests about problems of discrimination are being made
by these trade unions and not by individuals.
Some protests by leaders c~f these trade unions to the National Government of
the Republic of Panama concerning violations of the Convention are reproduced in'an
annex to this report. -
PRINCIPAL TYPES OF EMPLOYMENT IS THE CANAL ZONE
In the Canal Zone, Panamanian manpower is employed mainly by the Panama Canal
Company, which is responsible to the Government of the United States and is
entrusted with the operation, defence and maintenance of the Canal and for providing
public transportation and other services and for commercial activities related to
the civil administration of the Zone.
A considerable amount of employment in the Zone is also provided by the "Canal
Zone Government, a body which is responsible to the Executive Branch of the
United States Government and is entrusted with the administration of the Zone and
with the organization of educational, mail, police and fire services.
The United States Armed Forces (Army, Marines and Air Force), which operate
military bases in the Zone, constitute a third group which employs Pansmsnisn
manpower.
The three above-mentioned groups account for about 60 per cent of the jobs b~ld
by Panamanian residents. The rest are employed mainly in the private sector, either
by enterprises domiciled in the Zone, such as banks, insurance, passenger transport
companies, shipping and other companies, or in domestic service with families
living in the Zone. Lastly, about 1,500 persons are employed by contracting
companies engaged mainly in construcAion work.
PAGENO="0262"
254
[~U~VA ~2A
ci
GA~©G~ DDE t1~MP©E ~FIICIIL1SiO flNEM©~
- 2 DJJCDIi%t
PAGENO="0263"
255
EDITORIAL And dl Sne big stores Dante Sahra Fe
shlon Alden s Sears etc. These people do
We produce all of the wealth yet we not do any work Thej don t have to we
suffer all the depressionslil work everyday to stay alive and to produce
~DlD YOU KNOWTHAT ? allthewealthforthem
All of the goods and services that we . The Rich get richer and accumulate mo~
need to. stay alive and survive are produce - re and more wealth from our Labor while*
by human labor The clothe we wear the we become poorer and poorer
furniture in our homes, the books weread,
our houses our food everything is the
product of human labor. Some of us make . `
the goods, some of us sell them, some of us IS THERE ANYTHING WE CAN 00?
perform other important services for socie-
ty. But what is important is that our uis- . We will always have to work . but the
tence end everyboby else's in this countryis question is: who will receive the benefits of
dependent on other working people. our work? We work now because we need
The problem is that -panarnanians social the tiny salary we receive in order to survive.
system is set up so that we have to use our It is always just enough to pay the rent buy
salaries to buy back what we and other the food and keep some clothig on our
wokers like us made We build the houses backs The small minority knows this and
end then we have to pay rent to live in will try to keep it this way for long asthey
them. We process the food and then have to can. -
buy it back with overhead added on. We *. But the situation will not remain that
produce the clothing and then can barely way forever.
afford to huy what we have made. We work We can organize ourselves in our places
together to produce all the goods and ser of work to force the bosscUo pay us better
vices that we all need and the boss takes wages grant better working condition and
home all the profits, The benefits of our . increase our benefits. We will them get more
united labor does not benefits us at all. In of our share of he wealth we produce. But
fact, under the present system, it works we will not get all of it until we control the
against us. Our labor is social. We all work places where we work and run them for our-
together to keep society going. Yet the selves. This task will be long and difficult
tremendous wealth that our Labor produces one. But through united action, it is possible.
is taken away from us by small minority of Our working together in factories in stores
people in schools in banks in hospitals etc Crea
The are thousand of people in this tes a riiass power that is able to produce
country who have to go to work everyday enough gocids and services to provide eve-
just to be able to afford food, clothig and a ryone with, the necessities of life. Yet, in Pa.
roof over their hends. namã today, there is not enqugh decent, rea-
And on the other hand, you have a very sonably priced housing for oil the people
small minority of people less than one (1) who need it The food and clothig iterrswe
per cent of the population,who have taken produce are priced beyond our means be-
ownership and control of all ttw goods and cause the system is run for profit not for
service so vital to our existence These people We can and must educate ourselves
things include the valuable land, the natural about how the present system exploits and
resources, The Factories, Transportation oppresses those of us who work. We can and
System, etc. This group of people also must create a system that is run for our be.
privately own all the mayor bank~ Chase nef its and not for theirs.
Manhattan, Manufacture Hanover, First Na- ` When this happens, we will not have to
tio'nal City Bank, Bank of America, etc. and worry about unemployment because when
all the big business Cerveceria Nal Indus times are hard jobs will be still available for
tria Lactea Estrella Azul Refinerla an others all who want to work
PAGENO="0264"
256
We will not have to worry about doctor each member of the working masses with
bills because good medical care will be free 3ha means to live decent, healthy and pros.
for everybody. The tremendous waalth.that perous lives. This change can only come
our labor products, instead of providing trt~ about when working people unite and orga.
mandous profits for the few, will provide nize. Unity and organization is essential.
~ ~ t?~: ".5~t~ ~
~rJ ~ r~r t flrir~,r~ rj~, ~r'~ ~`i
L'J".~i~ i, L2;c,LL'~ ~
S AQ Y~CoM~LANU~
AeoUT.~.~YoU'VE COT
D~MocRACV ...Hc4~a~'1 You? ~-i
-
0<
a
* *WE ARETIERO OF ALWAYS BEING LAST,
OF BEING HIRED MUCH TOO SLOW, AND Fl..
RED MUCH TOO FAST. SOMETIME NEVER
* BEING HIREDI .
"I ha ye a a/ut loti. . . , * Editpr: Roberto Williams.
Ort/yone of qa wi/Feat" -
PAGENO="0265"
257
This is how iswas how it has been, and tunities to everyone, dis regarding color, ra-
how it will be for a long while. ce,. on creed, nationality or language; just
THINK ABOUT IT! attending the efficiency that parson has.
Is is to our believe that, they neither pay
`73 years ago, our parents and grand pa- off goo~I and their neither fair, we are not
rents come to Panama, to construct a canal, their favorite type of people, if it were so
they from the canteen islands (such as Bar- you, your brother, parents, friends will be in
bados, Jamaica, Vingin Island, etc.) to go- better conditions than what they are now,
ther some money to then return home.' and with a mucls.more secured future.
They worked, and worked very hand, ma- We are quite sure that the gringo that has'
ny of them died, but finally with the sweat passed through or that works for the canal
of their daily labor, they contributed to company has their future and family secured.
construct the canal. *That is why you have to open your eyes,
At. the very first begining, as they have to see and comprehend reality as it is. Do
been doing for hundreds of year, and all ~OU know why? Well, just because you are a
over the world, the northamenicans conside- worker, and poor beside it too, and last but
red us, as inferior human beings. They paid not least you are not a gringo.
off our labor with silver roll money, whill What you must not forget, is that you,
* theywere paid by gold roll; they boilted se- and yours, were the ones who contributed
cond hand homes for us to live in (these we- to the construction of the canal and not the
re, Red Tank, Paraiso, Gamboa, Silver City, gningos. That is why, youhave to fight to
Pedro Miguel, Rainbow City). salve your own problems, because no one el-
At the endo of the construction of the se is going to do if for you. You have to
Canal, many workers were left unemployed, think, and think ahour it on your own, you
* many lost their so called priviliges (such as have to get organized, because thit is the on-
to buy in the commisory, to reside on the ly way to fight to defend your interest as a
Canal Zone etc.), these workers and their worker. -.
!families were forced to moved to.the citys History has. taught us that, neither the
`sf Panama and ColOn, to unhinabited tipe government of the U.S.A. or the rich people
of homes, to live bod. These emigrations of of our own country will never ever protect
the unemployed workers 40 the cities, origi- us or qur interests, on the contrary, they
nated town sites like (San Miguel Chorrillo will keep or exploi ing and oppresing us
MarañOn, etc.). ever though we are the ones that work and
From there on, many million dollar bills produce the riches of this land, riches that
have passed through the canal and the hands we have never seen yet!
of the people for whom we wOrk for, many We have to get organized, but not tomo-
continue working until old age, receiving al- rrow or day after. .10 DAY! with in the sin-
most work and sacrifices. On the other hand dicates, uninions, clubs, etc. that you might
they have -always, discrimonated us, with belong to.
the lovest salaries, poor made of life, few Right before our eyes, (even though we -
schores, limitation in our education, poor can't see it yet'), both governments U.S.A.
medical services etc. Mean while the north- & Panama are negotiating a new treaty, arid
american workers preserve better condition we, the ones that are most affected are not
of living, (made of live, clubs, reacreational ever been considered.
centers, and most of all, high paid off sale- What would become of the future of our
ries). To many (blind folded) considered families? What can we do?
that the gingos have been very good and - THINK ABOUT IT!
kind people pay good create b~tteroppor GET ORGANIZED
THEME forum the black (west indies descendants) arid the social recuperation of the
Canal Zone. DATE: January 7, 197.7; PLACE: St. Christopher auditorium(lOth St.
- Parque Lefevre). T1ME: 7:00 p.m.
PAGENO="0266"
258
THE COM~lUNIST PATtI TO POWER IN PANAMA
(A document prepared by private U.S. citizens)
The Panamanian Communist Party (Moscow) is firmly in control
of Panama. Transformation to a Socialist State is still incom-
plete. The final steps in the process nust await a treaty. The
Communists are a little incredulous of their own success, the
11.5. State Departnent has been very accomodating in helping to
expedite and subsidize the spread of. their control throughout the
..Government and Country. -* --
In order to make the revolution truly irreversible they- have
to stop up some of the leaks in their control of the news, mails,
radio and television, phone-calls, meetings of people, etc. This
requires that they obtain effective sovereignty over the Canal
Zone and thatthey attempt to eliminate U.S. Bases. As long as
the Zone Bases remain it-is like a sword which threatens their -
permanency. It also delays further desired consolidations of -
power and societal transformation.
-Contrary to the current Government of Panama's representations
* as to the idealistic origins o~ the revolutions, there were no
ideological bases. The newly elected President, Arnulfo Arias
Madrid, began to temper with Guardia Nacional Officer assignments.
As each had his own area for self enrichment (graft)) any redis- -
tribution was bad. The original Junta seemed to he lidre right
- wing than left wing. - . -
By way of example, they brought businessmen into the Cabinet
and they built a fence around the University. They issued ID cards
to students. They got rid of many Communist professors and `~one
course a day' professional agitators. The result was (in one clans)
that by the fifth week they were into the eighth week of material.
In February of-l969, Torrijos managed to get control of the Junt~ -
Nilitar. He exiled Boris Martinez, Federico Boyd and others. He
brought the Communists back to the University and turned it over
- - - to Dr. Romulo Escobar Betancourt; Romulo is an avowed "all-out
Communist." Che Guevera was his house guest during a Panama visit.
- - Betancourt is a peroonal advisor to Torrijos. He is currently the
- Chief Treaty Negotiator. He has also been madethe Information/
Newsmedia Czar of Panama. - - ~* -~* - --
Torrijos ga1~e the Ministry of Government and Justice to a long~- ---- -
time Communist, Juan Materno Vasquez. Education went to another
loyal Communist, Aristides Royo. Labor was given to Rolando Ilurgas.
Agriculture was given to Nilson Espino and eventually given to
Torrijos' cousin Gerardo Gonzalez Vernaza. Gorardo is reputed to
PAGENO="0267"
259
be a long time Communist (including having acted as a Party
courier).
Marcelino Jaen, a Communist married to Torrijos' sister Toya,
heads up the Legislative Committee.- This com~aittee has many
members of the Executive Committee and Central Committee of the
Panamanian Communist Party in its ranks. They dream up the new
laws and work on the most important projects. They work closely
with the Ministry of Government and Justice's DIGEDECOM and other
Ministries.
The Military took over all the newspapers except one (It remains
to give a false impression of press freedom). The Government formed
a Corporation called Editora Renovacion, S.A. (ERSA). A Chiriqui
Province businessman Rodrigo Gonzalez is a front man for this organ-
ization. Among many other businessvs.~. he also fronts for an organ-
ization called TR~NSIT.S.A. It is used in the Cuban trade to assist
Castro with needed U.S. procurement. The Communists are firmly in
charge of all Government newsmedia.
Because the Communists were able to start from the top in Gover-
rimment, they have to expand their "loyal" cadre. They have been
doing this via DIGEDECOM and theJumtà' Comunal/Junta Local/AsSenti-
miemto Campesino organizational route. Much U.S. aid has been
diverted to organization, indoctrination and class warfare purposes.
In a-~beautifully orchestrated program the Communists in control
of the University, Education, Labor, Health, Agriculture, and
Government/Justice (DIGEDECOM) have been using the " Poder Popular"
structure to further their class warfare and anti-U.S.A. goals.
It has enabled them to use large doses of U.S. aid to subsidize
and expedite the communization of Panama. Virtually all of our
aid goes through their control (some shared with the Guardia
Nacional). Indeed they have learned from the Italian Communists.
As they control the Government they can steer business to firms
from which the Communist Party can siphon off funds for their
purposes.
Anyone who is a serious observer of Communist activity in the
Latin American news should have asked themselves why there has
been no serious Soviet or Castro inspired. guerilla activity in
Panama. Indeed, even more remarkable, there has been very little
Communist invective directed at the regime in Panama. This has
been true except for the first few months of the October 1968
revolution. This invective ceased in March 1969 after Torrijos
made a pact with the Panamanian Communist Party.
PAGENO="0268"
260
Obvio~isly when the Communists believe they are in power and
that their future is assured there is no useful purpose in anti-
~overnment activity. Why work against themselves? A recent
* publication on Human Rights in Panama had a list of people who
had been tortured, murdered and exiled. A ca~eful examination of
that list will reveal many very left wing extremists who were
persecuted because they made the Soviet led Communists uncomfort-
able. The Party didn't want a very sucessful boat rocked.
This is especially true with respect to Treaty Negotiations.
Relative stability was very important. This is true even though
the Torrijos regime has unleashed the student movements against
* the U.S. Embassy whenever he desired to create the "don't know
how much longer I cam re~train them" impression of time running
out unless a new treaty on Panamanian terms can be obtained from
the U.S.A.
The only other (except for small non-government sponsored student
* opposition) flexing of Communist power within the Government (via
student and labor groups) has occurred when Guardia Nacional forces
* have apparently pushed for cut backs or temporary reversals to
gains already made by the Communists in the social sector. While
* it may still exist, non Communist influence within the Guardia
appears to have been effectively neutralized. The Communists have
been forced to make some tactical retreats (temporary in nature).
The Guardia has continued to let the Communists expand their oper-
ations. For example, Romulo Escobar Betancourt is the Chief Treaty
Negotiator. The Poder Popular (Popular Power) program is in full
swing throughout Panama, and Gerardo Gonzalez has firm control of
the Civilian aspect of Government.
A very sympathetic and unseeing U.S. press has largely ignored
what has been transpiring under their noses in Panama. They have
bought the "Don't know how long 1 can restrain then" and "Viet
Nam" war ploys and have played those themes over and over to a
`war weary" 1~merican public.
Indeed, a work on the violation of human rights in Panama
contains some very good information on the Communists in Panama.
For some reason, except for superficial mention, it has gone
largely unreported in the U.S.A.
As a close observer of Panama for more than a dozen years, I cam
say that it barely scratches the surface. It is deserving of a
thorough investigation before the President initials a treaty to
give away the strategic Canal Zone and effective sovereignty.
Such a treaty will permit expropriation of the Canal enterprise
and "de facto control" of the Canal by Panama within a short tine -
even without expropriation. Indeed existing "Executive" personnel
policy actions are leading toward that result in advance of any
treaty!
PAGENO="0269"
261
A more careful examination of the power structure of the
Government as it exists today along with the key Communists
and their path to power will show clearly why there has been
relative stability, a lack of terrorism against the Canal Zone
and a lack of Communist invective against the c~uasi-military
Government with whom the Communists share power. It will also
show that the future belongs to the Panama Communist Party which
has been using U.S. provided or arranged funds to expand its
base. Indeed, as long as the largesse continues they have nothing
to lose by delays. The most worrisome factors to them are the
delay of final consolidation of power and more rapid socialization
of Panama.
Let's look at exhibit Number 1. It is an augmented version of
the chart contained in.Volume I of the Panamanian Human Rights
treatise. It has the names of some of the current and prior key
personnel annotated. It shows the extent to which Torrijos rela-
tives (all Communists) have helped to deliver the Panama Govern-
ment to the Communists. Those with red check marks after their
names are some of the more prominent relatives. There are many
more including some on the Legislative Committee., (Contision.)
* under Torrijos' brother-in-lay Marcelino Jaen.
The President of the Republic is shown in the3rd block down
* f~om the top center of the chart. .Me is a figurehead useful for
neeting~visitinq businessmen, U.S. Congressmen and ne~ismen. He
projects the "good ole boy" image. He loves ?unericans and pleads
ardently for a new deal for"poor lil panana~.~hile he has some
influence he has little real power. He is becoming very wealthy.
Shown above him on the chart is the General Staff (Estado Mayor)
of the Guardia Nacional. It is colored partly red and has a.
questioxn~FkbGca~5~Tit is difficult to know the real situation.
The most likely Communists are Torrijos and his helpers shown on
the left and right sides whom he uses to help control the Guardia.
His cousin, Lieutenant Colonel Roberto Diaz Herrera occupies
a key position in the Guardia (formerly held by Torrijos). He is
the Secretary for the Estado Mayor (Staff) and the Guardia Nacional.
He controls officer assignments (orders) for officers who are
majors or less in rank. He helped to set up a Communist controlled
Guardia training school at the Rio Nato air base. From the school
an arrow points downward to the Guardia Nacional which has a
question mark. It is hard to know true Communist strength in the
Guardia. However, with tine the Communists are packing the Guardia
PAGENO="0270"
262
and with retirements, eventually the Estado Major will become more
loyal and obedient to otherwise absolute Communist control of the
Government.
It should be noted that sone jockeying takes place within the
Estado Mayor among the officers to see whose followers will get
the promotions. There have also been problems with lesser officers
wanting to share in the pie. It is rUmored that in the Fall of
1976 some were fired.
On the right hand side Lt. Colonel Manuel ANoriegaheadsup
the feared G-2. Like Torrijos, his box shows a question mark~
Circumstantial evidence and his words and actions point to his
being a Communist. Because both he and Torrijos have managed to
become wealthy and seem to be entrepreneurs,there is a tendency
to doubt that they are `real' Communists. Their apologists
explain that they think that they can use the Communists. My
personal inclination is to say they are Communists based upon
watching what they are doing and not only what they are saying.
I believe the. Human Rights book is "right on' and if our intelli-
gence community is saying otherwise it is due to a prior commit-
ment of "face' and State Department Treaty compatible interpretations.
The dotted, line leading down to the Electoral Tribunal shows
that Noriega also has a handle on identification papers which are
necessary for adults for health benefits and other purposes.
Noriega's brother has this post. He issues ID cards (Cedulas).
He controls vital records and election results and registration.
Non-Panamanian Communists activities around the country can be
facilitated here by issuing Cedulas (ID cards) to them..
Shown off to the right of the G-2 `block, is control of the mews
media as a function of G-2 security. I em not certain that it
works exactly this way or if Romulo Escobar : Betancourt is now. on
an equal plane with Noriega. The Ministry of Government and Justice
has some functions such as licensing of commentators who will
broadcast in Panama.
Within the Guardia, it is difficult to know if Noriega is
Number 2 man or Rodrigo Garcia Rarmirez. Garcia outranks him but
Noriega appears to have great power. He is also cozy with the
Communists in the labor movement.
Below the President in the upper center of the diagram is the
Vice President, Gerardo Gonzalez Vernaza. Torrijos' cousin, and , -
a long time Communist, he is alleged to have served as Treasurer
and as Courier for the Party. Next to Torrijos (aside from the
Guardia) he seems to be the most powerful man in Panama. He runs
the everyday functions of Government and gets considerable publicity.
He usually stands close to Torrijos on important occasions.
PAGENO="0271"
263
He has ~great resources at his command. As there is no real
separation of powers the rest of Government reports to him. He
helped Torrijos to consolidate his popularity in rural areas of
Panama. He served as agriculture minister hef ore replacing Arturo
Sucra Pereira asVice President. His ascendancy was a real mile-
stone in the sense of visible recognition of Communist status
in the Government of Panama.
The Judiciary is actually located within the Ministry of Gover-
nment and Justice~ and will be discussed together with that Ministry.
The "Comisidn dé Legislacic~n" or Legislative Committee is headed
by a Torrijos brother-in-law, Marcel~no Jaen. J.aen and his wife
Toya Torrijos de Jaen are very important Communists. Marcelino
controls the most important group of Communists in the Country.
This is the Communist "think tank. " The committee drafts new
laws and oversees rubber stamp "Assembly of Representatives' which
* meets for 30 days a year. This Committee has many members of the
National Executive Committee and Central Committee of the Panamanian
Communist Party. One or more of these men are on almost everything
* important which is reported in the news.
Shown beneath the Legislative Committee is the National Assembly
of Representatives. Just below it DIGEDECOM,. a directorate of the
Ministry of Government and Justice is shown. Technically speaking
everything below here shows a less than National level of organi-
zation. .~ It shows how the Representative is used in the various
`levels of Government and illustrates even lower levels of organi-
zation. Starting with the Assembly block you could takeall of
this and call it the "Poder Popular" organization.
The appointment of Juan Materno Vasquaz as Minister of Govern-
mnent and Justice was also a milestone for the Communists in Panama.
This eafl~,7 ~ötfltimieiit of. Torrijos was an implementation of the
March 1969 pact with the Communists and properly understood explains
why the local (Moscow) Communists have behaved so well and why Cuba,
Moscow and their instant Latin 2unerican propoganda claques have
treated Torrijos so well. It also explains to a lesser extent why
the U.S. press hasn't bothered him.
Vasquez, a well-known Communist lawyer, was given control of.
local Governments, courts, post office, passports, immigration and
naturalization, licenses for commentators, telegraph and radio
communications, transit and terrestial transport, and the courts
throughout the country. Imagine how useful it is to the Communists
to have control of passports and immigration for Cuban or Allende
Chilean helpers, etc. .
PAGENO="0272"
264
Vasquez and Marcelino Jaen ~aorked closely together. A new
Directorate was created and called Direccion General de Desarollo
.~unidad (DIGEDEcOM). When Torrij~ brought the CornmunT~ts into
Government end gave them the keys to power they did not have a good
rural organization. They had to devise a way to extend their
numbers effectively and geographically. Control of the Ministries
of Government and Justice, Labor*, Education, the University, and
Agriculture gave them the people and access to financial resources
from U.S. Aid subsidies. DIGEDECOM has become the vehicle to dis-
persed power, now affectionately known as ~Poder Popular."
VEHICLE FOR CONSOLIDATION OF COMMUNIST POWER
*(DIGEDECOM) Direccion General de DEsarollo Comunidad
Each of the ten Provinces has a Governor, Coordinating Council
and~Policy Committee oE Representatives of Corrigimientos (one
rep/District within each Province). Each District has several
Corrigimientos (geographic areas). At the District level there
is an appointed Major (Alcalde) and a municipal council. There
is also some police authority (nomir~al) with much discretion still
vested in the Guardia Nacional.
Each Corrigimiento has one elected representative to the "National
* Assembly of Representatives." There are 505 Corrigimientos (areas)
and 505 Re'presentatives. This Assembly meets for approximately 30
- days a year. Laws are drafted by an elite committee of Communists
called the Legislative Committee. The Assembly is a rubber stamp
* organization.
At the Corrigimiento level the `elected" Honorable Representa-
tive of the Corrigimiento sits as President of a Junta Comunal" organ-
ized by the Communists to get effective control of the population.
Each Junta Comunal is charged with carrying Communists control to
ever lower levels by organizing ~Tuntas Locales. By way of example,
the City of Panama has an area called "Chorillo." It is a Corrigi-
mento. The Chorillo Corrigimiento has organized approximately ten
"Juntas Locales." within their.area of responsibility. For example,
it might be organized by street.
Away from the cities the Juntas Comunales also organize Govern-
ment subsidized "Assentimientos de Campesimo" (farm settlements).
This provides the base for continued Marxist organization of rural
areas.
As a practical matter the Junta Comunal has no real money. The
Junta Locales can request services and the Assembly Representative
who heads up the Junta Comunal can petition the National authorities
for financial and technical support through th'e District ~`Iumicipal
Council where project needs are theoretically coordinated. As the
Assembly Representatives do not make laws or appropriate money they
actually function more like ward politicians and give an illusion
of operational dernoc~acy. This organization is very similar to
that in Cuba.
PAGENO="0273"
265
In 1972, at the time of promulgation of the new Constitution,
it became apparent that the Communists had written it. Because
J. H. Vasquez, Romulo Escobar Betancourt, Aristides Royo, and
Narcelino Jaen appeared on television to explain it.
Having done his organization work very well, Vasquez, a lawyer,
moved over to a new job as Chief Justice of the Supreme Court.
As all of the codes of laws were being re-written to serve the
societal transformation process, Vasquez is once again in a key
job to help in the consolidation of power. The Judicial system
block beneath the Supreme Court is not completely red because some
of the pre-Communist justices have not yet been replaced. They
have added new justices and it is but a matter of time until an
already pliant Judiciary is completely loyal to Communist direction.
A careful perusal. of the Spanish language news will show a
constant, well-orchestrated and coordinated Communist control of
just about everything of importance which occurs in Panama.
Important Communists from the Legislative Committee, those which are
underlined in red on Exhibit One, and the other key personnel
shown on the chart show up again and again.
They show up in control of Agrarian Reform, Educational Reform,
Treaty Negotiations, Labor reform, Voluntary Work Brigade Organi-
zation, attendance at OAS and U.N. agency meetings, attendanc~ at
Third World meetings, trips to Cuba, and receptions for visiting
communist and Socialist leaders or delegations. They are prominent
in a variety of Russian/Cuban-led Front Activities especially for
Latin American student groups, labor groups, cooperative groups,
women's groups, writers, groups, lawyers groups, etc.
DIGEDECOa, .agnvernment agency openly participates with them in
"Che Guevara" and honor to Cuba type activities which take place
on the Communist "holy days of obligation" such as the 26th of July
each year to honor Fidel Castro's attack on the Noncado Barracks in
Cuba or on May 1st oriented activities of labor, or in "Jornadas
Anti Fascistas" or on or about the 11th of October each year to
celebrate the Panamanian Guardia Nacional Revolution.
They are also very active in the "Capacitacion" and "Con-
scientizacion" activities carried out in their constant indoctrin-
ation programs held for teachers, government employees, students,
labor groups, campesinos, etc. Use is made of almost every gathering
for politicization and polarization of attitudes against the U.S.A.
oligarchs, fascists, etc.
DIGEDECOM has an appendage marked "Teatro Popular." This is
the Communist idea of how to offer low budget "cultural" indoc-
trination. Many of their works are virulent anti-U.S. in nature.
95-549 0 - 77 - 18
PAGENO="0274"
266
This official. Government creation also works closely with the
Institute for Art and Culture (INAC). INAC has in turn been
doing its best to promote Communist causes and propaganda. It
also sponsors anti-U.S. type plays like "Lobo go home" etc.
One of Torrijo~' sisters, Aurea, heads~up a University level
Department of Expressiones Artisticas (DEXA). It works openly
on Communist causes.
Susana Richa de Torrijos heads up one of the major Communist
nests at the University. She is the Dean of the Philosophy,
Letters, and Education Faculty. Under her there is a Department
of Science of Social Communication. She trains sociologists
(community workers for the DIGEDECOM program), newsmen and
educators. *
Another sister prominent in Communist activities is Berta
Torrijos de Arosemena. She controls the Women's Movement pro-
paganda. She is in charge of a Government agency known as "Instituto
Panameno de Habilitacion Especial." An examination of her rhetoric
in conjunction with the International Women's Year meeting in
Mexico City will show her political coloration. She is closely
involved with the others in" Capacitaciorf' and" Concientizacion~ class
warfare activities.
Toya Torrijos de Jaen has a role in the Instituto Para la
Formacion y Aprovechamiento de Recursos Humanos (IFARHU). This
agency controls the national scholarship program and student
assistance. She and her husband Marcelino Jaen have been active
Communists for most of their adult lives.
A scrutiny of the names in the National Legislative Committee will
reveal many Torrijós relatives. The Diaz-Herrera, Perez-Herrera,
Vernaza-Herrera and Torrijos-Herrera families are and have been
prominent Marxists for many years.
*The Social Service School is actually under the Dean of Public
Administration and Commerce. She plays a part in the training of
community social workers used by DIGEDECOM and other Government
organizations.
PAGENO="0275"
* _
`I L~ii
____ I ~ I
`1 ~ ~ ~ &L(5~~
____ !-~-~ __ ____ ___
t~)
PAGENO="0276"
268
KEY COMMUNISTS
B.G. ONAR TORRIJOS HERREPA
LTC MANUEL A. NORIEGA
DR. ROMULO ESCOBAR BETANCOURT
Well-known Communist
LTC ROBERTO DIAZ HERREPA
Well-known Communist
/
GERABDO GONZALEZ VERNAZA
Well-known Communist
Lic. JUAN MATERNO VASQUEZ
Well-known Communist
Lic MARCELINO JAEN MORAN
Well-known Communist.
TORRIJOS BROTHER-IN-LAW
(TOYA TORRIJOS DE JAEN)
-CHIEF OF GOVERNMENT
-G-2 STATE SECURITY
-Controls drug traffic
-On National Information
Committee
-Ex-RECTOR, UNIVERSITY OF
PANAMA
-CHIEF TREATY NEGOTIATOR
-Advisor (Political) to CHIEF
OF GOVERNMENT
-STATE INFORMATION/MEDIA
CZAR HEADS THE NATIONAL
INFOB~1ATION COMMITTEE
.-Torrijos Cousin
-SECRETARY TO GENERAL STAFF
-SECRETARY TO GUARDIA NACIONAL
-INFORMATION COMMISSION
-GUARDIA OFFICER ASSIGNMENTS
(Major and under) -
-GUARDIA TRAINING & OTHER
National education matters
PRESIDENT OF REPUBLIC
-Runs Everyday business of
Government
-Ex-AGRICULTURE MINISTER
-Was TREASURER OF THE COMMUNIS~
PARTY AND COURIER
-CHIEF JUSTICE OF SUPREME
COURT
Ex-MINISTER OF GOVERNMENT AND
JUSTICE (had all local Govern-
ment apparatus under him.
throughout the Country.)
-Set up DIGEDECOM to spread
COMMUNIST CONTROL - - --
-PRESIDENT, LEGISLATIVE COM--~-
MITTEE - (Writes laws, over-
*sees implementation, in on
all things of importance))
PAGENO="0277"
269
Lic MARCELINO JAEN MORAN-continued -Many members of NATIONAL
EXECUTIVE COMMITTEE AND
CENTRAL COMMITTEE of the
COMMUNIST PARTY work for
him.
DR. ARISTIDES ROYO
Well-known Communist
DR. ROLANDO MURGAS
sell-known Communist
Lic. ADOLFO ABUMADA
Well-known Communist
14c DIOGENES DE LA ROSA
Well-known Communist - -
Lic MOISES TORRIJOS HERRERA
Well-known Communist
OLDER BROTHER OF TORRLTOS
HUGO TORRIJOS HERRERA
BROTHER OF TORRIJOS
NITIDO DIAZ HERRERA
Enown Communist
TORRIJOS COUSIN
/
Lic. RICARDO RODRIGUEZ
-MINISTER OF EDUCATION
-Also active with COMMUNIST
FRONT ACTIVITIES. Making
good use of EDUCATION REFORM-
(U.S. $$) for COMMUNIST
PURPOSES.
~E2HMIUISTER. OF LABOR
-New LABOR CODE AUTHOR
-MEMBER OF LEGISLATIVE COMMITTE
-Current LABOR MINISTER
-TREATY NEGOTIATION TEAM
-Ex-STUDENT LEADER
-ADVISOR - FOREIGN RELATIONS
-TREATY NEGOTIATOR 1967 & today
* -Ambassador to SPAIN
-Family BAGMAN. He handles
TORRIJOS investments overseas.
-INVOLVED WITH DRUG TRAFFIC
-In CHARGE OF NATIONAL CASINOS
(GANBLING) and PROSTITUTION.
