Citation
Panama Canal, permanent neutrality and operation

Material Information

Title:
Panama Canal, permanent neutrality and operation treaty between the United States of America and Panama, signed at Washington September 7, 1977 with attached protocol and protocol of exchange of instruments of ratification signed at Panama June 16, 1978
Series Title:
Treaties and other international acts series ;
Uniform Title:
Treaties, etc
Creator:
Panama
United States, 1977 Sept. 7
United States -- Department of State
Place of Publication:
Washington, D.C
Publisher:
Dept. of State :
For sale by the Supt. of Docs., U.S. G.P.O.
Publication Date:
Language:
English
engspa
Physical Description:
38 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Navigation -- Law and legislation -- Panama Canal (Panama) ( lcsh )
Genre:
federal government publication ( marcgt )

Notes

General Note:
MONTHLY CATALOG NUMBER: gp 82011322
General Note:
English and Spanish.

Record Information

Source Institution:
University of Florida
Holding Location:
Centers of Excellence at UF
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
023213422 ( ALEPH )
08260667 ( OCLC )
Classification:
S 9.10:10029 ( sudocs )

Aggregation Information

DLOC1:
Digital Library of the Caribbean
PCM:
Panama and the Canal
IUF:
University of Florida
IUFGOV:
Centers of Excellence at UF
UFPANCAN:
Documents of the Panama Canal

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Full Text
TREATIES AND OTHER INTERNATIONAL ACTS SERIES 10 020

PANAMA CANAL
Permanent Neutrality and Operation
Treaty Between the
UNITED STATES OF AMERICA
and PANAMA
Signed at Washington September 7, 1977 with
Attached Protocol and

Protocol of Exchange of Instruments of Ratification
Signed at Panama June 16, 1978





NOTE BY THE DEPARTMENT OF STATE
Pursuant to Public Law 89-497, approved July 8, 1966 (80 Stat. 271; 1 U.S.C. 113)".. the Treaties and Other International Acts Series issued under the authority of the Secretary of State shall be competent evidence . of the treaties, international agreements other than treaties, and proclamationsiWe~ t President of such treaties and international agreements other than treaties, as the case may be, therein contained, in all the courts of law and equity and of maritime jurisdiction, and in all the -, D tribunals and public offices of the United States, and of the several States, without any further prpf orabo authentication thereof."

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Subscription Price: $27 per year; $6.75 addition for foreign mailing. Single copies vary in price. This issue 25 cents.




PANAMA
Panama Canal: Permanent Neutrality and Operation
Treaty signed at Washington September 7, 1977, with attached
protocol;
Transmitted by the President of the United States of America
to the Senate September 16, 1977 (S. Ex. N, 95th Cong., 1st
Sess.); '
Reported favorably by the Senate Committee on Foreign Relations February 3, 1978 (S. Ex. Rep. No. 95-12, 95th Cong.,
2d Sess.);
Advice and consent to ratification by the Senate subject to amendments, conditions, reservations and understandings
SMarch 16, 1978;
Ratified by the President subject to such ciendments, conditions,
reservations and understandings June,15, 1978; Ratified by Panama June 16, 1978; Ratifications exchanged with protocol signed at Panama June 16,
1978; effective April 1, 1979;
Proclaimed by the President September 24, 1979; Entered into force October 1, 1979.

TIAS 10029




CONTENTS
[Added by the Department of State]
Page
Proclamation by the President of the
United States of America . . . . . . . 3
Treaty:
English text . . . . . . . ...
Spanish text . . . . . . . . 16
Annexes:
English text . . . . . . . . . ... 22
Spanish text . . . . . . . . 25
Protocol:
English text . . . . . . . . . . 27
Spanish text . . . . . . . . . . 29
Protocol of Exchange of Instruments of Ratification:
English text ., . . . . . . . . 31
Spanish text . . . . . . . . . 35

TIAS 10029




3
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION
CONSIDERING THAT:
The Treaty Concerning the Permanent Neutrality and operation of the Panama Canal was signed at Washington on September 7, 1977, the text of which is hereto annexed;
The Senate of the United States of America by its resolution of March.16, 1978, two-thirds of the Senators present concurring therein,
gave its advice and consent to ratification of the Neutrality Treaty, subject to the following:
(a) AMENDMENTS:
(1) At the end of Article IV, insert the following:
"A correct and authoritative statement of certain
rights and duties of the Parties under the foregoing is
contained in the Statement of Understanding issued by the Government of the United States of America on October 14, 1977, and by the Government of the Republic of Panama on
October 18, 1977;[] which i's hereby incorporated as an
integral part of this Treaty, as follows:
"'Under the Treaty Concerning the Permanent Neutrality
and operation of the Panama Canal (the Neutrality Treaty),
Panama and the United States have the responsibility to assure that the Panama Canal will remain open and secure to ships of all nations. The correct interpretation of
this principle is that each of' the -two countries shall, in accordance with their respective constitutional processes,
defend the Canal against any threat to the regime of
neutrality, and consequently shall have the right to act
against any aggression or threat directed against the
Canal or against the peaceful transit of vessels through
the Canal.
IF-or joint Statement of Understanding, see Depart ment of State Bulletin, Nov. 7, 1977, p. 631.

TIAS 10029.-




"'This does not mean, nor shall it be interpreted as, a right of intervention of the United States in the internal affairs of Panama. Any United States action will be directed at insuring that the Canal will remain open, secure, and accessible, and it shall never be directed against the territorial integrity or political independence of Panama.'."
(2) At the end of the first paragraph of Article VI, insert the following:
"In accordance with the Statement of Understandingmentioned in Article IV above: 'The Neutrality Treaty
provides that the vessels of war and auxiliary vessels of the United States and Panama will be entitled to transit the Canal expeditiously. This is intended, and it shall so be interpreted, to assure the transit of such vessels
through the Canal as quickly as possible, without any impediment, with expedited treatment, and in case of need or emergency, to go to the head of the line of vessels in'order to transit the Canal rapidly.'."
(b) CONDITIONS:
(1) Notwithstanding the provisions of Article V or
any other provision of the Treaty, if the Canal is closed, or its operations are interfered with, the United States., of America and the Republic of Panama shall each needently have the right to take such steps as each deems; necessary, in accordance with its constitutional processes,
including the use of military force in the Republic of Panama, to reopen the Canal or restore the operations of the Canal, as the case may be.

TIAS 10029




(2) The instruments of ratification of the Treaty shall be exchanged oniy upon the conclusion of a Protocol of Exchange, to be signed by authorized representatives
of both Governments, which shall constitute an int4 gral part of the Treaty documents and which shall include the following:
"Nothing in the Treaty shall preclude the Republic
of Panama and the United States of America from making, in accordance with their respective constitutional processes, any agreement or arrangement between the two countries to facilitate performance at any time after December 31, 1999, of their responsibilities to maintain the regime of neutrality established in the Treaty, including agreements or arrangements for the stationing of any United States military forces or the maintenance of defense sites after that date in the Republic of Panama that the Republic of Panama and the United States of America may deem necessary or appropriate..
(c) RESERVATIONS:
(1) Before the date of entry into force of the Treaty, the two Parties shall begin to negotiate for an agreement under which the American Battle Monuments Commission would, upon the date of entry into force of such agreement and thereafter,j administer, free of all taxes and other charges and without compensation to the Republic of Panama and in
accordance with the practices, privileges, and immunities associated with the administration of cemeteries outside the United States of America by the American Battle Monuments Commission, including the display of the flag of the United States of America, such part of Corozal Cemetery in the former Canal Zone as encompasses the remains of citizens of the United States of America.

TIAS 10029




(2) The flag of the United States of America may be displayed, pursuant to the provisions of paragraph 3
of Article VII of the Panama Canal Treaty,[]1 at such part of Corozal Cemetery in the former Canal Zone as encompasses the remains of citizens of the United States of America.
(3) The President(A) shall have announced, before the date of
entry into force of the Treaty, his intention to
transfer, consistent with an agreement with the
Republic of Panama, and before the date of termination
of the Panama Canal Treaty, to the American Battle
Monuments Commission the administration of such part
Of Corozal Cemetery as encompasses the remains of
citizens of the United States of America; and
(B) shall have announced, immediately after the
date of exchange of the instruments of ratification,
plans, to be carried out at the expense of the
Government of the United Stgates of America, for-(i) removing, before the date of entry
into force of the Treaty, the remains of citizens
of the United States of America from Mount Hope
Cemetery to such part of Corozal Cemetery as
encompasses such remains, except that the remains
of any citizen whose next of kin objects in.
writing to the Secretary of the Army not later
than three months after the date of exchange
of the instruments of ratification of the
Treaty shall not be removed; and
'TIAS 10031; 33 UJST.

TIAS 10029




(ii) transporting to the United States of
America for reinterment, if the next of kin so
requests, not later than thirty months after the date of entry into force of the Treaty, any such
remains encompassed by Corozal Cemetery and,
before the date of entry into force of the Treaty, any remains removed from Mount Hope
Cemetery pursuant to subclause (i); and
(C) shall have fully advised, before the date
of entry into force of the Treaty, the next of kin
objecting under clause (B) (i) of all available options
and their implications.
(4) To carry out the purposes of Article III of the Treaty of assuring the security, efficiency, and proper maintenance of the Panama Canal, the United States of America and the Republic of Panama, during their respective periods of responsibility for Canal operation and maintenance, shall, unless the amount of the operating revenues of the Canal exceeds the amount needed to carry out the purposes of such Article, use such revenues of the Canal only for purposes consistent with the purposes of Article III.
(d) UNDERSTANDINGS:
(1) Paragraph l(c) of Article III of the Treaty
shall be construed as requiring, before any adjustment in tolls for use of the Canal, that the effects of any such toll adjustment on the trade patterns of the two Parties shall be given full consideration, including consideration of the following factors in a manner consistent with the regime of neutrality:
TIAS 10029

83-420 0 82 2




(A) the costs of operating and maintaining
the Panama Canal;
(B) the competitive position of the -use of the
Canal in relation to other means of transportation;
(C) the interests of both Parties in maintaining their domestic fleets;
(D) the impact of such an adjustment on. the
various geographical areas of each ofih e two Parties;
and
(E) the interests of both Parties in maximizing
their international commerce.
The United States of America and the Republic of Panama shall cooperate in exchanging information necessary for the consideration of such factors.
(2) The agreement 'to maintain the regime of
neutrality established in this Treaty' in Article IV of the Treaty means that either of the two Parties to the Treaty may, in accordance with its constitutional processes, take unilateral action to defend the Panama Canal against any threat, as determined by the Party taking such action.
(3) The determination of 'need or emergency' for the purpose of any vessel of war or auxiliary vessel of the
United States of America or the Republic of Panama going to the head of the line of vessels in order to transit the Panama Canal rapidly shall be made by the nation operating such vessel.

TIAS 10029




.(4) Nothing in the Treaty, in Annex A or B thereto,
in the Protocol relating to the Treaty, or in any other
agreement relating to the Treaty, obligates the United
States of America to provide any economic assistance,
military grant assistance, security supporting assistance, foreign military sales credits, or international military
education and training to the Republic of Panama.
(5) The President shall include all amendments,
conditions, reservations, and understandings, incorporated
by the Senate in this resolution of ratification in the
instrument of ratification to be exchanged with the
Government of the Republic of Panama.
The Neutrality Treaty was ratified by the President of the United States of America on June 15, 1978, subject to the said amendments, conditions, reservations and understandings, in pursuance of the advice and consent of the Senate, and was ratified on the part of the Republic of Panama on June 16, 1978;
It is provided in Article VIII of the Neutrality Treaty that the Neutrality Treaty shall enter into force simultaneously with the Panama Canal Treaty, six calendar months from the date of the exchange of the instruments of ratification;
The instruments of ratification of the Neutrality Treaty were delivered at Panama on June 16, 1978, with the exchange of the instruments of ratification effective on April 1, 1979, and accordingly the Neutrality Treaty, subject to the said amendments, conditions, reservations and understandings, enters into force on October 1, 1979;

TIAS 10029




10
NOW, THEREFORE, I, Jimmy Carter, President of the United States of America, proclaim and make public the Neutrality Treaty, subject to the said amendments, conditions, reservations and understandings, to the end that it shall be observed and fulfilled with good faith on and after October 1, 1979, by the United States of America and
by the citizens of the United States of America and all other persons subject to the jurisdiction thereof.
IN TESTIMONY WHEREOF, I have signed thIs proclamation and caused the Seal of the United States of America to be affixed.
DONE at the city of Washington

this twenty-fourth day of September in the year of our Lord one thousand nine hundred seventy-nine
and of the Independence of the United States of America the two hundred

[SEAL]

fourth.

iz [2]

By the President:
Acting Secretary of State

'Warren Christopher. 'Jimmy Carter.

TIAS 10029




TREATY
CONCERNING THE PERMANENT NEUTRALITY
AND OPERATION OF THE PANAMA CANAL
The United States of America and the Republic of Panama have agreed upon the following:
ARTICLE I
The Republic of Panama declares that the Canal, as an international transit wa terway, shall be permanently neutral
in accordance with the regime established in this Treaty. The same regime of neutrality shall apply to any other international waterway that may be built either partially or wholly in the territory of the Republic of Panama.
ARTICLE 11
The Republic of Panama declares the neutrality of the Canal in order that both in time of peace and in time of war it shall remain secure and open to peaceful transit by the vessels of all nations on terms of entire equality, so that there will be no discrimination against any nation, or its citizens or subjects, concerning the conditions or charges of transit, or for any other reason, and so that the Canal, and therefore the isthmus of Panama, shall not be the target of reprisals in any armed conflict
.between other nations of the world. The foregoing shall be subject to the following requirements:
(a) Payment of tolls and other charges for transit and
ancillary services, provided they have been fixed in conformity with the provisions of Article III (c);
(b) Compliance with applicable rules and regulations,
provided such rules and regulations are applied in conformity with the provisions of Article 111;

TIAS 10029




12
(c) The requirement that transiting vessels commit no acts of hostility while in the Canal; and
(d) Such other conditions and restrictions as are established by this Treaty.
ARTICLE III
1. For purposes of the security, efficiency and proper maintenance of the Canal the following rules shall apply:
(a) The Canal shall be operated efficiently in
accordance with conditions of transit through the Canal,
and rules and regulations that shall be just, equitable and reasonable, and limited to those necessary for safe
navigation and efficient, sanitary operation of the Canal;
(b) Ancillary services necessary for transit
through the Canal shall be provided;
(c) Tolls and other charges for transit and
ancillary services shall be just, reasonable, equitable and consistent with the principles of international law;
(d) As a pre-condition of transit, vessels may be
required to establish clearly the financial responsibility and guarantees for payment of reasonable and
adequate indemnification, consistent with international practice and standards, for damages resulting from acts
or omissions of such vessels when passing through the Canal. In the case of vessels owned or operated by a

TIAS 10029




13
State or for which it has acknowledged responsibility,
a certification by that State that it shall observe its
obligations under international law to pay for damages
resulting from the act or omission of such vessels when passing through the Canal shall be deemed sufficient to
establish such financial responsibility:
(e) Vessels of war and auxiliary vessels of all
nations shall at all times be entitled to transit the
Canal, irrespective of their internal operation, means
of propulsion, origin, destination or armament, without
being subjected, as a condition of transit, to inspection,
search or surveillance. However, such vessels may be required to certify that they have complied with all
applicable health, sanitation and quarantine regulations.
In addition, such vessels shall be entitled to refuse to
disclose their internal operation, origin, armament,
cargo or destination. However, auxiliary vessels may
be required to present written assurances, certified by
an official at a high level of the government of the
State requesting the exemption, that they are owned or operated by that government and in this case are being
used only on government non-commercial service.
2. For the purposes of this Treaty, the terms "Canal," "vessel of war," "auxiliary vessel," internall operation," Armament" and "inspection" shall have the meanings assigned them in Annex A to this Treaty.'

TIAS 10029




ARTICLE IV
The United States of America and the Republic of Panama agree to maintain the regime of neutrality established in this Treaty,
which shall be maintained in order that the Canal shall remain permanently neutral, notwithstanding the termination of any other treaties entered into by the two Contracting Parties .PI]
ARTICLE V
After the termination of the Panama Canal Treaty, 112] only the Republic of Panama shall operate the Canal and maintain military forces, defense sites and military installations within its national territory.
ARTICLE VI
1. In recognition of the important contributions of the United States of America and of the Republic of Panama to the construction, operation, maintenance, and protection and defense of the Canal, vessels of war and auxiliary vessels of those nations shall, notwithstanding any other provisions of this Treaty, be entitled to transit the Canal irrespective of their internal operation, means of propulsion, origin, destination, armament or cargo carried. Such vessels of war and auxiliary vessels will be entitled to transit the Canal expeditious ly.[r~]
'Amended pursuant to Senate resolution advising ratification. See pp. 3 and 320.
2 TIAS 10030; 33 UST.
' Amended pursuant to Senate resolution advising ratification. See pp. 4 and 32.

TIAS 10029




2. The United States of America, so long as it has responsibility for the operation of the Canal, may continue
to provide the Republic of Colombia toll-free trarisit through the Canal for its troops, vessels and materials of war. Thereafter, the Republic of Panama may provide the
Republic of Colomubia and the Republic of Costa Rica with the right of toll-free transit.
ARTICLE VII
1. The United States of America and the Republic of
Panama shall jointly sponsor a resolution in the organization of American States opening to accession by all States of the world the Protocol to this Treaty whereby all the signatories will adhere to the objectives of this Treaty, agreeing to respect the regime of neutrality set forth herein.
2. The organization of American States shall act as
the depositary for this Treaty and related instruments.
ARTICLE VIII
This Treaty shall be subject to ratification in accordance with the constitutional procedures of the two Parties. The
instruments of ratification of this Treaty shall be exchanged at Panama at the same time as the instruments of ratification of the P'anama Canal Treaty, signed this date, are exchanged. This TVeaty shall enter into force, simultaneously with the Panama Canal Treaty, six calendar months from the date of the exchange of the instruments of ratification. []
'Oct. 1, 1979.
TIAS 10029

83-420 0 82 3




16
TRATADO CONCERNIENTE A LA NEUTRALIDAD PERMANENTE
DEL CANAL Y AL FUNCIONAMIIENTO DEL CANAL DE PANAMA
Los Estados Unidos de Amdrica, y la Repdblica de Panam& han acordado lo siguiente:
ARTICULO I
La Repdblica de PanamA declara que el Canal en cuanto via acuttica de trdnsito internacional serg permanentemente neutral conforme al regimen estipulado en este tratado. El mismo rAgimen de neutralidad se aplicarl a cualquier otra vfa acultica internacional que se cons-truya total o parcialmente en territorio panamefo.
ARTICULO II
PanamS declara la neutralidad del Canal para que, tanto en tiempo de paz como en tiempo de guerra, dste permanezca seguro y abierto para el trAnsito pacffico de las naves de todas las naciones en tdrminos.de entera igualdad, de modo que no haya contra ninguna nacidn ni sus ciudadanos o sdbditos discriminaci6n concerniente alas condiclones o costes del trinsito ni por cualquier otro motivo y para que el Canal y consecuentemente el Istmo de Panama, no sea objetivo de represalias en ningdn conflicto bdlico entre otras naciones del mundo. Lo anterior quedarl sujeto a los siguientes requisitos:
(a) Al pago de peajes u otros derechos por el trdnsito y servicias conexos, siempre que fueren fijados segdn lo estipulado en el articulo III, literal (c);

TIAS 10029




17
(b) Al cumplimiento de los reglamentos pertinentes, siempre que los mismos fueren aplicados segdn las estipulaciones del articulo III;
(c) A que las naves en trAnsito no cometan actos de hostilidad mientras estuvieren en el Canal,
(d) Al cumplimiento de otras condiciones y restricciones establecidas en este tratado.
ARTICULO III
1. Para los fines de la sequridad, eficiencia y mantenimiento apropiado del Canal, se aplicarhn las siguientes reglas:
(a) El Canal serl manejado eficientemente de acuerdo con las condiciones del tr nsito a trav4s del Canal y de los reglamentos que serAn justos, equitativos y razonables y limitados a los necesarios para la navegaci6n segura y el funcionamiento eficiente y sanitario del Canal;
(b) Se proveerhn los servicios conexos necesarios para el trfinsito por el Can al;
(c) Los peajes y otros derechos por servicio de trAnsito y conexos serin justos, razonables, equitativos y consistentes con los principals del Derecho Internacional;
(d) Podri requerirse de las naves como condicidn previa-para el trinsito que establezcan claramente la responsabilidad financiera y las garantlas para el pago de indemnizaci6n razonable y adecuada, consistente con las normas y prcticas internacionales, por los daRos resultantes de actos u omisiones de esas naves al pasar por el Canal. En el caso de naves pertenecientes a un Estado Q operadas por Aste o por las cuales dicho Estado hubiere aceptado responsabilidad, bastard

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18
para asegurar dicha responsabilidad financiera una certificacidn del respectivo Estado en el sentido de que cumplirt sus obligaciones de pagar conforme al Derecho Internacional, los dafios resultantes de la accidn u omisi6n de dichas naves durante su paso por el Canal;
(e) Las naves de guerra y naves auxiliares de todas las
naciones tendrSn en todo tempo el derecho de transitar por el Canal, independientemente de su funcionamiento interno, medios de propulsi6n, origen, destino o armamento, sin ser sometidas como condici6n del trlnsito, a inspecci6n, registro o vigilancia. No obstante podrA exiqirse a dichas naves que certifiquen haber cumplido con todos los regldmentos aplicables sobre salud, sanidad y cuarentena. Ademis, dichas naves
tendr~n derecho de negarse a revelar su funcionamiento interno, origen, armarmento, carga o destino. No obstante, se podrA exigir a las naves auxiliares la presentaci6n de garantia escrita, certificada por un funclonario de alta jerarquia del Gobierno del Estado que solicitase la exenci6n, de que tales naves pertenecen a dicho Estado o son operadas por 61 y que en ese caso son utilizadas solo para un servicio oficial no comercial.
2. Para los fines de este tratado, los tdrminos Canal, Naves de Guerra, Naves Auxiliares, Fuqcionamiento Interno, Armamento e Inspecci6n, tendrAn los significados que se le asignen en el Anexo A de este tratado.
ARTICULO IV
Los Estados Unidos de Amdrica y La Repdblica de Panaml convienen
en mantener el regimen de neutralidad establecido en el presente tratado el cual serA mantenido a efecto de que el Canal permanezca permanentemente neutral, no obstante la terminaci6n de cualesquiera otros tratados ce-

TIAS 10029




19
lebrados por las dos partes Contratantes.
ARTICULO V
Despubs de la terminaci6n del Tratado del Canal de Panama, s61o la Rep6blica de PanamS manejari el Canal y mantendrg fuerzas militares, sitios de defensa e instalaciones militares dentro su territorio nacional.
ARTICULO VI
1. En reconocimiento de las importantes contribuciones de los Estados Unidos de Amdrica y de la Rep6blica de PanamA a la construcci6n, funcionamiento, mantenimiento, protecci6n y defensa del Canal, las naves de guerra y las naves auxiliares de estas naciones, no obstante otras estipulaciones de este tratado, tendr~n el derecho de transitar el Canal independientemente de su funcionamiento interno, medio de propulsi6n, origen, destino, armamento o carga. Dichas naves de guerra y naves auxiliares tendrin derecho de transitar el Canal de modo expedito.
2. Mientras los Estados Unidos de Amj4rica tengan la responsabilidad por el -funcionamiento del Canal, podrAn continuar otorgando a la
Repiblica de Colombia, libre de peajes, el trfnsito por el Canal de sus tropas, naves y materiales de guerra. Posteriormente la Repdblica de PanamA podrA otorgar alas RepGblicas de Colombia y Costa Rica el
derecho de trgnsito libre de peajes.
ARTICULO VII
1. Los Estados Unidos de Amnrica y la Repdblica de PanamA copatroci-

TIAS 10029




nardn en la Organizaci6n de los Estados Americanos una resoluci6n que abra a la adhesi6n de todos los Estados del mundo el Protocolo
de este tratado, mediante el cual los firmantes adherir~n a los objetivos del presente tratado, conviniendo en respetar el r-gimen de neutralidad establecido en el mismo.
2. La Organizacidn de los Estados Americanos servirl como depositaria de este tratado y de los instrumentos pertinentes al mismo.
ARTICULO VIII
Este tratado estl sujeto a ratlficaci6n de conformidad con los procedimientos constitucionales de ambas Partes. Los instrumentos
de ratificaci6n serin canjeados en PanamA al mismo tiempo que. los instrumentos de ratificaci6n del Tratado del Canal de Panaml, suscrito en esta fecha. Este tratado entrarl en vigor simultIneamente con
el Tratado del Canal de Panami, seis meses calendarios contados a partir de la fecha del canje de los instrumentos de ratificacidn.