-ALLEGED to be INTERFACE with
INTERNATIONAL CRIME LINKS.
-In CHARGE OF PANAMANIAN CUSTOMS
-Ex-MINISTER OF GOVERNMENT &
JU~TICE
-MEMBER OF LEGISLATIVE COMMITTE]
PAGENO="0278"
270
JORGE CASTRO -MINISTER OF GOVERNMENT &
JUSTICE
-Ex-AMBASSADOR TO BRAZIL
Lic. CARLOS CALZADILLA -SECRETARY to the LEGISLATIVE
COMMITTEE and SECRETARY to
NATIONAL ASSEMBLY OP REPRE-
SENTATIVES OF CORRIGIMIENT5S~
-RUBBER STAMPS the work of
the LEGISLATIVE COMMITTEE
CAPITAN DOMINGO O'CALAGAN -DIRECTOR, COMMUNITY DEVELOP-
MENT DIRECTORATE
-MINISTRY OF GOVERNMENT &
JUSTICE (DIGEDECOM)
Spreading Communist control
to lower levels. Now, Juntas
Locales are being divided
into Comite's de Casa y calle
(house & street committees)
Dr. RAUL CHANG PINEDA -Ex-PRESIDENT ASSEMBLY OF
) REPRESENTATIVES
CARLOS HO MOJICA SAME
/
DARIO GONZALEZ PITTI -SAME
FERNANDO GONZALEZ H. -PRESIDENT ASSEMBLY OF
REPRESENTATIVES
Dr. CARLOS PEREZ HERRERA -POLITBURO MEMBER
Well-known Communist -Ex Priest
TORRIJOS COUSIN -MEMBER NATIONAL INFORMATION
COMMITTEE
Ing. NILSON ESPINO -Ex-MINISTER OF AGRICULTURE &
LIVESTOCK (MIDA) - -~
-MEMBER OF LEGISLATIVE COM-~
MITTEE
/
FRANCISCO A. RODRIGUEZ P. -VICE MINISTER AGRICULTURE &
LIVE STOCK
PAGENO="0279"
271
LILIA ROSA JAEN DE LA IIATA
1mg. JERRY WILSON N.
ALVARO VERNAZA HEBRERA
TORRIJOS COUSIN
ALEXANDER AYALA
RUAL SIERRA
Lic. LUIS CARLOS NORIEGA
BROTHER OF G-2 LTC
Dr. ABRAHAM SAIED
(SAIED-TORRIJOS marriage bonds)
NOISES TORRIJOS' daughter
Dr. HUGO SPADAFORA
Lic. FERNANDO MANFREDO
Known Conimunist
ELI M. ABBO
Lic. JULIO E. SOSA B.
Lic. ARNULFO RORLE~Z
-DIRECTOR, SOCIAL. DEVELOP-
MENT of the
MINISTRY OF AGRICULTURE &
LIVESTOCK (MIDA)
-DIRECTOR AGRARIAN REFORM
(MIDA)
-GENERAL MANAGER AGRICULTURAL
DEVELOPMENT BANK (BDA)
-DIRECTOR AGRICULTURE &
LIVESTOCK MAR~TING INSTITUTE
(mA)
-DIRECTOR GENERAL OF AGRICUL-
TURAL COOPERATIVES (C0AGR0)
-PRESIDING MAGISTRATE of the
ELECTORAL TRIBUNAL
-VOTER ID CARDS
-PUBLIC RECORDS
-MINISTER OF HEALTH
-VICE MINISTER OF HEALTH
-Ex-MINISTER COMMERCE &
INDUSTRIES (MICI)
-Currently MINISTER OF THE
PRESIDENCY
-Runs a STAFF for GERABDO
GONZALEZ
-VICE MINISTER OF THE PRESIDENCI
-MINISTER OF COMMERCE &
INDUSTRIES (MId)
-VICE NINISTER (MICI)
PAGENO="0280"
-VICE MINISTER of TREASURY
(and taxes - business & real
property)
-Ex-NINISTER OF HOUSING ~MIVI)
-Bank employee
-DIR. GENERAL OF WATER, SEWER,
GARBAGE INSTITUTE
-Sub-DIRECTOR OF IRHE (Power
and Lights)
-Has the purse strings -
Fabrega is a figurehead.
-DIR. GENERAL INDE
(Sports activities - stadiums,
lights, etc.) Used much like
Communists sports exchanges.
-DIRECTOR INSTITUTE OF 4RTES
and CULTURE (INAC)
Used for Communist indoctrin-
ation.
-DIRECTOR, INSTITUTE `FOR THE
FORMATION and EXPLOITATION
of HUMAN RESOURCES (IFARHU)
-Works in IFARHU
(All scholarships are con-
trolled here)
-PRESIDENT, PANAMANIAN INSTI-
TUTE OF SPECIAL EDUCATION
(IPEE) (REHABThITATION)
-Prominent in the WOMEN'S
MOVEMENT
-DIRECTOR OF THE DEPARTMENT OF
ARTISTIC EX~RESSIONS (Univ. of
Panama) (DEXA) - a real
Communist nest.
272
LOIS H. ADAMES
Known Communist
JOSE A. DE LA OSSA
Admitted Life-Long Marxist
Dr. JULIO SANDOVAL
ASCANIO VILLALAZ
Known Communist
ENRIQUE RUIDIAZ
JAIME INGRAM
HUGO GIRAUD
Known Communist
TOYA TORRIJOS DE JAEN
Well-Known Communist
TORRIJOS SISTER
BERTA TOPRIJOS DE AROSEMENA
Known Communist
TORRIJOS SISTER
AUREA TORRIJOS
Known Communist
TORRIJOS SISTER
PAGENO="0281"
EVERARDO TOMLINSON H.
Known Communist
Prof. BLAS BLOISE CALDERON
-RECTOR OF THE UNIVERSITY
-Formerly in charge of STUDENT
AFFAIRS
-MEMBER OF LEGISLATIVE COM-
MISSION
-DEAN OF THE FACULTY OF
PHILOSOPHY, LETTERS, &
EDUCATION, UNIVERSITY OF
PANAMA
-DEAN OF THE FACULTY OF
NATURAL SCIENCE & PHARMACY
-DEAN OF THE FACULTY OF
AGRONOMY
-DEAN OF FACULTY OF PUBLIC
ADMINISTRATION & COMMERCE
*_SCHOOL OF SOCIAL SERVICE
*..SCHOOL OF DIPLOMACY
*_SCHOOL OF ECONOMY
-DIRECTOR OF EDUCATIONAL TV
* -NATIONAL INFORMATION COMMITTEE
-COLUMNIST -EDITORIAL PAGE of
Government Daily & Sunday
"REPUBLICA"
-ACADEMIC COORDINATOR OF
* REGIONAL UNIVERSITY CENTERS
-DIRECTOR of the DEPARTMENT OF
EDUCATION
-SECRETARY GENERAL OF UNIVERSIT
PANAMA
-DIRECTOR, Of the "EDUCATORS
CENTER"
-DIRECTOR, POPULAR UNIVERSITY
of COCLE (Province)
273
Lic. ELIGIO SALAS DOMINGUEZ
Known Communist
Dra. SUSANA RICHA DE TORRIJOS
TORRIJOS SISTER-IN-LAW
ALFREDO SOLER
TORRIJOS BROTHER-IN-LAW
Ing. GILBERTO OCA~A
Known Communist
EMILIO CLARE
GRISELDA LOPEZ
KNOWN COmmunist
Dr. LAUPENTINO GUDINO
Known Communist
Prof. OLMEDO DOMINGO
Known Communist
*Very heavy with Communists
PAGENO="0282"
Dr. DIOGENES CEDENO
Known Communist
DOMINGO BARRIA
NARTA NATAMOROS
RENATO PEREIRA
Well known Communist
DIOMEOES CONCEPCION
Well known Communist
Dr. CARLOS IVAN ZUNIGA
Rabid Socialist may be .a
Communist?
EFEBO DIAZ HERRERA
Well-known Communist
TORRIJOS COUSIN
CESAR A. DE LEON
274
-NATIONAL DIRECTOR OF
EDUCATIONAL REFORM & PLANNING
-UNION ORGANIZER. Masterminded
the one large Central Labor
Union. Now called CENTRAL
DE TRABAJADORES DE REPUBLICA
de PANAMA (C.T.R.P.)
-COMPESINO ORGANIZER
-INTERNATIONAL SECRETARY -
UNAMUP. . . (Communist
Women's Front)
-MAYOR OF PUERTO ARMUELLES
-MAYOR OF THE MUNICIPALITY OF
PANAMA
-Personal friend of CARLOS
ANDRES PEREZ - President of
Venezuela from his exile days.
-AMBASSADOR TO CUBA
* -MEMBER OF THE POLITBURO of the
PARTIDO DE PUEBLO (Communist
Party of Panama)
COMMUNIST CONTROLLED GOVERNMENT NEWS MEDIA - HEAVY WITH COMMUNISTS
ALBERTO LUIS TUNON General Manager of EDITORR. - -
RENOVACION, S . A'.
IthPAEL NUNEZ ZARZAVILLA Editor `MATUTINO"
RUBEN DARIO MURGAS Editor of "CRITICA"
PAGENO="0283"
News Media - continued
EUCLIDES FUENTES ARROYO
RODRIGO CORREA
ESCOLASTICO CALVO
/
Lic. MARIO ATJGUSTO RODRIGUEZ
JOAQUIN BELENO C.
/
Dr. CAMILO 0. PEREZ
Lic. CARLOS J. NUNEZ L.
275
President of the Newsmens
Union
Director of "LA REPUBLICA"
Director "MAS PARR TODOS"
magazine
Editorial Council of MAS.
TV Commentator
Educator
Columnist in LA REPUBLICA
Column entitled "MACHETEANDO
Editorial Council of MAS
Columnist in "MATUTINO"
Editorial' Page Columnist for t~
Government daily "CRITICA"
Column called "BONAFIDE"
Past President of CONADESOPAZ-
Panama conponent of Worldwide
Communist Front Organization
Recent recipient of State Dept.
Grant.
Editorial Page Columnist for'
"CRITICA". Frequently con-
tributes to column entitled
"PISANDO CALLOS"
Past President of CONADESOPAZ
Communist Front Organization
PAGENO="0284"
276
EXHIBIT #2b ADDITIONAL INFORMATION ON OTHER KEY GROUPS
(1) National Legislative Commission (Committee).
Those with question marks after their
names are probable Communists.
(2) National Information Commission (Committee)
Those with question marks may not be Communists.
(3)~,~ Presidencia Staff.
This has always been full of Communists
under the Torrijos Government. The last
four listed may not be Communists.
(4) Gobierno y Justicia.
This is thoroughly controlled by Communists.
The primary purpose for its inclusion was
to show the power concentrated here. It shows
why the post was so important to the Communists
future and the kind of power exercised by the
"Premier" Juan Materno Vasquez.
(5) Communist Front Organizations.
This list (except for the last entry) shows
how prolific the Communist/Communist front
activities are. Torrijos' family is active in:
FTC, FENAMUDE, FREP, OIP, GECU*, DEXA*,
UNAMUP and with the Juventud del Partido del
Pueblo (Communist Youth).
(*DEXA and GECU belong to the Panama Government
run university. Torrijôs' sister Aurea is
in charge of DEXA.)
The List also reveals:
(a) Some hot beds of Communist activity within
the university are: law, dental, economics,
social work, diplomacy, public, administration
and commerce schools. Missing were education,
journalism and psychology which are alsm very
red.
(b) CONADESOPAZ is the Panamanian component of
the Russian financed World Peace Movement.
The Womens Movement (UNAMUP), Newspaperman's
Organization (OIP) and Labor Group (CNTP)
are affiliated with World wide Soviet led
groups as well as Latin American Regional group~
PAGENO="0285"
277
Cc) Despite a state of siege under which all
political parties are outlawed, only the
Partido del Pueblo is permitted to operate
(Juventud del Partido del Pueblo). A
newspaper clipping from a local paper will
substantiate the 26th of July 1975
Anti-Facist Committee composition.
Cd) The Brigadas Comunales are highlighted in
the 13 December 1976 "MAS para todas"
Government weekly news magazine analysis
in exhibit 4. It shows clearly that the
Communists are using selected university
students (200-300) and voluntary work
programs (a la Castro Cuba) to polarize
poor farmers and poor Panamanians for
the class struggle. Ironically, the U.S.
State Department has been helping to
finance this effort (knowingly).
The Communists shown on the chart of
exhibit 1 and in the lists of exhibits
2a and 2b are but the tip of an iceberg.
Mast of The important ones are shown.
The University and Education Ministry
Staffs could be (and will) expanded
upon usefully at a future time. Their
efforts are closely integrated with
those of DIGEDECOM and other Government
organizations. This extends to integrating
the Government controlled and financed
"Panamanian Student Federation (FEP)
activities on voluntary labor and Marxist
political/cultural indoctrination activity.
The Student Federation also extends into
the lower schools throughout the country.
Another important group of Communists are
in the Foreign Ministry.
Most of those shown in exhibit 1 or exhibit
2 (important ones) are also shown in the
Panamanian Human sights Committee Work
(exhibit 3).
The next big Communist effort will be
directed towards creating one large
PAGENO="0286"
278
political party. This will probably
precede the 1978 elections. Its
purpose will be to create another
illusion of denocracy in action
(idealogical pluralism). At that
time, "Poder Popular" will have
passed another milestone. Soon after
they have a treaty they will announce
the creation of a Socialist State.
It is difficult to know what the short
tern consequences will be. Will they
move as fast as the Communists in
Portugal or Chile did:~
PAGENO="0287"
279
NATIONAL
LEGISLATIVE COMMITTEE
(Draft all Laws - Members work on most important projects)
Lic. Marcelino Jaen Moran
Lic. Carlos Calzadilla
Lic. David Cordoba
,
Lic. Ricardo A. Rodriguez
Lic. Miguel Balbino Moreno
Lic. Adolfo Ahumada
Dr. Rolando Murgas
/
Lic. Eligio Salas Dominguez
Dr. Carlos A. P~rèz Herrera
Dr. Ruben Dario Herrera
Lic. Miguel Picard 1~mi
/
Lic. Sergio Perez Saavedra
/
Dr. Ernesto Perez Balladares
Gonzalez
Dr. Jorge Eduardo Ritter
Ing. Nilson Espino
Lic. Oscar Ceville
Celma Moncada Guerra
President
Brother-in-law of Torrijos
Secretary (Also for the Assemby)
Has acted as Committee President
Ex-Minister of Government & Justice
School boy chun of Torrijos
Labor Minister
Ex-Labor Minister
Rector of the University
Cousin of Torrijos. Ex-Priest
Economist - Communist Party
Finances.
Author of "Poder Popular" structure
Has acted as Vice Minister of
Government & Justice
Nephew of Rodrigo Gonzalez
Currently Minister of Treasury
Currently Vice Minister of Labor
Ex-Secretary of Agriculture
Public Employee of the Committee
Public Employee of the Committee
Public Employee of the Committee
Newsman - Press Secretary for
Committee
Public Employee of the Committee
Public Employee of the Committea
?
Arnulfo Quiros
Sr. Luis Armuelles
Pablo Castrejon Jr.
Elias Castillo
Rolando Candanedo
Eduardo Ahumada
PAGENO="0288"
280
NATIONAL INFORMATION COMMISSION
Romulo Escobar Betancourt
Ltc. Roberto Diaz Herrera
Euclides Fuentes Arroyo
Maria Guadelupe Gorgas
Griselda Lopez
Ernesto Solis
Leonidas Escobar
/
*Rodrigo Gonzalez
Dr. Carlos Perez Herrera
Manuel Balbino Moreno
LTC Manuel Noriega
*T. A. Dugue
*Fernando Eleta A.
*Rodolfo Garcia De Parades
Executive Committee
Torrijos Cousin
Secretary
BOARD OF CONSULTANTS
Guardia Nacional Frontman -
in nany businesses (ERSA)
Torrijos Cousin
School boy chum of Torrijos
Publisher (STAR & HERALD &
ESTRELLA DE PANAMA)
TV - R.P.C. Channel 4 owner
TV Channel 2 owner
Technical Consultants
Eli M. Abbo
Alberto Luis Tunon
Rafael Ayala
Ernasto Solis
Ruben Dario Del Cid
Jose Gabriel Diaz
Griselda Lopez
*Decorative Figures
Vice Minister of Presidencia
ERSA
Mi Gohierno y Justicia
Government Infornation Office
Radio TV Workers Union
Panama Newsmen Association
University of Panama Educational
TV and Filn Departnent
- will have to do what Betancourt wants.
PAGENO="0289"
Minister of the Presidency
Ex-Minister of Commerce and
Industries
Vice Minister
Gobierno y Justicia now
Asesor (Advisor)
Asesor
Asesor
Asesor
281
PRESIDENTIAL/VICE PRESIDENTIAL STAFF
PRESIDENCIA
Lic. Fernando Manf redo
Eli M. Abbo
Rafael Ayala
Jose De Là Rosa Castillo
Jose Guillermo Aizpi~
Lic.. Elizabeth Silvera
-Lic. Moises Darwish
95-549 0 - 77 - 19
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282
GOBIERNO Y JUSTICIA
(Government and Justice)
Minister (Ex) Juan Materno Vasques S
(Ex) Ricardo Rodriguez
(Current) Jorge Castro (Las Tablas) (Was Amb.to Brazil)
Vice Minister-Dr. Cesar Rodriguez Maylin
Lic. Sergio Perez Saavedra (Acted as Vice Minister)
Asesoria Legal-Dir Lic Jose A. Henriquez
Direcci~'n de Gobiernos Locales y Politica Indigenista
Lic. Abel Vargas
Dept. Juridicoy Justicia
Direccion'Nacional de Gobierno
Sub. Dir. Passports
Depto de Migracion y Naturalizacion
Tribunal Electoral - Mag. Presidente Luis Carlos Noriega
*Director Gen de Cedulacion - Felix Gomez
**Director Registro Civil - Ruben A de la Guardia P.
Direccion Nacional de Conmunicaciones Social
Director - Lorenzo Sanchez Galan
Licenses for Commentators
Junta Nacional de Censura (Censor)
Direccion General de Correos y Telecomunicaciones
Post Office
Telecommunications
Telegraph
Radio
* ID cards for adults
*.*Voters lists and vital records, etc.
PAGENO="0291"
283
Government and Justice - continued
Direccion Nacional de Transito y Transporte Terreste
(Transit and Land Transport)
Director - LTC Manuel J. Arai~z
Carte Suprema de Justicia (Supreme Court)
Chief Justice - Juan Materno Vasquez (formerly Minister of
Government and Justice)
Lesser Courts
Airports
Correctional Centers
Womens jail
Seguridad (Security) Actual control in G-2.Secret Police (DENI)
Guardia Nacional - Power actually at higher level. Police
functions in Guardia.
PAGENO="0292"
284
COMMUNIST & FRONT ORGANIZATIONS & PARTICIPANTS
7-24-75
XXII Anniversary of Castro's attack on Moncado Barracks
National Anti-Fascist Committee of Panana
Federacion de Estudantiles de Panama (FEP)
Comite Nacional de Defensa de la Soberania y Paz (CONADESOPAZ)
Frente de Trabaj adores de la Cultura (FTC)
Central Nacional de Trabajadores Panamenas (CNTP)
Federacion de Mujeres Democraticas (FENAMUDE)
Confederacion Nacional de Asentimientos Campesinos (CONAC)
Frente Ref ormista de Educadores Panamenas (FREP)
Union Medica Panamena (UMP)
Centro de Estudiantes de Derecho (CED)
Comit~ Paname~o de La Organizacion Internacional de Perodistas (OIP)
Comisidn Femenina Pro Defens~ de las Derechas de la Mujer y el Ni~o
Sociedad Graduados de Derecho
Frente Jose Dolores Moscote
Brigadas Comunales
9th de Enero
Conrado Gutierrez
Ascanio Arosemena
Soberania o `Muerta
Asociacid'n Universitaria de Economia
Movimiento Agrario Paname~io (MAP)
Frente Estudantil Revolucionario (FER)
Renovaciccn Social de la Escuela de Trahajo Social
Asociacioci de Estudiantes de Odontologia
Grupo Experimental de Cine Universitario (GECU)
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285
Departamento de Expresiones Artisticas de La Universidad de
Panama (DEXA)
Frente Estudantil de Economia
Frente Zunplio de Diplonacia
Frente de Reforma a la Ensenanza Universitaria
Novimietitô de la Ju~ientudKuna
Movimiento de la Juventud Panameno
Juventud de Partido de Pueblo (Communist Party Youth)
Asociacion de Estudiantes de Servicio Social
Asociacion de Estudiantes de Adninistracion Publica
Circulo Estudantil de Comercio
Movimiento Pro Mejores del Chorillo
*Frente Cultural "Cesar Vallejot'
Guayacucho
Sindicato Granja Experimental de Tocumen
Asociacion de Estudiantes Kuna
Union Nacional de Mujeres Panamenas (UN7~MUP) Formed March of 1977.
PAGENO="0294"
286
\~ INTER-AMER'CAN DEVELOPMENT BANK
~ ~ 833 17TH STREET 00 0 As GTO 0 C 0577 TELEPHO E 63 8000
FOR IMMEDIATE RELEASE - December 16, 1976
NR-114/76
INTER-AMERICAN BANK LENDS $22 MILLION
FOR CONSTRUCTION OF HIGHWAY IN PANAMA
The Inter-American Bank today.approved a $22 million loan to help finance the
construction of a highway in Panama.
The loan, which was extended to the Republic of Panama, will be used by the
Ministry of Public Works through its Direcci~n Nacional de Construcci~n (DNC), to
a highway between the towns of Arraij~n and Chorrera, situated to the West
of the Panama Canal Zone.
The total cost of the project is estimated at $36.6 million, of which the
Bank loan will cover 60.1 per cent and the Government of Panama will cover the re-
maining 39.9 per cent.
The DNC will use the Bank's loan to construct 14 miles of a high speed high-
way between Arraij~n and Chorrera. The new highway will have four lones, each of
which will be 3.6 meters wide, and will have a capacity to handle 36,000 vehicles
daily.. It will run parallel to the Pan American Highway, which is presently
saturated with a traffic volume of 8,000 vehicles per day. .
Execution of the project will relieve the traffic congestions in Panama City
and adjacent areas, expand the urban development area included within the macro-
politan area, provide a safer road and thus reduce the frequency of traffic acci-
dent, . reduce the transportation cost of users, and encourage tourist-related activi-
ties.
The tnter-Americaii Bank has approved four previous loans totaling $64.~million
to help Panama finance rold projects. Two of these loans have been comple::ely dis-
bursed.
PAGENO="0295"
287
-2-
Today's loan was extended from the ordinary capital resources for a term
of 20 years at an interest rate of 8.6 per cent per annum. Up to $20.5 million
of the loan will be disbursed in dollars or other non-Panamanian currencies and
up to the equivalent of $1.5 million will be disbursed in Panamian halboas.
The loan will be repaid in 22 semiannual installments, the first of which
will be due 4-1/2 .years after the date of the loan contract. Principal and
interest payments will be made proportionately in the currencies disbursed.
The loan will be guaranteed by the Republic of Panama.
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Construction of a highway.
BORROWER: The Republic of Panama.
EXECUTING AGENCY: Ministry of Public Works through its Direcci~n Nacional
de Construcci~n (DNC), Panama City, Panama.
TOTAL COST: $36.6 million, of which $20 million are direct construction costs.
BANK LOAN: Ordinary capital resources, $2,2 million ($20.5 million in dollars
or other non-Panamian currencies and the equivalent of $1.5 million in
Panamian balboas).
OTHER FINANCING: Government of Panama, $14.6 million.
PROJECT DESCRIPTION: The construction of 14 miles of a high speed, four-lane
highway between Arraij~n and Chorrera.
GOODS AND SERVICES: The awarding of contracts for execution of the works.
PROCUREMENT PROCEDURES: International public bidding among Bank member countries
on goods and services imported with resources of the Bank loan. Natidhal
public bidding on domestic purchases.
ESTIMATED COMPLETION DATE: 1980.
December 16, 1976.
PAGENO="0296"
288
rc~~ ~ ~ iNTER-AMERICAN DEVELOPMENT BANK
sos 7TSREET6W ws 00010C20577 TELEO E63 8000
FOR IMMEDIATE RELEASE December 9, 1976
NR-lO4/76
INTER-AMERICAN BARK LENDS $5 MILLION
FOR INDUSTRIAL CREDIT PROGRAM IN PANAMA
The Inter-American Bank today approved two loans totaling $5 million to
help finance an industrial credit program for the private sector in Panama.
The loans--$3 million from the Bank's Fund for Special Operations and $2
million from its ordinary capital resources--were extended to the Banco
National de Panaio~ (BNP), an autonomous state entity which operates largely as
a cossoercial bank bur which also grants development credits and performs certain
central bank functions.
The BNP will uBe the resources of the Bank loans to extend medium- and
* short-term credits to small and intermediate industrial producers to establish,
expand and improve manufacturing companies in the. private sector. Credits
approved under the program will be used to cover fixed investments and working
capital.
The total cost of the program is estimated at $7.5 million, of which the
Bank loans will cover 66.7 per cent and the BNP the remaining 33.3 per cent.
As a result of efforts to stimulate the sector, the Ministry of Planning
and Economic Policy has projected private investments of $141 million in
industrial manufacturing in the 1977-80 period which, if fulfilled, could
produce an average annual growth of 5.5 per cent in the industrial manufacturing
sector.
Since 1964 the Inter-American Bank has extended four loans totaling $7.5
million to the BNP in an effort to help develop agriculture and industry in
* Panama.
PAGENO="0297"
289
Today's loans include:
$3 million from the Bank's Fund for Special Operations for a term of 20
years at an interest rate of 2 per cent per annum, of which $1.5 million will be
drawn from the unrestricted resour~es of the Fund. The loan will be disbursed
in dollars or other non-Panamanian currencies which form part of the Fund.
The loan will be repaid in 32 semiannual installments, the first of which
will be due 4-1/2 years after the date of the loan contract. Principal and
interest payments.will be made proportionately in the currencies disbursed.
$2 million from the Bank's ordinary capital resources for aterm of 20
yearsat an interest rate of 8.6 per cent per annum. The loan will be disbursed
in dollars or other no'n-Panamsnian currencies which form part of the ordinary
capital resources. .
The loan will be repaid in 32 semiannual installments, the first of which
will be due 4-1/2 years after the date of the loan contract. Principal and~
interest payments will be made proportionately in the currencies disbursed.
The loans will be guaranteed by the Republic of Panama.
PAGENO="0298"
290
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Industrial credit.
BORROWER AND EXECUTING AGENCY: Banco Nacional. de Panama (BNP), Apartado 5220,
Panama 5, Panama.
TOTAL COST OF PROJECT: $7.5 million.
BANK LOANS: Fund for Special Operations, $3 million in dollars or other
non-Panaxnania~ currencies, including $1.5 million in unrestricted resources;
Ordinary capital resources, $2 million in dollars or other non-Panamanian
currencies. .
OTHER FINANCING: BNP, $2.5 million,
PROJECT DESCRIPTION: The granting of medium- and short-term credits to small
and intermediate ~industrial producers to establish, expand and improve
manufacturing companies in the private sector.
GOODS AND SERVICES: The acquisition of machinery, equipment and tools and
the construction, assembly and installation of indu~strial plants.
ESTIMATED COMPLET N DATE: 1980. .
December 9, 1976
PAGENO="0299"
291
ift!)~Y~ ~ [~,J INTER-AMERICAN DEVELOPMENT BANK
iJG1t)~~ ~j ~ 800 17TH STREET NW WASWNGTON D C. 20577 TELEPHO8.E 634-8000 -~
FOR IMMEDIATE RELEASE July 29, 1976
- NR-49/76
INTER-AMERICAN BANK GRANTS $125,000 TO PANAMA
FOR A REGIONAL STUDY ON FINANCING LATIN AMERICAN EXPORTS
The Inter-American Bank today announced the approval of $125,000 in non-
reimbursable technical cooperation to carry out a regional study aimed at
providing alternati~ies for the creation of a multinational mecanism to facil-
itate financing Latin American exports.
The technical cooperation, extended to the Government of Panama from
the Bank's Fund for Special Operations, will be used by the MinisteriP_4R
Planificaci6n y Politica Econgsica (MPPE) and the Comisi~n Bancaria Naciooisl
(CBN), Panama's Ministry of Planning and Political Economy and National
Banking Commission, to contract consultants to undertake the studies.
The total cost of the technical cooperation is estimated at $160,000,
of which the Bank's contribution will cover 78 per cent and the Government
of Panama the remaining 22 per cent. -
The consultants' work will consist of the preparation of a detailed
report containing an analysis of the present situation and existing mecha-
nism for financing Latin American exports; and the objectives and economic
foundations for a new financial export mechanism as well as the benefits
and costs to be incurred by the Bank's member countries in creating such
a mechanism.
From 1970 to 1974, the share of Latin American exports in world trade
decreased from 6.1 to 5.2 per cent. During this period, exports as a share'~
of regional gross national product declined from 12.5 to 11.8 per cent. To
reverse this trend, Latin America needs to increase its exports and improve
its ability to compete in international markets-an aim which can be achieved
if more financial rescurces are made available for exports.
PAGENO="0300"
292
~ INTER-~MERICANDEVELOPMENTBANK
808 7TH STREET NW W S 0T0 S C 20577 TELEPHO 006348000
FOR IMMEDIATE RELEASE July 22, 1976
NR-47/76
1DB GRANTS $158,000 FOR INSTITUTIONAL STRENGTRENING
OF THE NATIONAL FINANCE CORPORATION
The Inter-American Bank today approved $158,000 in nonreimbursable
technical cooperation to strengthen the Corporaci~n Financiera Nacional
(COFINA) of Panama. COFINA is a new development finance agency.
The cooperation,extended from the income of the Bank's Fund for Special
Operations, will be used to contract a consulting firm to advise COFINA
duting the initial stage of its operations on an appropriate institutional
framework for its short-, medium- and long-term activities. Special emphasis
will be placed on basic organization; decision-making procedures; estimates
of volume of operations and capital requirements; financial administration;
operational norms and procedures, and training for its professional staff.
The total cost of the technical cooperation is estimated at $238,000,
of which the Bank's contribution will cover 66.4per cent. The remaining
33.6 per cent will come from local sources.
Since 1972, the Government of Panama has adopted measures to institu-
tionalize the promotion of large-scale industrial development and exports.
Although the National Bank of Panama lends to agricultural and industrial
sectors, it. does not meet the needs of large-scale industrial enterprises.
As a tesult, the Government of Panama decided, early in 1976, to
establish the COFINA to provide long-term financing to create or expand
industrial firms, with special emphasis on sectors producing for the
export market.
PAGENO="0301"
293
~, INTER-AMERICAN DEVELOPMENT BANK
[ ~~S0817THSTREETNWWASHNGTO5DC2Q5TELEPHOE6348OOO
FOR IMMEDIATE RELEASE - * December 5, 1975
NR-94/75
INTER-AMERICAN BANK LENDS $12.2 MILLION
TO IMPROVE TECHNICAL AND VOCATIONAL EDUCATION IN PANAMA
The Inter-American Bank today announced the approval of a $12.2 million
loan to help expand and improve intermediate level technical and professional
education in Paliama.
The loan, which was extended to the Government of Panama; will be used by
the Ministry of Education to implement educational reform in Basic Cycle schools
and in professional and technical institutes in an effort to satisfy a national
demand for skilled and semiskilled labor estimated by the Ministry of Planning
and Economic Policy of Panama at more than 140,000 workers by 1980.
The total cost of the program is estimated at $18 million, of which the
Batik loan .will cover 67.8 per cent and the Ministry of Education the remaining
32.2 per cent.
The program calls for:
The construction of approximately 19 schools to teach the Basic Cycle
and of approximately four vocational and technical institutions.
The equipping of these schools through the acquisition of machinery,
tools, teaching materials, furniture, laboratory equipment and textbooks.
Inaddition to the loan, the Bank approved $333,000 in grant teclnicalcc'ojer-
~;tion which will be used for:
* The implementation of educational reform in the Basic Cycle schools and
the professional and technical institutes to improve the quality of education and
to permit the preparation of students with different skill levels.