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DONE at Washington, this 7th day of September, 1977, in duplicate, in the English and Spanish languages, both texts being equally authentic.
FIRMADO en Washington, a los 7 dias de septiembre de 1977, en los idiomas inglis y espanal1, siendo ambos textos iualmente autenticos.

FOR THE UNITED STATES OF AMERICA: POR LOS ESTADOS UNIDOS DE AMERICA:
Presi ent of the
United S ates of America
Presidente de los
Estados Unidos de America

FOR THE REPUBLIC OF PANAMA: POR LA REPUBLICA DE PANAMA:

S, I

Jefe de Gobierno de la Repablica de Panami

x Omar Torrijos Herrera.

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ANNEX A
1. "Canal" includes the existing Panama Canal, the
entrances thereto and the territorial seas of the Republic of
Panama adjacent thereto, as defined on the map annexed hereto (Annex B), and any other inter-oceanic waterway in which the United States of America is a participant or in which the United States of America has participated in connection with
the construction or financing, that may be operated wholly or partially within the territory of the Republic of Panama, the entrances thereto and the territorial seas adjacent thereto.
2. "Vessel of war" means a ship belonging to the naval
forces of a State, and bearing the external marks distinguishing warships of its nationality, under the command of an officer duly commissioned by the government and whose name appears in the Navy List, and manned by a crew which is under regular naval discipline.
3. "Auxiliary vessel" means any ship, not a vessel of war, that is owned or operated by a State and used, for the
time being, exclusively' on government non-commercial service.
4. "Internal operation" encompasses all machinery and
propulsion systems, as well as the management and control of the vessel, including its crew. It does not include the measures necessary to transit vessels under the control of pilots while such vessels are in the Canal.

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5. "Armament" means arms, ammunitions, implements of war and other equipment of a vessel which possesses characteristics appropriate for use for warlike purposes.
6. "Inspection" includes on-board examination of vessel structure, cargo, armament and internal operation. It does not include those measures strictly necessary for admeasurement, nor those measures strictly necessary to assure safe, sanitary transit and navigation, including examination of deck and visual navigation equipment, nor in the case of live cargoes, such as cattle or other livestock, that may carry communicable diseases, those measures necessary to assure that health and sanitation requirements are satisfied.

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MAP ATIACIIHMENT TO ANNEX "A" Of IAEATY CONCERNING II1E PERMANENI NEUIRAIITY AND OPIEATION Of IHii PANAMA CANAL.
MAPA ADnnUTO AL AMXO A DEL TRATADO CCRNRXIElt A LA NEU2RALIDAD PERMAETS DBL CANAL Y AL FUNCICKAMIE)TO DEL CANAL I PANAMA

1 7.

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ANNEX B ANF.Xo B

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- 32




ANEXO A
1. Canal: el tdrmino Canal, usado en todo el texto, incluye el Canal de PanamA existente, sus entradas y los mares territoriales de la Repdblica de Panaml adyacentes al 41, segdn aparece en el mapa adjunto (Anexo B) y cualquier otra vla interocehnica que pueda ser manejada total o parcialmente dentro del territorio de la Repdblica de Panaml, sus entradas y los mares territoriales adyacentes a la misma en cuya construcci6n o financiamiento participen o hubieren participado los Estados Unidos de Amdrica.
2. Naves de querra: el tdrmino nave de guerra, usado en todo
el texto, define a una nave perteneciente alas fuerzas navales de un Estado que porte las insignias exteriores distintivas de los buques de guerra de esa nacionalidad, bajo el comando de un oficial debidamente comisionado par el gobierno e inscrito en la Lista Naval, y operada par una tripulaci6n bajo disciplina naval regular.
3. Have Auxiliar: el tdrmino nave auxiliar, usado en todo el
texto, define a cualquier nave que no fuere nave de guerra, de propiedad de un Estado u operado por 41 y utilizada, en ese momento solamente en servicio no comercial del gobierno.
4. Operaci6n interna: el tdrmino overaci6n interna, usado en todo el texto, define a toda la maquinaria y los sistemas "de propulsi6n, al igual que el manejo y control de la nave incluso su tripulaci6n. Sin embargo, no incluye las medidas necesarias para el tr~nsito de las naves bajo el control de pilotos cuando dichas naves se encontrasen en el Canal.
5. Armamento: el tdrmino armamento, usado en todo el texto, define alas armas, municiones, instrumentos de guerra y cualquier otro equipo de una nave que posea las caracterfsticas apropiadas para su uso con fines b4licos.

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6. Inspecei6n: el tdrmino insnecci6n, usado en todo el texto, incluye el examen a bordo de la estructura de la nave, la carga, el
armamento y el funcionamiento interno. No incluye las medidas estrictamente necesarias para el arqueo, ni medidas estrictamente necesarias para asegurar el trinsito y la navegaci6n segura y sanitaria, incluso el examen del equipo de cabierta y de navegaci6n visual. Tampoco incluye, en el caso de cargas vivas, como el ganado y otros animales que puedan ser portadores de enfermedades contagiosas, las medidas necesarias para asegurar que se han cumplido los requisitos de salud y de sanidad.
ANEXO B

See p. 24.

TIAS 10029




PROTOCOL TO THE TREATY CONCERNING THE PERMANENT NEUTRALITY AND OPERATION OF
THE PANAMA CANAL
Whereas the maintenance of the neutrality of the Panama Canal is important not only to the commerce and security of the United States of America and the Republic of Panama, but to the peace and security of the Western Hemisphere and to the interests of world commerce as well;
Whereas the regime of neutrality which the United
States of America and the Republic of Panama have agreed to maintain will ensure permanent access to the Canal by vessels of all nations on the basis of entire equality;
Whereas the said regime of effective neutrality
shall constitute the best protection for the Canal and shall ensure the absence of any hostile act against it;
The Contracting Parties to this Protocol have agreed upon the following:

TIAS 10029




ARTICLE I
The Contracting Parties hereby acknowledge the regime of permanent neutrality for the Canal established in the Treaty Concerning the Permanent Neutrality and operation of the Panama Canal and associate. themselves with its objectives.
ARTICLE 11
The Contracting Parties agree to observe and respect the regime of permanent neutrality of the Canal in time of war as in time of peace, and to en' sure that vessels of their registry strictly observe the applicable rules.
ARTICLE III
This Protocol shall be open to accession by all states of the world, and shall enter into force for each State at the time of deposit of its instrument of accession with the Secretary General of the Organization of American States.

TIAS 10029




PROTOCOLO AL TRATADO RELATIVO A LA NEUTRALIDAD PERMANENTE
Y AL FUNCIONAMIENTO DEL CANAL DE PANAMA
Par cuanto el mantenimiento de la neutralidad del Canal de PanamS es importante no s6lo para el comercio y la seguridad de la Repdblica de Panamd y de los Estados Unidos de Amdrica, sino tambidn para la paz y sequridad del Hemisferio Occidental, e igualmente para los intereses del comercio mundial;
Poar cuanto el regimen de neutralidad que han acordado mantener la Reptblica de PanamA y los Estados Unidos de Amdrica asegurarl permanentemente el acceso al Canal de las naves de todas las naciones sobre una base de entera igualdad;
Poar cuanto el referido regimen de efectiva neutralidad constituirl la mejor protecci6n para el Canal y garantizarl la ausencia de todo acto hostil al mismo,
Las Partes Contratantes de este Protocolo han acordado lo siguiente:
ARTICULO I
Las Partes Contratantes, por este media, reconocen el regimen de neutralidad permanente del Canal establecido por el Tratado Relativo a la Neutralidad Permanente y al Funcionamiento-del Canal de PanamA y adhieren a sus objetivos.
ARTICULO II
Las Partes Contratantes acuerdan observar y respetar el regimen de neutralidad permanente del Canal tanto en tiempo de paz como en tiempo de guer-ra, y asegurar que las naves de su registro cumplan estrictamiente las reglas aplicables.

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- ARTICULO III
Este Protocolo estart abierto a la adhesi6h de todos los Estados del mundo y entrard en vigor para cada Estado desde el momento del dep6sito de su instrumento de adhesion en la Secretarfa General de la Organizaci6n de Estados Americanos.

TIAS 10029




31
PROTOCOL OF EXCHANGE OF INSTRUMENTS OF RATIFICATION
REGARDING THE TREATY CONCERNING THE PERMANENT NEUTRALITY
AND OPERATION OF THE PANAMA CANAL
AND THE PANAMA CANAL TREATY
The undersigned, Jimmy Carter, President of the United
States of America, and Omar Torrijos Herrera, Head of Government of the Republic of Panama, in the exercise of their respective constitutional authorities, have met for the purpose of delivering to each other the instruments of ratification of their respective governments of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal and of the Panama Canal Treaty (the "Treaties").

TIAS 10029




The respective instruments of ratification of the
Treaties have been carefully compared and found to be in due form. Delivery of the respective instruments took place this day, it being understood and agreed by the United States of America and the Republic of Panama that, unless the Parties otherwise agree through an exchange of Notes in conformity with the resolution of the Senate of the United States of America of April 18, 1978, the exchange of the instruments of ratification shall be effective on April 1, 1979, and the date of the exchange of the instruments of ratification for the purposes of Article VIII of the Treaty Concerning the Permanent Neutrality and operation of the Panama Canal and Article II of the Panama Canal Treaty shall therefore be April 1, 1979.
The ratifications by the Government of the United States of America of the Treaties recite in their entirety the amendments, conditions, reservations and understandings contained in the resolution of March 16, 1978, of the Senate of the United States of America advising and consenting to
ratification of the Treaty Concerning the Permanent Neutrality and operation of the Panama Canal, and the reservations and understandings contained in the resolution of April 18, 1978, of the Senate of the United States of America advising and consenting to ratification of the Panama Canal Treaty.
Said amendments, conditions, reservations and understandings have been communicated by the Government of the United States
of America to the Government of the Republic of Panama. Both governments agree that the Treaties, upon entry into force in accordance with their provisions, will be applied in accordance with the above-mentioned amendments, conditions, reservations and understandings.
Pursuant to the resolution of the Senate of the United States of America of March 16, 1978, the following text contained in theinstrument of ratification of the United States of America of the

TIAS 10029




Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal and agreed upon by both governments is repeated herewith:
"Nothing in the Treaty shall preclude the Republic of Panama and the United States of America from making, in accordance with their respective constitutional processes, any agreement or arrangement between the two countries to facilitate performance at any time after December 31, 1999, of their responsibilities to maintain the regime of neutrality established in the Treaty, including agreements or arrangements for the stationing of any United States military forces or the maintenance of defense sites after that date in the Republic of Panama that the Republic of Panama and the
United States of America may deem necessary or appropriate.".
The Republic of Panama agrees to the exchange of the
instruments of ratification of the Panama Canal Treaty and of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal on the understanding that there are
positive rules of public international law contained in multilateral treaties to which both the Republic of Panama and the United States of America are Parties and which
consequently both States are bound to implement in good faith, such as Article 1, paragraph 2 and Article 2, paragraph 4 of the Charter of the United Nations, [9 and Articles 18 and 20 of the Charter of the organization of American States. [2]
It is also the understanding of the Republic of Panama that the actions which either Party may take in the exercise of its rights and the fulfillment of its duties in accordance with the aforesaid Panama Canal Treaty and the Treaty Concerning the Permanent Neutrality and Operation of the Panama
TS 993; 59 Stat. 1037.
'TIAS 2361; 2 LIST 2420.

TIAS 10029




TIAS 10029

Canal, including measures to reopen the Canal or to restore its normal operation, if it should be interrupted or obstructed, will be effected in a manner consistent with the principles of mutual respect and cooperation on which the new relationship established by those Treaties is based.
IN WITNESS THEREOF, the respective Plenipotentiaries have signed this Protocol of Exchange at Panama, in duplicate, in the English and Spanish languages on this sixteenth day of June, 1978, both texts being equally authentic.
FOR THE UNITED STATES FO K
OF AMERICA:




PROTOCOLO DEL CANJE DE INSTRUMENTOS DE RATIFICACION
RELATIVO AL TRATADO CONCERNIENTE A LA NEUTRALIDAD PERMANENTE
DEL CANAL Y AL FUNCIONAMIENTO DEL CANAL DE PANAMA
Y AL TRATADO DEL CANAL DE PANAMA
Los suscritos, Jimmy Carter, Presidente de los Estados Unidos de Amdrica, y Omar Torrijos Herrera, Jefe de Gobierno de la Repdblica de Panama, en ejercicio de sus respectivas facultades constitucionales, se han reunido con el fin de entregarse reciprocamente los Instrumentos de Ratificaci6n de cada uno de sus Gobiernos, pertinentes al Tratado Concerniente a la Neutralidad Permanente del Canal y al Funcionamiento del Canal de PanamA y al Tratado del Canal de Panaml (los Tratados).

TIAS 10029




Los respectivos Instrumentos de Ratificaci6n de los
Tratados han sido cuidadosamente cotejados y encontrados en forma debida. La entrega de los instrumentos respectivos se realiz6 hoy, siendo entendido -y acordado por los Estados Unidos de Amdrica y la Repdblica de Panamd que, a menos que las Partes convengan lo contrario mediante un canje de notas, de conformidad con la resoluci6n del Senado de los Estados Unidos de Amdrica del 18 de abril de 1978, el canje de los Instrumentos de Ratificaci6n surtirl sus efectos a partir del 10 de abril de 1979 y la fecha del canje de los Instrumentos de Ratificaci6n, para los fines del articulo VIII del Tratado Concerniente a la Neutralidad Permanente del Canal y al Funcionamiento del Canal de PanamA y del articulo II del Tratado del Canal de Panamd serA por tanto el 10 de abril de 1979.
Las ratificaciones de los Tratados por el Gobierno de los Estados Unidos de Ambrica contienen Integramente las enmiendas, condiciones, reservas y entendimientos indicados en la Resoluci6n del 16 de marzo de 1978 aprobada por el Senado de los Estados Unidos de Amdrica en la cual se dio el consejo y consentimiento a la ratificaci6n del Tratado Concerniente a la Neutralidad Permanente del Canal y al Funcionamiento del Canal de Panam& y las reservas y entendimientos incluidos en la Resoluci6n del 18 de abril de 1978 aprobada por el Senado de los Estados Unidos de Amirica en la cual dio su consejo y consentimiento a la ratificaci6n del Tratado del Canal de Panama.
Dichas enmiendas, condiciones, reservas y entendimientos fueron comunicados por el Gobierno de los Estados Unidos de

TIAS 10029




Amdrica al Gobierno de la Repdblica de Panama. Ambos Gobiernos convienen en que los Tratados, al entrar en vigor de acuerdo con sus estipulaciones, serAn aplicados de conformidad con las enmiendas, condiclones, reservas y entendimientos antes mencionados.
De conformidad con la Resoluci6n del Senado de los
Estados Unidos de Amdrica del 16 de marzo de 1978, se repite el siguiente texto contenido en los Instrumentos de Ratificaci6n de los Estados Unidos de Amdrica del Tratado Concerniente a la Neutralidad Permanente del Canal y al Funcionamiento del Canal de PanamS y convenido por ambos Gobiernos:
"Nada en este Tratado impgdir& a la Repdblica de Panama ni a los Estados Unidos d Amdrica de acuerdo con sus respectivos procesos constitucionales, concertar cualquier acuerdo o arreglo entre los dos pauses para facilitar, en cualquier momento despuds del 31 de diciembre de 1999, el cumplimiento de sus responsabilidades para mantener el regimen de neutralidad establecido en el Tratado, incluyendo acuerdos o arreglos para el estacionamiento de cualesquiera fuerzas militares estadounidenses o el mantenimiento en la Repdblica de PanamA de sitios de defensa con posterioridad a dicha fecha, que la Repdblica de Panamd y los Estados de Amdrica puedan considerar necesarios o apropiados."
La Repdblica de Panama accede al canje de los Instrumentos de Ratificaci6n del Tratado del Canal de Panamd y del Tratado Cohcerniente a la Neutralidad Permanente del Canal y al Funcionamiento del Canal de Panamra en la inteligencia de que hay normas positivas de Derecho Internacional Pdblico contenidas en tratados multilaterales de los cuales son

TIAS 10029




Partes tanto la Repdblica de Panam como los Estados Unidos de Amdrica y que, en consecuencia, obligan a ambos Estados a cumplirlas de buena fe, tales como los articulos 1, pardgrafo 2, y 2, parAgrafo 4, de la Carta de la Organizaci6n de las Naciones Unidas y los articulos 18 y 20 de la Carta de la Organizaci6n de los Estados Americanos.
Es tambidn el entendimiento de la Repdblica de Panaml que las acciones que cada Parte pueda tomar en ejercicio de sus derechos y el cumplimiento de sus deberes segdn el Tratado del Canal de Panamd y el Tratado Concerniente a la Neutralidad Permanente del Canal y al Funcionamiento del Canal de PanamS, iAncluidas las medid4s para reabrir el Canal o restablecer su funcionamiento normal, si fuere interrumpido u obstaculizado,ise efectuardn de modo consecuente con los principios.de'Sut 'trespeto y cooperaci6n en que se basa la nueva ?ef6citntebbcida mediante dichos Tratados.
EN1'STIftIODEbLO CUAL, los Plenipotenciarios respectivos han firmado este F 61o de Canje, en PanamA, en duplicado,
en los idiomas in As y espaiol, hoy dieciseis de junio de 1978, siendo ambos textos igualmente autdnticos.
POR LOS ESTADOS UNIDOS DE AMERICA: POR LA REPUBLICA DE PANAMA:
TIAS 10029
TIASI102

U.S. GOVERNMENT PRINTING OFFICE : 1982 0 83-420




TREATIES AND OTHER INTERNATIONAL ACTS SERIES 10030

PANAMA CANAL TREATY
Between the
UNITED STATES OF AMERICA
and PANAMA

Signed at Washington September 7, 1977







TREATIES AND OTHER INTERNATIONAL ACTS SERIES 10030

PANAMA CANAL TREATY
Between the
UNITED STATES OF AMERICA
and PANAMA
Signed at Washington September 7, 1977 with
Agreed Minute and

Related Letter




NOTE BY THE DEPARTMENT OF STATE
Pursuant to Public Law 89-497, approved July 8, 1966 (80 Stat. 271; 1 U.S.C. 113)"... the Treaties and Other International Acts Series issued under the authority of the Secretary of State shall be competent evidence . of the treaties, International agreements other than treaties, and proclamations by the President of such treaties and international agreements other than treaties, as the case may be, therein contained, in all the courts of law and equity and of maritime jurisdiction, and in all the tribunals and public offices of the United States, and of the several States, without any further proof or authentication thereof."

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




PANAMA
Panama Canal Treaty
Signed at Washington September 7, 1977; Transmitted by the President of the United States of America
to the Senate September 16, 1977 (S. Ex. N, 95th Cong., Ist
Sess.);
Reported favorably by the Senate Committee on Foreign Relations February 3, 1978 (S. Ex. Rept. No. 95-12, 95th Cong.,
2d Sess.);
Advice and consent to ratification by the Senate April 18, 1978
subject to reservations and understandings;
Ratified by the President June 15, 1978 subject to said reservations and understandings;
Ratified. by Panama June 16, 1978; Ratifications exchanged with protocol [1] signed at Panama June 16,
1978; effective April 1, 1979;
Proclaimed by the President September 24, 1979; Entered into force October 1, 1979; With agreed minute and related letter.
For protocol, see TIAS 10029.

TIAS 10030




2
CONTENTS
[Added by the Department of State]

Page

Proclamation by the President of the
United States of America Treaty:
English text . . . . .
Spanish text . . . . .
Annex:

3
42

English text . .
Spanish text . Agreed Minute: English text . . Spanish text . . Related Letter . .

94

102

TIAS 10030




BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION
CONSIDERING THAT:
The Panama Canal Treaty was signed at Washington on September 7, 1977, the text of which is hereto annexed;
The Senate of the United States of America by its resolution of April 18, 1978, two-thirds of the Senators present concurring therein, gave its advice and consent to ratification of the Treaty, subject to the following:
(a) RESERVATIONS:
(1) Pursuant to its adherence to the principle of nonintervention, any action taken by the United States of America
in the exercise of its rights to assure that the Panama Canal shall remain open, neutral, secure, and accessible, pursuant
to the provisions of the Panama Canal Treaty, the Treaty Concerning the Permanent Neutrality and operation of the
Panama Canal, and the resolutions of ratification thereto,
shall be only for the purpose of assuring that the Canal
shall remain operi, neutral, secure, and accessible, and shall
not have as its purpose or be interpreted as a right of intervention in the internal affairs of the Republic of
Panama or interference with its political independence or
sovereign integrity.
(2) The instruments of ratification of the Panama Canal
Treaty to be exchanged by the United States of America and
the Republic of Panama shall each include provisions whereby each Party agrees to waive its rights and release the other Party from its obligations under paragraph 2 of Article XII
of the Treaty.