PAGENO="0302"
294
The improvement of the teaching, administrative and supervisory person-
nel of the Basic Cycle schools and the vocational and technical institutes by
providing scholarahips for 41 teachers to study abroad.
In response to the recommendations of a National Commission on Education
Reform, organized in 1970, the Ministry of Education has established a nine-
year `General Basic Education" program of free and compulsory education for
young Panamanians. The last three years of this program is geared closely to
the socio-ecor,omic needs of the area served by the school and is known as
the "Basic Cycle."
The 19 Basic Cycle schools, with a total estimated enrollment of 6,840
students, will' be located predominantly in rural areas inhabited by low-income-.
families. Of these, 17 will provide training in agriculture and two in indus-
try. The total estimated enrollment of the vocational and technical institutes
will be 2,040. Three of these institutes will provide vocational training in
agriculture and one in industry. -
Today's loan was extended from the Bank's Fund for Special Operations for
a term of 30 years at art interest rate of 2 per cent per annum. The loan will
be disbursed in dollars or other non-Panamanian currencies. It will be re-
paid in 44 semiannual installments, the first of which will be due 8-1/2 years
after the date of the loan contract. Principal and interest payments will be
made proportionately in the currencies disbursed.
PAGENO="0303"
295
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Improvement of technical and professional education.
BORROWER: Republic of Panama.
EXECUTING AGENCY: The Ministry of Education, Panama, Republic of Panama.
TOTAL COST: $18 million, of which $11,455,000 are costs of works and build-
ings.
BANK LOAN: Fund for Special Operations, $12.2 million (in dollars or other
non-Panamanian currencies).
OTHER FINANCING: Ministry of Education, $5.8 million.
PROJECT DESCRIPTION: The.construction of approximately 19 schools to teach
the Basic Cycle and of approximately four professional and technical
institutions, and the equipping of these schools and institutes through
the acquisition of machinery, tools, teaching materials, furniture,
laboratory equipment and textbooks, to be partially financed by the Bank's
loan; and the iii~plementation of educational reform in the Basic Cycle
schools and the professional and technical institutes and the improvement
of the teaching, administrative and supervisory personnel of these
schools and institutes by praviding scholarships for 41 teachers to
study abroad, to be financed partially by the Bank's technical cooperation
grant.
GOODS AND SERVICES: The acquisition of machinery, instruments, hardware,
- electrical equipment, metal structures, roofing, plumbing and related
materials for use in the construction of the schools, and the acquisition
of teaching materials, furnishings, books and publications and equipment
for the schools.
PROCUREMENT PROCEDURES: International public bidding among Bank members
countries on goods and services imported with the resources of the Bank
loan, with the exception of $150,000 in unrestricted resources which iaay
be used for purchases in nonroember countries of the Bank. National
public bidding on domestic purchases.
ESTIMATED COMPLETION DATE: 1980.
December 5, 1975
PAGENO="0304"
296
~ INTER-AMERICAN DEVELOPMENT BANK
887TH 506 E ~ GTOSO C 20577 TELEP 0 E 634 8000
September 11, 1975
IMMEDIATE RELEASE NR-58-75
INTER-AMERICAN BANK LENDS $30 MILLION
FOR CONSTRUCTION OF RURAL ROADS IN PANAMA
The Inter-American Bank today announced the approval of a $30 million
loan to help finance the construction and improvement of rural roads in
Panama.
The loan, which was extended to the Republic of Panama, will be used
by, the Ministry of Public Works through its National Construction Bureau
(DNC) *to carry out the third stage of a road program that will aake it pos- -
sible to incorporate new areas of production into the national economy and
improve substantially the socioeconomic condition of iithabitants of the rural
areas where, the works will be executed. -
The total cost of the project is estimated at $43 million, of which the
Bank loan will cover 69.8 per cent and the Government of Panama will cover
the remaining 30.2 per cent.
The DNC will use the resources of the Bank loan to build eight roads with
a combined length of approximately 134 miles in rural areas lacking road facil-
ities and inhabited by low-income families in the Provinces of Coclg, Los
Santos, Nerrera, Chiriqui, Col6n and Veragqas.
The program is designed to increase agricultural production and productiv-
ity and t& expand markeiing prospects in these regions, to encourage new agro-
industrial activities, and to facilitate the utilization by inhabitants of
existing farm credit, technical assistance and health education programs, as
well as to reduce the transportation costs of the users.
PAGENO="0305"
297
-2-
The Inter-American Bank has approved three previous loans totaling $34.5
million to help Panama finance road projects. Two of these loans have been
completely disbursed.
Today's loan was extended from the resources of the Fund for Special
Operations for a term of 30 years at an interest rate of 2 per cent per annum.
Up to $23.7 million of the loan will be disbursed in dollars or other non-
Panamanian currencies which form part of the Fund and up to the equivalent
of $6.3 million will be disbursed in Panamanian balboas.
* The loan will be repaid in 44 semiannual installments, the first of which
will be due 8-1/2 years after the date of the, loan contract. Principal and
interest paymants will be made proportionately in the currencies disbursed.
The loan will be guaranteed by the Republic of Panama.
SUMMARY DATA -
COUNTRY: Panama.
PROJECT: Construction and improvement of rural roads:
BORROWER: The Republic of Panama.'
EXECUTING AGENCY: Ministry of Public Works through its National Construction
Bureau (DNC), Panama City, Panama.
TOTAL COST: $43 million, of which $38,080,000 are direct construction costs.
BANK LOAN: Fund for Special Operations, $30 million ($23.7 million in dollars
or other non-Panamanian currencies and the equivalent of $6.3 million in
Panamanian balboas).
OTHER FINANCING: Government of Panama, $13 million.
PROJECT DESCRIPTION: The construction of eight rural roads with a combined
length of approximately 134 miles in the Provinces of Cocig, Los Santos,
Herrera, Chi,riqu~, Col6n and Veraguas.
GOODS AND SERVICES: The awarding of contracts for execution of the works.
PROCUREMENT PROCEDURES: International public bidding among Bank member countries
on goods and servicea imported with resources of the Bank loan. National
* public bidding on domestic purchases. -
ESTIMATED CO~LETION DATE: 1979.
September 11, 1975.
95-549 0 - 77 - 20
PAGENO="0306"
298
[~O~ ~1 [1~] INTER-AMERICAN DEVELOPMENT BANK
~ ~ DC 20577 TEL:H0NE 634 8000
March 10, 1975
RR-13175
FOR IMMEDIATE RELEASE
INTER-AMERICAN BANK GRANTS $645,000 FOR TRAINING
PROGRAM IN CENTRAL AMERICA AND PANAMA
The Inter-American Development Bank announced the approval of $645,000
in technical cooperation to help carry out a training program in administration
in the public sector in Central America and Panama.
The technical cooperation, extended on a nonreimbursable basis, will help the
Instituto Centroamericano do Administraci6n Pi5blica (ICAP) execute a three-
year training program for the benefit of its member countries.
ICAP, a regional institution supported by the five nations of Central America
and Panama, was e~tablished to provide theft governments with a training and
technical cooperation mechanism to strengthen public administration for economic
development and integration in the region. -
The project, scheduled to begin in 1975, will offer courses to high and
intermediate level government officials in each ICAP member country on project
management systems, management of public enterprises, and management of regional
integration programs. The courses will include workshops, seminars and in-service
training. The 1DB sponsored program will also include research activities and
the preparation of teaching materials.
The total cost of the project is estimated at $A,023,000 for the three-
year period.
Today's operation is a continuation of Bank efforts to help ICAP impl~$ient~
its programs. Previously, the Bank had collaborated with ICAP in a two-year.pilot
program of national and regional, courses on project managment systems f or economic
PAGENO="0307"
299
-2--
and social development projects financed through loans from the Inter-American
Bank and/or the Central American Bank for Economic Integration.
T~11 ~ INTER-AMERICAN DEVELOPM~NT BANK
608 17TH STREET. NW.. WASHWGTON. D.C. 20577 TELEPHONE 393-4171
December 12, 1974
NR-71/74
FOR IMMEDIATE RELEASE
INTER-AMERICAN BANK LENDS $3 MILLION
FOR PREINVESTMENT PROGRAM IN PANAMA
The Inter-American Bank today announced the apj~roval of a $3 million loan to
help Panama execute the second stage of a global preinvestment program.
The loan was extended to the Republic of Panama and will be used by the Fondo
de Preinversi~n (FOMDO), a government agency charged with administration of techni-
cal and economic feasibility studies of investment projects.-
The total cost of the project is estimated at $4.5 million, of which the Bank
loan will cover 66.6 per cent and local sources the remainder. .
In 1970 the Bank extended a loan for $1.7 million to help finance the first
stage of the program consisting of 20 studies, of which six have been completed
and 14 are still in progress.
The program consists of the granting of credits to finance technical:, econo-
mic, and financial feasibility studies for specific or general public or private
sector projects that will have a favorable impact on the Panamanian economy.
The FONDO will use the resources of the Bank loan for:
Specific technical and economic feasibility studies of specific projects
and/or programs, supplemental studies of projects which require improved presenta-
tion or additional studies for the purpose of negotiating external or internal f i-
nancing, and specific projects of border integration programs which may be multi-
national in character.
General sector and subsectoral prefeasibility studies for the identification
of specific projects or quantification of investments in a sector, and general
studies, including human and liatural resources and. related studies, for the purpose
of identifying specific projects and/or programs'.
PAGENO="0308"
300
Other studies designed to increase the administrative or productive capacity
of enterprises which are actual or potential recipients of credits from the FONDO
or froa national or international organizations.
Today's loan was extended from the ~ Fund for Special Operations for a
term of 35 years at an interest rate of 2 per cent per annum. Up to $2,250,000 will
be disbursed in dollars or other non-Panamanian currencies which form part of the
Fund and up to the equivalent of $750,000 will.be disbursed in balboas.
The loan will be repaid in 54 semiannual installments, the first of which will
be due 8-1/2 years after the date of the loan èontFact. Principal and interest
payments will be made proportionately in the currencies disbursed.
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Second stage of global preinveatment program.
BORROWER: Republic of Panama.
EXECUTING AGENCY: Fondo Se Preinversign (FONDO), Panama, Republic of Panama.
TOTAL COST: $4.5 million.
BANK LOAN: Fund for Special Operations, $3 million ($2,250,000 in dollars
or other non-Panamanian currencies and $750,000 in balboas).
OTHER FINANCING: Local sources, $1.5 million.
PROJECT DESCRIPTION: The financing of a global preinvestment program consist-
ing of the granting of credits to finance technical, economic and financial
* feasibility studies, as well as design and final engineering studies for
specific or general projects in the public and private sectors that will
have a fdvorable impact on the economy.
GOODS AND SERVICES: The contracting of consulting services in Bank member
countries and the rental and depreciation of equipment directly related
to execution of the studies. -
ESTIMATED COMPLETION DATE: * 1978.
December 12, 1974
PAGENO="0309"
301
TERA~ERllCA~ ~EVE Pr~~T ~
808 17th. ST. NW. WASHINGTON. D.C. 20577 TELEPHONE. EX 3.4171
August 23, 1974
J NR/40-74
FOR IMMEDIATE RELEASE . . ...
* *`* INTER-AMERICAN BANK GRANTS $223,000
TO FOSTER RURAL MANAGEMENT IN PANAMA
* The Inter-American Bank today announced the approval of $223,000 in
grant technical cooperation to help carry out a rural management program
inPanarna. . - . . - -~
The technical cooperation was.extended tothe.Government of Panama
* and will be used by the Ministry of Planning and Econotric Policy to execute
a program for the development and expansion of essential services for fare
organizations in donjunction with the Government of Israel, the United
Nations Organization and the United States Agency for Int~rnational Deve-
lopment (AID).
The total cost of the project is estimated at $526,300, of which
the Bank's technical cooperation will cover 42.6 per cent, the Government
of Panama 38,2 per cent, the Government of Israel 12.5 per cent and other
sources the remaining 6.9 per cent.
The project will include two courses in rural management to train a
minimum of 80 technicians, 10 seminars for members of farm organizations
and two additional seminars for officials of. the farming sector.
The courses and seminars will be conducted by Panamanian instructors
assisted by Israeli experts who will be contracted by the Government of
Panama under terma of the Technical Cooperation Agreement entered into by
the Bank and the Government of Israel in 1970.
The rural management courses will comprise theoretical and prac-
tical training in Panama and will include en observation and study trip to
Israel for the Panamanian instructors and not more than 20 participants,
to be selected on a performance basis.
Completion of the training courses will enable the Panamanian tech-
nicians to help improve the technical and administrative procedures of
Panama's farm organizations, thereby increasing their production efficiency
and accelerating farm and livestock development throughout the country.
PAGENO="0310"
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flT~~ll~i~E\9. V©~E~T ~
808 17th. ST. NW. WASHINnTON. D.C. 20577 TELEPHONE. EX 3.4171
August 1, 1974
- NR-31/74
FOR IMMEDIATE RELEASE
INTER-AMERICAN BANK LENDS $8 MILLION
TO FINANCE FARM CREDIT PROGRAM IN PANAMA
The Inter-American Bank today announced the approval of an $8 million
loan to help Panama finance a farm credit program for approximately 2,350
small- and medium-scale farmers.
The loan will be used by the Banco de Desarrollo Agropecuarlo (BDA),
Panama's agricultural credit agency, to help small- and medium-scale stock
raisers and farmers increase production and productivity, augment their in-
comes, improve agricultural employment opportunities, expand the basic
supply of domestic food products and make more beef available for export.
The total cost of the program is estimated at $12, 080, 000, of which the
Bank loan will cover 66 per cent and the BDA the remaining 34 per cent.
The BOA will relend the resources of the Bank loan to livestock pro-
ducers for the purchase of dairy~cattle, beef cattle, hogs and farm equip-
ment and for the construction of installations, and to growers of rice,
corn, sorghum and vegetables, staples of the Panamanian diet, for the pur-
chase or leasing of heavy farm equipment ass! the acquisition of technical
inputs such as fertilizers, fungicides and !nsecticides.
The BDA will charge the same interest rates to sub-borrowers that it
has charged in carrying out previous programs partially financed by Inter-
American Bank loans-- 8 per cent for small and 9 per cent for medium scale
PAGENO="0311"
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producers. The interest differential between the rate charged by the Bank
and that charged by the BOA will be used to consolidate the financial posi-
tion of the BOA and, especially, to finance the cost of the technical as-
sistance to the sub-borrowers and thus guarantee the provision of adequate
service to the farmers.
The program will benefit initially an estimated 1,060 stock raisers
and 1,290 farmers located in Panama primarily in the provinces of Chiriqu~,
Cocl~, Veraguas, Herrera, Los Santos and Panama. -
In addition, the Bank approved $360,000 in nonreimbursable technical
cooperation to help strengthen the administration of the BDA and to instruct
BOA personnel in soil, pest and disease control techniques.
* * Execution of the program will help satisfy the growing demand for farm
credit in Panama and will bring into the market small- and medium-scale far- -
tiers who at present do not have access to development financing. In addition,
by increasing the production of rice, corn, sorghum and vegetables, the
program will help meet growing domestic demand for these staples.
The Bank has previously approved five loans totaling $13.1 million to
the Instituto de Fomento Econ6mico (IF~), which was replaced in 1973 by BOA,
to help finance small- and medium-scale producers having no access to other
institutional sources of credit.
Today's loan was extended from the Bank's Fund for Special Operations
for a term of 35 years at an interest rate of 2 per cent per annum. Up to
$5.8 million will be disbursed in dollars or other non-Panamanian currencies
which fQrm part of the Fund and up to the equivalent of $2.2 million ~aill be
disbursed in balboas.
PAGENO="0312"
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The loan will be repaid in 54 semiannual installments, the first of
which will be due 8-1/2 years after the date of the loan contract. Prin-
cipal and interest payments will be made proportionately in the currencies
disbursed.
The loan will be guaranteed by the Republic of Panama.
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Agricultural credit program.
BORROWER AND EXECUTING AGENCY: Banco de Desarrollo Agropecuario (BOA), Apar-
tado 5282, Panam~ 5, PanasiS.
TOTAL COST: $12,080,000, of which $12 million will be extended as subloans.
BANK LOAN: Fund for Special Operations, $8 million ($5.8 million in dollars
or other non-Panamanian currencies, $2.2 million in balboas).
OTHER FINANCING: BOA, $4,080,000. *
PROJECT DESCRIPTION: The granting of loans to approximately 2,350 small-
and medium-scale farmers to raise farm production and productivity,
to augment farmer income, to increase agricultural employment and to
make available greater quantities of beef for export.
GOODS AND SERVICES: The purchase of dairy cattle, beef cattle and hogs and
the machinery, vehicles, farm inputs, packaging materials and related
equipment required for the production of rice, corn sorghum and vegeta-
bles.
PROCUREMENT PROCEDURES: International public bidding among member countries
of the Bank on goods and services imported with resources of the Bank
loan. National public bidding on domestic purchases.
ESTIMATED COMPLETION DATE: 1978.
PAGENO="0313"
305
~TER~A~ERIICA~ DEVELOPME~IT ~
- 808 17th. ST. NW. WASHINGTON, D.C. 20577 TELEPHONE, EX 3-4171
May 2, 197t~
PR_18/7t1
FOR IMNEDIATE RELFASE
INTER-AMERICAN PANE LENDS $3.5 MILLION
TO HELP PANAWL DEVELOP FISHERY RENOUNCES
The Inter-American Bank today announced the approval of a $3.5 million
loan to help Panama develop its fishery resources by the expansion and
consolidation of small-scale fishing cooperatives on both coasts.
The loan, which was extended to the Republic of Panama, will be used
by the Banco de Desarrol~p~gropecuariO (BRA), Panama' s national agriculture
development agency, to supply the credits necessary to expand and consolidate
four existing cooperatives, to organize five additional cooperatives in select-
ed coastal localities and to organize a cooperative marketing federation in
Panama City.
The total cost of the project is estimated at $Lt, 890, 000, of which the Bank
loan will cover 71.6 per cent and the Panamanian Government the remaining
28.~4 per cent.
The four existing cooperatives which will be expanded and consolidated
are located at Uhorillo, Farall6n, Pedregal and Montijo on the Pacific Coast,
while' the five new cooperatives will be established at ~hepillo, San Miguel,
Arauelles and Moneabd on the Pacific coast and at Almirante (Bocas del Toro)
on the `~tJ.antic .~nast.
PAGENO="0314"
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Resources of the Bank loan will help the fishing cooperatives to ac-
quire complete fishing vessels and/or hulls and materials for the construc-
tion of fiberglass vessels, marine diesel engines, equipment, nets and fish-
ing gear; to construct wharves, berths, buildings and other shore facilities,
and to purchase and equip cold-storage and related facilities.
The Bank loan includes $180,000 in technical cooperation which will be
used to contract consultants to help organize and operate the cooperatives
and maintain- equipment and to improve administrative techniques of the BDA.
The project is expected to provide new boats for an estimated 200
fisherman and to double the amount of fish produced for domestic consumption.
Initially it will create ~tl2 new jobs in coastal areas and by the fifth year
will benefit an e~timated 1,500 cooperative members. In addition, it will
increase the average annual income oi' Panamanian fishermen from $I~QO at
present to approximately $1,560.
Panama's small-scale fishing fleet consists of 600 boats, 360 of which
are equipped with small motors and average 12 meters in length.
Today's loan was extended from the Bank's Fund for Special Operations
for a term of 30 years at an interest rate of 2 per cent per annum. It will
be disbursed in dollars or other non-panamanian currencies.
The loan will be repaid in 50 semiannual installments, the first of which
will be due 5-1/2 years after the date of thb loan contract. Principal and
interest payments will be made pro~ortionately in the currencies lent. -
PAGENO="0315"
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SUMMARY BATA
COUNTRY: Panama
PROJECT: Cooperative Fishery
BORROWER: The Republic of Panarsa
TECECUTING AGENCY: Barico de Desarrollo Agropecuario (BOA), Panama City
TOTAL COST: $Im,89O,000, of which $2,803,000 represents direct costs.
BANK LOAN: Fund for Special Operations, $3.5 million .(in dollars or
non-Pahamaniami currencies).
OTHER FINANCING: $1, 390,000 by the Panamanian Government.
PROTECT DESCRIPTION: The expansion and consolidation of four existing
fisheries ~nd the organization and establishment of five new co-
peratives in selected spots along both of Panama's coasts, as well
as a federation of cooperatives in Panama City, through subloans
to those associations for the purchase of vessels, machinery and
modern equipment, the purchase of land and vphicles and the instal-
lation of landside facilities.
GOODS AND SERVICES: The purchase of 25 and 30-foot fishing vessels,
transport vessels, construction materials and services, machinery
and equipment and vehicles, and the contracting of advisory ser-
vices for the promotion and operation of the fishery cooperatives
and of vessels and fishing equipment and in the processing by the
BDA of subloans to program beneficiaries.
PROCUREMENT PROCEDURES: International public bidding among member
nations of the Banks on goods and services ioported with resources
of the Bank lean. National public bidding on domestic purchases.
ESTIMATED DATE OF COIPLETION: 1979.
May 2, 1974
PAGENO="0316"
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~ VE~E~T ~c~z
808 17th. ST.. N.W. WASHINGTON. D.C. 20577 TELEPHONE. EX 3.4171
December 13, 1973
WR-~/73
FOR IMMEDIATE RELEASE
INTEL-AMERICAN BANK LENDS $15 MILLION
TO HELP BUILD DARIEN GAP HIGHWAY IN PANAMA
The Inter-American Development Bank today announced the approval of a
$15 million loan to help build a 193-mile highway through the Darien gar
in Panama. The highway would be the final link in the Pan American Highway
System which extends from Alaska to the southern tip of South America.
The Bank loan, which was extended to the Republic of Panama, will hs~i~
the Ministry of Public Works of Panama (MOP) through its Pan American High-
way Department to build three sections of the Damien Gap Highway totaliaf
lO1~ miles in length, or approximately 51~ per cent of the route in Panama.
The resources of the Bank loan will help finance the direct costs of
construction, including eartbmOving and d'rainage works, structures and se-
lected material, along three sections of the project totaling 1011-ailes--
Tocumen-Caflitas, 35 miles, at the northwestern terminus of the road; Bayanr-
Caflazas, kk miles, and Yapd-Palo de las Letras, 25 miles, at the Colcmbiaa
border.
The construction of the highway through the Darien Isthmus in both
Panasa and Colombia will permit unbroken highway communication between
Alaska and the southern tip of South Aaeric~. The idea of linking the
capitals of all the Latin American countries by road was first discussed
PAGENO="0317"
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at the First Pan American Conference, held in Washington, D.C., in 1889,
and was fnrmally adopted in the rirst Pan American Hi~hway Congress in
Buenos Aires, Argentina, in 1925.
In 1963 the continuous highway from Alaska to Panama City was opened
to.traffic, a distance of 7,656 miles. Sections of the highway in South
America were also built, leaving the Darien route as the only incomplete
portion.
The total cost of the project is estimated at $106.8 million, of which
the Bank loan will cover ll~.0L~ per cent, the Panamanian Government 7.89 per
cent and the United States Government, the Export-Import Bank and the First
National City Bank of Chicago the remaining 78.07 per cent.
Under a law approved by the Congress in 1970, the United States Govern-
ment has made available a grant of $100 million, or two-thirds of the origin-
al estimated cost of the project, to assist Panama and Colombia in financing
the construction of their respective portions of the highway. Of this
amount, $60 million was earmarked for Panama and $L~O million for Colombia.
Execution of the Darien project will stimulate regional economic in-
tegration by permitting an easy flow of highway traffic between South America
on the one hand and Central America and Mexico on the other. In addition,
the new r6adway will enable Panama to incorporate the entire eastern sec-
tion of the country--cocmrising some 7,700 square miles and representing
about one-third of the nation's total area--into the national economy, there-
by facilitating exploration of the hitherto inaccesible region and permitting~
the exploitation of any natural resources that may be found there.
Today's loan was exteriddd frmnthe Bank's `Fund for Special Operations
(from resources provided to ~the Bank by Bank members prior to May 3, 1972)
for a term of ~4O years at an interest `rate Of `2 per cent per annum. Up to
$ll.1~ million of the loan wilibe disbursed in dollars and up to the equiva-
lent of $3.6 million will be disbursed in balbbas.
The loan wIll be repaid in 60 semiannual installments, the first of
which will be due 10-1/2 yeaa~s'tfter'th'e date `of the loan oodtract. Prin-
cipal and interest payments'wiul be'm~de proportionately in the currencies
disbursed.
PAGENO="0318"
310
SUMMARY BATA
COUBTRY: Panama.
PROJECT: Darien Gap Highway.
BORROWER: The Republic of Panama.
EXECUTING AGERCY: The Ministry of Public Works of Panama (MOP) through
its Pan American Highway Department.
TOTAL COST: $106. 8 million, of which $81 million represents direct
construction costs.
BARR LOAN: Fu~id for Special Operations, $15 million ($11.14 million in
dollars, $3.6 million in balboas).
OTHER FINANCING: The Government of Panama, $8, 1415,000; the United States
Government, $68.14 million; the `Export-Import Bank end the First
National Bank of Chicago, $7.5 million each.
PROJECT DESCRIF2ION: The construction of the first stage of a modern
highway totaling 193 miles in length through the Darien region of
Panama, ~starting near the Tocumen Airport and extending through
the towns `of Chepo,Caflitas, Aibir and. CaFlazas in the Province of
Panama, and Santa Fe and Yaviza in the Darien Proyince, as far as
the Panama-Colombia border at Palo de las Letras, and including
the erection, construc4ion or installation of earthworks, drains
and culverts, structures and a wearing course finished in gravel on
six sections of the highway. Paving of the highway willbe done.
at a later date during the second stage of the construction.
GOODS AND SERVICES: The financing of direct construction costs.
PROCUREMENT PROCEDURES: - International competition exclusivei~i~i Panama
and the United States.
ESTIMATED C~D'LETI0N DATE: 1978.
December 13, 1973
73/9207
PAGENO="0319"
311
SNKHARY BATI
C.OURTRY: Panaiin.
FEOJEST: Industrial credit program.
BDRROWER AND EKECUTING AGENCY: Banco 1~acional de Panahá (BNP).
TOTAL COOT: $6 million, of which sona $3 million vill cover direct
investirant costs.
BANK LOAN: Fund for Special Operations, $3 million (~n dollars or other
non-Panananian currencies).
OTHER P BAPESEG: Banco Nacional do Panair~, $L 5 million, and beneficiaries,
$L5 million. -.
PROJECT DESCRIPTION: The continuation of a program to grant long-term
credits at concessional Interest rates to sticolate the establishment,
* expahsion or improvement of small- and medium-sized private industrial
enterprisen ,in furtherance of panama's pational development goals.
GOODS AND SERVICES: The acquisition of imported nachinexy, equipment;
construction components and services. -
ESTINAT~D CONPLETION BATE: 1978 -
August 2, 1973
73/8663
PAGENO="0320"
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* II~TE~E~UCA~ ~ E~A~
808 17th. ST. N.W. WASHINGTON. D.C. 20577 TELEPHONE. EX 3.4171
II,"
December 5, 1972
NR-1t6/72
FOR fl~DIATE RELEASE
BARK LENDS $7.5 MILLION TO CONSTRUCT
POTABLE WATER AND SEWAGE SYSTEMS IN PANAMA
The Inter-American Bank today approved a $7.5 million loan to help
Panama conatruct and expand water supply and sewage systems which will
benefit approximately 1110,000 persons in the interior of the country.
The loan, wh~ich was extended to the Iristituto de Acueductos y Alcan
tarilladoc Nacionales (ID~N), the autonomous state agency in charge of
construction, operation and maintenance of water and sewage systems in
Panama, will help finance the construction of new potable water systems
in some 60 rural villages, the expansion of existing water systeme in
aPproximately 20 small towns and the, instaLlation of a sewage system in
a dansely-populated section of the city of David.
The total cost of the project is estimated at $ll,1150,000, of which
the Bank loan will cover 65.5 per cent and Panamanian sources the remain-
ing 311.5 per cent.
Specifically, proceeds of the Bank loan will help finance:
-`The construction of new potable water systems in approximately 60
rural viflages containing less than 2,000 inhabitants each and benefiting
a total population of about 61,000 persons.
PAGENO="0321"
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--The expansion of existing water systems in dome 20 other rural towns
and cities, benefiting a total of approximately 60,000 persons. Of these
communities, 18 have a population of 5,000 or less.
--The installation of a sewage system which will benefit some 19,000
persons in the most densely-populated section of David which, with a
population o. 39,000, is the third largest city its the republic.
The execution of the project is expected to produce a decline in the
incidence of water-borne diseases in the interior of Panama which in turn,
will beneficially affect labor productivity, diminish the rate of infant
mortality and generally facilitate socio-economic development.
The loan is the third credit extended by the Inter-American Bank to
IDAAN since 1962 to help construct and expand water and sewage systems in
the interior of the country. The previous two Bank loans totaled $6,212,000
and financed programs with a combined cost of approximately $12~7 mill~.on.
In 1962 the Bank authorized a $2,762,000 loan from its Social Pr~greea
Trust Fund to help IDAAN finanie the cons~truction and expansion of potable
water systems in seven cities with a combined population of 78,600 and
to construct water treatment plants in three of these cities. In 1967 the
Bank approved a second loan in the amount of $3, l~50, 000 from its Fund fo~
Special Operations to help IDAAW improve water systems in approximately 1~5
rural communities and to extend the sewage system in Chitrd.
Today's loin was approved from the Bank's Fund for Special 0perati~3
for a term of 35 years at an interest rate if l-l/~t per cent per annum.
In addition, a service chargé of 3/~ of 1 per cent will be charged on
95-549 0 - 77 - 21
PAGENO="0322"
314
-3-
principal amounts outstanding. Up to $l~, 250,000 will be lent in dollars or
other non-Panamanian currencies which form part of the Fund and up to the
equivalent of $3,250,000 will be lent in balboas.
The loan will be repaid in 5l~ semiannual installments, the first of
which will be due 5-1/2 years after the date of the loan contract. Principal
and interest payments will be made proportionately in the currencies disbursed.
The loan will be guaranteed by the Republic of Panama.
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Water supply and sewage systems.
BORROWER AND EERCUTING AGENCY: Instituto de ,4cueductos y 4lcantarillados
Nacionalea (IDAAN), Panama City, Panama.
TOTAL COST: $ll,155O,000.
BARK LOAN: Fund for Special Operations, $7.5 million ($~,25O,O00 in dol-
lars or other non-Panamanian currencies and $3,250,000 in balboas).
OTHER FINASTCTHG: $3,71t0, 000 from ILAAN and $210,000 incomsiunity support.
PROJECT DESCRIPJION: The construction of new water systems in approximately
DO rural villages with a total present population of about 6i,000, the
expansion of existing water systems in some 20 other small cities with
a present population Of about 6o,ooo, and the installation of a sewage
system which will benefit an estimated 19,000 inhabitants of the south-
western section of David, the third largest city in panama.
GOODS AND SERVICES: The purchase of construction tools and materials,
transportation, metering, pumping and chlorination equipment; rural
water systems, metal tanks, well piping and other materials.
PROCUREMANT PROCEDURES: International public bidding among eligible member
countries of the Bank on imported equipment covered by resources of
the Bank loan. National public bic1diri~ on domestic purchases.
ESTIHATED COMPLETION DATE: 1976.
December 5, 1972
72/7822
PAGENO="0323"
315
[~T BA~~CO Pc1~TERAME~IICAR~O DE DE~ARROL~
~// 1 808 17 1 N W WASHINGTOT\ D C 20577 TELEFONO EX 3 4171
9 de novieabre de 1972
CP- L~2/72
PAPA SU PUBLICACION T~EDIATA
FL BID PRESTA $1, 3 MILLON A PANAMA
PAP!. PROGRAMA DR DESARROLLO AGR0P~CUARI0
El Banco Intr;raiserjcano de Dssërrollo anunci6 hoy la eprobación de un
prdstasin por el equivalente de 1.300.000 clólares pars ayudnr a siejorar is
produccién agrop.~cuaria en Panamd.