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(3) Notwithstanding any provision of the Treaty, no funds may be drawn from the Treasury of the United States of America for payments under paragraph 4 of Article XIII without statutory authorization.
(4) Any accumulated unpaid balance under paragraph 4(c) of Article XIII of the Treaty at the date of termination of the Treaty shall be payable only to the extent of any operating surplus in the last year of the duration of the Treaty, and nothing in such paragraph may be construed as obligating the United States of America to pay, after the date of the termination of the Treaty, any such unpaid balance which shall have accrued before such date.
(5) Exchange of the instruments of ratification of the Panama Canal Treaty and of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal shall not be effective earlier than March 31, 1979, and such Treaties shall not enter into force prior to October 1, 1979, unless legislation necessary to implement the provisions of the Panama Canal Treaty shall have been enacted by the Congress of the United States of America before March.31, 1979.
(6) After the date of entry into force of the Treaty, the Panama Canal Commission shall, unless otherwise provided by legislation enacted by the Congress of the United States of America, be obligated to reimburse the Treasury of the United States of America, as nearly as possible, for the interest cost of the funds or other assets directly invested in the Commission by the Government of the United States of America and for the interest cost of the funds or other

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assets directly invested in the predecessor Panama Canal Company by the Government of the United States of America and not reimbursed before the date of entry into force of the Treaty. Such reimbursement for such interest costs shall be made at a rate determined by the Secretary of the Treasury of the United States of America and at annual intervals to the extent earned, and if not earned, shall be made from subsequent earnings. For purposes of this reservation, the phrase "funds or other assets directlyinvested" shall have the same meaning as the phrase "net direct investment" has under section 62 of title 2 of the Canal Zone Code.
(b) UNDERSTANDINGS:
(1) Before the first day of the three-year period beginning on the date of entry into force of the Treaty and before eadch three-year period following thereafter, the two Parties shall agree upon the specific levels and quality of services, as are referred to in paragraph 5 of Article III of the Treaty, to be provided diiring the following three-year period and, except for-the first three-year period, on the reimbursement to be made for the costs of such services, such services-to be limited to such as are essential to the effective functioning of the Canal operating areas and the housing areas referred to in paragraph 5 of Article III. If payments made under paragraph 5 of Article III for the preceding three-year period, including the initial three-year period, exceed or are less than the actual costs to the Republic of -Panama for supplying, during such period, the specific levels and

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6
quality of services agreed upon, then the Panama Canal
Commission shall deduct from or add to the payment required to be made to the Republic of Panama for each of the following
three years one-third of such excess or'deficit, as the case may be. There shall be an independent and binding audit, conducted by an auditor mutually selected by both Parties, of any costs of services disputed by the two Parties pursuant to the reexamination of such costs provided for in this understanding.
(2) Nothing in paragraph 3, 4, or 5 of Article IV of the Treaty may be construed to limit either the provisions of the first paragraph of Article IV providing that each Party shall act, in accordance with its constitutional processes, to meet danger threatening the security of the Panama Canal, or the provisions of paragraph 2 of Article IV providing that the United States of America shall have primary responsibility to protect and defend the Canal for the duration of the Treaty.
(3) Nothing in paragraph 4(c) of Article XIII of the Treaty shall be construed to limit the authority of the United States of America, through the United States Government agency called the Panama Canal Commission, to make such financial decisions and incur such expenses as are reasonable and necessary for the management, operation, and maintenance of the Panama Canal. In addition, toll rates'established pursuant to paragraph 2(d) of Article III need not be set at levels designed to produce revenues to cover the payment to the Republic of Panama described in paragraph 4(c) of Article XIII.

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(4) Any agreement concluded pursuant to paragraph 11
of Article IX of the Treaty with respect to the transfer
of prisoners shall be concluded in accordance with the
constitutional processes of both Parties.
(5) Nothing in the Treaty, in the Annex or Agreed
minute relating to the Treaty, or in any other agreement
relating to the Treaty obligates the United States of America to provide any economic assistance, military
grant assistance, security supporting assistance, foreign
military sales credits, or international military education
and training to the Republic of Panama.
(6) The President shall include all reservations and
understandings incorporated by the Senate in this resolution of ratification in the instrument of ratification to
be exchanged with the Government of the Republic of Panama.
The Treaty was ratified by the President of the United States of America on June 15, 1978, subject to the said reservations and understandings, in pursuance of the advice and consent of the Senate, and was ratified on the part of the Republic of Panama. on June 16, 1978;
It is provided in Article II of the Treaty that the Treaty
shall enter into force simultaneously with the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal, six calendar months from the date of the exchange of the instruments of ratification
The instruments of ratification of the Treaty were delivered at Panama on June 16, 1978, with the exchange of the instruments of ratification effective on April 1, 1979, and accordingly the Treaty, subject to the said reservations and understandings, enters into force on October 1, 1979;

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8
NOIF, THEP.EFORE, I, Jimmy Carter, President of the United States of America, proclaim and make public the Treaty, subject to the said reservations and understandings, to the end that it shall be observed and fulfilled with good faith on and after October 1, 1979, by the United States of America and by the citizens of the United states of America and all other persons subject to the jurisdiction thereof.
IN TESTIMONY WHEREOF, I have signed this proclamation and caused the Seal of the United States of America to be affixed.
DONE at the city of Washington
- this twenty-fourth day of
September in the year of [SEAL] our Lord one thousand
nine hundred seventy-nine and of the Independence of the United States of America the two hundred fourth.
By the President: [2]
[1]"
Acting Secretary of State
'Warren Christopher. Jimmy Carter.

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9
PANAMA CANAL TREATY
The United States of America and the Republic of Panama,
Acting in the spirit of the Joint Declaration of
April 3, 1964,11 by the Representatives of the Governments of the United States of America and the Republic of Panama, and of the Joint Statement of Principles of February 7, 1974,1121 initialed by the Secretary of State of the United States of America and the Foreign Minister of the Republic of Panama, and
Acknowledging the Republic of Panama's sovereignty over its territory,
Have decided to terminate the prior Treaties
pertaining to the Panama Cana.l and to conclude a new Treaty to serve as the basis for a new relationship between them and, accordingly, have agreed upon the following:
' Department of State Bulletin, Apr. 27, 1964, p. 656.
2 Department of State Bulletin, Feb. 27, 1974, p. 184.

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10
ARTICLE I
Abrogation of Prior Treaties and
Establishment of a New Relationship
1. Upon its entry into force, this Treaty terminates and supersedes:
(a) The Isthmian Canal Convention between
the United States of America and the Republic of Panama,
signed at Washington, November 18, 1903;[']
(b) The Treaty of Friendship and Cooperation signed at Washington, March 2, 1936, [211 and the Treaty of Mutual Understanding and Cooperation and the related Memorandum of Understandings Reached, signed at Panama, January 25, 1955,I[3 ] between the United States of America
and the Republic of Panama;
(c) All other treaties, conventions, agreements and exchanges of notes between the United States of America and the Republic of Panama, concerning the
Panama Canal which were in force prior to the entry into force of this Treaty; [4]1 and
(d) Provisions concerning the Panama Canal
which appear in other treaties, conventions, agreements and exchanges of notes between the United States of America and the Republic of Panama which were in force prior to the entry into force of this Treaty.
2. In accordance with the terms of this Treaty and related agreements, the Republic of Panama, as territorial -sovereign, grants to the United States of America, for the duration of this Treaty, the rights
TS 431; 33 Stat. 2234; 10 Bevans 66.
2 TS 915; 55 Stat. 1807; 10 Bevans 742.
TIAS 3297; 6 UST 3297.
See agreed minute, para. 1.

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necessary to regulate the transit of ships through the Panama Canal, and to manage, operate, maintain, improve, protect and defend the Canal. The Republic of Panama guarantees to the United States of America the peaceful use of the land and water areas which it has been granted the rights to use for such purposes pursuant to this Treaty and related agreements.
3. The Republic of Panama shall participate increasingly in the management and protection and defense of the Canal, as provided in this Treaty.
4. In view of the special relationship established by this Treaty, the United States of America and the Republic of Panama shall cooperate to assure the uninterrupted and efficient operation of the Panama Canal.
ARTICLE II
Ratification, Entry into Force, and Termination
1. This Treaty shall be subject to ratification
in accordance with the constitutional procedures of the two Parties. The instruments of ratification of this Treaty shall be exchanged at Panama at the same time as the instruments of ratification of the Treaty Concerning the Permanent Neutrality and operation of
the Panama CanalP] signed this date, are exchanged. This Treaty shall enter into force, simultaneously with the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal, six calendar months
'TIAS '100-99; 33 UST.

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12
from the date of the exchange of the instruments of ratification.P.]
2. This Treaty shall terminate at nogn, Panama time, December 31, 1999.
ARTICLE III
Canal Operation and Management
-1. The Republic of Panama, as territorial sovereign, grants to the United States of America the rights to manage, operate, and maintain the Panama Canal, its complementary works, installations and equipment and to provide for the orderly.transit of vessels through the Panama Canal. The United States of America accepts the grant of such rights and undertakes to exercise them in accordance with this Treaty and related agreements.
2. In carrying out the foregoing responsibilities, the United States of America may:
(a) Use for the aforementioned purposes, without cost except as provided in this Treaty, the various installations and areas (including the Panama Canal) and waters, described in the Agreement in Implementation of this Article,[2] signed this date, as well as such other areas and installations as are made available to the United States of America under this Treaty and related agreements, and take the measures necessary to ensure sanitation of such areas;
'Oct. 1, 1979.
2TIAS 10031; 33 UST.

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(b) Make such improvements and alterations to the aforesaid installations and areas as it deems appropriate, consistent with the terms of this Treaty;
(c) Make and enforce all rules pertaining to the passage of vessels through the Canal and other rules with respect to navigation and maritime matters, in accordance with this Treaty and related agreements. The Republic of Panama will lend its cooperation, when necessary, in the enforcement o such rules;
(d) Establish, modify, collect and retain tolls for the use of the Panama Canal, and other charges, and establish and modify methods of their assessment;
(e) Regulate relations with employees of the United States Government;
(f) Provide supporting services to facilitate the performance of its responsibilities under this Article;
(g) Issue and enforce regulations for the effective exercise of the rights and responsibilities of the United States of America under this Treaty and related agreements. The Republic of Panama will lend its cooperation, when necessary, in the enforcement of such rules; and
(h) Exercise any other right granted under this Treaty, or otherwise agreed upon between the two Parties.
3. Pursuant to the foregoing grant of rights,
the United States of America shall, in accordance with the terms of this Treaty and the provisions of United

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States law, carry out its responsibilities by means of a United States Government agency called the Panama Canal Commission, which shall be constituted .by and in conformity with the laws of the United States of America.
(a) The Panama Canal Commission shall be supervised by a Board composed of nine members, five of whom shall be nationals of the United States of America, and four of whom shall be Panamanian nationals proposed by
the Republic of Panamia for appointment to such positions by the United States of America in a timely manner.
(b) Should the Republic of Panama request
the United States of America to remove a Panamanian national from membership on the Board, the United States of America shall agree to such a request. In that event, the Republic of Panama shall propose another Panamanian national for appointment by the United State s of America to such position in a timely manner. In case of removal of a Panamanian member of the Board at the initiative of the United States of*America, both Parties will consult in advance in order to reach agreement concerning such removal, and the Republic of Panama shall propose another Panamanian national for appointment by the United States of America in his stead.
(c) The United States of America shall employ a national of the United States of America as Administrator of the Panama Canal Commission, and a Panamanian national as Deputy Administrator, through December 31, 1989. Beginning January 1, 1990, a Panamanian national shall be employed as the Administrator and a national of the

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15
United States of America shall occupy the position of Deputy Administrator. Such Panamanian nationals shall be proposed to the United States of America by the Republic of Panama for appointment to such positions by the United States of America.
(d) Should the United States of America remove the Panamanian national from his position as Deputy Administrator, or Administrator, the Republic of Panama shall propose another-Panamanian national for appointment to such position by the United States of America.
4. An illustrative description of the activities the Panama Canal Commission will perform in carrying out the responsibilities and rights of the United States of America under this Article is set forth at the Annex. Also set forth in the Annex are procedures for the discontinuance or transfer of those activities performed prior to the entry into force of this Treaty by the Panama Canal Company or the Canal Zone Government which are not to be carried out by the Panama Canal Commission.
5. The Panama Canal Commission shall reimburse the Republic of Panama for the costs incurred by the Republic of Panama in providing the following public services in the Canal operating areas and in housing areas set forth in the Agreement in Implementation of Article III of this Treaty and occupied by both United States and Panamanian citizen employees of the Panama Canal Commission: police, fire protection, street
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83-421 0 81 2




16
maintenance, street lighting, street cleaning, traffic management and garbage collection. The Panama Canal Commission shall pay the Republic of Panama the sum of ten million United States dollars ($10,000,000) per annum. for the foregoing services. It is agreed thfat every three years from the date that this Treaty enters into force, the costs involved in furnishing said services shall be reexamined to determine whether adjustment of the annual payment should be made-because of inflation and other relevant factors affecting the cost of such services.
6. The Republic of Panama shall be responsible
for providing, in all areas comprising the former Canal Zone, services of a general jurisdictional nature such as customs and immigration, postal services, courts and licensing, in accordance with this Treaty and related agreements.
7. The United States of America and the Republic of Panama shall establish a Panama Canal Consultative Committee, composed of an equal number of high-level representatives of the United States of America'and the Republic of Panama, and which may appoint such subcommittees as it may deem appropriate. This Committee shall advise the United States of America and the Republic of Panama on matters of policy affecting the Canal's operation. In view of both Parties' special interest in the continuity and efficiency of the Canal operation in the future, the Committee shall advise on matters such as general tolls policy, employment and training policies to increase the participation

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of Panamanian nationals in the operation of the Canal, and international policies on matters concerning the Canal. The Committee's recommendations shall be transmitted to the two Governments, which shall give such recommendations full consideration in the formulation of such policy decisions.
8. In addition to the participation of Panamanian nationals at high management levels of the Panama Canal
Commission, as. provided for in paragraph 3 of this Article, there shall be growing participation of Panamanian nationals at all other levels and areas of employment in the aforesaid Commission, with the objective of preparing, in an orderly and efficient fashion, for the assumption by the Republic of Panama of full responsibility for the management, operation and maintenance of the Canal upon the termination of this Treaty.
9. Thd use of the areas, waters and installations with respect to which the United States of America is granted rights pursuant to this Article, and the rights and legal status of United States Government agencies and employees operating in the Republic of Panama pursuant to this Article, shall be governed by the Agreement in Implementation of this Article, signed this date.
10. Upon entry into force of this Treaty, the
United States Government agencies known as the Panama Canal Company and the Canal Zone Government shall cease to operate within the territory of the Republic of Panama that formerly constituted the Canal Zone.