El prestatrrjo es el Instituto deFosiento Econdsiico (IFEI, organismo
gubernamental encargado ~e ejecutar ins planes nacionales de desarroilo er~
el sector agropecuario. -
Los recursos del préstamo contribuirdn a financier la etapa complersen-
teria de un prograsia de crddito y niercsdeo encaminado a cyudar a los peque-
Dos y-med~anos agricultores y ganaderos cle todo ci pals eadguirir reaquina-
rias agropecusrias, ganado bovino de pura raza pera came y leche, ganado
porcino y eves de corral: asi como a preparer la tierra y hacer mejoras en
sus fincas pars is producción de erroz, naalz, frijoles, torsates y otros
productos.
El prograsia foe iniciado en 1969 con laayuda de otros dos préstamos
del BID, por un total de $6,I1 mullones, y su primers etapa tuvo un costo
total do $15,b rsiilones. El costo de is etapa complemeateria, a is cual se
destinard ci nuevo financietniento, se estima en $2.684.000, de los cuales
ci prdztsmo del Bsnco represents ci 1~8 por ciento; ci ~2 por ciento restan-
te serd financiado,en partes iguales, por ci IFE y los beneficiarios.
PAGENO="0324"
316
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La ejecuci6n del programa permitir~ a los agricultores y ganaderos
pansma8os aumelitar is productividad de sus cosechas en uns medida qua,
seg~in se espera, elevar~ sus niveles de ingreso aproximadamente en un 20
por cionto.
En 1970y 1971, los dos primeros silos do ejecucidn del programs, el
lYE extendió un total de 3.500 créditos por una.cuma aproximada de $8,5
millones, eobr~pasando las metes fijadas inicialmente. De ese total,
2.800 criditos, por ci equivalente tie $5 stillonas, fueron suministrados a
pequeilos p7oductores y los 7~O restantes, por el equivalente do $3,5 sub-
nec, a medianos pooductores.
Por otra parts, con la ayuda do una partida do $593.000 suministrada
praviamante por ci Eanco pars finqnciar costos do asistencia tdcnice, ci
IFE ayud6 a iniciar divarsos estudios de producci6n do granos, a determi-
ner la localizaci6n y djsa8ar nuevas i.nstaiaciones do aimscenamiento, a
ansanchar o ramodelar plantas existentes y a dotsr a los beneuicisrios del
programs do sorvicios do extensi6n agropacuaria.
La producción agricois represents ci 25 por ciento del producto in-
terno bruto do Panamd, pam en los 6ltimos silos no so ha increstentado al
olson ritmo qua is do otros sactores. Esto so ha debido en gran parte 5
is falts de ma.quinsriss modernss, tdcnicss adecuadas do produccidn y sufi-
ciontas instslaciones do aimacensmiento.
El Gobiemno do Pansed, en vista do esta situación, ha dado site prio-
ridad ci desarmollo agricola, dasticsndo alrededor del 17 por cianto dab
total do las inversionas p6blicss a este sector, duranta ci pariodo coapran-
dido entre 1962-72.
PAGENO="0325"
317
-3-
El prdstamo aprobado hoy fue extendido del Fondo para OperaciOfles
Especiales del Banco, por un plazo de 35 aflos y con Un interés del i_l/1~
por ciento anual. Se cobraré ademis una corsisién de 3/l~ por ciento sobre
los saldos deudores.
Haste el eq~sivalente de $8146.000 seré desecibolsado en dólares o en
otras eonedss que formen parte del Fondo, excepto balboas, y ci equiva-
lente de $I~51~.000 acre deseebolsado en balboas,
El prdstatso serd aciortizado en 51~ cuotas sernestrales, la primera de
las cuales serd pagadera 8 1/2 aflos después de la fecha de suscripcién del
contrato. Las cuotaC de asiortizaclén y los interéses se pagarén proporcio-
nalrnente en las nonedas desecibolsadas o, a elección del deudor, en balboas.
El préstatnotendrd la garantIa de la Repdblica de Panamé.
RESUMED DE DATOS
PAlS: Panatsé
PROYECTO: Crddito agropecusrio.
PRESTATARIO Y ORGANISMO EJECUTOR: InstitütO de Fornento EcondrsiCO (IFE).
FflL4IICIAMIENTO DEL DANCO: $l,3 rsillones del Fondo pera operacionea
Especiales X$8146.000 en d6lares u otras monedas excepto balboss, y
$I~5L~.0OO en balboas).
OTROS PINANClJ~MlEgT0S: ~692.000 del IFE y ~692.000 de los beneficiarioS:
DESCRIPCION DEL PROYECTO: Etaps compiersentaria de un progrerts de crCdito
iniciado en 1969, que estd ayudando a men de 2.800 pequeuios producto-
res y 700 mnedianos productores a financiar la compra de saquinarias
agricolas y ganado bovino y porcino, asI comm a preparar y mejorar sus
fincas para i~ producción de arroz, cafe, frijoles, tomates y otros
productos.
BIENES I SERVICIOS: Compra de maquinaria agricola, ganedo, seniillas y
otros bienes.
FECHA ESTIMADA DE TERMINACION: l9Tt~
9 de noviembre de 1972
72/7695
PAGENO="0326"
318
fl~TA~E~CA~ ~EVE~E~? L3A~
808 17th. ST. NW. WASHINGTON. D.C. 20577 TELEPHONE. EX 3.4171
July 5, 1972
NR-19/72
FOR ThP.TDIATE RELEASE
BANK APPROVES $6.9 MELLION LOAN
TO IMPROVE NATIONAL UNIVERSITY OF PANAMA
The Dater-American Bank today annou.nced the approval of a loan equival-
ent to $6.9 million to expand academic capacity and physical facilities at
the National University of Panama.
The total cost ~f the program is $10,700,000, of which the Bank loan
will cover 64.5 per cent and the National University of Panama the resis.ining
35.5 per cent.
Specifically, the project is designed to:
--Improve acadmaic qualifications by providing scholarships for post-
graduate study in foreign countries for 110 faculty members.
--Implement a regular systdm of revie% and evaluation of curricula
content cad teacher effectiveness.
-- Improve administration and financial planning and ma'tagement capabil-
ities and systematize accounting, budgeting and inventory control procedurds.
--Construct. 8 additional library, classroom, laboratory and administra-
tion buildings and an annex for an existing structure and buy the furniture,
libras!y books, laboratory equioment and teaching aids needed for these facil-
ities.
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A total of $1.2 million of the Bank loan will ~e used for technical
assistance. Of this amount, $1.1 million will be devoted to the facUltY
scholarship program and $126, 000 will be used to hire consultaztts to work
with the University Planning Office on academic and physical- planniog and
administrative and financial management.
Ninety-five per cent of students of college age in Panama attend the
National University of Panama, the only public university in that country.
Enrollment for the 1971-72 academic year is l1~, 1467. Of a total-facultY of
581, only about 128 possess doctoral degrees and only 125 are full time
professors.
The Bank loar~i will enable the Univcrsi~y to expand its physical facil-
ities sufficiently to relieve present crowded conditions, particularly in
the architecture, engineering, natural sciences and- agr-oo.~ssy faculties -which
are--considered of major importance to continued national econ~ic develop-
ment, and to handle an anticipated enrollment of more than 25,000 students
at the University by 1980. . . -
The improvement of academic qualifications of the faculty ia considered
essential if the University is to add 672 full time professors to keep -pace
- with- expanded enrollment ~snd create a 70-30 ratio of full time to part time
teaching personnel by the End of the current-decade..
Today's loan was extended frou the Bank' & Fund- for- Special Operations
for a term-of 35 years at an interest rate-of-l-l/14 per cent-per annum. Izv~
addition, a service charge of 3/14 of 1 per tent will be -charged on prii~cipUl
-. -amounta nutsteniing. - -
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-3-
Up to $5 million of the loan will be provided in nen-rmr.smariian
currencies which are part of ~he Fund and the remaininS $1.9 million in
balboac.
The loan will be repaid in 51~ semiannual installments, the first of
which will be due 8-1/2 years after the date of the loan contract. Principal
and interest payments will be made proportionately in the currencies dis-
bursed or, at the option of the borrower, in balboas.
The loan will be guaranteed by the Republic of Panama:
SUMMARY DATA
COUNTRY: Panama.
PROJECT: Expansion of university facilities.
BORROWER ADD EXECUTING AGENCY: National University of Panama.
TOTAL COST: $10,700,000.
PARK LOAN: Fund for Special Operations, $6,900,000 ($5 million in non-
* Panamaniancurrency and $1.9 million inbalboas).
OTHER FINANCING: $3.8 million from the National University of Panama.
PROJECT DESCRIPTION: Funding of scholarships for postgraduate study abroad
by 110 faculty aeabers; improvement in personnel management, academic and
physical planning, and financial budgeting, management and control; ex-
pansion of physical facilities at four university faculties.
GOODS AND SERVICES: Financing of faculty scholarship program, contracting
of consultants to work with University Planning Office and purchase of
laboratory and teaching equipment, furniture, bdoks and publications.
PROCUREMENT PROCEDURES: Intefnational public bidding among member countries
of the Bank on imported equipment covered by foreign exchange and national
public bidding on domestic equipaent and services.
ESTThIATED CONDLETION DATE: 1976.
July 5, 1972
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flNTER-AMERICAN DEVELOPMENT BANK
808 17 5 ST N W WASHINGTON 0 C 20577 TELEPHONE EX 3 4171
April 22, 1971
r~R-l6/7l
FOR IMMEDIATE RELEASE
BANK LENDS $1.14 MILLION TO PANAMA
FOR STUDENT AID PROGRAM
The Inter-American Bank today approved a loan equivalent to $l.1~ mil-
lion to the Republic of Panama to help provide financial aid to university
and technical school atudents.
The loan will he used to help continue a previous student aid program
which was partially financed with a 1966 Bank loan of $700,000. Thenew
program will be carried out by the Institute para la Forrnaci6n y Aprovecha
rnientodelospeoursos Hursanos (IFARHU), an autonomous agency which ad-
ministers public funds devoted to scholarships and other educational and
Vocational activities for Panamanian students.
Under the .program the IFARHU will extend low-interest, medium-term
loans to university and postgrsduate students, teachers and high school
graduates to enable them to complete their academic or vocational training
abroad or in Panama, particularly in f~elds which will contribute to the
nation~s economic and social development. Priority will be given to the
financing of studies primarily in such fields 52 industrial engineering,
teaching, aecount~ing and financial management.
Total coat of the program is estimated at $2.1 million, of which the
Bank's loan will provide 66.7 per cent and local sources the remaining
33.3 per cent.
95-549 0 - 77 - 22
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-2-
Specifically, credits will be provided for post-graduate studies for
college graduates and university professors; complete undergraduate stu-
dies for high school graduates; continuation of university studies for
students who have completed 140 pcr cent of the courses required for gra-
duation, and up to three years of advanced technical training for secondary
vocational school graduates.
For program purpoams, studies abroad ~~ill be financed only if the re-
quired Courses are not offered in Panama or if local educational facilities
or curricula ire inadequate. All such stwdiea financed under the program
will b~ undertaken in the Bank's member countries.
In addition, up to $lOL4,000 of the Bank's loan will help finance tech-
nical assistance services to strengthen IFARrnJ's program planrin, personnel
training arid financial management activities. -
In recent years Panama's rapidly growing industrial, construction and
commercial sectors huve greatly increas:ed the need for technical university
grad.uatez arid skilled workers in professional and semi-professional fields.
The projected demand for university trained professionals during the
1969-75 period, for example, is estimated at 1,800. The Bank-supeorted
program, which is expected to aid about 530 students during the next four
years, will cover about one-third of this deficit.
Today's loan was extended from the Bank'sFund for Special Operations
for a term of 20 years at an interest rate of 2-1/14 per cent annually. In
:jidition, a service charge of 3/14 of 1 per cent will he charged on princi-
pal amounts outstanding. Up to $1,160,000 will be disbursed in dollars or
in nther non-Panamanian currencies which form part of the Fund, and the re-
maining $21i0,000 will be disbursed inbalboas.
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-3-
The loan will be repaid in 32 semIannual ins~al1nients, th~ first of
which will b~ due 14-1/2 years after the date of the loan contract. Prin-
cipal and interest payments may be made in balboas or, at the option of
the borrcwer, proportionately in the currencies lent.
INTER~..AMEROCAN DEVELOPMENT BAN~(
fr/ 808 17th. ST. NW. WASHINGTON. D.C. 20577 TELEPHONE. EX 3.4171
April 22 1971
142-17/71
~
flITER-AMERICAN BANK LENDS $16 MILLION
FOR ROADS PROGRAM IN PANAMA
The Inter-American Bank today approved a loan equivalent to $16 mil-
lion to th~ Republic of Panama to help build and improve feeder roads in
the central and western regions of the country.
The feeder road program, which will be carried out by the Ministry of
Public Works, calls for the construction and irnprovecent of sever, roads
with a combined length of 136 miles. A total of 61 niles of the roads are
located in the Province of Veraguas, 59 miles in the Province of Chiriquf,
and i6 miles in the Province of Cocl6.
The roads will be located in potentially rich agricultural areas now
served by dry-weather dirt roads which are ~mpasssble during the rainy sea-
son. The new roads will contribute to increased farm and livestock output
by providing these areas with all-weather access to market centers and as
a result lowering transportation costs.
The program, which will benefit an estimated 80,00o persons, or 12
per cent of the country's rural population, specifically calls for the
constru~tjcn of small bridges, terracing, drainage works and surface paving
In addition, up to $38,000 of the Bank's loan will be used to contract
one transportation economist to help complete economic feasibility studies
for the program, and two highway maintenance specialists to help the Minis-
try of Public Works intrdduce a dew system of maintenance for Panar.e's
entire road network.
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Total cost of the program is estimated at $23,2614,000, of which the
Bank's loan will provide 68.8 per cent and local sources the remaining
31.2 per cent.
In 1966 the Bank helped launch a previous feeder road program in Pa-
naina by authorizing a loan for $3.5 million. That program, now nearing
completion, included the construction and im~rovement of 16 roads with a
total length of 123 miles.
Today's loan was extended from the Bank's Fund for Sp~cial Operations
foi a term of 20 years at an interest rate of 3-1/14 per cent annually.
In addition, a service charge of 3/14 of 1 per cent will be charged on
principal amounts outstanding. Up to $11,218,000 will be disbursed in
dollars or in other non-Panamanian currencies which are part of the Fund,
and the remaining $14,782,000 will be disbursed in balboas.
The loan will be repaid in 314 semiannual installments, the first of
which will be due 3-1/2. years after the date of the loan contract. Pain-
cipal and interest payments may be made in balboas or, at the option of
the borrower, proportionately in the currencies lent.
71/5339
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INTER~AMERICAN DEVELOPMENT BANK
808 17th. ST. N.W. WASHINGTON. D.C. 20577 TELEPHONE. EX 3.4171
August 6, 1970
NR-32/70
FOR IMMEDIATE NELEASE
BASK LENDS $1.7 PtELLION
TO ESTABLISH PREINVESTMENT FUND IN PANAMA
The Inter-AmerIcan Bank today announced the approval of a loan
extended to the Republic of Panama for the equivalent of $1.7 au-
lion to finance the establishment of a Preinvestment Fund.
The Bank's loan, together with $730,000 provided by the Pans-
rcanian Government to establish the Fund, will be maintained and dis-
bursed through a special account in the Banco Na~tonal de Panand,
the Fund's financial agent. The Bank's contribution amounts to 70
per cent of the Fend's initial financing.
Established with an initial $2. I~ million, the Fund will make re-
imbursable subloans to carry out preinvesteent studies for public and
private entities in Panama.
Up to 30 per cent of the Fund's initial resources may be used to
finance general studies of a regional or sectoral nature, with the
principal aim of establishing national development priorities for Pa-
nama. The balance of the resources will be used to finance studies
of specific high priority development projects.
Not less than 20 per cent of the Fund's resources will be used
to finance studies for development in the private sector.
PAGENO="0334"
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2
The Panamanian Planning Office has prepared a Pational Devel-
opreent Strategy, which outlines development goals for ~he country
as well as; a Program of Public Investment. The projects included
in the anticipated investment program require substantial invest-
ments, but many of them suffer from a lack of feasibility studies.
It is anti~ipated that the establishment of the national Preinvest-
rnent Find will correct this situation and provide Panaca with a con-
tinuing mechanism for undertaking development studies. These studies,
in turn, will be detailed enough to be used as the baste for project
financing requests before doriestic and international lending entities.
Today's loan was extended from the Fund for Special Opemetions
for a terra of 15 years at an interest rate of 3-1/4 per cent annually.
In addition, a service charge of 3/4 of one per cent will be
charged on principal amounts outstanding. Up tB the equivalent of
~l,28O,OOO will be extended in dollars or other non-Panamanian cur-
rencies which are part of the Fund. The remaining ~42O,OOO will be
disbursed in balboas.
The loan will be repaid in 24 equal semiandual installments,
the first of which will be due 3-1/2 years after the date of the loan
contract.
70/4037
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327
ll~TE~AMERflC~ VEL~PME~~JT ~
808 17 h ST N W WASHINGTON 0 C 20 77 TELEPHONE EX 3 4171
December 11, 1969
NB-6k/69
FOR IMMEDIATE RELEASE
INTER-AMERICAN BANK LENDS
$3. ~ RILLION FOR VOCATIONAL EDUCATION IN PANANA
The In~r-American Bank todny approved a loan equivalent to $3. ~
aillion to help Panama improve and expand its public vocatibnal education
systea ai the secondary level.
The program wll provide facilities to nearly double Panama's public
vocational school capacity by 1973 t6 about 9,000 students through a pro-
gram of school construction andexpansion throughotit the country. It
will also improve teacher training services and curriculum in areas
geared to the nation' a development needs and will strengthen the opera-
tional efficiency of the vocational education system.
The bcrrower is the Republic of Panama. The Bureau of Vocational
Education and the Bureau of School Construction and Maintenance--both
agencies of the Ministry of Education-~~,ill carry out the program at an
estimated total coat of $6,330,000. The Bank's loan will cover 53.7 per
cent of this sum, and. meal reanurcea will supply the remaining 1~6. 3 per
cent.
The program represents the first phase of a 15-year education improve-
ment plan, affecting all levels of public edecation,which was adopted by
the Government of Panama in 1969. It calls for a total investment of about
$237 million, of which soir.e 25 per cent will be devoted to the vocational
system.
PAGENO="0336"
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2
Under ike first phase, three industrial arts schools located in La
Chorrera, Los Santos and Coldn and a merchant marine school in Panama
City will be built; three vocational schools in Antdn, David and Punat~e
City will be expanded, and teaching and laboratory materials, shop equip-
rent and textbooks will be provided for four other schools in Civics and
Panama City.
The new schools will offer training at the secondary level to some
~,L#0Q additional vocational students, and the expanded facilities, whtch
now handle some 1,300 students, will increase their shop capacities by
about 40 per cent.
In addition, up to $375,000 of the loan will be used to help carry
out a broad technical assistance portion of the program. Consultants
will ha hired to help the Bureau of Vocational Education strengthen its
adaintstration, to develop faculty training and improvement courses, to
develop and teach new courses at the merchant marine and vocati~nal
~chools, and to assist the Ministry in restructuring the present cycle
system used in the schools.
Panamats urban population--aboat ci per cant of the nation'm total
-jr l960--is expected to grow to about ~8 per cent of that total by 1980.
This growth trend requires expanded industrial activities and, consequent-
ly,increaced needs for skilled labor.
Recent estimates project a need for 15,000 additional skilled
workers by 1970. However, without the expansion program, Panama's public
and private vocational schools will be able to supply only mace 6,700.
PAGENO="0337"
329
The vocational schools program thus will cover a substantial part
of this shortage by providing training for some 1~,4oo additional
students in such fields as industry, agriculture, maritime activities,
home-economics and commerce.
Today's loan was extended from the Bank's Fund for Special Opera-
tions for a term of 25 years at an interest rate of 2-l/le per cent annual-
ly. In addition, a service charge of 3/4 of 1 per cent will be charged
on principal amounts outstanding. Up to $3,060,000 of the loan mill be
disbursed in dollars or other non-Panamanian currencies which are part
of the Fund, anithe remaining $340,000 will be disbursed in balboas.
The loan will be repaid in 43 equal semiannual installments, the
first of which will be due four years after the date of the loan contract.
Principal and interest payments will be made in balboas or, at the option
of the borrovier, proportin~ately in tha currenoiaa disbursed.
69/2910
PAGENO="0338"
330
fl~T~A~ ~ ~ü' ~
808 17th. ST. N.W. WASHINGTON. D.C. 20577 TELEpHONE. EX 3.4171
November 26, 1969
NR-58/69
FOR IMMEDIATE RELEASE
BASK FOSTERS AGRICIJILIURAL DEVELOPFSUT
IN PAEAMA WITH $6. ~n MILLION LOPE
The Inter-American Development Bank today announced the approval of
two loans totaling $6. l~ million to help improve farsi and livestock pro-
duction and expand grain marketing facilities in Panama.
They were extended to the Instituto de Fomento Econ6mico (1FF), the
governmental agency in charge of carrying out Panamats agricultural develop-
rnent plans.
Proceeds of the loans will be used to help finance the first stdge of
a credit program for small- add medium-scale farmers and ranchers through-
out the country, and to expand 1FF' s storage and marketing facilities for
such basic grains as rice, corn and beans.
Total cost of the first-stage project is estimated at $12.7 million,
of which the Bank loans will provide 50. 3 per cent, IFE 28 per cent, and
the beneficiaries the remaining 21.7 per cent.
Under the program, credits will be extended to about 2,200 small-
scale and 800 medium-scale producers over a four-year period to finance
the purchase of fura and ranch machinery, pure-bred beef and dairy cattle,
hogs and poultry; the preparation of lands, and fixed improvements on
farina producing rice, corn, haams, vegetables, tomatoes, and oil-yielding
seeds. The amounts of credits will mange from $10,000 to $25,000 for in-
.dividual borrowers and up to $100,000 for agricultural cooperatives.
PAGENO="0339"
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2
Some $630,000 of the loans will be used by 1FF to enlarge existing
marketing facilities or build new ones in order to increase its storage
capacity for grains from 13,000 to 20,000 metric tons. These works will
also contribute to the agency's national program on price supports and
production controls.
In addition, up to $593,000 of the loans will be used to provide
technical assistance to help 1FF carry out production coat studies for
basic grains; determine the location and design of new storage facilities;
expand or remodel existing plants, and provide extension seriiices to the
program's beneficiaries.
Agricultural production accounts for 25 per cent of Panama's gross
domestic product. In recent years, however, production in this sector
has not expanded as rapidly as `that of other sectors. This has been due
largely to the lack of modern machinery and production techniques and
the shortage ~ adequate storage facilities. Thus some 30 per cent of Pa-
namaTs moat irsportant crop--rice--is lost because of this shortage.
In view of this situation, the Government of Panama has given high
priotity to agricultural development, allocating 17 per cent of its total
public investment to this sector during the 1969-72 period.
~cecution of the credit and marketing program is expected to lead
to a 100 per cent increase in rice and corn productivity of the benficia-
ries within 5 to 10 years, as well as that of other products. In addi-
tion, the income levels of farmers benefited is expacted to rise by 20
per cent annually five years after the program has been initiated.
The Bank previously has helped finance agricultural credit programs
in Panama with two loans to 1FF totaling $5.t~ gillion.
PAGENO="0340"
332
3.
The use of these resources so far have helped generate the provi.-
sion of some 20,500 credits to low-income farmers and ranchers.
The two loans approved by the Bank today included:
-- $3. 3 million from the Fund for Special Operations for a term
of 15 years at an interest rate of 2_l/1~ per cent annually. In addition,
a service charge of 3/L~ of 1 per cent will be charged on principal
* amounts outstanding. It will be repaid in 22 equal semiannual installments,
the first of which will be due 1~_l/2 years after the date of the loan
* coniract. Up to the equivalent of $2,155,000 of the loan will be dis-
bursed in dollqrs or other non-Panamanian currencies which are part of
the Fund. The remaining $l,1i~5,OOO will be disbursed in balboas. Prin-
cipal and interest payments will be made in balboas or, at the option of
the borrower; proportionately in the currencies lent.
-- $3.1 million, also frua the Fund for Special Operations for a
terra of 15 years at an interest rate of 3_i/Is per cent annually. In addi-
tion, a service charge of 3/Is of 1 per cent will be charged on principal
amounts outstanding. It will be repaid in 22 equal semiannual installments,
the first of which will be due I~-l/2 years after the date of the lean con-
tract. Up to the equivalent of $2,321s,000 of the loan will be disbursed
in dollars or other non-Panamanian currencibs which are part of the Fund.
The remaining $176,000 will be disbursed in balboas. Principal and
interest payments will be made in baiboas or, at the option of the
borrower, proportionately in the currencies lent.
Both loans will be guaranteed by the Republic of Panama.
69/2810
PAGENO="0341"
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Mr. METCALFE. Mr. Tannenbaum.
Mr. TANNENBAUM. Just one comment.
In spite of the grievances Mr. Graham-and I know they are
real-I am nevertheless very impressed with the freedom of access
you appear to have directly to the Governor. I personally know of
no other jurisdiction where a governor has made himself so freely
available. I just wondered if you wanted to make a comment.
Mr. GRAHAM. Oh, yes, I sure do on that one. Not all the Gover-
nors we have had here in the Panama Canal were as accessible as
General Parfitt. He beyond a doubt is a very, very exceptional
governor.
The beauty of it is he talks man to man with your people and I
think it makes for good labor relations, and has made for a much
smoother understanding all the way around.
Mr. DRUMMOND. Mr. Tannenbaum, if I could expand on that, I
would like to say that I only wish that that was the case at the
lower level.
Mr. METCALFE. Thank you very much.
Mr. SHEPPARD. May I submit in writing a more extensive state-
ment covering the information I brought out this morning?
Mr. METCALFE. Yes; we will appreciate it, and it will be so ordered
unless there are objections.
Hearing none, it is so ordered.
[The above referred to information follows:]
AMERICAN FEDERATION OF TEACHERS, AFL-CIO
LOCAL NO. 29
UALBOA, CANAL ZONE
April 1k, 1977
Repruser.tative Ralph Metcalfe
Chairman, Panama Canal Subconmittee
U.S. House of Representatives
Washington, D.C. 20515
Dear Sir:
As per your instructions during the hearings
your Cossnittee held here in the Canal Zone thin
week, I am enclosing a written statemant covering
oral testimony given to you on Wednesday, April
13th. I have included additional information
which you requested that I obtain and forward to
your office.
Please take necessary action to insure that
the enclosed statemant is made a part of the record
of the hearings.
Sincerely,
~Z)
Ralph 0. Sheppard
President, Local 29, A.]?.T.
PAGENO="0342"
334
AMERICAN FEDERATION OF TEACHERS, AFL-CIO
LOCAL No. 29
THE EXPANDED STATEHENT OF LOCAL 29, AI4ERICAN HEDERATION OF TEACHERS, IN ACCORDANCE
WITH TEE UNANI~!)US FERNISSION OF THE PANAEA CANAL SUBOONNITTEE AT HEARINGS HELD ON
APRIL 13, 1977, W HE INCLUDED IN THE RECORD OF SUBJECT HEARINGS
The Ceria]. Zone Federation of Teachers, Local 29 of the American Federation of
Teachers, wishes to thank the Chairman and the Committee for this opportunity to
expand on oral testimony that was given before the Committee on April 13, 1977, by
Ralph 0. Sheppard.
1. The Teachers of the Canal Zone desire to insure that the quality of educa-
tion in the Canal Zone remains at its present high levol. Howover, there are several
factors at tho present tine which have adversely affected the morale of the Teacher
force. Among these are questions of job security, attempts to withhold raices which
have been paid to other Teachers on the same pay base, lack of any. transfer oppor..
tunities at present or in the future, the categorization of Teachers into an excluded
group under Civil Service, end the future of the Canal Zone College.
2. The majority of Teachers who came to the Canal Zone did so for the purpose
of a full career with the Canal Zone Government. At that time, jobs were also plen-
tiful in the United States, but the individual Teachers elected in accordance with
recruiting literature and promises from the Canal Zone to take a position here ra-
ther than in the United States. Although Teachers are selected on a fully qualified
basic, they do not have to take a competitive examination and are thus placed in an
excluded category of employees not eligible for transfer to any other branch of. tao
Civil Service. Due to the inference of full career employment within the Canal
Zone, this did not appear to be too important a point at that tine. Today it looms
as a prime factor - end in the event of a new treaty which does not provide for a
continued school system at the present level in the Canal Zone, many teachers at
advanced ages, top levels of competenoe, educational qualifications, etc., vil]. be
looking for positions in an already overororded job market in the teaching field.
As you know, at this tine, school boards in the United States are trying to cut down
on expenditures and are not seeking Teachers with advanced degrees end years of
experience!
3. Some possible methods of alleviation of these problems are as follows:
(a) Your assistance is being sought through legislative or administrative actions
PAGENO="0343"
335
to remove the Teachers from an excluded category and to make them eligible for other
Civil Service positions for which they amy be qualified. (b) Provide for lateral transfer
into other U.S. Government educational programs, such as Health, Education and Welfare,
the U.S * Trust schools, Bureau of Indian Affairs, and Department of Defense schools - with
credit for all Federal employment or other educations]. experience. In case of a reduc-
tion in force in the Canal Zone, we request that a `stopper list' be established which
means that Cairn]. Zone Teachers on that list be hired prior to recruitment of new personnel
from outside the Federal system. (c) Take actions to insure that Teachers who remain in
the Canal Zone if a new treaty is signed are maintained on a pay base equal to that
which they now have, even though another entity should acquire the responsibility for
operation of the schools here. With the exception of Teachers, Police and Firemen, all
other employees have been assured of this protection. (d) Insure that the Cans]. Zone
College will continue to function in providing higher educational facilities to U.S.
Department of Defense and Canal Zone employees and others who presently utilize this
educational advantage. (e) In case of an adverse decision by the Comptroller General on
the retroactive pay situation now being considered, we request assistance in obtaining
legislation to prevent recurrence of this unfair loss of pay. (f) Assistance is asked to
insure that realistic ~ faith consultations are made available to the Teachers until
a collective bargaining procedure is adopted by the Canal Zone Government. In 197k, an
addition ten ~ yr ~ without additions]. pp~ypsation were imposed upon the Canal
Zone Teachers., This was done in spite of an agreement between the Schools Division and
the two U.S. Teacher Unions that if the Union members did not ratify the agreement, it
would be null and void. One of the Unions ~ ~ - however, the school year was
lengthened anyhow. At that time, the Schools Division representative used as a portion
of his argument for the action that the Washington D.C. school year was going to be
lengthened and that we would be doing this only a short period of time ahead of them.
When the Washington D.C. school year was not lengthened, our Union requested consultation
on August 1k, 1975. The Governor replied on September 8, 1975, that when a new contract
between the Teachers Union and the District of Columbia Board of Education was approved,
consultations between the lees]. Unions and the Canal Zone school officials wopld take
place. The D.C. contract has been ratified. After considerable delay, the Teachers met
with the Superintendent of Schools - only to receive a flat ~jQ on any approach toward com-
parability between the Washington D.C. school year, hours, or pay per hours for the Canal
Zone Teachers. The only concession made by the Superintendent after being advised that we
would have to press further was to suggest that we subeit a package for study. His stand
on no adjustment of days, hours, or minutes leaves a high feeling that the preparation of
PAGENO="0344"
336
this package will be just another act of futility on our part. However, a package wifl be
prepared and formarded to the Superintendent. (Copy of Governor Parfitt'o letter is ap-
pended). We again draw your attention to the fact that the Governor apparently recognizes
our problems, but is frustrated at the lower levels.
k. The Chairman queried me as to how well prepared were the students from the
Latin American Schools for college entrance * I have obtained the following information
from the Assistant Superintendent of Schools (Latin American Schools).
The Latin American Schools have four tracks for their students - only one being for
college preparation.
Year Total number Known r~pmber of
graduated students attending college
1971 200 61
1972 193 k9
1973 163 38
197k No data
1975 105 29
Students presently enrolled in college prep courses: Grade 9 2k students
10 27 `
ll 33 ~
12 29 `
I have no personal knowledge of how well prepared each individual student is. How-
ever, the majority of their Teachers have been examined by an evaluation committee and
hav~ been found qualified to teach U.S. students. I should certaini.y be ent±tled to
assume that their prior instruction has been of a high caliber so that their students
would be able to function well in relationship to national norms.
In discussions held with members of the Latin American Communities, some parents with
children in other than college prep courses are showing considerable alarm at the posci-
bility that these students will not be able to finish their high school courses in tho
track system in which they are presently involved.
I also reiterate ny strong position that U.S. citizen children should have U.S.
citizen Teachers in all situations where they are taught such things as history, civics.
patriotism, American culture, customs and traditions, and all-around appreciation of the
American way of lifel Although it may be ti'ue that the majority of non-U.S. citizen
Teachers would not attempt to indoctrinate or influence students with other philoso~iies,
we do not believe we can afford to take any chances with children in the formative stage.
Opposition to instruction of U.S. students by foreign nationals is clearly stated in laws
applying to Department of Defense schools.
The Canal Zone Federation of Teachers is in agreement with the position stated by
AFGE 1k on the necessity for obtaining retirement credit for previous teaching experience
in public schools - in accordance with the method that this benefit is available to the
Teachers in the Washington, D.C., school system.
Page 3
PAGENO="0345"
337
CANAL ZONE GOVERNMENT
BALBOA HEIGETS, CANAL ZONE
OFFICE OF THE GOVERNOR
SEP 8 1975
Mr. Kenneth H. Hannah, President
American Federation of Teachers,
AFL-CIO
Local No. 29
Box 263
Coco Solo, C.Z.
Dear Mr. Hannah:
This is in reply to your letter of August 14, 1975, in which you
address the issues of the length of the school day and year and sick leave.
My predecessor, Governor Parker, approved the proposal submitted
to him in September 1973, which was the result of consultations between
the teachers' unions and the Division of Schools officers. An important
part of the agreement states:
any change in any of the leave policies, school
year, or school day in the District of Columbia will result in
further consultations between the Administration and the Unions
toward the end of maintaining and increasing reasonable
comparability."
I am informed that the current situation in the District of Columbia,
particularly in relation to the length of the teachers' work day, is very
unsettled. When a new contract between the teacher union and the
District Board of Education is approved, consultations between the local
unions and the Canal Zone school officials will take place.
Sincerely yours,
H. R. ParFIl1t
Governor
95-549 0 - 77 - 23
PAGENO="0346"
338
Mr. METCALFE. The next group will be the Panama Canal Atlan-
tic Side Dock Workers' Union. Mr. Anderson will interpret for Mr.
Delgado, who is the General Secretary of the Union.
STATEMENT OF MR. JOSE L. DELGADO, GENERAL SECRETARY,
PANAMA CANAL ATLANTIC SIDE DOCK WORKER'S UNION, AC-
COMPANIED BY FRENANDO WILLIAMS AND LUIS ANDERSON
Mr. DELGADO. Dear Sirs Mr. Chairman, it is my pleasure to
present Mr. Luis Anderson, who is going to be acting as interpreter
for my presentation. The Panama Canal Zone Dock Workers'
Union, in its constant concern over any issues which might unfavor-
ably affect the interests and welfare of the Cristobal and Balboa
Dock Workers, hereby submits to your committee the following
inquiries in the hope of obtaining a satisfactory explanation.
At the signing and implementation of a new treaty between
Panama and the United States over the Canal and its zone what
responsibilities will the U.S. Government assume with regard to the
economic, social and labor interests of Panamanian and non-U.S.
workers in-service and retired employees?
Who will administer the Cristobal and Balboa docks under a new
treaty and what will be the status of their current employees?
What is the reason behind the proposed new job grading stan-
dards for local manual workers which will adversely affect dock
workers by downgrading their classification of MG-7 Stevedores to
MG-2 and MG-3 Laborers and Stevedore Workers. Does this stem
from current negotiations for a new Canal treaty?
We wish to express our apology for not preparing properly due to
the fact he received late notification about the meeting today. I
wish to elaborate on the three points presented. Following the
analysis we have made of the 15 points presented we all know of,
they are a matter of concern to us because amongst them there is
not clearly defined the content of three specific points. The first is
point 7, then points 12 and 14.
Number 7 refers specifically to the Social Security System of
Panama. We find it is not clearly defined as to what will happen to
those workers of less than five years experience who will
compulsorily pass to the Panama system. We understand that all of
us pay a premium for health and hospitalizaiton insurance. What
will become of the moneys that the workers have paid when they go
under the Social Security System of Panama?
On Point 12, in reference to the conditions of employment of non-
U.S. citizens that will have to abide by the labor code of Panama, in
relationship to employment.
Number 14 that relates itself to dealings with unions that should
be recognized based on the Order 11491, and its amendments. These
points conflict in that one addresses itself to conditions of work and
one addresses itself to labor unions and they imply that there might
be two types of administration, whereas we know that under the
Labor Code of Panama, both aspects are taken into account. That is
in reference to the first part of my basic statement.
The second point we brought here because we understand that we
work in a place that other than just serve, a good service to the
PAGENO="0347"
339
Panama Canal Company and the United States Army, the relation-
ship to the handling of materials and other cargo, it is also devel-
oped into commercial-type work. Therefore, we believe that under
these conditions that we under a new treaty will be left aside or
excluded as far as addresses the present Panama Canal treaty. In
view of this it is our concern and we request you to classify these
different aspects.
The third point we refer to is something that was given to us
several months back. It was proposed to change the grade levels of
certain workers of certain divisions that included ours and that it
would have a most regressive effect on the rights already acquired
not only by the dock workers but by the other workers in the Zone
as well. Apparently they must be withdrawn by what we consider
them to be, not prudent.
Mr. METCALFE. Could you speak a little louder so they can hear in
the back of the room, please?
Thank you very much, Mr. Delgado.
May I make a statement that we are mindful of your questions on
worker status under a new treaty, but at this time we cannot
answer them-I think you understand-because the treaty
negotations are ongoing.
We will be mindful of all of the points that you raise with regard
to the 15 points of agreement issued by Governor Parfitt. We will be
mindful of that.
Mr. Delgado, could you submit a list to the subcommittee of the
manner in which the new job grading standards affect your
membership?
Mr. DELGAD0. These standards are now in the proposed stage and
I do not have a listing now but could make it available later.
Mr. METCALFE Very good. I have specific reference to your letter
to me of April 6, Roman Numeral 3. That is what we are asking for.
You will submit that then? Good.
Mr. METCALFE. The Chair now recognizes Mr. Modglin.
Mr. MODGLIN. Mr. Delgado, you made reference to the question of
the disposition of docks and piers under the new treaty. I take it the
main concern of your organization is that benefits and protection
that you now enjoy would, regardless of the status of those docks, be
continued under a new treaty?
Mr. DELGADO. That's a part of it. The other part is that the new
treaty--the administration is going to change under a new treaty.
Mr. WILLIAMS. In other words, what he means to say is in case a
new treaty was to come into effect, what would become of all the
dock workers if another party takes over?
Mr. MODGLIN. One further question, Mr. Chairman.
Your union is not affiliated with the AFL-CIO?
Mr. WILLIAMS. No.
Mr. MODGLIN. How then do you intend to make your voice known
with respect to what happens in treaty negotiations?
Mr. DELGADO. This is something that is free. We are affiliated to
the Confederation of Workers of the Republic of Panama, which is
the one to which we are affiliated and has ties with the AFL-CIO.
Mr. WILLIAMS. In other words, what we mean to say, sir, is right
now we are 2 unions in the territory of Panama, that where ours is,
PAGENO="0348"
340
11th Street, in other words, whatever goes on on the Panama side,
we got to know what is going on becuase we are part of the body.
We work for the Canal Zone, and also we are a group on both
sides. Whatever we have of a union on the Panamanian side,
whatever goes on, we've got to be a part of the body. We are
working on the Canal Zone side, so we have to know what's going on
here on this side. In other words, if they have a meeting here in
Balboa, Mr. Simoneau, he will give us a call and invite us, so
everything that goes on we are up to date with.
Mr. MODGLIN. Are you familiar with the provisions of the recom-
mendations of the AFL-CIO, and do you subscribe to and do you
agree with those recommendations?
Mr. DELGADO. I am not aware of those.
Mr. WILLIAMS. What we are looking for is equal rights. In other
words, we are looking for betterment of our people. We are not
looking for lower costs of living. The cost of living is going up and
when it goes up, the people are looking to make more money. In
other words, the dock workers, like, they go to work. When there
are ships, we work. When there are no ships, we don't work. We
don't get paid. We work according to the basics of the ship.
If the ship comes to the port, we make money. When ships don't
come to the port, we make nothing.
In other words nobody guarantees us nothing. When you work
you get paid. When you don't work you have nothing.
Mr. METCALFE. Thank you. Mr. Nonnenmacher.
Mr. NONNENMACHER. Mr. Delgado-if you could answer for him-
I understand you have affiliation with a Confederation of Panamian
Unions or a group under some name like that.
I would like to ask the specific question, is there a Panamanian
dock workers union?
Mr. DELGADO Yes. We have two.
Mr. NONNENMACHER. Could you give us an idea of their size
compared with your membership which I understand is about 370
members?
Mr. DELGAD0. There are two unions, and they have approxi-
mately 115 members each.
Mr. NONNENMACHER. Inasmuch as the Canal Zone has the chief
dock facilities, I was interested in that answer. That is the answer I
sought.
Thank you very much.
Mr. METCALFE. If there are no further questions, thank you very
much, Mr. Delgado, for your presentation.
You may be excused.
I would like to keep the committment made to Mr. Anderson, so
if the other gentlemen will absent themselves from the table I will
now give you five minutes, Mr. Anderson, to represent yourself, and
speak as president of Local 907 of the American Federation of State,
County and Municipal Employees.
Mr. Anderson, if you will speak up a little bit louder so the people
in the back of the room will hear you.
PAGENO="0349"
341
STATEMENT OF MR. LUIS ANDERSON, PRESIDENT, LOCAL 907,
ARMED FORCES EMPLOYEES UNION
Mr. ANDERSON. My name is Luis Anderson. I am president of
Local 907, Armed Forces Employees Union, AFSCME AFL-CIO.
Sir, you have a letter that I wished to present to you.
Due to the fact I was not invited to make a presentation at this
meeting, I want to express my thanks for giving me the opportunity
to read this letter and bring out points that are a matter of concern
to our union.
I will be happy to answer any questions that you deem
appropriate.
In view of the fact that Local 907, Armed Forces Employees
Union, AFSCME, AFL-CIO, representing over 2,000 employees of
DOD agencies in the Canal Zone, was not invited by the administra-
tion of the Panama Canal Company-Government, to participate or
make a presentation in the meeting with you and your distin-
guished colleagues, we use this medium to set forth our views on
those subjects that we believe should be brought to the attention of
the subcommittee you so ably chair.
It has been a matter of great concern to our union and to all non-
U.S. citizen employees of the different agencies of the Government
of the United States that operate in the Canal Zone, the fact that a
document made public by Governor Parfitt putting forth the posi-
tion of the U. S. Government regarding securities sought for em-
ployees of the area under a new Canal treaty, is a forthright
attempt to legalize injustices and discriminatory practices of the
past, by creating different conditions of employment based on
nationality.
Local 907 has fought many battles to gain and preserve equality
for all workers of the area. It has been a slow and painful road, at
which end we have not reached. We must, therefore, reject in the
strongest terms possible any attempt to relegate non-U.S. citizen
employees to a category of second-class workers under a new treaty,
regressing as appears to be the intent, to a sophisticated version of
the Gold and Silver Era. It must never be forgotten that as a group
they have been loyal, dedicated, and have contributed, since the
Construction era, in unmeasurable quantities to the Canal effort.
Consequently, we request that through the House Panama Canal
Subcommittee, the U.S. House of Representatives be urged to main-
tain a position in defense of equality for all employees of the
Panama Canal area under the forthcoming Panama Canal Treaty.
Two, Local 907 has protested the application of a cutoff point in
the wage scale in the Panama Canal Zone since its inception. The
flagrant violation of the intent of the Memorandum of Understand-
ing of 1955 between the governments of Panama and the United
States with regards to the creation of a single wage scale, has been
magnified and accentuated by the inclusion of grades NM4 and
NM5 in the Canal Zone Wage Scale on 4 July 1976.
Hundreds of employees in grades NMI through NM3 have toiled
and sacrificed for many years in gaining the expertise and academic
level that will permit them to fill the stringent requirements of the
higher positions, only to find that through the application of the
PAGENO="0350"
342
archaic management philosophy contained in Public Law 85-550,
their efforts were in vain.
Local 908 requests that action be initiated by the House Panama
Canal Subcommittee to modify the regulatory provisions which
providies for the above stated injustice, so that all employees in
grades NMI through NM3 on 4 July 1976, be permitted to earn
retained rates [U.S.Wage Scales] when promoted to grades NM4 and
NM5.
Workers of private concerns in the Panama Canal Zone, conces-
sionaires, contractors, commercial firms, et cetera, presently are
subjected to conditions of employment that are an affront to the
concept of social justice within a democratic structure.
The Panama Canal area that serves as a show place for United
States ingenuity, engineering ability and prosperity, maintains over
1,000 Panamanian workers in a state of abject debasement as far as
the basic labor benefits are concerned.
The non-application of U.S. or Panamanian labor laws provide for
the exploitation of these workers by private employers whose only
concern is fat profits. Further, it appears that the aforementioned is
accomplished with the complacency and/or approval of the higher
administration of the Canal Zone, who time after time have either
become deaf or looked the other way, when this union has sought
reprieves for that large group of workers. Benefits not afforded
them include but are not limited to: 1. Annual leave; 2. sick leave; 3.
retirement; 4. job stability; 5. right to unionize; 6. medical and life
insurance; 7. severance pay; and 8. classification system.
We urge you to immediately initiate action to correct a long-
standing injustice, so that these workers and their families can, by
means of their daily toiling, live a decent and decorous existence.
Four. In July 1975, non-U.S. citizen workers of the Department of
Defense Non-Appropriated Fund Instrumentalities in the Canal
Zone were finally included in a Retirement and Health- Life Insur-
ance Program. Minimum requirements for inclusion in these pro-
grams are so stringent that more than 80 percent of all Non-US
NAFI employees are presently excluded from participation.
Local 907 has requested from all agencies involved that all
employees of this group be placed unde the Social Security System
of the Republic of Panama with retroactive coverage that will
permit the senior employees to obtain a decent retirement pension
during their later years. Inclusion under Social Security would
provide not only retirement benefits but would also include medical
and dental services for the entire famiy, plus hospitalization.
In view that DOD agencies have started discussions with Social
Security officials in the Republic of Panama, along the line delin-
eated above, Local 907 requests the auspices of your office to
speedily secure this much-needed development.
Mr. METCALFE. Thank you very much, Mr. Anderson. Let the
record show your statement will be incorporated in the record of
these hearings.
I would like to also clarify one thing. You indicated that you were
not invited to these hearings by the Administration of the Panama
Canal Company/Government. These hearings have been arranged
in cooperation with the Panama Canal Company and the Subcom-
PAGENO="0351"
343
mittee on the Panama Canal so we both worked together to try to
establish the agenda for these meetings and they of the Administra-
tion are not totally responsible for any omission, and we are as
much a part of that omission as they are.
Mr. ANDERSON. And I would like to state for the record also that
this is not the first time that something like this happened.
Mr. Modglin explained to me the mechanism that is used to invite
the different unions. Local 907 is excluded from certain labor
activities under the excuse that we only represent members in the
Department of Defense. To a certain point this is a fallacy because
DOD agencies in the Canal Zone usually follow suit on all labor-
management issues. So probably you will be expounding on the
causes that you know of advise and consent by excluding 907. By
the time it gets down to our level it is already decided on the
Panama Canal level.
So what I would like to see is the Department of Defense
representative, their representatives be afforded the opportunity to
participate in all labor discussions in the Canal Zone.
Mr. METCALFE. Mr. Anderson, I think that can very easily be
corrected. There was no correspondence between your local and the
committee heretofore and we will include you in any future hear-
ings we may have. You may rest assured your voice will be heard.
Mr. Hillis.
Mr. HILLIS. No questions.
Mr. METCALFE. Mr. Nonnenmacher.
Mr. NONNENMACHER. I have no questions.
Mr. METCALFE. Mr. Tannenbaum. Thank you very kindly, Mr
Anderson.
STATEMENTS OF JAMES J. O'DONNELL, PRESIDENT, AND DAVID
BAGLIEN, LOCAL NUMBER FOURTEEN, AMERICAN FEDER-
ATION OF GOVERNMENT EMPLOYEES
Mr. O'DONNELL. Mr. Chairman, this is Mr. Dave Baglien, member
of Local 14. I would like to bring out a few points before I start.
AFGE is composed of 90 percent U.S. citizens. We have about 800
members. We represent Army, Navy, Air Force and the Panama
Canal.
One of the things that was brought out here earlier was the fact
that maybe a change would take place and labor laws wouldn't
apply. I would like you to know that AFGE is represented in
Germany, Italy, Africa, Spain, Guam, Virgin Islands, Puerto Rico,
Okinawa, as well as here, and I am sure other areas overseas.
Federal laws apply to these U.S. workers who work overseas so I
don't envision any problem with AFGE functioning in this area if
and when a change in the treaty takes place.
Someone mentioned the fact that these assurances did not apply
to the armed forces. That is very true. I recognized that when they
first came out. I sent a letter to General McAuliffe, the command-
ing general here in this area, bringing this to his attention, the fact
that the 15 assurances, in an oversight, left out the fact that they
only addressed themselves to Panama Canal employees. As of this
date General McAuliffe hasn't answered this question. The chair-
PAGENO="0352"
344
man has asked who it should be who would address the problems of
armed force civilians and the answer, in my opinion, is General
McAuliffe because he is the one who speaks for all of the civilians
here in the DOD departments.
Congressman Metcalfe, I would like to take this oportunity to
welcome you and the members of your committee to the Canal
Zone. I am James J. O'Donnell, President of Local 14, AFGE, the
largest single United States citizen union in the Canal Zone. Your
visit to the Canal Zone is very timely because the workers are
deeply interested in having frank, in-depth discussions with mem-
bers of Congress on problems which affect the Canal Zone work
force.
Would you believe that we have been discussing treaty labor
protections with United States Government officials like yourselves
for 18 years? For example, in 1964, we were told that the adminis-
tration was desirous of having frank and open discussions concern-
ing organized labor's ideas for protecting employees if and when a
treaty takes place. In 1967, we thoroughly discussed the proposed
treaty concepts with our members, and later produced a paper on
the types of labor protections that we would like to see in the
treaty. We wanted this list of protections included as a labor annex
which was part and parcel of the treaty. We were told in 1967 that
this matter was considered urgent, and that higher officialdom
would not lose sight of the very important consideration of fairness
to all employees. Today, fully ten years later, nothing has yet been
done, at least to our knowledge, to include labor protections in the
treaty negotiations.
Under your former chairman, The Honorable Leonor K. Sullivan,
your committee has visited the Canal Zone on many occasions for
the express purpose of obtaining the views of employees. I believe it
can be safely said that over the past ten years your committee has
been more informed on the problems and aspirations of the Canal
Zone workers than any other body. However, I believe it is still
worth repeating that the apprehension that exists here today
among our employees can be attributed almost solely to the absence
of factual information and proper consultation pertaining to job
security and to our future working and living conditions.
There is agrement among members of Congress, our Ambassa-
dors, and other officials of the State and Defense Departments,
including Mr. Cyrus Vance, that we have a right to know how a
treaty will affect us, and that we should be consulted and kept
informed. You can imagine our dismay when some of our union
people talked to General Torrijos in February and he said that the
U.S. negotiators had never yet mentioned the matter of employee
rights under a new treaty.
It was only last month that we received a small indication that
the administration was trying to do something to alleviate this
situation when Governor Parfitt made public fifteen assurances
concerning employee rights that would be asked for under the
treaty. Local 14, AFGE, views these assurances in the same light
that the treaty negotiators view the eight point Kissinger-Tack
agreement. These assurances are simply a general base on which a
great deal of work has still to be done in order to produce specific
PAGENO="0353"
345
and viable solutions to the many and complex problems to be
resolved. For example, assurance number fifteen reads as follows:
"Recommendations, if appropriate, will be made to the Office of
Management and Budget for legislative action found necessary to
prevent an erosion of the general level of employee benefits and
conditions of employment under any new treaty."
We are extremely interested in knowing when a committee of
congress might hold hearings on any "appropriate legislation" that
will be necessary to provide Canal Zone employees with labor
protections.
Congressman Metcalfe, is there any reason why your committee
cannot introduce a bill or resolution that would bring pressure for
our labor protections to be included as a labor annex in the
forthcoming treaty with Panama? Time may indeed be short. I have
been informed that the United States negotiators for a new Panama
Canal treaty reaffirmed to the Senate comittee early this month
that the Carter Administration fully expects to reach a new
agrement with Panama by June of this year.
In view of the very limited time at our disposal, I respectfully
requset that your committee again review our labor protections
position paper, and that you take steps towards securing these
protections in the treaty as a labor annex. I have included a copy of
the labor protection paper for your review.
[The following was submitted for the record:]
PAGENO="0354"
346
RECOMMENDATIONS `OF TEE AFL.C10 COMMITTEE
ON PANAMA CANAL TREATY NEGOTIATIONS -
BETWEEN THE UNITED STATES AND THE REPUBLIC OF PANAMA
In recent weeks, representatives of the United States and the Republic
of Panama: have initiated discussions aimed at producing a new treaty gov~-
orning the administration and operation of the Panama Canal.
This development underscores the need for the representatives of the
two governments to extend serious considerations to the effects of a new
treaty on employees now operating the Canal and its appertunances.
Citizens of both nations have made an Inval'uable contribution to
the construction and continued operation of the Canal as a vital water-'
way serving world commerce. Large numberi have devoted their entire
working careers to the suócessful functioning of the enterprise.
Whatever agreement emerges from the current binational discussions,
the Panama Canal will continue to serve its essential function of
transmitting ships of many nations from ocean to ocean. The work force
necessary to accomplish this mission deserves the utmost consideration -
in any accord between the United States and the Republic of Panama.
* For these reasons, the Committee has addressed itself to the
conditions which should prevail -for three groups of workers now -
engaged in Canal operations and related activities. - (
Employees whose jobs would be eliminated.
-Employees who would continue to work for the reorganized
Canal function. * - -
Employees who choose not to work for the restructured
Canal organization. * - * -
PAGENO="0355"
347
I, Benefits for Employees ~~hoee Jobs Woüldbçi Elinitiated.,
A. Early Retirement. :` - - -.
1.. Any employee of the Canal Zone Government/Panama Canal Company
subject to Civil Service Retirement Law who becomes absolutely
separated from employment for any reason other than misconduct
or delinquency shall' be' considered as involuntarily separated -
-. within the ~ean1ng of the Civil Service Retfrement Law and shall
be eligibla to retire with 15 years of service, regardless of
age, with no loss in annuity or reduction because of age.
- 2. Extra credit of one year~oervice' for each1 five years `total
United States government service. -. ` -.
3.' Provision' for'a minimum retirement benefit'of 50% of'salar~
- at the time- of :.retirenent~ -- . - -. -
~ Coverage-under this"sectionfor' those who lose their'jobs in
changes made'~in anticipation of thetreaty~'as-we1l as after~
`-treaty- becomes effective. `- -. ` `~ ~`~` .-
""T~a6o~'b~ne~fts ~half apply al~ô~to employees 1n~ t~e~Zone
~ who' are similarly affected,- but `are not"covered `by the -Civil~
erwiceRetirementAct. Thécoutofthesè benefits would be
defrayedwholly by'the'enployer. `~`~ "` -` --
B~ Severance Pay and UnernpioymentBenefits;~
~~l; Severance-pay and other appropriate b~nefits will be provided
to~iushion tl~e impact of separation.
J Unemployment benefits for those employees laid ~ff as a result
of the treaty will be paid until ouch time as they obtain other
employment. ~NSmiáimurnwáiting period will be required end
PAGENO="0356"
348
6
maximum weekly benefits payabl& in the United States will be
applicable.
3. Non United States citizens severance and unemployment benefits
described above shall be made available to both United States
and Panamanian citizens, the cost to be borne by the employer.
C. Placement Assistance. .
1. The facilities of the administration and the Republic of
Panama shall be used to the fullest extent to secure career
employment for transferred employees, other than United States
citizens, who after transfer to the administration are
involuntarily separated.at any time from the service.
* 2. The United States government will provide placement assis-
tance in federal positions in the United States for which
* they may be qualified by experience and training those employees
wh9 are United States citizens and who are involuntarily
separated at any time from employment becaus~ of the treaty.
3. Whenever a function of the administration is transferred to
the private economy, the administration and the Republic of
* Panama shall make.fair and equitable arrangements to.protect
the interests of all employees who presently perform such
functions, including the transfer of the employees with the
function under the same conditions of employment. The terms and
conditions of such employment arrangements shall be specified in
* a written agreement between the administration and the Republic
PAGENO="0357"
349
~of Panama. Such arrangements shall include provisions neces~
-sary to protect individual employees ,against a worsening of
~:thair positions with respect to their employment and to assure
compensation and benefits at levels not less than those
~`;applicable to ouch employees immediately prior to the effec-
t~:~tive date of the agreement, including provisions necessary to:
(a) assure continued employment;
(b) preserve rights, privileges, and benefits (including
- -- continuation of pension rights, credits and benefits)
-~ under collective bargaining agreements, or* otherwise,
-- in effect on the effective date of the agreement;
i. (ç~ continue collective bargaining rights;
* ~- (d) provide paid training and retraining programs.
II. Protection for Those Employed by the Restructured Canal Administration
A. Employment Benefits and Protection, *
l~~Protection and benefits at least equivalent to those, in
~-~effect just prior to the effective date of the treaty such as:
~-~a Ovettine Pay
b.Night Differential.
Reinstatement and Restoration of Individuals.
* ~ Injury and Death Compensation. .
~ -Uniforms and Protective Equipment.
Tine. *
1g.~...Free periodic transportation of employees personal
- * vehicle. *
PAGENO="0358"
350
..4.-
Ii. . Travel and Transportation Benefito for Home Leave.
* i~ Group Health and Life Insurance
j. Repatriation of Employees Families personal effects end
Household Goods. - -~
* k~: Education Travel. * -.- -
* .ls Transportation.of the Remains of Deceased employees as
well as their families, personal effects and household
goods. . -
/
_m. Transportation-of the Remains.of~Dcceased Dependents.
n. Witi~iess Fees and Allowances.
o. Reduction in Force. Procedures.:
p. grievance Procedures and Appeals.. - --
q. ~Adverse-Actions and Appeals. * ~...
r. Position Classification System and Appenis..
a. Veterans-PreferenceEligjbjjity. : -.
t. ~ ~:~- :~:`
u Incentive Awards Program
-. v. Saliry Savings. : .~
Severance Pay Benefits -.
~` Hazardous Duty Pay
y.- - ~Social Security.
* 2. Provision of awaiting period of fifteen years after ratifi-
caaón -prior to enforcement . of the new- treaty with regard to
chthiges in-thework. force. .. *
3. Continuation- of: recognition: of: United States, labor unions
andUnited States labor standards.
~ ~ that-no employee wil1~bo -reduced. in compensation
below that which -he last received so en employee prior to the
PAGENO="0359"
351
effective date of th& new treaty.
5. Application of an adequate tropical wage differential for United
States citizens. - - - -
6. The application of wage increases received by United States
government employees to the Canal* administration.
7. Coverage by the United States Civil Service Coission Rctire~
nent Law so lpng as an employee continues with the Canal admin-
* `istration of United States government.
8. Provis~oñ for equal opportunity for both United States and
Panamanian citizens tc) job ppenings and promotions.
9~ Provision for salary increases to offset any net increase
in the cost of living or other net financial disadvantages
which puch employees. might otherwise suffer.
B. The admiiiistratiOfl shall provide adequate community services for
all its employees, to be maintained at the standards existing
prior to the -entry into fdrce of the treaty, such as, but not
limited to,- houa~ng, schools,. medical, hospital and related
services, as. U ~ :P~0 ctive and security services or
functions, s~&ch -as pplice, fire, judicial and all other civil
sbrvice benefits accumulated by~ the employees prior ~° the
enactment of t~e *treaty.~ -~ . -~ - -
III.Benefits ~fq~ those Who Elect ~not to continue Employment with the
Canal Administration following Treaty Implementation. - - - - -
A. Placement.4ssistance and Severance Pay.
* *: 1. Severance :~ and plac nt assistanCe will be given these - - -
workers .ao if.~.they had been involuntarily oeparate4 ~
as those workers in Category I. -. -
PAGENO="0360"
352
B. Early Retirement.
1. The early retirementbenefits provided workers in Category I
wilibe provided to wo~rke'~s who elect not to continue employ-'
nent with the Canal administration following treaty -
C
- - implementation. -
C. These rights will be retained as long as the employee continues
with the Canal administration,- and can be exercised at any time,
including the period prior to the actual effective date of the
treaty. - - ~ - :- - - -
IV. Collective Bargaining ~r ~-- --
A. The principle of collective bargaining between the employer
end unions for employees theyrepresen~shallbe recognized
and maintained. -~ : :::~:~~ -
* We r~counend--that the above bèÜif~t~ sand p~e~1~Ie w~i~teü
* into' the treaty and that: enactment of legislation by both Pañama~ and the
United States- -to carry out-these -p~oviaions be made~ h part of tha~ondi-
* tions for~final. ratification. Th~ l~ia~g~ of ~such legislative proposals
* should be:developed prior- to ratification,T and should b&available to the
AFL-CIO Counnittee. for e~camination and èominent. - - * ~ - -
PAGENO="0361"
353
Mr. O'DONNELL. We had a second problem that I would like to
have Mr. Baglien present to you.
Mr. BAGLIEN. Mr. Chairman and committee members, the AFGE
would like to present a rather specific request for action on behalf
of the Canal Zone teachers for a privilege that the District of
Columbia teachers has had for over fifty years. It appears right now
that positive executive action on behalf of the Canal Zone Govern-
ment is not going to be forthcoming so we are requesting action
from your committee.
The educational personnel in the District of Columbia are autho-
rized under the provisions of Public Law 624 of August 7, 1946 to
buy credit in the D. C. Retirement System for
prior educational service to a maximum of ten years. This same
procedure is also already available to educators in most of the fifty
states. It is recommended by the Council of Chief State School
Officers for adoption of all remaining states. Most educational
personnel arrive in the Canal Zone with several years of prior
service. Typically, they do not have at the time of retirement nearly
as much service as other Panama Canal personnel. In view of the
uncertainties now facing the Panama Canal future, I ask that
educational personnel here be authorized to purchase credit toward
retirement for prior service on the same basis as do educational
personnel in the District of Columbia.
An Amendment to any appropriate piece of legislation might
read, "Educational personnel in the Canal Zone are authorized to
purchase credits for prior educational service towards U.S. Civil
Service retirement on the same basis and under the same condi-
tions as authorized for educational prsonnel in the District of
Columbia by Public Law 624, August 7, 1946."
I would like you or your committee to introduce a bill or an
amendment such as above suggested so the canal Zone educators
might receive the same retirement benefits as their compatriots in
the District of Columbia have had for the last 57 years.
Mr. METCALFE. I might respond to both you gentlemen by saying
that we have had, we do have now a communication making that
request. We are researching it. It is very complex. It is not as easily
done as one would hope that it could be done because of the
different rules and regulations, but certainly we are interested in it
and we have not disregarded the statement that you have made, nor
the request that you have.
Mr. O'Donnell, I notice on page two in your statement-are you
suggesting labor protection legislation be introduced prior to con-
gress dealing directly with the new treaty? The reason I raise that
question is that the procedures as we have learned since we have
been here are the negotiators want to agree to a set of principles
and then they feel that everything will fall after that. But we are
mindful of the fact that when and if there is a treaty that is going
to be agreed upon, it will be at that point that congress will be
looking at enabling legislation.
The Senate, of course, will have the right to ratify if they vote to
do so. We have the right for the disposition of any land. There will
be some legislative procedures.
95-549 0 - 77 - 24
PAGENO="0362"
354
We cannot, at this moment, proceed to draft legislation until we
know that there is an intent on the part of both sides of the
negotiation table. I think we ought to be clear on that.