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18
ARTICLE IV
Protection and Defense
1. The United States of America and the Republic of Panama commit themselves to protect and defend the Panama Canal. Each Party shall act, in accordance with its constitutional processes, -to meet the danger resulting from an armed attack or other actions which threaten the security of the Panama Canal or of ships transiting it.
2. For the duration of this Treaty, the United
States of America shall have primary responsibility to protect and defend the Canal. The rights of the United
States of America to station, train, and move military forces within the Republic of Panama are described in the Agreement in Implementation of this Ar ticle, signed this date.[1l The use of areas and installations and the legal status of the armed forces of the United States
of America in the Republic of Panama shall be governed by the aforesaid Agreement.
3. In order to facilitate the participation and cooperation of the armed forces of both Parties in the protection and defense of the Canal, the United States of. America and the Republic of Panama shall establish a Combined Board comprised of an equal number of senior military representatives of each Party. These representatives shall be charged by their respective governments with consulting and cooperating on all matters pertaining to the protection and defense of the Canal,
'TIAS 10032; 33 UST.

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19
and with planning f or actions to be taken in concert for that purpose. Such combined protection and defense arrangements shall not inhibit the identity or lines of authority of the armed forces of the United States of America or the Republic of Panama. The Combined Board shall provide for coordination and cooperation concerning such matters as:
(a) The..preparation of contingency plans for the protection and defense of the Canal based upon the cooperative efforts of the armed forces of both Parties;
(b) The planning and conduct of combined military exercises; and
(c) The conduct of United States and Panamanian military operations with respect to the protection and defense of the Canal.
4. The Combined Board shall, at five-year intervals throughout the duration of this Treaty, review the -resources being made available by the two Parties for the protection and defense of the Canal. Also, the Combined Board shall make appropriate recommendations to the two Governments respecting projected requirements, the efficient utilization of available resources of the two Parties, and other matters of mutual interest with respect to the protection and defense of the Canal.
5. To the extent possible consistent with its
primary responsibility for the protection and defense of the Panama Canal, the United States of America will endeavor to maintain its armed forces in the Republic of Panama in normal times at a level not in excess of

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20
that of the armed forces of the United States of America in the territory of the former Canal Zone immediately prior to the entry into force of this Treaty.
ARTICLE V
Principle of Non-Intervention
Employees of the Panama Canal Commission, their
dependents and designated contractors of the Panama
Canal Commission, who are nationals of the United
States of America, shall respect the laws of the Republic of Panama and shall abstain from any activity incompatible with the spirit of this Treaty. Accordingly, they shall abstain from any political activity
in the Republic of Panama as well as from any intervention in the internal affairs of the Republic of
Panama. The United States of America shall take all, measures within its authority to ensure that the provisions of this Article are fulfilled.
ARTICLE VI
Protection of the Environment
1. The United States of America and the Republic
of Panama commit themselves to implement this Treaty
in a manner consistent with the protection of the
natural environment of the Republic of Panama. To
this end, they shall consult and cooperate with each
other in all appropriate ways to ensure that they shall
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21
give due regard to the protection and conservation of the environment.
2. A Joint Commission on the Environment shall be established with equal representation from the United States of America and the Republic of Panama, which shall periodically review the implementation of this Treaty and shall recommend as appropriate to the two Governments ways to avoid or, should this not be possible, to mitigate the adverse environmental impacts which might result from their respective actions pursuant to the Treaty.
3. The United States of America and the Republic of Panama shall furnish the Joint Commission on the Environment complete information on any action taken in accordance with this Treaty which, in the judgment of both, might have a significant effect on the environment. Such information shall be made available to the Commission as far in advance of the contemplated action as possible to facilitate the study by the Commission of any potential environmental problems and to allow for consideration of the recommendation of the Commission before the contemplated action is carried out.
ARTICLE VII
Flags
1. The entire territory of the Republic of Panama, including the areas the use of which the Republic of

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22
Panama makes available to the United States of America pursuant to this Treaty and related agreements, shall be under the flag of the Republic of Panama, and conseq uently such flag always shall occupy the position of honor.
2. The flag of the United States of America may be displayed, together with the flag of-the Republic of Panama, at the headquarters of the Panama Canal Commission, at the site of the Combined Board, and as provided in the Agreement in Implementation of Article IV of this Treaty.
3. The flag of the United States of America also may be displayed at other places and on some occasions, as agreed by both Parties.
ARTICLE VIII
Privileges and Immunities
1. The installations owned or used by the agencies or instrumentalities of the United States of America operating in the Republic of Panama pursuant to this Treaty and related agreements, and their official archives and documents, shall be inviolable. The two Parties shall agree on -procedures to be followed in the conduct of any criminal investigation at such locations by the Republic of Panama.
-2. Agencies and instrumentalities of the Government of the United States of America operating in the

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23
Republic of Panama pursuant to this Treaty and related agreements shall be immune from the jurisdiction of the Republic of Panama.
3. In addition to such other privileges and immunities as are afforded to employees of the United States Government and their dependents pursuant to this Treaty, the United States of America may designate up to twenty officials of the Panama Canal Commission who, along with their dependents, shall enjoy the privileges and immunities accorded to diplomatic agents and their dependents under international law and practice. The United States of America shall furnish to the Republic of Panama a list of the names of said officials and their dependents, identifying the positions they occupy in the Government of the United States of America, and shall keep such list current at all times.
ARTICLE IX
Applicable Laws and Law Enforcement
1. In accordance with the provisions of this
Treaty and related agreements, the law of the Republic of Panama shall apply in the areas made available for the use of the United States of America pursuant to this Treaty. The law of the Republic of Panama shall be applied to matters or events which occurred in the former Canal Zone prior to the entry into force
of this Treaty only to the extent specifically provided in prior treaties and agreements.

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2. Natural or juridical persons who, on the date of entry into force of this Treaty, are engaged in business or non-profit activities at locations in the former Canal Zone may continue such business or activities at those locations under the same terms and conditions prevailing prior to the entry into force of this Treaty for a thirty-month transition period from its entry into force. The Republic of Panama shall maintain the same operating conditions as those applicable to the aforementioned enterprises prior to the entry into force
of this Treaty in order that they may receive licenses to business in the Republic of Panama subject to their compliance with the requirements of its law. Thereafter, such persons shall receive the same treatment under
the law of the Republic of Panama. as similar enterprises already established in the rest of the territory of the Republic of Panama without discrimination.
3. The rights of ownership, as recognized by the
United States of America, enjoyed by natural or juridical
private persons in buildings and other improvements to real property located in the former Canal Zone shall be recognized by the Republic of Panama in conformity with its laws.
4. With respect to buildings and other improvements to real property located in the Canal operating areas, housing areas or other areas subject to the licensing procedure established in Article IV of the Agreement in Implementation of Article III of this Treaty, the owners shall be authorized to continue using the land

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upon which their property is located in accordance with the procedures established in that Article.
5. With respect to buildings and other improvements to real property located in areas of the former Canal Zone to which the aforesaid licensing procedure is not applicable, or may cease to be applicable during the lifetime or upon termination of this Treaty, the owners may continue to use the land upon which their property is located, subject to the payment of a reasonable charge to the Republic of Panama. Should the Republic of Panama decide to sell such land, the owners of the buildings or other improvements located thereon shall be offered a first option to purchase such land at a reasonable cost. In the case of non-profit enterprises, such as churches and fraternal organizations, the cost of purchase will be nominal in accordance with the prevailing practice in the rest of the territory of the Republic of Panama.
6. If any of the aforementioned persons are required by the Republic of Panama to discontinue their activities or vacate their property for public purposes, they shall be compensated at fair market value by the Republic of Panama.
7. The provisions of paragraphs 2-6 above shall apply to natural or juridical persons who have been engaged in business or non-profit activities at locations in the former Canal Zone for at least six months prior to the date of signature of this Treaty.
8. The Republic of,,Panama shall not issue, adopt or enforce any law, decree, regulation, or international

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26
agreement or take any other action which purports to regulate or would otherwise interfere with the exercise on the part of the United States-of America of any right granted under this Treaty or related agreements.
9. Vessels transiting the Canal, and cargo, passengers and crews carried on such vessels shall be exempt from any taxes, fees, or other charges by the Republic of Panama. However, in the event such vessels call at a Panamanian port, they may be assessed charges incident thereto, such as charges for services provided to the vessel. The Republic of Panama may also require the passengers and crew disembarking from such vessels to pay such taxes, fees and charges as are established under Panamanian law for persons entering its territory. Such taxes, fees and charges shall be assessed on a nondiscriminatory basis.
10. The United States of America and the Republic of Panama will cooperate in taking such steps as may from time to time be necessary to guarantee the security of the Panama Canal Commission, its property, its employees and their dependents, and their property, the Forces of the United States of America and the members thereof, the civilian component of the United States Forces, the dependents of members of the Forces and the civilian component, and their property, and the contractors of the Panama Canal Commiss-ion and of the United States Forces, their dependents, and their property. The Republic of Panama will seek from its

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27
Legislative Branch such legislation as may be needed to carry out the foregoing purposes and to punish any offenders.
11. The Parties shall conclude an agreement
whereby nationals of either State, who are sentenced by the courts of the other State, and who are not domiciled therein, may elect to serve their sentences in their State of nationality.['I
ARTICLE X
Employment with the Panama Canal Commission
1. In exercising its rights and fulfilling its
responsibilities as the employer, the United States of America shall establish employment and labor regulations which shall contain the terms, conditions and prerequisites for all categories of employees of the Panama Canal Commission. These regulations shall be provided to the Republic of Panama prior to their entry into force.
2. (a) The regulations shall establish a system of preference when hiring employees, for Panamanian applicants possessing the skills and qualifications required for employment by the Panama Canal Commission. The United States of America shall endeavor to ensure that the number of Panamanian nationals employed by the Panama Canal Commission in relation to the total number of its employees will conform to the proportion established for foreign enterprises under the law of the Republic of Panama.
(b) The terms and conditions of' employment to be established Kill in general be no less favorable to
'TIAS 9787; 31 UST.