Mr. O'DONNELL. Mr. Chairman, but the workers here have a
great fear we are going to have a treaty and there will be no
protections and that is why I proposed the resolution I gave to you.
Is there any reason, Mr. Chairman, that a resolution cannot be
introduced into Congress that would say that if there is a treaty,
local protections will be in the treaty?
Mr. METCALFE. No, there is not. As a matter of fact, I wanted to
comment on that to say that the ruling I just mentioned I think
does not apply to your particular request.
I think we can proceed to draft up this resolution.
Mr. O'DONNELL. It would be very helpful. In fact, in 1955 we had
the Remon-Eisenhower treaty and if my memory serves me cor-
rectly, it was three years later that they had the implementing
legislation. Between the time that the treaty becomes old and
passed and three years later, according to what we read in the
Panama press, there won't be much left here, so by the time
Congress gets around-if we do the same as we did in 1955-why
most of the people will be gone before they get to the legislation.
Mr. METCALFE. Mr. O'Donnell, you understand we have to know
what's in the treaty. We do not now know, nor do the negotiators
know, and once they sign the letter of intent that these will be the
issues, we can then move with dispatch in terms of introducing
enabling legislation.
Mr. O'DONNELL. Mr. Chairman, there is something else we have a
fear of. For many years we have been asking officials to speak to us
about labor protections and they all say generally what you have
just said, which is, "Wait until we finish the treaty, then we will
talk about labor protections."
Mr. METCALFE. There is a difference, Mr. O'Donnell. The differ-
ence is, we have to know when we are-what the resolution will be,
what the enabling legislation needed here will be before we can
draft it, and we won't know that until we get the word that there is
an agreement-and this is prior to the official signing of the treaty
agreements. But it is only after we know what points we have
agreed on and plan to initial that we can act.
Do you care to comment on the difference between the labor
annex written in 1971 and the assurances written by Governor
Parfitt?
Mr. O'DONNELL. I tried to bring that out here in my first para-
graph on the second page. It was very nice of General Parfitt to
present that, we appreciate it. It was a step in the right direction,
but it is a very small step and it is a tremendous amount of work
that has to be done between that paper of 15 assurances and the
labor protections we are desirous of.
Mr. METCALFE. Mr. Zeferetti.
Mr. ZEFERETTI. I have a short question. You talk about labor
protections and yet some of the civic councils we heard testify
yesterday, were concerned with human rights protection. One of the
things I asked earlier, of one of the other gentlemen, was this, do
you feel as strongly as some of the U.S. employees feel, about
PAGENO="0363"
355
keeping the present judicial system intact. Would you want the
present law enforcement and criminal justice system as a whole, to
stay in place while these negotiations go on and one treaty is in
operation?
Mr. O'DONNELL. The only way I can answer that, Mr. Zeferetti,
is-and I have taken a verbal survey; I also have one in writing
right now; it is in process, to determine that point. If the employees
are fully protected, will they be satisfied with those changes you
just described? 75 percent of those--
Mr. ZEFERETTI. Excuse me. I am not advocating a change now. I
am saying that people testified that they wanted everything to stay
in place. If that was a condition for them leaving here, if in fact it
was not in place, if they couldn't live within a different type of
judicial system within the zone.
Mr. O'DONNELL. To answer that, then I would have to go back to
George Meany's position, which is, if you don't protect the workers
in the treaty, then we will have to oppose the treaty.
Mr. ZEFERETTI. Is this the reaction among your members? Are
they saying that we are going to leave? "We will leave this place if
we don't have that umbrella of protection."
Mr. O'DONNELL. Well, I can't answer that because I don't know. I
don't know that answer.
Mr. ZEFRETTI. Thank you.
Mr. METCALFE. Mr. Hillis.
Mr. HILLIs. No questions.
Mr. METCALFE. Mr. Modglin.
Mr. MODGLIN. One question, Mr. Chairman. Mr. O'Donnell, were
you satisfied with the labor protections that were contained in the
1967 draft treaty?
Mr. O'DONNELL. Absolutely one hundred percent.
Mr. METCALFE. Mr. Nonnenmacher.
Mr. NONNENMACHER. Mr. O'Donnell, I am a little confused by
your inability to answer Congressman Zeferetti's question. Unless I
misunderstood him, he is asking you whether or not your union
people feel the same way as the Citizens Council presented it to us
yesterday, that they could not work under a non-U.S. judicial
system if the Republic of Panama took over.
And you mean to say you cannot answer that question about
which these people, many of whom must belong to your union, feel
so vehemently?
Mr. O'DONNELL. I have heard people say that. It has been said in
my union quite a bit and I have heard other people say, "Listen, as
long as we are protected, whether we have the treaty or not is not
important."
I am saying I can't give you a definite answer that my union has
a position either way, but I have heard it discussed to some extent
on both sides. I tried to bring out a little earlier that 75 percent of
those I surveyed, the most important thing to them was labor
protection, not whether we had jurisdiction or not. It was labor
protection.
Mr. ZEFERErFI. In other words, you are saying the union doesn't
have a position on whether or not it could live under such
jurisdiction.
PAGENO="0364"
356
Mr. O'DONNELL. Yes, sir.
Mr. NONNENMACHER. You then would not deny that there is this
strong feeling among the people that they couldn't live--
Mr. O'DONNELL. Perfectly. Anybody would be blind if they
couldn't see it or hear it here in the Canal Zone. They would be deaf
if they couldn't hear it. It exists. People are talking about it
constantly.
Mr. ZEFERETTI. The lack of a position of the union is a--
Mr. O'DONNELL. Yes.
Mr. ZEFERETTI. That's clear. You sat here through all of the
hearing this morning and heard the general trend of questions we
have posed, the answers and our commentaries in certain instances.
Would you care to make any comments pertaining to any of the
questions that we posed to previous witnesses?
Mr. O'DONNELL. I would like to mention one. Congressman
Zeferetti presented the idea-the Panamanian Government has
come out-you have been informed they have come out with the
idea that the workers are against the 15 points that Governor
Parfitt put out. I don't believe that is true. I believe that the
employees are a little confused as to the vagueness of the 15 points,
and we argue among ourselves as to what they mean, but I believe
that all of the employees are very grateful for the 15 points because
it is a start in the right direction, but it is not satisfactory but we
are not condemning them in whole. We are trying to understand
exactly what they do mean. As with any document, you have to sit
down and discuss it in great detail to find out what those 15 points
mean. In fact, in my union we spent most of the night trying to
figure out what they did mean, but to some it was clear, to others it
was not.
Mr. ZEFERETTI. Not to confuse the issue-we were told that they
met with four separate unions and they discussed the assurances,
and that the assurances were not in accord with what they wanted.
As a matter of fact, they said that they really turned them down.
But I think most of the conversation they were discussing with us
was relative to, I believe, non-U.S. citizen employees, and what was
said to us was that at least the bureau of information was struc-
tured up-again. This is the communication that we have had, and
I don't know that the testimony this morning indicates it to be
true-that a bureau of information was structured up not only to
talk about those assurances, but talk about ongoing treaty negotia-
tions-okay-and I said at last they took care of that phase of it-
shame on us that we didn't take care of our own U.S. citizens and
have that network set up so we could give our people the same kind
of information on negotiations which are going on, in order to
speak. That is to clarify that point.
Thank you.
Mr. NONNENMACHER. One last question. Would you give us your
own estimate of the likelihood of continued resignations from Canal
Zone Government or Company or DOD positions? Will they con-
tinue as long as assurances are not discussed by the negotiators,
labor problems are not discussed or employees remain unaware that
they are being discussed?
Mr. O'DONNELL. Well, I believe that the Panama Canal Company,
as well as the DOD agencies, as far as the United States citizens are
PAGENO="0365"
357
concerned, they have a critical problem because we are talking
about a treaty coming; we are talking about lack of jurisdiction,
lack of police, courts, etcetera. There is a tremendous amount of
employees who are deciding that maybe it is time to leave this area
and the publicity, the psychological effect upon the employees is
very strong and they believe that the United States Government is
not at this time interested in protecting them.
They feel they had better take care of themselves because the
congress or the Government or the State Department is not, and I
believe personally that the Governor is in one hell of a position. He
is trying to say to the employees, "Stay here. We want to protect
you, but I can't tell you about it because it is secret. You know,
because negotiations are secret and we won't be able to bring all
this information out until it becomes public knowledge."
In the meantime, the wife and husband say, "I can't wait that
long." So starting here maybe a year ago, more people are starting
to look elsewhere. The unions are asking-they start with the
Board of Directors. I asked the Board of Directors of the Panama
Canal Company to allow us to transfer back to the United States -
help us transfer back, let us get on the DOD referral system. This
would help us to leave here early, quicker. I believe it is happening.
It is something that is developing right now and if we hold off a
treaty for five or six more years, I believe we will be able to see
eventually the U.S. citizens reduced from maybe 4,000 employees
down to 1,000. They are leaving here because they do not feel
secure.
Mr. METCALFE. I think it ought to be pointed out that you have
indicated in your discussions with members of your union as to
what precisely the 15 assurances were. I interpreted it as meaning
that the Governor was candid with you and wanted to allay your
fears, but I also was of the opinion the Governor did not have any
additional information that came to his attention that he could put
in those assurances. The fact that the intent was there, I think, is in
and of itself very significant and I think the Governor has to be
applauded for being sensitive to this apprehension that exists not
only in the Zone, but in Panama and with all of the groups
involved.
Mr. O'DONNELL. I would like to amplify that by saying that I
believe the Governor has been extremely fair, fair-minded and he is
open-minded, but he has a problem. He has superiors.
Mr. METCALFE. Lack of information.
Mr. O'DONNELL. He just can't tell us everything he knows and
there are some things he doesn't know.
Mr. METCALFE. I am disagreeing with you respectfully, Mr.
O'Donnell. I am of the opinion the Governor is giving you all the
information he does have. I am saying he doesn't withhold any
information, that he just didn't have it available to him.
Mr. O'DONNELL. Congressman, I am going to get in deep water
here, but I am going to say this: Governor Parker told me once in
his office-let me repeat that again.
Governor Parfitt- Governor Parker, not Parfitt, Parker-told
me in his office: "They have that much information," and he held
up his hand for about two inches-"of labor protections and what
PAGENO="0366"
358
we think should be given to the employees, but we can't release it.
We don't have any authority to do that."
Mr. METcALFE. They can't produce it because there is no agree-
ment. Isn't that what Governor Parker--
Mr. O'DONNELL. The Governor had worked up material pertain-
ing to our labor protection, but this is what they believed should be
done.
Mr. METcALFE. I believe what should be done is the key point
where there may be some differences in our analysis of it.
Thank you for yielding.
Mr. NONNENMACHER. What Governor Parker told you may well
be what the company would like to do. But would the State
Department insist on all that with Panama's negotiators?
You then would support to the fullest the testimony which the
Governor gave us yesterday concerning this problem of
resignations?
While it may not be critical at the moment, is it not definitely
capable of becoming a crescendo of resignations, as time goes on and
uncertainty remains?
Mr. O'DONNELL. It is happening right now and it is obvious this
development is getting greater and I believe it is going to be even
greater.
Mr. TANNENBAUM. One quick question, do you care to comment
on the tn-level wage disparities for comparable positions as among
the U.S. citizens-employees, the Panamanian employees, and the
Panamanian citizens employed outside the Zone?
Mr. O'DONNELL. That is a big question. You know I guess the best
way to answer that would be to say ,"No, I don't care to answer that
one because it is going to take an hour to tell you that answer. It
will talk about the tax factor and the way we do things. It will talk
about how we are structured but generally I would say this, that we
are in favor of equality. We would like everybody to be treated
equally.
Mr. TANNENBAUM. Specifically I am talking about the differen-
tial. If you took a teacher at a starting salary in each of the three
categories, what would be the difference?
Mr. O'DONNELL. A teacher in the Canal Zone?
Mr. TANNENBAUM. A U.S. employee teaching in the Canal Zone, a
Panamanian citizen teaching outside--
Mr. O'DONNELL. Since Dave is a teacher, he would be glad to tell
you that answer.
Mr. BAGLIEN. Well, the only difference between the U.S. citizen
and the Panamanian citizen teaching in the Canal Zone is a
differential of 15 percent, whatever the salary is. The difference
between either one of those and Panamanian teachers, and I've
talked to a few who worked in College, vary from three hundred
fifty a month to five hundred dollars. In a university possibly some
a thousand, but there just is no comparison. Both the Panamanian
teacher and U.S. teacher in the Canal Zone is making, I would say,
two to three times as much as the typical Panamanian teacher.
Mr. TANNENBAUM. Would you know that to be similar for
policemen?
PAGENO="0367"
359
Mr. BAGLIEN. I don't know about any of the other things, but it
seems logical. The same maids that work in the Canal Zone at
minimum wage work in Panama for sixty cents an hour, something
like that.
Mr. TANNENBAUM. Sixty cents an hour against what?
Mr. BAGLIEN. $2.20.
Mr. TANNENBAUM. And how about the benefits which were
brought out earlier? Would the Zone employees have benefits com-
parable to--
Mr. BAGLIEN. Well, the Panamanian teachers, for example, have
a really good retirement system. They retire unusually early. I
don't know exactly how they manage to keep the fund from going
broke, but they do have that in their favor more so than U.S.
teachers, but otherwise, I suspect they are comparable.
Mr. METCALFE. Mr. Baglien, I would like to ask just one question.
This differential between the Latin American teachers and the U.S.
teachers that you alluded to, is that based upon qualification?
Because we know in the American system all professors don't get
the same salaries and all that. Or is it based upon their nationality?
Mr. BAGLIEN. It is based on nationality. It is based on the fact
that the American teachers are-
Mr. METCALFE. I'm not talking about the differential. I am talking
about the base pay, not including the 15 percent.
Mr. BAGLIEN. It is identical, position for position. In other words,
an instructor with five years' service-that is the Panamanian as
compared with an instructor with five years' service who is a U.S.
citizen will receive the same pay except for the-
Mr. METCALFE. There is no discrimination. I want to make that
clear. It is only in the differential.
Mr. BAGLIEN. That is right.
Mr. METCALFE. Thank you very much, gentlemen, for coming and
testifying before us.
[Mr. O'Donnell submitted the following information for the
record:]
PAGENO="0368"
360
American Federation of Government Employees
Local No 14
P 0 Bor 1703
Balboa, Canal Zone
April 13, 1977
Mr. Ralph H~ Metcalfe
Chairman Penman Canal Company Subcommittee
Room 322 Cannon
Rouse Office Building
~anhangton B C 20515
Bear Mr ketcalfe:
Rducatjonal personnel in the District of Columbia are authorized
under the provisions of FL 624 of August 7, 1946, to buy credit in the
D.C. retirement system for prior educational service to a maximum of
ten years. This same procedure is also already available to educators
in most of the 50 states, end is recommended by the Council of Chief
Sthte School Officers for adoption by all remaining statea. -
Most -educational personnel arrive in the Canal Zone with severai
years prior service and typically do not have at time of retirement
nearly as much service ~as other Panama Canal personnel. In view of the
uncertainties now facing the Panama Canal future, I ask that educational
personnel here be authorized to purchase credit toward retiremenE for
prior service on the same basis ~s do educational personnel in the
District of Columbia.
I'm amendment to any appropriate piece of legislation might read
"Edugational personnel in the Canal Zone are authorized to
purchase credit for prior educational service toward U.S. Civil
Service Retarenent on the sane basis and under the sane condi-
tions as van authorized for educational personnel in the District
of Columbia by PL 624 of August 7 1946
I would like you or your committee to introduce a bill or an
emmadrstnt~ such as the above suggestion so that Canal Zone~.educators
might receive the same retirement benefits as their compatriots in the
.Djstrict of- Columbia.
Thank -you for your time and your support.
Very sincerely yours,
James J. O'Donnell
President
PAGENO="0369"
361
STATEMENT OF MR. J. R. WILLIAMS, PRESIDENT, PANAMA CANAL
PILOTS ASSOCIATION, ACCOMPANIED BY CAPTAIN JOE
MORRISSEY, VICE PRESIDENT, AND CAPTAIN R. D. VALENTINE,
VICE PRESIDENT
Mr. METCALFE. The next group and perhaps the final group will
be the Panama Canal Pilots Association, A.F. of L., headed by Mr.
J. R. Williams, who is the president of the organization.
Mr. WILLIAMS. First of all, I would like to introduce two principal
officers of our association, the vice president, Captain Joe Morrissey
and second vice president, Captain R. D; Valentine, whom you know
from previous tenure as president the year before last.
Two days ago, I furnished your subcommittee, through the offices
of the Governor, a treaty position paper which I assume everyone
has been given copies of. If you like, I can read that position paper.
Mr. METCALFE. Can you summarize it, and submit it for the
record?
Mr. WILLIAMS. Certainly.
BACKGROUND: In 1973, the Canal Zone Code was modified to
permit the hiring of qualified Panamanians as pilots. Well-qualified
Panamanians were subsequently hired as Pilots-in-Training and
their development as pilots has proven their professional capability
to everyone's satisfaction.
Panama is clearly obligated to encourage her young men to
embrace sea-going careers if they are to become full partners in the
Canal Enterprise, as indeed they must.
The Panama Nautical School is a step in the right direction. Its
graduates can go to sea, and as their experience grows, become
command-qualified in a very few years and be eligible to become
Panama Canal Pilots-in-Training.
The development of qualified Panamanians for future pilots along
these lines, we endorse, and are committed to assist wherever
possible.
THE PROBLEM: Meanwhile, we must concern ourselves with an
orderly and harmonious transition period of key employees, which,
in our case, means pilots, a group that is recognized as both the
least dispensable and the most difficult to replace.
An exodus of pilots could cripple the Canal operation. This can
and indeed must be avoided by encouraging presently employed
pilots to remain.
There are several factors to consider. First, pilots were recruited
to come here, by necessity, on a career basis, as contrasted to DOD
personnel throughout the world, who are generally on a 5-year
rotational stint. Also, there are few, if any, comparable piloting jobs
elsewhere in the Federal service for pilots to be transferred. We are
not, for all practical purposes, transferrable, as are other crafts and
professions.
Therefore, a much greater necessity for consideration exists than
was demonstrated in, for example, the transition effected in Oki-
nawa. There is no comparison.
Panama Canal pilots of varying experience are being recruited in
increasing numbers to return to the U.S. for employment as
shipmasters and pilots for salaries in excess of $60,000 per year.
PAGENO="0370"
362
Pilot salaries in the U.S., the amounts of which are secretively
guarded, range far in excess of this figure. The Canal Enterprise
must therefore meaningfully compete with this growing reality.
THE SOLUTION: In order to seriously address this problem of
pilot retention, now, and particularly in the post-treaty era, the
following minimal measures are proposed.
1) Optional, open-ended early Federal retirement for any Panama
Canal pilot with 15 years accredited government service, with one
year additional credit for each 5 years of service. This means full
retirement, with no reduction of annuity because of age. [Due to the
deleterious physical and emotional stresses, characteristic of pilot-
ing here, the useful period of service historically hovers at about 13
years. Further, since most pilots are hired in their forties, they will
have reached a normal retirement age when eligible under this
provision.]
2) A pilot who elected to retire may be rehired by the new agency
that operated the Panama Canal, with no loss of retirement
annunity. This would imply no obligation to hire him on the part of
the new agency and he could acquire tenure only from the date of
his rehiring.
3) Raising pilot compensation to "Maritime Industry Standard,"as
recognized in the United States, plus appropriate cost-of-living dif-
ferential. Industry standard, as applied to pilots, is, and has tradi-
tionally been, shipmaster's pay of the largest vessels.
4) Implementation of an optional, alternative work schedule that
would permit pilots to maintain their primary residence in the U.S.
and commute 5 to 6 times per year to Panama to perform their
share of the workload. Such a system compares with several pilot-
ing arrangements in the U.S. and elsewhere, and is presently under
consideration by the Panama Canal Company.
5) Implementation of a collective bargaining process and a long-
term contractual arrangement that would guarantee, in an atmo-
sphere of mutual trust and harmony, the attainment and retention
of the aforementioned goals that are necessary to preserve the vital
piloting skills that the Canal will require.
SUPPORTING RATIONALE: Assuming that one of the objectives
of a new Canal treaty is to insure an orderly and amicable transi-
tion from what is essentially a U.S. citizen pilot force to one that
gives hiring preference to Panamanians, we consider the adoption
of these proposed measures to be essential for the successful evolu-
tion of a harmonious and cooperative employee transition period.
Failure to do so in what is essentially an environment of transition
and drastic change, would undoubtedly result in enormous and
bitter resentment followed by profligate resignation by pilots.
This era, by necessity, will require several years in order to
conclude the goals set forth in the treaty provisions. Therefore, the
rationale for arriving at the foregoing proposals was based upon
dividing the pilot force into the following three broad categories:
1. Those with enough, or nearly enough service to retire.
2. Those with less than five years' service.
3. A middle group with more than five years but still a large
amount of time before becoming eligible to retire.
PAGENO="0371"
363
For those in group number one it is felt that although they would
have a retirement earned, it is probable that their age and their
financial status would make it attractive that they continue work-
ing here rather than going back to sea or piloting elsewhere
provided that an alternate work plan was available as an option
and the pay was up to industry standards.
For those with less than five years' service it is believed that the
combination of the optional work plan at a competitive pay scale,
and the incentive of early retirement will compete favorably with
the alternative of resigning and going back to sea, or piloting
elsewhere.
For those in group three it is assumed that the incentive of a
reasonably early retirement being attainable, combined with the
addition of the optional work plan at a competitive salary will cause
the majority to continue their employment.
RELATED OBSERVATION: Panama has stated that they have
no objections to the inclusion of labor protections in a new treaty.
Indeed, the 1967 treaty draft conceptualized much of what we are
proposing.
We therefore believe that the U.S. Government may unilaterally
adopt these measures, outside the treaty negotiating context, that
will assure the efficient continuity of operations of the Panama
Canal during an employee transition period that should and could
be conducted in a dignified and cooperative atmosphere.
Mr. Chairman, in summary, my statement above discusses the
background of hiring Panamanians as pilots, which is one of the
provisions of the treaty as it has been explained to us and as is
contained in the 15 assurances, that Panamanian citizens will be
increasingly involved in the operation and employment of the
waterway. It addresses the problem of retaining pilots now and in
the post-treaty era on the basis of the fact treaty uncertainties
notwithstanding, pilots are leaving their employment here in
greater and greater numbers due to better opportunities elsewhere
in the marine industry. It makes some specific proposals for the
post-treaty era, none of which conflict with any other AFL-CIO
provisions. In fact, some of them are merely identical adoptions of
those AFL-CIO provisions.
And towards the end of the position paper it stresses the ratio-
nale for the necessity of this. In fact, the whole paper is focused on
the problem of keeping enough pilots here now and even more
particularly in a post-treaty era, and in an employee transition
period as related to pilots which must take several years.
As far as treaty information is concerned, I attended the Gover-
nor's meeting when the 15 assurances were distributed to us, and he
described them as he understood the meaning of them to be. So in
my mind, at least, some things are already very clear insofar as this
treaty is concerned. One of them is jurisdiction. It will change from
the United States to Panama. That's very clear to everyone who
attended there and listened.
It is also very clear that there is an eventual intention that
Panamanians will occupy all the positions, or a growing number of
positions, in the operation and the management of the Canal.
Whether these provisions were contained in some memorandum of
PAGENO="0372"
364
understanding that has been publicized or in the Tack-Kissinger
agreement, I don't know.
But our position paper is based on our perception of what this
coming reality is, whether we like it or don't like it. We cannot tell
the President of the United States he cannot conduct the treaty
negotiations. He will do that whether we want him to or not. We
feel we have a right to insist upon our interests being taken care of
under such a treaty. But he conducts the treaty negotiations,
himself, and makes the negotiations, and a set of foreign policy
objectives that goes far beyond our immediate concedrn. It is
something we have steered clear of or in commenting upon.
That is about it, Representative Metcalfe. Our solutions to var-
ious provisions are very specific, very clear, and very easy to
understand. I encourage you and your committee members and staff
to read them and reflect upon them and hopefully when the time is
appropriate, as you have mentioned earlier, to act upon them.
Mr. METCALFE. Thank you very much, Mr. Williams. I am now
going to ask unanimous consent that we be privileged to submit to
you any additional questions that may not be asked of you at this
particular time, and ask for any future comments. This applies to
all the rest of the witnesses who have appeared before us. They will
have the same privilege of doing the same thing, of submitting
comments for the record. Without objection, it is so ordered.
[Mr. Williams submitted the following correspondence for the
record:]
PAGENO="0373"
365
Reply to:
Intennatlonal OrganIzation Master,, ~J( P.O. Boo 601
Mates & Pilots, Inc Balboa, Canal Zone
lnnennational~~~ Association
panama Qtanat ~Uot~ ~~otiatiou
Captain J. R. Will i ams Captain J * Farmer
PresIdent April 11 , 1 977 Sacrenery
Representative Ralph H. Metcalfe
U. S. House of Representatives
Room 1334
Longworth House Office Building
Washington, D. C. 20515
Dear Representative Metcalfe:
The imminent likelihood of a new treaty governing the future
of the Panama Canal is, and has been for several months, the para-
mount concern of most Panama Canal Pilots and their families.
The "Fifteen Assurances" notwithstanding, we are completely
dismayed. .and baffled. ,that comprehensive employee provisions
are not under immediate consideration by the Dept. of the Army,
the Treaty negotiators and the U. S. Congress.
Pilots are resigning at an unusually high rate; and, unless
meaningful steps are taken soon, these resignations are likely
to reach epidemic proportions, with a disastrous lowering of over-
all Canal operating efficiency.
Further, pilots are, in all cases, resigning to accept better
employment elsewhere, at locations in the Maritime Industry where
pay and related benefits have outstrippedswhat they received here.
We therefore urge your endorsement of the measures provided
in our enclosed position paper that addresses the problems of re-
taining pilots in a post-Treaty era.
Your support for whatever legislation is required we would
look upon as essential for bringing these very necessary goals
into fruition.
Sincerely yours,
JRH/cf
Enclosure
cc Gov. Parfitt
AFL/CIO
PAGENO="0374"
366
Reply to:
tet,nnatlonal Oegoniaatioo Mastens A2~oa.~ ~ l~o~ ~o~on.
M&es&Pilots;ln~ 0 D~a~~n 5005
AFL-CIO Cable Addroan:
International Macjibe Pilot Association Canalpilot
panama Qtanat ~Uot~ ~t~ociation
1. R. Williams J, Farmer
aptcln_ Prnsident O~O Sacecta
t~ay 1, 1977
Representative Ralph H. Metcalfe
Room 2438
Rayburn House Office Building
Washington, D.C.
Dear Congressman Metcalfe:
As has been emphasized before, the keystone for all employee
protections must be a specifically tailored, early retirement
provision that assures an efficiently harmonious employee trans-
ition period and precludes a disruptively emotional reaction
that a treaty announcement could produce.
In the enclosed statement, that elaborates on our previously
suggested early retirement measure, can be found additional rea-
sons that this single, most important, employee related issue
should be positively dealt with as a legislative requirement to
the Treaty itself, rather than risk the delay of subsequent
attention.
Sincerely,
JRW/cf /1 R. Williams
Enc. Treaty Position Paper Statement
On Early Retirement
PAGENO="0375"
367
R~p!y
~ Mo~w,,, XJ P.O. fl~ ~Oi
~ Pkt,,k~. B&bC~~-~lZ~
~u~I M~thi~w ~ C~bkAd~
C~atpilot
ilintnitrt QCaii~il 3,J3Itot~ ~t~oci~itIon
~ 3. R. Williams ~ Farmer -
P,~d~t S~actwy
TREATY POSITION PAPER STATEMENT
ON EARLY RETIREMENT
The announcement that heralds elimination of the Canal Zone as a
political and social entity will trigger a traumatic reaction from
a large percentage of employees and their families.
This reality cannot be overemphasized.
Canal Zone residents have truly believed that this is part of their
country, in perpetuity, and all of theforeign policy imperatives
(which most residents don't recognize) that might require the Canal
Zone to be eliminated do not diminish their conviction one bit.
Even though many residents say that they realize "a treaty is coming"
(hopefully in the distant future), the change in jurisdiction will be
received as an extremely bitter pill and a betrayal of their life-
long career expectations. It will be the ultimate "Adverse Action.'
Very few, if any, canal employees consider themselves to be on a DOD
type rotational stint in a foreign country or military post. (The
Canal operation itself has required that most of its key employees
be long-term career oriented.)
Some will quickly resign, regardless of compensatory benefits produced
to retain their services. To prevent a major exodus that could cripple
the Canal operation, however, we believe that the optional early re-
tirement measure should be announced as part of the Treaty and admin-
istered in a carefully prescribed manner (as later suggested by this
position paper) that will prevent a disastrous exodus of key employees.
By doing so, an emotionally impulsive reaction will hopefully be re-
placed with pragmatic thinking--governed by responsible and realistic
self-interest.
Further, it would be that very necessary measurd that minimizes bitter
reaction and insures reasonable community stability during that period
following the Treaty announcement and the transition period subsequent
to ratification that could--and should--be conducted in a dignified
and harmonious manner.
That the number of employees is relatively small--even dii~inishing at
* this moment--makes this proposal very reasonable, a fact that should
effectively eliminate any Congressional or Administration opposition
to its inclusion with the Treaty.
PAGENO="0376"
368
* Treaty Position Paper
4tement on Early Retirement
OPTIONAL, OPEN-ENDED EARLY FEDERAL RETIREMENT FOR ANY PANAMA CANAL
PILOT WITH 15 YEARS ACCREDITED GOVERNMENT SERVICE, WITH ONE YEAR
ADDITIONAL CREDIT FOR EACH 5 YEARS OF SERVICE. THIS MEANS FULL
RETIREMENT, WITH NO REDUCTION OF ANNUITY BECAUSE OF AGE. (DUE TO
TUE DELETERIOUS PHYSICAL AND EMOTIONAL STRESSES, CHARACTERISTIC OF
PILOTING HERE, THE USEFUL PERIOD OF SERVICE HISTORICALLY HOVERS AT
ABOUT 13 YEARS. FURTHER, SINCE MOST PILOTS ARE HIRED IN THEIR
FORTIES, THEY WILL HAVE REACHED A NORMAL RETIREMENT AGE WHEN ELIGIBLE
UNDER THIS PROVISION.)
Although the above provision, extracted from the
basic PCPA Treaty Position Paper, mentions only
pilots, its application would serve the interests
of other categories of employees, and is so intended.
Suggested manner for implementation of optional, 15 year retirement
for eligible employees to be activated upon the effective date of a
new treaty:
1. By open-ended, we intend that should an individual's ser-
vice fall short of the required 15 years, he would be
encouraged to cgntinue his employment up to, or even
beyond, his (or her) eligible date.
Without this very important provision, many key employees--
such as a large percentage of pilots--who have very little
Federal service, will be nearly forced to resign and start
new careers elsewhere.
For those individuals who have acquired sufficient service,
there will be the incentive to continue their canal career
under the new Agency.
2. For an employee to exercise his option for retirement
under this plan, there should be required ample notice
on his part to the Canal Agency.
This would serve the two-fold purpose of providing the
Canal Agency with sufficient lead time to plan their
personnel policies, ~nd it gives the employee time to
reflect upon, and possiblyreconsider, his decision.
PAGENO="0377"
369
Reply to:
international Organization Matter,, ~ P.O. Rae 601
Mtes&PlbI ~ 0 Draco 5005
international Maritime Pilot Association ~ a a rent:
panama ~anat ~ttot~ ~~ociatton
captain_j R. Williams ~PP ~ Captain J. Farmer
P,antdent Secretary
April 15, 1977
Representative Ralph H. Metcalfe
U. S. House of Representatives
Room 1334
Longworth House Office Building
Washington, D.C. 20515
Dear Representative Metcalfe:
In further elaboration of our testimony before your Sub-
committee last week, I believe that it is appropriate to point
out that Pilots, although resigning in unusual numbers are doing
so with extreme reluctance in most cases.
Piloting ships through the Panama Canal, for the majority of
us who truly enjoy our workn places us in a profession that has
no equivalent anywhere in the world. To be a Panama C~anal Pilot
then, is to have achieved a certain professional status that is
a mark of considerable distinction in the maritime industry.