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28
persons already employed by the Panama Canal Company or Canal Zone Government prior to the entry into force of this Treaty, than those in effect immediately prior to that date.
3. (a) The United States of America shall establish an employment policy for the Panama Canal Commission that shall generally limit the recruitment of personnel outside the Republic of Panama to persons possessing requisite skills and qualifications which are not available in the Republic of Panama.
(b) The United States of America will establish training programs for Panamanian employees and apprentices in order to increase the number of Panamanian nationals qualified to assume positions with the Panama Canal Commission, as positions become available.
(c) within five years from the entry into force of this Treaty, the number of United States nationals employed by the Panama Canal Commission who were previously employed by the Panama Canal Company shall be at least twenty percent less than the total number of United States nationals working for the Panama Canal Company immediately prior to the entry into force of this Treaty.
(d) The United States of America shall periodically inform the Republic of Panama, through the Coordinating Committee, established pursuant to the Agreement in Implementation of Article III of this Treaty, of available positions within the Panama Canal Commission. The Republic bf Panama shall similarly provide the United

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29
States of America any information it may have as to the. availability of Panamanian nationals claiming to have skills and qualifications that might be required by the Panama Canal Commission, in order that the United States of America may take this information into account.
4. The United States of America will establish
qualification standards for skills, training and experience required by the Panama Canal Commission. In establishing such standards, to the extent they include a requirement for a professional license, the United States of America, without prejudice to its right to require additional professional skills and qualifications, shall recognize the professional licenses issued by the Republic of Panama.
5. The United States of America shall establish a policy for the periodic rotation, at a maximum of every five years, of United States citizen employees and other non-Panamanian employees, hired after the entry into force of this Treaty. It is recognized-that certain exceptions to the said policy of rotation may be made for sound administrative reasons, such as in the case of employees holding positions requiring certain nontransferable or non-recruitable skills.
6. With regard to wages and fringe benefits, there shall be no discrimination on the basis of nationality, sex, or race. Payments by the Panama Canal Commission of additional remuneration, or the provision of other benefits, such as home leave benefits, to United States nationals employed prior to entry into force of this

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30
Treaty, or to persons of any nationality, including Panamanian nationals who are thereafter recruited outside of the Republic of Panama and who change their
-place of residence, shall not be considered to be discrimination for the purpose of this paragraph.
7. Persons employed by the Panama Canal Company or Canal Zone Government prior to the entry into force of this Treaty, who are displaced from their employment as a result of the discontinuance by the United States of America of certain activities pursuant to this Treaty, will be placed by the United States of America, to the maximum extent feasible, in other appropriate jobs with the Government of the United States in accordance with United States Civil Service regulations. For such persons who are not United States nationals, placement efforts will be confined to United States Government activities located within the Republic of Panama. Likewise, persons previously employed in activities for which the Republic of Panama assumes responsibility as a result of this Treaty will be continued in their employment to the maximum extent feasible by the Republic of Panama. The Republic of Panama shall, to the maximum extent feasible, ensure that the terms and conditions of employment applicable to personnel employed in the activities for which it assumes responsibility are no less favorable than those in effect immediately prior to the entry into force of this Treaty. Non-United States nationals employed by the Panama Canal Company or Canal Zone Government prior to the entry into force

T I A 8 10030




.31
of this Treaty who are involuntarily separated from their positions because of the discontinuance of an activity by reason of this Treaty, who are not entitled to an immediate annuity under the United States Civil Service Retirement System, and for whom continued employment in the Republic of Panama by the Government of the United States of America is not practicable, wkll be provided special job placement assistance by the Republic of Panama for employment in positions for which they may be qualified by experience and training.
8. The Parties agree to establish a system whereby the Panama Canal Commission may, if deemed mutually convenient or desirable by the two Parties, assign certain employees of the Panama Canal Commission, for a limited period of time, to assist in the operation of activities transferred to the responsibility of the Republic of Panama as-a result of this Treaty or related agreements. The salaries and other costs of employment of any such persons assigned to provide such assistance shall be reimbursed to the United States of America by the Republic of Panama.
9. (a) The right of employees to negotiate collective contracts with the Panama Canal Commission is recognized. Labor relations with employees of the Panama Canal Commission shall be conducted in accordance with forms of collective bargaining established by the United States of America after consultation with employee unions.
(b) Employee unions shall have the right to affiliate with international labor organizations.
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10. The United States of America will provide an appropriate early optional retirement program for all
persons employed by the Panama Canal Coripany or Canal Zone Government immediately prior to the entry into force of this Treaty. In this regard, taking into account the unique circumstances created by the provisions of this Treaty, including its duration, and their effect upon such employees, the United States of America shall, with respect to them:
(a) determine that conditions exist which
invoke applicable United States law permitting early retirement annuities and apply such law for a substantial period of the duration of the Treaty;
(b) seek special legislation to provide more liberal entitlement to, and calculation of, retirement annuities than is currently -provided for by law.
ARTICLE XI
Provisions for the Transition Period
The Republic of Panama shall reassume plenary jurisdiction over the former Canal Zone upon entry into force of this Treaty and in accordance with its terms.
1. In order to provide for an orderly transition to the full application of the jurisdictional arrangements established by this Treaty and related agreements, the provisions of this Article shall become applicable upon the date this Treaty enters into force, and shall

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remain in effect f or thirty calendar months. The authority granted in this Article to the United States of America for this transition period shall supplement, and is not intended to limit, the full application and effect of the rights and authority granted to the United States of America elsewhere in this Treaty and in related agreements.
2. During this transition period, the criminal and civil laws of the United States of America shall apply concurrently with those of the Republic of Panama in certain of the areas and installations made available for the use of the United States of America pursuant to this Treaty, in accordance with the following provisions:
(a) The Republic of Panama permits the
authorities of the United States of America to have the primary right to exercise criminal jurisdiction over United States citizen employees of the Panama Canal Commission and their dependents, and members of the United States Forces and civilian component and their dependents, in the following cases:
(i) for any offense committed during the
transition period within such areas and installations, and
(ii) for any offense committed prior to that period in the former Canal Zone.
The Republic of Panama shall have the primary right to exercise jurisdiction over all other offen~s committed by such persons, except as otherwise

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:34
provided in this Treaty and related agreements or as may be otherwise agreed.
(b) Either Party may waive -its primary
right to exercise jurisdiction in a specific case or category of cases.
3. The United States of America shall retain the right to exercise jurisdiction in criminal cases relating to offenses committed prior to the entry into force of this Treaty in violation of the laws applicable in the former Canal Zone.
4. For the transition period, the United States of America shall retain police authority and maintain a police force in the aforementioned areas and installations. In such areas, the police authorities of the United States of America may take into custody any person not subject to their primary jurisdiction if such person is believed to have committed or to be committing an offense against applicable laws or regulations, and shall promptly transfer custody to the police authorities of the Republic of Panama. The United States of America and the Republic of Panama shall establish joint police patrols in agreed areas. Any arrests conducted by a joint patrol shall be the responsibility of the patrol member or members representing the Party having primary jurisdiction over the person or persons arrested.
5. The courts of the United States of America
and related personnel, functioning in the former Canal Zone immediately prior to the entry into force of this

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35
Treaty, may continue to function during the transition period for the judicial enforcement of the jurisdiction to be exercised by the United States of America in accordance with this Article.
6. In civil cases, the civilian courts of the United States of America in the Republic of Panama shall have no jurisdiction over new cases of a private civil nature, but shall retain full jurisdiction during the transition period to dispose of any civil cases, including admiralty cases, already instituted and pending before the courts prior to the entry into force of this Treaty.
7. The laws, regulations, and administrative
authority of the United.States of America applicable in the former Canal Zone immediately prior to the entry into force of this Treaty shall, to the extent not inconsistent with this Treaty and related agreements,. continue in force for the purpose of the exercise by the United States of America of law enforcement and judicial jurisdiction only during the transition period. The United States of America may amend, repeal or otherwise change such laws, regulations and administrative authority. The two Parties shall consult concerning procedural and substantive matters relative to the implementation of this Article, including the disposition of cases pending at the end of the transition period and, in this respect, may enter into appropriate agreements by an exchange of notes or other instrument.

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36
8. During this transition period, the United States of America may continue to incarcerate individuals in the areas and installations made available for the use of the United States of America by the Republic of Panama pursuant to- this Treaty and related agreements, or tdr transfer them to penal facilities in the United States of America to serve their sentences.
ARTICLE XII
A Sea-Level Canal or a Third Lane of Locks
1. The United States of America and the Republic of Panama recognize that a sea-level canal may be important for international navigation in the future. Consequently, during the duration of this Treaty, both Parties commit themselves to study jointly the feasibility of A sea-level canal in the Republic of Panama, and in the event they determine that such a waterway is necessary, they shall negotiate terms, agreeable to both Parties, for its cons truction.
2. The United States of America and the Republic of Panama agree on the following:
(a) No new interoceanic canal shall be constructed in the territory of the Republic of Panama during the duration of this Treaty, except in accordance with the provisions of this Treaty, or as the two Parties may otherwise agree; and
(b) During the duration of this Treaty,
the United States of America shall not negotiate with

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third States f or the right to construct an interoceanic canal on any other route in the Western Hemisphere, except as the two Parties may otherwise agree.
3. The Republic of Panama grants to the United States of America the right to add a third lane of locks to the existing Panama Canal. This right may be exercised at any time during the duration of this Treaty, provided that the United States of America has delivered to the Republic of Panama copies of the plans for such construction.
4. In the event the United States of America
exercises the right granted in paragraph 3 above, it may use for that purpose, in addition to the areas otherwise made available to the United States of America pursuant to this Treaty, such other areas as the two Parties may Agree upon. The terms and conditions applicable to Canal operating areas made available by the Republic of Panama for the use of the United States of America pursuant to Article III of this Treaty shall apply in a similar manner to such additional areas.
5. In the construction of the aforesaid works, the United States of America shall not use nuclear excavation techniques without the previous consent of the Republic of Panama.
ARTICLE XIII
Property Transfer and Economic Participation
by the Republic of Panama
1. Upon termination of this Treaty, the Republic of Panama shall assume total responsibility for

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the management, operation, and maintenance of the Panama Canal, which shall be turned over in operating condition and free of-liens and debts,* except as the
two Parties may otherwise agree.
2. The United States of America transfers, without charge, to the Republic of Panama all right, title
and interest the United States of America may have with respect to all real property, including non-removable improvements thereon, as set forth below:
(a) Upon the entry into force of this Treaty, the Panama Railroad and such property that was located in the former Canal Zone but that is not within the land and water areas the use of which is made available to the United States of America pursuant to this Treaty. However, it is agreed that the transfer on such date shall not include buildings and other facilities, except housing, the use of which is retained by the United States of America pursuant to this Treaty and related agreements, outside such areas;
(b) Such property located in an area or a portion thereof at such time as the use.by the United States of America of such area or portion thereof ceases pursuant to agreement between the two Parties.
(c) Housing units made available for occupancy by members of the Armed Forces of the Republic of Panama in accordance with paragraph 5(b) of Annex B to the Agreement in Implementation of Article IV of

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this Treaty at such time as such units are made available to the Republic of Panama.
(d) upon termination of this Treaty, all real property, and non-removable improvements that were used by the United States of America for the purposes of this Treaty and related agreements, and equipment related to the management, operation and maintenance of the Canal remaining in the Republic of Panama.
3. The Republic of Panama agrees to hold the
United States of America harmless with respect to any claims which maybe made by third parties relating to rights, title and interest in such property.
- 4. The Republic of Panama shall receive, in addition, from the Panama Canal Commission a just and equitable return on the national resources which it has dedicated to the efficient management, operation, maintenance, protection and defense of the Panama Canal, in accordance with the following:
(a) An annual amount to be paid out of Canal
operating revenues computed at a rate of thirty hundredths
of a United States dollar ($0.30) per Panama Canal net ton, or its equivalency, for each vessel transiting the Canal, after the entry into force of this Treaty, for which tolls
are charged. The rate of thirty hundredths of a United States dollar ($0.30) per Panama Canal net ton, or its equivalency, will be adjusted to reflect changes in the United States wholesale price index[ for total manufactured goods during biennial periods. The first adjustment
1 See related letter, p. 102.