Therefore, the fact of Treaty uncertainties and apprehensions
are greatly compounded by the existance of better positions else-
where that place a greater vaJue upon our shiphandling and maritime
expertise. It is unfortunate that this assessment of the situation
prevails, but the facts undeniably speak for themselves.
In regards to Pilots wages elsewhere, it is a general axiom
that Pilots earn approximately the same as shipmasters of the
largest vessels. In my future discussions with the Panama Canal
Company on this subject, I intend to point out to them that there
are shipmasters in the Military Sealift Command whose wage scale,
as Federal employeesn could reasonably be adopted as an equivalent
basis for Canal Pilot wages.
Sincerely,
JRW?cf
cc: Rep. Leo Zeferetti
Rep. Ellwood Hillis
Gov. Parfitt
95-549 0 - 77 - 25
PAGENO="0378"
370
Reply to,
trrtnnrc,tiorrat Organization Ma,rnrs, [~ P.O. Rna 601
Mate, A Pilot,, Inc. : r~\.. ~ Balboa, Canal Zono
Allillanedw th 0
International Maritime Pilot Association ~ Cable Addrer~ nal lies
panama tCanat ~itot~ ~~ociation
` J. R.Willi ams Captain_..'._~L.._....
President Secretary
PANAMI( CANAL PILOTS' ASS~6CIATION
TREATY POSITION PAPER
BACKGROUND:
In 1973, the Canal Zone Code was modified to permit the hiring
of qualified Panamanians as pilots. Well-qualified Panamanians
were subsequently selected as pilots-tn-training, and their devel-
opment has proven their professional capability to everyone's
satisfaction.
Panama is clearly obligated to encourage her young men to embrace
seagoing careers, if they are to become full partners in the Canal
enterprise, as indeed they must.
The Panama Nautical School is a step in the right direction. Its.
graduates can go to sea and, as their experience grows, become
command-qualified in a very few years and be eligible to become
Panama Canal pilots-in-training.
The development of qualified Panamanians for future pilots, along
these lines, we endorse and are committed to assist wherever possible.
THE PROBLEM:
Meanwhile, we must concern ourselves with an orderly and harmon-
ious transition period of key employees which, in our case, means
pilots--a group that is recognized as both the least dispensible
and the most difficult to replace.
An exodus of pilots could cripple the Canal operation. This can,
and indeed must, be avoided by encouraging presently employed pilots
to remain.
There areseveral factors to consider. First, Pilots were recruited
to come here, by necessity, on a career basis--as contrasted to DOD
personnel throughout the world who are generally on a 5 year rota-
tional stint. Also, there are few, if any, comparable piloting
jobs elsewhere in the Federal service for pilots to be transferred.
We are not, for all practical purposes, transferable--a.s are other
crafts and professions.
PAGENO="0379"
371
Page 2
PCPA Treaty Position Paper
Therefore, a much greater necessity for consideration exists
than was demonstrated in, for example, the transition effected
in Okinawa. There is no comparison.
Panama Canal pilots of varying experience are being recruited
in increasing numbers to return to the U.S. for employment as
shipmasters and pilots for salaries that are significantly higher.
Pilot salaries in the U.S., the amounts of which are secretively
guarded, range far in excess of shipmasters salaries. The Canal
Enterprise must therefore meaningfully compete with this growing
reality.
THE SOLUTION:
In order to seriously address this problem of pilot retention,
now, and particularly in -the post-Treaty era, the followiiig min-
imal measures are proposed:
1) Optional, open-ended early Federal retirement for any
Panama Canal pilot with 15 years accredited Government service,
with one year additional credit~ for each 5 years of service.
This means full retirement, wit?h no reduction of annuity because
of age. (Due to the deleterious physical and emotional stresses,
characteristic of piloting here, the useful period of service his-
torically hovers -at about 13 years. Further, since most pilots
are hired in their forties, they will have reached a normal retire-
ment age when eligible under this provision.)
2) A pilot who elected to retire MAY be rehired by the new
Agency that operates the Panama Canal, with no loss of retirement
annuity. This would imply no obligation to hire him on the part
of the new Agency, and he could acquire tenure only from the date
of his rehiring. -
3) Raising pilot compensation to Maritime IndustryStandard,"
as recognized in the United States, plus appropriate cost-of-living
differential. Industry standard, as applied to pilots, is, and has
traditionally been, shipmaster's pay of the largest vessels.
4) Implementation of an optional, alternative work schedule
that would permit pilots to maintain their primary residence in the
U.S. and commute 5 to 6 times per year to Panama to perform their
share of the work load. Such a system compares with several pilot-
ing arrangements in the U.S. and elsewhere and is presently under
consideration by the Panama Canal Company.
5) Implementation of a collective bargainin~ process and a
long-term contractual arrangement that would guarantee, in an atmos-,
phere of mutual trust and harmony, the attainment and retention of
the aforementioned goals that are necessary to preserve the vital
piloting skills that the Canal will require.
PAGENO="0380"
372
Page 3
PCPA Treaty Position Paper
SUPPORTING RATIONALE:
Assuming that one of the objectives of a new canal treaty is to
insure an orderly and amicable transition from what is essentially
a U.S. citizen pilot force to one that gives hiring preference to
Panamanians, we consider the adoption of these proposed measures
to be essential for the successful evolution of a harmonious and
cooperative employee transition period. Failure to do so, in what
is essentially an environment of transition and drastic change,
would undoubtedly result in enormous and bitter resentment--followed
by profligate resignations by pilots.
This era, by necessity, wfll require several years in order to
conclude the goals set forth in the Treaty provisions. Therefore,
the rationale for arriving at the foregoing proposals was based
upon dividing the pilot- force into the following three broad cate-
gories:
1. Those with enough, or nearly .enough, service to retire.
2. Those with less than five years service.
3. A middle group with more than five years but still a
large amount of time before b~ecoming eligible to. retire.
For those in group number one, it is felt that although they
would have a retirement earned, it is probable that their age and
their financial status would make it attractive that they continue
working here rather than going back to sea or piloting elsewhere,.
provided that an alternate work plan was available as an option
and the pay was up to industry standards.
For those with less than five years service, it is believed that
the combination of the optional work plan at a competitive pay scale,
and the incentive of early retirement, will compete favorably with
the alternative of resigning and going back to sea or piloting else-
where.
For those in group three, it is assumed that the incentive of a
reasonably early retirement being attainable, combined with the
addition of the optional work plan at a competitive salary, will
cause the majority to continue their employment.
RELATED OBSERVATION:
Panama has stated that they have no objections to the inclusion
of labor protections in a new treaty. Indeed, the 1967 Treaty
draft conceptualized much of what we are proposing.
We therefore believe that the U.S. Government may unilaterally
adopt these measures, outside the Treaty negotiating context, that
will assure the efficient continuity of operations of the Panama
Canal during an employee transition period that should~and could
be conducted in a dignified and cooperative atmosphere.
PAGENO="0381"
373
Mr. METCALFE. Mr. Zeferetti? We are about an hour behind
schedule.
Mr. ZEFERETTI. I have one short question.
Are your people leaving because of not having a labor protection
guarantee written in, or is it because they have other problems with
this jurisdiction in line with what is going to happen, which you say
is inevitable that it be Panamanian?
Mr. WILLIAMS. They are leaving for a combination of reasons.
They are not leaving out of a sudden desperation without any
future ahead of them. They are leaving to take very well-paying
jobs elsewhere. The opportunities are there. Some of them might be
leaving, I would imagine, for those reasons that Mr. O'Donnell
pointed out. They do not have any conviction that their future
interests are going to be looked after, and they are voting with their
feet and leaving. And I think you are going to see more.
Mr. METCALFE. Mr. Hillis?
Mr. HILLIS. I have no questions.
Mr. METCALFE. Mr. Nonnenmacher?
Mr. NONNENMACHER. I have one question, Mr. Chairman.
You point out in your paper that pilots of varying experience are
being recruited elsewhere for salaries in excess of $60,000 per year.
Apart from the treaty negotiations, is your pay scale here beginning
to fall behind salaries elsewhere?
Mr. WILLIAMS. Yes.
Mr. NONNENMACHER. Is that already a problem separate from
treaty negotiations, then?
Mr. WILLIAMS. Yes. The treaty negotiations aggravate it some-
what, but the opportunities are there in the industry which the
Canal organization hasn't kept pace with.
Mr. NONNENMACHER. I don't want to prolong this. Apart from the
treaty negotiations and the concerns that these bring to your family
lives, are you taking steps as a group to equalize salaries here with
what they may be elsewhere? Have you had negotiations or talks
with the company? Or have you let the matter slide in view of the
Treaty uncertainties?
Mr. WILLIAMS. No. First of all, we don't negotiate with the
company. We don't have that right. No union in the Canal Zone has
that right. We make requests, and we consult. The consultation
process sometimes works satisfactorily and sometimes it doesn't.
To be more specific, our association has initiated a request for
consultation on this very subject, that our pay be brought into line
with industry standards, and it specifically mentions in the letter I
sent to them requesting this that pilots were leaving and still more
of them were going to leave and something had to be done.
In the very near future, perhaps as early as next week, these
meetings will be taking place on this subject.
We have also discussed with the company, and the company has
studied it to some degree, and this is mentioned in this position
paper, an alternate means of working whereby pilots can maintain
their primary residence in the United States and, as the position
paper points out, this compares with piloting systems elsewhere,
particularly in remote areas, and it would involve commuting down
here five or six times per year and working an alternative schedule
PAGENO="0382"
374
that would permit them to maintain their primary residence in the
United States and continue their employment here. The company is
investigating this right now. I don't know what will be their final
position. It looks a little pessimistic right now. They strongly
advocate such a measure.
Mr. METCALFE. Thank you very much.
Are there further questions? No.
Thank you very much, gentlemen, for appearing b~fore us. I
would like to indicate that Mr. George Clark, of the International
Organization of Master Mates and Pilots, Local 27, was one of those
who had not been extended an invitation to speak. We had hoped
we would be able to grant him five minutes, but time has com-
pletely run out on us, and Mr. Clark, who is present now, may
submit his statement to us, and then we will be privileged, of
course, to ask questions.
Mr. Collins has left. He is the president of the Maritime Traffic
Controllers A. F. G. E. Lodge No. 1559, and he would be privileged
to present to us his paper and would likewise have the privilege of
asking any questions.
[No material was received.]
Mr. METCALFE. I would like to express my most profound thanks
and express the will of the members of the Congress as well as the
staff for the very fine testimony that we've had this morning and
for those of you who have manifested an interest and who are still
sticking with us through the long meeting.
It has been difficult chairing a meeting and keeping an eye on the
clock and yet trying to make certain that we get all of the pertinent
information and give every person a chance to ask questions that
are burning in their own minds, and because of this participation
this has been a very successful session, as have the others since we
have been here.
On behalf of the committee and the staff, we want to thank all of
you for participating.
[The following was submitted:]
PAGENO="0383"
375
QUARTERS VACANCY BULLETIN No. P Shect No..La~
ANUNCIO DE VACANTES DE VIVIENDAS No. Hoj~No.
TO BE ASSIGNED AS OF 1:00 PM. ON~TJ!~$)?4Y~LP2~P17
Se harm asignaciones a Ia 1:00 p.m. ci ~
NOTE OBSERVACION
Please refer to information Sheet for (1) general require- Slrvase referirse a Ia Hoja de Datosquecontiene (1) los
ments pertaining to quarters assignment, and (2) numbered requisitos generales pam a asignación de vivienda y (2) las
footnote explanations. expliraciones enumeradas pam Ia colcmina de notas.
________________ (See Reverse Side.) (VEase al Dorso.)
Leati..
UbkedSn
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Apt. Na.
5~ Ar Crer
Apartararata
Types! Caeetrerties
Tipade taa,sneraide,
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Apta.
Na. de
Aptae.
Bed.
reens
RmA-
nurse
Baths
BaSe,
Carage
GueJ,
Maid's
Been
Cm. Ar
Ertplrnds
Maida
Tailet
5eeaida
Enplmda
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Ce.ep
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Ii~ediy Bear
Tel. Charge
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Nate,
PEDRO MI'UE
Trinidad Street 9211-1 T~-l68 M 2 1 1 Yes No No 0 $36.10 +
On-thn-Grou d
GAMB OA
Jadwin Avenue 100-9 1-210 C 12 1 1 Yes No Yes C 30.10 +
Inside Down tair
Williamson Avenue 162-B T-215 C 4 1 1 Yes No Yes C 27.60 + 12
Downstaris
Goethals Boulevar 0265-A T-217 C 4 2 1 Yes No Yes C 36.10 2,12
Upstairs
SPECIAL NOTICE:
U.S. citizen;employees f the Compan /Gov amen org nizat on w o are not ligible or
a regular assignmlnt to quar era because heir osit on i not he r sson or b ing on t e
Isthmus and who a e interest d in a provi iona asni nmen to s rplu.. quar era the
Atlantic area, sh uld contac the Housing Mama ~r, 4 -214 . -
°-ELIGIBLES NM-7 OR EQUIVALENT AND UP-QUALIFY FOR GROUPS A, B, C, D, E & F.
Personas elegibles en grados NM-7, su equivalente o niveles superiores califican pam Ins Grupos A, B, C, D, E y F.
ELIGIBLES BELOW NM-7 OR EQUIVALENT LEVEL-MAY APPLY FOR QUARTERS IN GROUPS 0, E, & F.
HOWEVER, PREFERENCE WILL BE GIVEN TO EMPLOYEES ABOVE THE CUT-OFF. LEVEL FOR GROUP 0 QUARTERS.
Personas elegibles en grados menores de NM-7 o su equivaiente pueden hacer solicitud para viviendas en los Gruposo, E y
F. Sin embargq, empleados en grados NM-7, su equivalenCe o niveles superiores tendran prefe-
rencia para ci Crupo 0. SUPPLEMENTAL NOTICES____________________________________
Notso Suplementarlae
L÷ Available to married couples without dependent:- Service Date is determining factor.
For further Information please call the Housing Manager (Tel 2~A48 ).
Pars iofsroeaciSn adicissal mit-tate lamer ml Gereste Ar Visieeda
(C) Composlte-Mereei:I Cseopaasta (M) Masonry-Marrmpn,terla
(F) Frame-Madera
PAGENO="0384"
376
6048-Bach
INFORMATION SHEET FOR QUARTERS WEEKLY VACANCY BUlLETINS
The apartments listed on the weekly vacancy bulletin will be assigned to the senior applicant on file with the
Homing Manager on time and date indicated in accordance with the Homing Co,nolidation Implementation Procedors and
Chapter 737 of the Panama Canal Pcrsonssel Macoat.
SPECIAL NOTICE
I. Applications from employees who do cot presently have a Company quarters assignment mart be certified by the
Chief, Personnel Operations Division, that the applicant mccli general quarters assignment eligibility requiremenlx.
II. Mobile home sites located in Curundu and Coco Solo, Canal Zone, are immediately available to applicanli
possessing quarters eligibility. Written application should be submitted to the Chief, Community Services Division.
III. An employee will be ineligible far quarters on the next two vacancy bulletins after date of declining an assignment.
IV. A foss vacancy bulletin penalty effective the date of declination will be imposed on employees who cancel after
having accepted a quarters assignment.
FOOTNOTE LISTING
1. Large family preference under establiuhed diminishing family tire far designated quarters. All interested applicanas
should apply.
2. Available to bachelor or fasssily cyplicanlu - service date is dntermining factor.
3. Assigned puebiogspacc.
4. An a condition to this assignment, yea will net be permitted to construct a boat shelter.
S. Garages under building are available on a first-come, first-serve basis (Building 236r Ancon).
6. Includes electric current, but an additional charge of $0.80 biweehly will be made if electric dryer is installed in the
apartment (Building 224, Ancon).
7. Due to pluesbing limitations, installation of automatic washers in the apaatmenlu are nut authorized (Bldgs. 224 E 216, Ancon).
8. Parking of haaG within the Gorges Apartmenli area is net permitted.
9. This apartment is scheduled to be rehabilitated in the fssture pending availability of funds. Employees accepting assignment
will be required to transfer to other quarters while work is in prssgcess.
SO. Available for previsional assignment; contact Housing Manager for fssrther detailu.
11. Shared domestic facilities.
12. Storeroom.
HOJA DE DATOS PARA ANUNCIOS SEMANALES -. -
Los apurtumenton quo so detallan en los anunnios semanales sober vacantes sorb adjudicados a las hera y fecha indicada
at soicitante de mayor anisgnedad dr emplec, segslss apareoca mel enpodiente del Gorente de Vivienda, confornse al Prucedi-
miento pura la Implasstacibu de la Consolidacibn dr Viviendas y el Caprtalo 717 drl Manual de Personal del Canal do PanareS.
AVISO ESPECIAL
I. Las solicitudes de 1c~ empiradon quo no tongan vivienda adjudicada en Ia actualidad, doberbn contenor ursa cersdflca-
cifin dcl Jefe de la Division de Operaciones de Personal donde connIe que ml solicitante ilenu todos los requisitos generales de
elegibilidad para la asignaciOn dr vivienda.
II. Los sitics para la irntalacidn de casas mOviles en Curundtl y Coco Solo, Zona del Canal, rntbos disponibles de inmediato
pans aquollcc solicitantes que ponmon elegibilidad para obtener vivionda. Las soliritudes mcoitas doberbss see enviadau al Jefe de
la Diviuidn do Serricios Comunales.
* En caso de rechazar el solicitante la vivienda quo se Se ha asignado, no tendri derecho a soicitar viviendas dr 1cr dos
ansmcios subsigssientes.
IV. Aqnellos solicitantes que, luego de aceptar ona asignacidn do vivienda, la cancelen, no tendrin drrecho a solicitar
vivienda de los cuatre anuncicn scbsignientcs a Sa frcha de drcinacibn.
NOTAS
1. Se le duel preferencia a familias geandes srGln su tumaSo y en orden decreciente ronfurme a so designucibss. Todos los
solicitantes intoresados doberbn presontar so solicitud.
2. Dispossible para solicitantes solteros o con familia. La focha original sIc empleo es ml factor dnterminanto.
3. Entacionamiento asignado.
4. Como condicibn para esta asignacibn, nose permitirl la cosclauccifn dc casotas para botes.
S. Los garajes en la porte inferior dcl edificio srrbn ocupados en rrdon de llegada (Edificio 236, Asscbn).
6. Incluyc electricidad, con un.cargu adicional de $0.80 cada dan somassas en caso de irntalacibn do ona secadora elfctrica
en ml apartamento (Edificio 224, Ancols).
7. Debido a lan liswltaciones do So plomerFa, no sc autorirarl la isctalacifin do lavadaras automiticas en lou apurtamentos
(Edificios 224 y 236, Ancbn).
8. Se prohibe entacionar botes dentro del irea de los apurtamenton del Gorgas.
9. Entr apustamento sorb rehabilitado psOscimamente segftn la dinponibilidad de fondos. Los empleados que acepten cola
asignacibo dobrrbn tronladuane a otra vivienda mientmau so mfnctllan los trabajon.
10. Disponible para asignaciOn previsional; comunPquese con ml Gerentr do Vivienda para mayoren detallm.
1k Ientalacionrs comunos parc mmplmadas.
12. Cuarto do deposito.
PAGENO="0385"
377
Lcratio.
UbaaaAo
Haste a,A
Apt. N~.
Nod, c~r~
Apeetatonoto
Type ci Corstesetiss
Tipade CsO~PO6o
II..
Apis.
No. de
Apto,.
Bed-
rsa~s
Seth-
poems
Barbs
Bone,
Garage
Gaeoie
Rico
ceo. de
Eopi~Odo
T,ilet
Sersdo
EopI~th~
`~
Grasp
deli-
u,oaa
Tel. Charge
Aiqofler2
~
F
~1r~te
yp~
12
1
1
1
BALBOA -
Las Cruces Street 2320-All T-350 - N - 1 3 2 Yes Yes Yes A $94.30
Of f-the-Grou d
DIABLO
Davis Street 5349-A T-.336 - N - 2 3 1½ Yes No Yes A 71.30
Two Floors
Sibert Street 5735-All T-102 F 1 3 2 Yes Yes Yes A 74.80
Off-the-Grou d
Sibert Street 5743-All T-l02 F 1 3 2 Yes Yes Yes A 74.80
Of f-the-Grou d -
COROZA
Anton Street 6587-A T-357 N - 2 3 1½ Yes No Yes A 69.10
Two Floors
PEDRO IGUE
Trinidad Street 9211-1 T-l68 N 2 1 1 Yes No No D 36.10 +
Or.-the-Groun
GAMEOA
Murwin Place 100-9 T-210 C - 12 1 1 Yes No Yes C 30.10 +
Inside Upstars
Williamson Avenue 162-I 1-215 C 4 1 1 Yes No Yes C 27.60 + 12
Downstairs
Goethals Boulevard 0265-A T-217 C 4 2 1 Yes No Yes C 36.10 12
Upstairs
SPECIAL NOTICE:
An employee o the Comp ny/Government Orga izat n ha bee gran ed a exte ded leav of
absence beginning `une 15, 1 77, through F brea y 15, 1978
The employee ccupies a furnished, du lex, 2 bet rooms Dia lo, a d the spar ment is
available for occu ancy by a Company/Gover ment empi ee e igib e for a qu ters assignme t
on a subletting ba is for th time he is a sent from the I thmu
Employees mt rested in subletting th spa tmen shou d su mit t eir itte request
to this office not later tha Tuesday, Mar h 15 197 , at :00 .m. hey t ill b forward d
to the employee co .cerned fo further hand ing ith a pe son elect d for subl tting th
apartment.
SPECIAL NOTICE: -
U.S. citizen mployees f the Company/Gove exten orga izat on wh are ot e igible f r
a regular assignmeht to quar ers because t Leir osit on is not he re son r be ng on th
Isthmus and who ar~ interest d in a provisional assi nment to s rplus quar rs i the
Atlantic area, should contac the Housing lanag r, 4 -2148
°ELIGIBLES NM-7 OR EQUIVALENT AND UP-QUALIFY FOR GROUPS A, B, C, D, E & F.
Personas elegibles en grados NM-7, su equivalente o niveles superiores califican pars los Grupos A, B, C, D, E y F.
ELIGIBLES BELOW NM-7 OR EQUIVALENT LEVEL-MAY APPLY FOR QUARTERS IN GROUPS D, E, & F.
HOWEVER, PREFERENCE WILL BE GIVEN TO EMPLOYEES ABOVE THE CUT-OFF LEVEL FOR GRQUP D QUARTERS.
Personas elegibles en grados meneres de NM.7 o su equivalente pueden hacer solicitud para viviendas en los Grupos D, E y
F. Sin embargo, empleados en grados NM-7, su equivalente o niveles superiores tendran prefe-
rencis pars el Grupo D. SUPPLEMENTAL NOTICES_____________________________________
Nstas Suplemeretorias
~~Avsi1able to marriedcouples without dependents-Service Date is determining factor.
Y QUARTERS VACANCY BULLETIN No.~Y Skeet No.
ANUNCIO DE VACANTES DE VMENDAS No. Hoja No.
TO BE ASSIGNED AS OF 1:00 P.M. ~
Se haráa asignaciones ala 1:00 p.m. ci ~ ~~J~4g..MARZ d7
NOTE OBSERVACION
Please refer to Information Sheet for (1) general require- Sfrvase reférirse a Ia Hoja de Datos que contiene (1) los
ments pertaining to quarters assilnment, and (2) numbered requisites generates para Ia asignación de vivienda y (2) las
footnote explanations. explirariones enurneradas pars Ia columna de notas.
(See Reverse Side.) (YEast 51 Dorso.)
For further informatIon pie ore call the Hsuslng Manager (Tel. 2.:~38
Pars ioformact6n adtotsnat el-ease itaooae at Gereote de Vteienda
(C) Composite-Material Compneoto (M) Maroney-Mampoeterla
(F) Frame-Modem
PAGENO="0386"
378
6048-Back
INFORMATION SHEET FOR
The apaetments listed on the weekly vacancy bolletin will be assigned to the senior applicant on file with the
Hosnint Manoter on time and dote indicated io accordance with the Homing Consolidation Implementation Procedore and
Chapter 757 of the Panama Canal Personnel Manual.
SPECIAL NOTICE
I. Applications from employees who do not presently have a Company questers assignment mast be certified by the
Chief, Personnel Operations Division, that the applicant meets genogni quarters assignment eligibility requiremessts.
II. Mobile home sites located in Curundu and Coco Solo, Canal Zone, arc immediately available to applicants
possessing quarters eligibility. Written application should be submitted to the Chief, Community Services Division.
III. An employee will be ineligible for quarters on the next two vacancy bulietiso after date of declining an assignment.
IV. A foes vacancy bulletin penalty effective the date of declination will be imposed on employees who canoel after
having accepted a quarters assignment.
FOOTNOTE LISTING
1. Large family preference under established diminishing family sire far designated quarters. All interested applicants
should apply.
2. Available to bachelor or family applicants - service date is detersnining factor.
3. Assigned parking space.
4. As a condilios to this assignment, yea will not be permitted to construct a boat shelter.
S. Garages under building are available on a first-rome, first-serve basis (Building 216, Anoon).
6. Includes electric cssrrost, but an additional charge of $0.80 biweekly will be made if electric dryer is installed in the
apartment (Building 224, Ancon).
7. Duo to plnmbing limitations, installation of automatic washers in the apastmessts are not authorized (Bldgs. 224 & 216, Anton).
8. Parking of boats within the Gorges Apartments area is not permitted.
9. This apartment is scheduled to be rehabilitated in the future pending availability of funds. Employees accepting assignment
will be required to tramfer to other quarters while warh is in progress.
10. Available far provisional assigssssent; contact Homing Manager for further details.
lL Shared domestic facilities.
12. Storeroom.
HOJA DE DATOS PAstA ANUNCIOS SEMANALES DE VACANTES DE VIVIENDA
Los apartamonton que so dotallan en los anuncios semanalos sobre vacantm serlis adjudicados a to hora y fecha indicada
al solicitante do mayor antignedad do ompleo, segiss apareeca end expediento del Gerossto do Vivienda, conformo al Procedi-
miento pora la Implantacion dn la Coosolidacion de Viviendas y el CapItulo 717 del Manual de Personal del Canal do Panamil.
AVISO ESPECIAL
I. Las solicitudes de las empleados quo no tengan vivienda adjudicada en la actualidad, deberds contener una certifica-
ciOn del jefe do la Division de Oporaciones do Personal donde cossste quo cS solicitassto limo todos las requisitos generalm do
elegibilidad para lo asignacifin do civienda.
II. Len sitios para la isutalacion do cases mOviles en Curundsl y Coco Solo, Zona del Canal, ssstOn disponibles do inmediato
paso aqudllos solicitantes quo posoen elogibilidad paso obtenor vivionda. Las solicitsados escritas doberin ser enviadas al Jefe do
la DivisiOn do Servicicss Comunales.
III. En caso do rechaoar el solicitassto la vivienda quo so le ha asignado, no tendri derocho a solicitar viviondas do los dos
anuncios subsigsaientes.
IV. Aquellos solicitantes quo, luogo do aceptar una asignaciOn do vivienda, la cancolon, no tendrdn dereebo a solicitar
vivienda do los cuatro anuncios subuignientes a la focba do decinacifn.
NOTAS
1. Se le dard preferencia a familias grandes sogsln so tama5o y en orden decreciente conforsne a su dosignaciOss. Todos los
solicitantes interesadco deberOn presontar su solicitud.
2. Disposdble para solicitantos soSteros o eon familia. La fecha original do empleo es el factor doternsinante.
S. EsEacinnamiento asignado.
4. Como condicifn para esta asignacion, no so permitirl la cossslrucciOn de casetas para botes.
S. Lou garajes en la paste inferior del edificio serln ocupadas en ordon do llegada (Eelificio 236, AncOn).
6. Incluyo electricidad, con on cargo adicional do $0.80 coda dos semanas on caso do instalaciOn do ssna secadara elOctrica
en el apostamonto (Edificio 224, Ancols).
7. Debido a las limitacionos do la plomerta, no so autrrirarO la issstaSacifin do lavadoras automOticas en los apartamentos
(Edificios 224 y 236, AncOn).
8. So prohibe ostacionar botos dentso del drea do los apartamostos del Gorges.
9. Esto apastamonto serl rehabilitsdo prfximamente sogsss ls dispoeibilidad do fondue. Las ompleados quo acepton onto
asignaciOn doberln trasladaavo a otra vivienda miesstras so efkctslan los Erabajos.
SO. Disponible para asignacifin provisional; comunEqueso con el Gerente do Vivienda para mayoros dotalles.
11. Issstalacionos comunes para empleados.
12. Cuasto do depfsito.
PAGENO="0387"
379
Workers' B~yi~g Power
i~ Mc~jor Cities of W~r1d
Purchasing power in major world cities, expressed in terms
of number of hours a person must work to buy a marke;
basket of typical goods and services, is reflected in the folloØ-
ing table. The source is the Geneva-based banking clØin,
Union de Banques Suisses.
Hours Hours
City Worked City Worked
San Fi~ncisco 65-3/4 Caracas 132
Chicago 72-1/3 -Milan 137-2/5
Los Angeles 73-3/4 Dublin 137-3/5
New York~ 76-3/4 SaoPaolo 145-1/3
Toronto 82-4/5 Paris 149
Montreal 85-1/2 Madrid 158
Geneva 89-3/4 Tokyo 162
Amsterdam 91-1/5 Rio de Janeiro 185
Zurich 91-3/4 ~
Sydney 93-1/5 Mhxk~City 2~Y2~I73
Copenhagen 93-3/4 Athens 207-1/2
Luxemburg 95-4/5 Teheran 208-3/4
Dusseldorf 99-3/5 Hong Kong 217-3/5
Stockholm 103-3/5 Istanbul 239
Oslo 113-3/4 Singapore 264-3/4
Brussels 114-1/2 Tel Aviv 267-3/4
Helsinki 115-4/5 Lisbon 271
Vienna 118 \ -~ Bogota 288
London 124-1/4 \~1 Manila 356-4/5
Johannesburg 126-1/2 Buenos Aires 482-1/4
PAGENO="0388"
380
~ 3~ou~e of ~cpre~entatibe~
Q~ommittee on
fIICttt7tIItt d+tarine anb Jisbcriec.~
~oont 3334. Eongtvovtjj ~ouot ~`ffict 5uiibtng
~1a~~ington, ~ 20515
May 24, 1977
Mr. James J. O'Donnell
American Federation of Government
Employees
Local No. 14
Box 1703
Balboa, CANAL ZONE
Dear Mr. O'Donnell:
This is in reply to your correspondence, dated
April 30, 1977, responding to Governor Parfitt's state-
ment concerning discrimination complaints on the basis of
national origin.
Your correspondence, and the Supreme Court opinion
attached thereto, will be made a part of the record of the
Subcommittee's Canal Zone hearings. The Governor's
statement, made at the opening session of hearings is,
of course, already included in the hearings.
Additionally, the Subcommittee will ask for and study
a copy of the Civil Service Commission statement on the
question of national origin and discrimination, and we will
ask the Commission for a definitive and clear opinion on
this matter if the present opinion is inadequate. Copies
of these will be forwarded, if possible.
This question of national origin and discrimination is
an important matter. The Subcommittee is.indebted to you
for the vigorous expression of your interpretation of the
matter. Please continue to communicate with us on this and
other matters.
Sincerely,
RALPH H. MET FE
Chairman
Panama Canal Subcommittee
PAGENO="0389"
381
I~1J@JU~J LOCALNo.14
~ JMERICAN 9EDERATION OF çOvERNMENT eMPLOYEES
Affiliated with the AFL-CIO--The Granddaddy oF Canal Zone Local.
`~~i3~V Serving Federal Employees at the Crossroads of the World
Boo 1703
lhc,tcnedOdoloc.9,1932 April 30, 1977 Balboa,CanalZone
The Honorable Ralph H. Metcalfe
Chairman, U. S. House Subcommittee on
Panama Canal Affairs
House of Representatives
Washington, D.C. 20515
Dear Mr. Chairman:
The enclosed newspaper clipping from the Star & Herald issue
of April 14, 1977, is self-explanatory and serves as the basis
for this letter. Inasmuch as Governor Parfitt submitted the
statements in the newspaper article as part of the official con-
gressional hearing record, I respectfully request that my state-
ments in this letter, together with attachments, also be made
part of the official hearing record.
With regard to the statement in the article that "The General
Counsel of the Civil Service Committee has recently ruled that
non-U.S. citizens employed in the Canal Zone are within the
scope of persons protected by the (13.5.) equal opportunity laws,"
I wish to state categorically that Title VII of the Civil Rights
Act of 1964 s~pecifically excludes the extension of this protection
to non-citizens outside of the United States. "Title VII of the
Civil Rights Act of 1964 protects all individuals, both citizens
and non-citizens, domiciled ~ the United States, against discrimin-
ation on the basis of race, color, religion, sex, or national origin."
29 CFR 1606.1(c) (1972) (Underscoring supplied.)
Also, in the case of Espinosa vs. Farah Manufacturing Company,
95 S. Ct. 334 (1973) (copy attached) the Supreme Court referred
to Tit. VII wherein it states that Tit. VII "shall not apply to
an employer with respect to the employment of aliens outside
~ ~ 42 U.S.C. 200e-1. In this same case the Supreme
Court stated, "Title VII was clearly intended to apply with
respect to the employment of aliens inside ~ ~ (Under-
scoring supplied.)
As a longtime labor leader I strongly believe that when social
or monetary gains are made by any group of workers these gains
should never have to be given up or otherwise lost. Therefore,
I do not intend to dispute the inclusion of non-U.S. citizen
employees in the Canal Zone under the U. S. equal opportunity
laws. However, in view of the fact that sin additional ~ for
discrimination now exists in the Canal Zone that does not exist
We do in un14 ikat ~I5i~k LI impa&siUe in diounit~j
PAGENO="0390"
382
The Honorable Ralph H. Metcalfe
April 30, 1977
Page 2
in the United States, I hereby respectfully request that you seek
to have EEO law and/or regulations amended as follows: (1) to
show that non-U.S. citizen employees in the Canal Zone are
properly covered by the law (if, in fact, they are) and (2) in
terms of the ~g~gj~ ~ ~ to approve another valid basis on
which a complaint of discrimination might be submitted, namely,
discrimination on the basis of citizenship.
With reference to the statement in the article, "To compli-
cate matters, there is considerable confusion among employees
and others concerning the applicability of the Civil Rights Act
to complaints of discrimination on the basis of citizenship,"
I respectfully suggest that the confusion referred to indeed
exists--but not among the employees. Rather, it exists in the
mind of this agency's General Counsel who, incidentally, is the
author of the Governor's statements in the attached newspaper
clipping.
You will note that the author of the Governor's statements
slipped in his own definition of national origin when he states,
"As you know, the Civil Rights Act prohibits discrimination on
the basis of national origin meaning ancestry or ethnic heritage..."
From this we can infer that because the Panama Canal Company
General Counsel states that's what it means, then, of course,
that is obviously what it ~ meant Right? ~Q~j~ttt
In the aforementioned case of Espinosa vs. Farah Mfg. Co.
(page 88, attached copy) the Supreme Court provides a specific,
crystal clear definition of national origin, ±.e., "The term
`national origin' on its face refers to the country where ~ person
~ ~ or, more broadly, the country from which his or her
ancestors came~T~nderscoring supplied). Under this definition
it is perfectly clear, therefore, that if a person was born in
the United States, and his ancestors hailed from another country,
that person would be perfectly correct in claiming his national
origin to be U.S. or American. This point is particularly
critical here in the Canal Zone because the entire thrust of the
Panama Canal Company General Counsel's argument is that an American
federal employee in the Canal Zone cannot charge discrimination
based on national origin in any job related action where such
discrimination night, in fact, have taken place in favor of a
Panamanian employee--or vice versa. In spite of the fact that
the Supreme Court definition is perfectly clear to any intelligent
person, and would certainly take precedence over ~ ~ definition
(including, incidentally, the Panama Canal Company General Counsel's)
this agency's General Counsel insists that vis-4~-vis U.S. and
Panamanian employees discrimination based on citizenship might
indeed be possible, but not discrimination based on national origin.
PAGENO="0391"
383
The Honorable Ralph H. Metcalfe
April 30, 1977
Page 3
As a result of this illegal and ludicrous stand, legitimate
Equal Employment Opportunity complaints of discrimination based
on national origin submitted by both U.S. and Panamanian employees
have been refused, shelved, denied, or otherwise prevented from
being accepted or heard under the EEO laws and regulations. In
fact, there are cases which have made it as far as the Civil
Service Commission's Appeals Review Board, with the Board confirm-
ing the legitimacy of the employees' EEO complaints of discrim-
ination and ordering the agency to accept and proceed with the
case, the agency refused to accept and proceed with
the case as instructedU
Mr. Chairman, this incredible state of affairs cannot be per-
mitted to continue. This agency's General Counsel has made a
mockery and a shambles of the EHO laws and regulations with a
resultant screaming nosedive in the credibility with which the
agency's EEO program is viewed by the workforce. I can assure
you, Mr. Chairman, that with the uncertainty that prevails in
the Canal Zone today, the already low morale of the employees
needs no additional dents made in it by the wholly stubborn,
illogical, and obfuscatory stance taken on this EEO question by
this agency's General Counsel, notwithstanding the Supreme Court's
clear definition of what constitutes "national origin."
See page 88, case of Espinoza vs. Farah, wherein the Minnesota
State Act Against Discrimination, Minn. Stat. 363.01, subd. 6
(1971) defines "national origin" as "~ ~
individual or any of his lineal ancestors." (Underscoring sup-
plied.)
See page 89, case of Espinoza vs. Farah, wherein Congressman
Roosevelt, Chairman of a House Subcommittee, defined "national
origin" as, "j~ ~ the countrv ~ ~ or your ancestors
~ (Underscoring supplied.)
See page 94, case of Espimoza vs. Farah, wherein the Equal
Employment Opportunity Commission, through its General Counsel,
said: "National origin' ~ ~ the countr~ ~ ~ the
individual or his forbears ~ * ." ~Underscoring supplied~
Mr. Chairman, the one thing which is readily seen in all of
these definitions is that they define "national origin" pr~nari~y
and specificall.y as "based upon the country where a person was
born," with a secondary and infinitely broader meaning to the
additional statement, "or from where his ancestors came."
Mr. Chairman, I beg your indulgence for the length of this
letter, but anything less detailed would. not have been sufficient
to make my point. We seek your help to clear up once and for
PAGENO="0392"
384
The Honorable Ralph H. Metcalfe
April 30, 1977
Page 4
all the EEO morass into which this agency has forced us. We need
someone to tell this agency's General Counsel to cease and desist
in his attempt to deprive employees of their hard-won rights under
the law. We also need someone to have the Civil Service Commission
carefully check the validity of the position I have outlined in
this letter and forthwith to inform the agency and the agency's
employees.
We seek your help.
Sincerely,
,%~4~) ~
James J, O'Donnell
President, Local No. 14
American Federation of Government
Employees
Enclosures
cc: Mr. Robert Bates, Assistant to
the Commissioner (Appeals)
Chairman, Appeals Review Board
President, A.F.G.E. National
Director Office of Federal EEO
PAGENO="0393"
385
&fi C~CTOBEJ~. TiLflM, 1~73
Syllabus 414 U. S.
ESPINOZA ~ vm v. FARAIi MANTJFACTURII\TG
Co., INC.
CERTIORARI TO TH~ UNI'i~E& ~TATLS COU1~T OF APPI~ALS FOR
TRk1~ FIFTH CIRCUIT
No. 72-G7L Ar1~ued October .1.0--Il, ~
Decidad November l~3 1073
).`etitioners, Mr. and Mrs. Espinoza.. browrht suit. aftec haust-
ing their administrative remedies with the Equal Employmcnt
Opportunity n~raission (EEOC), alkgiag that. r po~dem's ic-
Zusal to 1~ire Mrs. Espinoza in its S:u~ A~iton~o (t1v~sioJl because
of her I'.[exicar. citizenship violated § 703 ef Title. VII of the Civil
Rights Act of 1964, which makes it. an uuh~wft'i employment. nrac-
flee for au employer to fail or refuse to hire any individual oecai.ise
of his race, color, re}igiou, sex, or x~ntioua~ origin. Tha District.
* Court granted petitioners' motion for sulaniary ju.dgmw.it., relying
primarily on an EEOC guideline prcvidisig that a lawful ahea
* resident may not be discrimisated against on the basis of citizeu-
ship. The. Court of Appeals reversed. Jietd: An employer's
refusal to hire a person because he is not a Uflited States citizen
does not constitute employment discriroiiiation on the basis of
"natjQnal origin" in ~:iolation of § 703. Pp. SS-96.
(a) in light of the statute's legislative history and tha long-
standing ~;iactice of requiri~g federal employees to be United States
citizens, it is clear that Congress did not intcnct the term "national
origin" to embrace citizenship. requirements. Pp. 8&-91.
(b) The EEOC's g~iideIinc, though perhaps significant in a
wide range of other situations, does not r~pply here or ~upport the
* premise that discrimination on the basis of citizenship is tanta-
mount to discriwnation on the basis of national origin, since
there is no showieg that respondent (96% of whose &`n Antonio
c1iv~sion employees are Mexican-Americans) discriminated against
persons of Mexican origin. Pp. 92-9.5.
* * (c) Thou'~h the Act protects aliens ngainst illegal discrirn inn-
tion because of race, color, rehgion, sex, or national origin, it does
not proscrlbo discrimination on the basis of alienage. P. ~15.
462F.2d.~331,r~ffirr:ied.
IvIRsIIALI~, J, acm ered tnt. ojJmJi~n ~ii dt~ Courts ~ bi~h
95-549 0 - 77 - 26
PAGENO="0394"
386
ESPINOZA. v. FARAR MFG. CO. . 87
80 . Opinion of the Court
]3TJRGEa, C. J., and BRENNAN, STEWART, WHiTE, BLACKMUN, ~?0WELL,
nnd REHNQUIST, JJ., joined. DOUGLAS, J., filed a dissentingopinion,
post, p. .96.
George Cooper a.rgued the cause for petitioners. With
him on the briefs was Ruben Monternayor.
Kenneth R. Carr argued the cause for respohdent.
With him on the brief* were Jack T. Chapman and
William Duncan.~
MR. JUSTICE MARSHALL delivered the opinion of the
Court.
This case involves interpretation of the phrase "na-S
tionai origin" in .Tit, VII of the Civil Rights Act of
1964. Petitioner Cecilia Espinoza is a lawfully admitted
resident alien who was born in and remains a citizen
of Mexico. She resides in San Antonio, Texas, with her
husband, Rudolfo Espinoza, a United States citizen. . In
July 1969, Mrs. Espinoza sought emplOyment as a seam-
stress at the San Antonio division of respondent Farah
Manufacturing Co. Her employment application was
rejected on the basis of a longstanding company policy
against the employment of aliens. After exhausting
their administrative remedies with the Equal Employ-
ment Opportunity Commission,1 petitioners commenced
this suit in the District Court al1egi~g that respondent had
discriminated against Mrs. Espinoza because of her "na-
tional origin" in violation of § 703. of Tit. VII, 78 Stat.
255, 42 U. S. C. § 2OOOe-2 (a)(1). The District Court
granted petitioners' motion for summary judgment, hold-
*Briefs of aniici curiae urging reversal were filed by Joseph T.
Eddins, Jr., and Beatrice Rosenberg for the Equal Employmänt
Opportunit~~ Commission; ~by Mario G. ObledO and Sanford Jay
Rosen for the Mexican American Legal Defense and Educational
Fund; and. by Kenneth Hecht for the . Employment Law Center.
~ Section 706 (c), 42 U. S. C. § 2000e.-5 (e).
PAGENO="0395"
387
83 OCTOBER TERIvI, W7~
Opinion of the Court 414 U. S.
ing that a refusal to hire because of lack of citizenship
constitutes discrimination on the bhsis of "national
origin." 343 F. Supp. 1205. The Court of Appeals
reversed, concluding that the statutory phrase, "national
origin" did not embrace citizenship. 462 F. 2d 133L We
granted the writ to resolve this ciuestion of statutory con~ /
struction, 411 U. S 946, and now affirm.
Section 703 makes it "an unlawful employment prac~
tice for an employer . .`. to fail or refuse to hire
any individual . . . because of such individual's race,
color, religion, sex, or national origin." Certainly the
plain language `of the' statute supports. the result reached.
by the Court of Appeals~ ~~eri"..i.~aloriin"
its ref ers o he ~ou~ \vhere a person was
.2E~ or, m~~~~roadl', the country from which his or
her ancestors came.2
The, statute's legislative history, though quite meager
~ Thrn~ii~1oi~Mnui
~
~ on
the basis of national origin, and many of these statutes have appar-
ently been interpreted' b~' the apprnpriate state enforcement agezlc~r
as not barring citizenship requirements. ~`or' example, the New
York Human Rights Law provides that it is an unlawful discrimina-
tory practice to refuse to hire any individual because of his or her
origin and additionally provides that it shall be unlawful for an
employer to make any pre-ernployment inquiry "which expresses
directly or indirectly, any limitation, specification or discrimination.
as to . . . national origin . . . ." N. Y. Exec. Law § 296 (1972).
The New York State Commission Against Discrimination has ruled
that an employer may lawfully ask a job applicant, whether he or
she is a citizen of the United States. Sec 3 CCH Employment
Prac. Guide ¶ 26,051, p. 8899.
While these, interpretations of state statutes do not control our
construction of federal law, we think them indicative of a general
understanding that' the term "national origin" does not embrace a
requirement of United States citizenship. `~.
PAGENO="0396"
388
ESPINOZA v. FARAH MFG. CO~ 89
86 `Opinion of the Court
in this respect, fully supports this construction. The
only direct definition given the phrase "national origin"
is the following remark made on the floor of. the House
of Representatives by ~
~
bill: "It mean~jhe country .froil~l~yp ____
f~1e~ç~p~. ... You may come from Poland,
Czechoslovakia, England, France, or any other country."
110 Cong.. Rec. 2549 (1964). We also note that an
earlier version of § 703 had referred to discrimination
because o "races color, religion, national origin, or azn-
cestry." H~ R. 7152, 88th Cong., 1st Sess., § 804, Oct. 2,
1063 (Comm. print) (emiihasis added). The deletion
of the word "ancestry" from the final version was not
intended as a material change, see H. R. Rep. No. 914,
88th Cong., 1st Sess., 87 (1963), suggesting that the
terms "national origin" and "ancestry" were considered
synonymous.
There are other compelling reasons to .belie~e that
Congress ~did not. intend the term "national origin" to
embrace CitiZCflShi1) requirements. Si~ce 1914, the Fed~
* eral Government itself, through Civil Service Commis~
sion regulations, has engaged in what amounts to dis-
criminalion aga.inscaiiens by denying them the right to
enter competitive examination for federal employment.
* Exec. Order No. 1997, H. R. Doe. No. 1258, 63d Cong.,
* 3d Sess.,. 118 (1914); see 5 U. S. C. §3301; 5 CFR
§ 338.101 (1072). But it has never been suggested that
the citizen shjp requirement for federal employment
* constitutes discrimination because of national origin,
even though since 1943, various Executive Orders have
expressly prohibited discrimination on *the basis. of
* national origin in Federal Government employment.
See, e. g., Exec. Order No. 9346, 3 CFR .1280 (Cum. Supp.
1938-1943); Exee. Order No. 11478, 3 ~GFR 446' (1970).
PAGENO="0397"
389
90 OCTOBER Ti~R~~l, 1973
Opinion of the Court 414 Ti. S.
Moreover, § 701 (b) of Tit. Vii, in language closely
1)arafle}ing § 703, makes it "the policy of the United
States to insure equal employment opportunities for
Federal employees without discrimination because of
national origin . . . ." Civil Rights Act of 1964, Pub. L.
`88-352, § 701 (h), 78 Stat. 254, re-enacted, Pub. L. 89-
554, 80 Stat, 523, 5 U. S. C. § 7151. The legislative
history of that section revetds no mention of any intent
on Congress' part to reverse the longstanding practice
of requiring federal employees to be United States cit-
izens. To the contrary, there is every indication that 110
such reversal was intended. Congress itself has on sev-
eral occasions since 1964 enacted statutes barring aliens
from federal employment. rilime Treasury, Postal Serv-
ice, and General Government Appropriation Act, i~73, for
example, provides that `(no part of any appropriation con-
tamed in. this or any other Act shall be us~d to pay the
compensation of aiiy officer or employee of the Govern-
ment of the United States . . . unless-such i)Crson (1) is a
citizen of the United States. .. ." Pub. L. 92-351, § 602,
86 Stat. 487. See also Pub. L. 91-144, § 502, 83 Stat. 336;
Pub. L. dl-439, § 502, 84 Stat. 902.
To interpret the term "national origin" to embrace
citizenship requirements would require us to cOnclude
that Congress itself has repeatedly flouted its own
declaration of policy. This Court cannot lightly find
~ Petitioners argue that it is unreasonable to. attribute aiiy great
significance to these provisions in deteiniitiing congressional intent
because the barrier to employment of noncitizen5 has been tucked
away in appropriations bills rather than expressed in a more affirma-
tive fashion. W~ disagree. Indeed, the fact that Congress has
occasionally enacted exceptions to the general barrier indicates to
us that Congres~ was well aware of what. it was doing. See, e. g., -
Pub. L. 92-204, § 703, 85 Stat. 726 (Dept. of Defense); Pub. L.
01-382, 84 Stat.. 823 (Library of Congress).
PAGENO="0398"
390
ESPINOZA v. FARAH MFG.* CO. 91
86 Opinion of the Court
such a breach of faith. See Bate Refrigerating Co. v.
Sulzberger, 157 U. S. 1, 38 (1895). So far as federal
employment is concerned, we think it plain that Con~
gress has assumed that the ban on nationat~origin dis-
crimination in § 701 (b) did not affect the historical
praetice of requiring citizenship as a condition of em-
ployment. See First Natioiial Bank v. Missouri, 263
U. S. 640, 658 (1924). And there is no reason to believe
Congress intended the term "national origin" in § 703
to have any broader scope. Cf. King v. Smith, 392 U. S..
309, 330-331 (196k). . .
Petitioners have suggested that the statutes and -regu-
lations discriminating against noncitizens in federal em-
1)loymnent are unconstitutional under the Due Process
Clause of. the Fifth Amendment. We need not address
that question here,4 for the issue presented in this case
is not whether Congress has the power to discriminate
against aliens in federal employment,-but rather, whether
Congress intended to prohibit such discrimination in
private eh~ployment. Suffice it to say that. we cannot
conclude Congress would at once continue th~ practice
of requiring citizenship as a condition of federal employ-
ment and, at the same time, prevent private employers
from doing likewise. Interpreting § 703 as petitioners
suggest would achieve the rath~r bizarre result of pre-
venting Farah from insisting oii United States citizen-
ship as a condition of employment while the very agency
charged with enforcement of Tit. VII would itself be
required by Congress to place such* a cdndition on its
own personn~el. .
~ w~ left this question undecided in Sugarman. v. Dougall, 413
U. S. 634, 640 n. 12 (1973). See Jalil v. Hampton, 148 U. S. App.
D. C. 415, 460 F. 2d 923, cert. denied, 409 U. S. 887 (1972); Mow
Sun Wong V. Hampton, 333 F. Supp. 527 ,(ND Cal. 1971).
PAGENO="0399"
391
92 OCTOBER TERM, 1973
Opinion of the Court 414 U. S.
The District Court drew primary support for its hold-
ing from an interpretative guideline issued by the Equal
Employment Opportqnity Commission which provides:
/ "Because discrimination on the basis of citizenship
/7 has the effect of discriminating on the basis of
* II national origin, a lawfully immigrated alien who
is domiciled or residing in this country may not be
di$criminated against on the basis of his Citizen-
ship . . . ." 29 ~FR § 1606.1 (d) (1972).
~ Like the Court of Appeals, we have no occasion here to
question the ~eneral validity of this guideline ihso-
far as it can: be read as an expression of the Corn-
* mission's belief that there may be many situations
where discrimination oii the basis of citizenship would
have the effect of discriminating on the basis of
* national origin.' In some instances, for example, a cit-
izenship requirement. might be but one part of a wider
scheme of unlawful national-origin discrimination. In
other cases, an employer might use a citizenship test as
a pretext to disguise what is in fact national-origiti
discrimination. Certainly Tit. VII prohibits discrimi-
nation on the basis of citizenship whenever it has the
purpose or effect of discriminating on the basis of na~
tional origin. "The Act proscribes not only overt dis-
crimination but, also practices that are fair in form, but
discriminatory in operationS" Griggs v. Duke Power
Co., 401 U. S. 424, 431 (1971).
It is equally clear, however, that these principles lend
no support to petitioners in this case. There is no indi-
cation in the record that Farah's policy against employ-
ment of aliens had the purpose or effect of discriminating
against persons of Mexican national origin.5 It is con-
~ There is ho~ suggestion, for example, that ~the company refused
to hiro aliens of Mexican or Spanish-~pcakii~g background while
PAGENO="0400"
392
ESPINOZA v. FARAH MFG. CO. 93
* Opinion of the Court .
ceded that Fa.ràh accepts cmploye~s of Mexican origin,
provided the individual concerned has become an Ameri~
can citizen. Indeed, the District Court found that per~
sons of Mexican ancestry make up more than 96% of
the employees at the company's San Antonio division,
and 97% of those doing the work for which Mrs. Espinoza
applied. While statistics such as these do not auto-
matically shield an employer from a charge of unlawful
discriminati~n, the plain fact of the matter is that Farah
does not discriminate against persons of Mexican national
origin with respect to employment in the job Mrs. Esj~inoza
sought. ~he was denied employment, not because of the
country of her origin, but because she had not ~~et
achieved United States citizenship. In fact, the record
shows that the worker hired in place . of Mrs. Espinoza
was a citizen with a Spanish surname.
The Commission's guideline may have significance for
a wide range of situations, but not for a case such as
this where its very premise-that discrimination on the
basis of citizenship has the effect of discrimination on
the basis of national origin-is not borne out.a It is
hiring those of other national origins. Respondent's president
informed the EEOC'S Regional Director investigating th.e charge
that once in its history the company had made a single exception
to its policy against hiring aliens, but the nationality of the indi-
vidual concerned is not revealed in the record. While the company
asks job applicants whether they are United States citizens, it makes
no inquiry as to their national origin.
It is suggested that a refusal to hire an alien always disadvan-
tages that person because of the country of his birth. A person
born in the United States~the argument goes, automatically obtains
citizenship at birth, while those born elsewhere can acquire citizen-
ship only through a long and sometimes difficult process. See 8
U. S. C. §~ 1423 (1), 1423 (2), 1427 (a), and 1430.. The answer to
this argument is that it is not the employer whà places the burdens
of naturalization on those bern outside ~he country, but Congress
itself, through laws enacted pursuant t6 its constitutional power
PAGENO="0401"
393
94 OCTOBER TERM, 1973
Opinion of the Court 414 ii. S.
also significant to ndte that the Commission itself once
h~ld a different view as to the meaning of the phrase
"national origin." When first confronted with the ques-
tion, ~
~
in~!~id~~lor his forebears came . . , not to whether or
not he is a United States citizen . .. ." EEOC General
Counsel's Opinion Letter, 1 CCH Employment Prac.
Guide ¶ 1220.20 (1967) .~ The Commission's more recent
interpretation of the statute in the guideline relied on
by the District Court is no doubt entjtled to great def-
erence, Griggs v. Duke Power Co., supra, at 434;
Phillips v. Martin Marietta Corp., 400. U.. S. 542, 545
(1971) (MARSHALL, J., concurring), but that deference
must. have limits where, as here, application of the
guideline would be inconsistent with an obvious con-
gressional intent not to reach the employment prac-
tice in question. Courts need not defer to an adminis-
trative construction of a statute where there are "coIn-
"[t]o establish an uniform Rule of Naturalization." U. S. Const.,
Art. I, § 8, ci. 4.
Petitioners' reliance on-Phillips v. Martir~ Marietta Corp., 400 U. S.
542 (1971), is misplaced for similar reasons. In Phillips we held it
unlawful under § 703 to have "one hiring policy for women
and another for men . . . ." Id., at 544. Farah, however, does
not hai~e a different policy for the foreign born than for those born in
the United States. It requires of all that they be citizens of the
United States.
"The Opinion Letter was addressed to the question whether it
was lawful to discriminate against nonresident aliens in favor of
citizens and resident aliens, and expressly reserved any decision
"regardjng discrimination in favor of Uthted States citizens and
against resident aIi~ns." Nevertheless, the definition of "national
origin" ~ forth~in the Letter is inconsistent with that suggested by
petitioners here. 2
PAGENO="0402"
394
ESPINOZA v. FARAH MFG. CO. .. 95
Opinion of the Court
pelling indications that it is wrong." 1~e~i lion Broad-
éasting Co. v. FCC, 395 U. S. 367, 381 (1969); see
also Zuber v. Allen, 396 U. S. 168, 193 (1969); Voiks-
wagenwerk Aktiengesellschaft v. FMC, 390 U. S. 261, 272
(1968).
Finally., petitioners seek to draw support from the
fact that Tit. VII protects all individuals from unlaw-
ful discrimination, whether or not they are cItizens of the
United States. We agree that aliens are protected from
discriiñination under the Act. That result may be de-
rived not only from the use of the term "any individual"
in § 703, but also as a negative inference from the cx-
emption in § 702, which provides that Tit. VII "shall
not apply to an employer with respect to the employment
of aliens outside any State. . . ." 42 U. S. C. § 2000e-1.
Title VII was clearly intended to apply with respect to
the employment of aliens i~iside any State.6
The question posed in the present case, however, is
not whether aliens are protected from illegal discrimi-
nation under the Act, but what kinds of discrimination
the Act makes illegal. Certainly it would be unlawful
for an employer to discriminate against aliens because
of race, color, religion, sex, or national origin-for ex-
ample, by hiring aliens of Anglo-Saxon background but
refusing to hire those of Mexican or Spanish ancestry.
Aliens are protected from illegal discrimination under
the Act, but nothing in the Act makes it illegal to dis-
criminate on the basis of citizenship or alienage.
~\Te agree with the Court. of Appeals that neither the
language of the Act, nor its history, nor the specific
~ Act. of 96 otects all mdi..
viduals both citizens i
~
Tt~flsex,orna~ona'29CFR §.16O~i(cH 1972).
PAGENO="0403"
395
96 0C1'OBER TERM, 1973
Doucr its, J, dissenting 414 U S
facts of this . case indk~ate that respondent has engaged
in unlawful discrimination because of national origin.0
* Affirmed.
MR. JUSTICE DOUGLAS, dissenting.
It is od~l that the Court. which holds that, a State may
not bar an alien from the practice of law' or deny em-
ployment to aliens 2 can read a federal statute that pro-
hibits discrimination in employment on account of
* "national origin" so as to permit discrimination against
aliens.
Alienage results from one condition only: being born
outside the United States. Those born within the coun-
try are citizens from birth. It could not be more clear
that Farah's policy of excluding aliens is dc facto a policy
of preferring those who were born in this country.
TherefQrc the construction i~laced upon the "national
origin" provision is inconsistent with the construction
this Court has placed upon the same Act's protections
for persons denied employment on account of race or sex.
In connection with racial discrimination we have said
that the Act prohibits "practices, procedures, or tests
neutral on their face, and even neutral in terms of in-
tent," if they create "artificial, arbitrary, and unnecessary
barriers to employment when the barriers operate in-
° Petitioners argue that respondent's policy of discrin ~
against aliens is prohibited by 42 U. S. C. § 1981, which pi s
"All persons within the jurisdiction of the United States ala
the same right in every State and Territory to make and eniorce
contracts, to sue, be parties, give evidence, and to the full and equal
benefit of all laws and proceedings for the security of persons and
property as is e.njoyed by white citizens . . ." This issue was
neither raised before the courts below nor presented in the petition
for a writ of certiorari. Aecordin~ly we express no views thereon.
~ ~ ~ 413 U. S. 717 (1973). *
~ Sugarm.an v. Dougall, 413 U. S. 6~4 (1973).
PAGENO="0404"
396
ESPINOZA v FAR ~H MFG CO 97
EG DOUGLAS, J, di'~senting
vidiously to discriminate on the basis of racial or other
impcrmi.s'sible classificalion." Griggs v. Duk~ Power Go.,
401 U. S. 424, 430-431 (1971.) (emphasis added). There
we found that the employer could not use test or di-
ploma requirements which on their faëe were racially.
neutral, when in fact those requirements had a de facto
discriminatory result and the employer was unable to
justify them as related to job J)erformance. The tests
involved in Griggs did not eliminate all blacks seeking
employment, just as the citizenship requirement here
does not, eliminate all applicants of foreign origin.
Respondent here' explicitly conceded that the citizenship.
requirement is imposed without regard to the alien's
~ualifications for the job.
These petitioners against whom discrimination . is
charged are Chicanos. But whether brown, yellow,
black, or white, the thrust of the Act is clear: alienage
is no `barrier to employment ~here.' * Griggs, , as L under-
stood it unt~il today, extends its protective principles to
all, not to blacks alone. Our cases on sex discrimi-
nation under the Act yield the same result as Griggs.'
See Phillips v. Martin Marietta Corp., 400 U. S. 542
(1971).
The construction placed upon the statute in the ma-
jority opinion is an extraordinary departure from prior
cases, and it is opposed by the Equal Employment
Opportunity Commission, the agency provided by `law
with~ the responsibility of enforcing the. Act's pro-
tections. The Commission takes the only permissible
position: that discrimination on the basis of alien-
age always has the effect of discrimination on the basis
of national origin. Refusing to hire an individual
because he is an alien `(is discrimination based on birth
outside the United States and is thus discrimination based
on national origin in vioiation of Title VII" Brief
PAGENO="0405"
397
98 . OCTOBER TERM, 1973
DOUGLAS, T, dissenting 414 U S
for Commission as A.rnicus Curiae ~5. The `Cornmis~
sion's interpretation . of the statute is. entitled to great
w eight
There is no legis1ativ.e history' to cast doubt on this
construction.3 Indeed, any other construction flies in the
face of the underlying congressional policy ~f removing
"artificial, arbitrary, atid unnecessary-barriers to ernploy~
* ment." McDonnell Douglas Corp. v. Green, 411 U. S.
792, 806 (1973)
Mrs Espmoza is a permanent resident alien, married
* to an American . citizen, and her children will be native-
born American citizens. But that first generation has
the. greatest adjustments to make to their new coun-
try. Their unfamiliarity with America makes them the
most vulnerable to exploitation and discriminatory treat-
rnent. They, of course, have the same . obligation as
American citizens to pa~ taxes, and they are subject to
the draft on the same basis. But they have never re-
ceived `equal treatment in the jo1~ 2n~rket. * Writing o~'
the immigrants of the late l8OO's~ Oscar Handlin has~'
said:. * .
"For want of alternative, the immigrants took
the, lowest places in the ranks of industry. They.
suffered in conseguence. from the poor pay and mis-
erable working conditions characteristic of the s~ e'it-
3The only legislative history the majority points to~ is Congress..
man Roosevelt's definition of "national origin": "It means the
country from which you or yàur forebears came.... -You may come
from Poland, Czechoslovakia, England, France, or any other coun-
* try." Ante, at 89. But that only makes clear what petitioners hero
argue-that Mrs. Espinoza cannot be discriminated against because she
comes from a foreign country. The majorit~r's mention of the.
deletion of the word "ancestry," ibid., is certainly irrelevant.
Obviously "nation~il origin" comprehends "ancestry," but as Con-
one's forebears were cm, but wherel hi~T~vas born.
~
C
PAGENO="0406"
398
ESPINOZA V. FARAH MFG~ ~ 99;
86 DOUGLAS, J, dissenting
shops and the homework in' the garment trades and
in cigai making But they ~sere undoubtedly better
off than the Irish and Germans of the 1840's for
whom there had been no place at all." `The New-
comer~ 24 (1959)
The majority decides today that in passing sw eeping
legislation guaranteeing equal job opportunities, the Con-
gress intended to `help only the immigrant's children,
excluding those "for whom there [is] no place at all." I
cannot impute that .niggardly an intent to Congress.
[Whereupon, at 1:15 p.m. the subcommittee adjourned.]