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40
shall take place five years after entry into force of this Treaty, taking into account the changes that occurred in such price index during the preceding two years. Thereafter successive adjustments shall take place at the end of each biennial period. If the United States of America should decide that another indexing method is preferable, such method shall be proposed to the Republic of Panama and applied if mutually agreed.
(b) A fixed annuity of ten million United States dollars ($10,000,000) to be paid out of Canal
operating revenues. This amount shall constitute a fixed expense of the Panama Canal Commission.
(c) An annual amount of up to ten million
United States dollars ($10,000,000) per year, to be paid out of Canal operating revenues to the extent that such revenues exceed expenditures of the Panama
Canal Commission including amounts paid pursuant to this Treaty. In the event Canal operating revenues in any year do not produce a surplus sufficient to cover this payment, the unpaid balance shall be paid from operating surpluses in future years in a manner to be mutually agreed.
ARTICLE XIV
Settlement of Disputes
In the event that any question should arise between the Parties concerning the interpretation of this Treaty or related agreements, they shall make

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every effort to resolve the matter through consultation in the appropriate committees established pursuant to this Treaty-and related agreements, or, if appropriate, through diplomatic channels. In the event the Parties are unable to resolve a particular matter through such means, they may, in appropriate cases, agree to submit the matter to conciliation, mediation, arbitration, or such other procedure for the peaceful settlement of the dispute as they may mutually deem appropriate.

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TRATADO DEL CANAL DE PANAMA

PREAMBULO ARTICULO I

ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO ARTICULO

II III IV
V VI VII VIII IX
X
XI XII XIII

ARTICULO XIV ANEXO

-ABROGACION DE TRATADOS ANTERIORES Y ESTABLECIMIENTO DE UNA NUEVA RELACION
-RATIFICACION, ENTRADA EN VIGOR Y DURACION
-FUNCIONAMIENTO Y DIRECCION DEL CANAL
-PROTECCION Y DEFENSA
-PRINCIPIO DE NO INTERVENCION
-PROTECCION DEL MEDIO AMBIENTE
-BANDERAS
-PRIVILEGIOS E INMUNIDADES
-LEYES APLICABLES Y EJECUCION DE LEYES
-REGIMEN LABORAL APLICABLE
-NORMAS PARA EL PERIODO DE TRANSICION
-CANAL A NIVEL DEL MAR O UN TERCER JUEGO DE ESCLUSAS
-TRANSFERENCIA DE BIENES Y PARTICIPACION ECONOMICA DE LA REPUBLICA DE PANAMA
-ARREGLO DE CONTROVERSIAS
-PROCEDIMIENTO PARA LA CESACION 0 TRANSFERENCIA DE LAS ACTIVIDADES LLEVADAS A CABO POR LA COMPAaIA DEL CANAL DE PANAMA Y EL GOBIERNO DE LA ZONA DEL CANAL Y LISTA ILUSTRATIVA DE LAS FUNCIONES QUE SERAN DESEMPEGADAS
- POR LA COMISION DEL CANAL DE PANAMA .

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43
TRATADO DEL CANAL DE PANAMA
LOS ESTADOS UNIDOS DE AMERICA Y LA REPUBLICA DE PANAMA.
Actuando en armonia con la Declaraci6n Conjunta emitida el 3 de abril de 1964 por los Representantes de los Gobiernos de los Estados Unidos de Amdrica y de la Repdblica de PanamA, y la Declaraci6n de Principios del 7 de febrero de 1974, rubricada por el Secretario de Estado de los Estados Unidos de Amdrica y el Ministro de Relaciones Exteriores de la Repdblica de PanamA; y
Reconociendo la soberania de la Repdblica de PanamA sobre su territorlo,
Han decidido abrogar los tratados anteriores pertinentes al
Canal de PanamA y celebrar un nuevo tratado que sirva como base para una nueva relaci6n entre ambos pauses y,
En consecuencia, han acordado lo siguiente:

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44
ARTICULO I
Abroaci6n de los Tratados Anteriores
Establecimiento de una Nueva Relaci6n
1. Al entrar en vigor este tratado quedan abrogados y sustituidos:
(a) La Convenci6n del Canal Istmico suscrita entre los Estados Unidos de America y la Repdiblica de Panama, en Washington, D. C., el 18 de noviembre de 1903.
(b) El Tratado General de Amistad y Cooperaci6n, firmado en Washington, el 2 de marzo de1936 y el Tratado de Mutuo Entendimiento y Cooperaci6n y el Memorandum de Entendimientos Acordados, firmados en Panama el 25 de enero de 1955, suscritos entre los Estados Unidos de Amdrica y la Repdblica de Panama.
(c) Todos los otros tratados, convenios, acuerdos y canjes de notas entre los Estados Unidos de Amdrica y la Repfblica de PanamA vigentes con anterioridad a la entrada en vigor de este tratado y concernientes al Canal de PanamA.
(d) Las estipulaciones referentes al Canal de PanamA que aparezcan en otros tratados, convenios, acuerdos y canjes de notas entre los Estados Unidos de Amdrica y la Repdblica de PanamS que estuvieren vigentes con anterioridad a la entrada en vigor de este tratado.
2. De conformidad con las estipulaciones de este tratado y acuerdos conexos, la Repdblica de PanamA, en'su condici6n de soberano territorial, otorga a los Estados Unidos de America, por la duraci6n de este tratado, los derechos necesarios para regular el trAnsito de barcos a travds del Canal de PanamA y para manejar, operar, mantener, mejorar, proteger y defender el Canal. La Repablica de PanamA garantiza a ics Estados Unidos de Amdrica el uso pacifico de las greas de tierras y aguas cuyos derechos de uso le han sido otorgados para dichos fines conforme a este tratado y sus acuerdos conexos.

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3. La Repdblica de Panam& tendr& una participaci6n creciente en la administraci6n, proteccidn y defensa del Canal, segdn se dispone en este tratado.
4. En vista de la relaci6n especial que se crea por raz6n del presente tratado, los Estados Unidos de America y la Repdblica de Panam& cooperarAn para asegurar el funcionamiento ininterrumpido y eficiente del Canal de Panama.
ARTICULO II
Ratificaci6n, Entrada en Vigor y Duraci6n
1. Este tratado estart sujeto a ratificaci6n de acuerdo con los procedimientos constitucionales de ambas Partes y sus instrumentos de ratificaci6n se canjearAn en PanamA al mismo tiempo que los del Tratado Concerniente a la Neutralidad Permanente y al Funcionamiento del Canal de Panama, firmado en esta fecha. El presente tratado entrarA en vigor simultdneamente con el Tratado Concerniente a la Neutralidad Permanente y Funcionamiento del Canal de Panama, seis meses calendarios despuds de la fecha del canje de los instrumentos de ratificaci6n.
2. Este tratado terminarS al mediodia, hora de Panama, ql 31 de diciembre de 1999.
ARTICULO III
Funcionamiento y Direcci6n del Canal
1. La Repdblica de Panama, como soberano territorial, confiere a los Estados Unidos de Amdrica el derecho a manejar, operar y mantener el Canal de Panama, sus obras, instalaciones y equipos auxiliares y de proveer lo necesario para el trAnsito fluido de naves por el Canal de PanamA. Los Estados Unidos de Amdrica aceptan la concesi6n de tales

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derechos y se comprometen a ejercerlos conforme al presente tratado y acuerdos conexos.
2. En cumplimiento de las responsabilidades anteriores los Estados Unidos de Amdrica podrAn:
(a) usar para estos fines libres de coste, salvo estipulaci6n distinta de este tratado, las diversas Areas, aguas e instalaciones, incluido el Canal de Panama, segn se especifica en el acuerdo para la ejecuci6n de este articulo firmado en esta fecha; asi como otras Areas e instalaciones que se pongan a disposici6n de los Estados Unidos de Amdrica en virtud de este tratado y acuerdos afines y tomar las medidas necesarias para garantizar el saneamiento de dichas Areas;
(b) efectuar las mejorasyalteraciones que estime apropiadas en las antedichas Areas e instalaciones en consonancia con los tdrminos de este tratadoi
(c) promulgar y hacer cumplir los reglamentos pertinentes al trdnsito de naves por el Canal y a la navegaci6n y asuntos maritimos, de conformidad con este tratado y acuerdos afines. La Repdblica de PanamA darA su cooperaci6n cuando fuere necesario para el cumplimiento de dichos reglamentos;
(d) establecer, modificar, cobrar y guardar peajes por el uso del Canal de PanamA y otros cargos y establecer y modificar los m~todos para su determinaci6n;
(e) regular las relaciones con los empleados de los Estados Unidos de Amdrica;
(f) suministrar servicios de apoyo para facilitar el cumplimiento de sus responsabilidades conforme a este articulo;
(g) expedir y hacer cumplir los reglamentos para el ejercicio eficaz de los derechos yresponsabilidades de los Estados Unidos de Amdrica en virtud de este tratado y acuerdos afines. La Repdblica

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de PanamA dard su cooperaci6n cuando fuere necesario para el cumplimiento de dichos reglamentos, y
(h) ejercer cualquier otro derecho conferido en virtud de este tratado, o que de otro modo pudieran acordar las dos Partes.
3. En desarrollo de esta concesi6n de derechos, los Estados Unidos de Amdrica, con arreglo a los tdrminos de este tratado y alas leyes de los Estados Unidos de America cumplir~n sus responsabilidades por medio de una agencia gubernamental estadounidense que se denominarA La Comisi6n del Canal de PanamA, la cual serd constituida conforme alas leyes de los Estados Unidos de Amdrica.
(a) La Comisi6n del Canal de Panam& estar& dirigida por una Junta Directiva compuesta por nueve miembros, cinco de los cuales ser~n ciudadanos de los Estados Unidos de Amdrica y cuatro serAn ciudadanos panameios, ,propuestos por la Replblica de PanamS para su oportuno nombramiento en tales cargos por los Estados Unidos de Am6rica.
(b) En caso de que la Repdblica de Panamd solicitase de los Estados Unidos de Amdrica la remoci6n de un ciudadano panameio como miembro de la Junta Directiva, los Estados Unidos de Amdrica accederAn a dicha solicitud. En ese caso, la Repdblica de Panam& propondrA otro ciudadano panameio, el cual ser& nombrado oportunamente por los Estados Unidos de Amdrica en tal cargo. En el caso de la remoci6n de la Junta Directiva de un miembro panamefo, por iniciativa de los Estados Unidos de Ambrica, ambas Partes celebrardn consultas con antelacidn a fin de llegar a un acuerdo sobre tal remoci6n y. la Repdblica de PanamS propondrA otro ciudadano panameio, para dicho nombramiento por los Estados Unidos de Amdrica en su reemplazo.
(c) Los Estados Unidos de Amrica emplearhn a un ciudadano de los Estados Unidos de Amdrica como Administrador de La Comisi6n del Canal de Panaml y a un ciudadano panameio como Subadministrador, hasta
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83-421 0 81 4




el 31 de diciembre de 1989. A partir del 1* de enero de 1990, se nombrard a un ciudadano panameho para el cargo de Administrador y un ciudadano de los Estados Unidos de Ambrica ocupard el cargo de Subadministrador. Dichos ciudadanos panameos serdn propuestos a los Estados Unidos de Amdrica por la Rep6blica de PanamS para su nombramiento en dichos cargos por los Estados Unidos de Amdrica.
(d) Si los Estados Unidos de Amdrica removieran de su cargo de subadministrador o Administrador al ciudadano panameho, la Repdblica de Panam& propondrg otro ciudadano panameao para ser nombrado en tal cargo por los Estados Unidos de Amdrica.
4. Una descripci6n ilustrativa de las actividades que La Comisi6n del Canal de PanamA ejecutard en el cumplimiento de las responsabilidades y derechos de los Estados Unidos de Amdrica conforme a este articulo, estA contenida en el Anexo. Los trdmites para la cesaci6n o transferencia de las actividades realizadas con anterioridad a la entrada en vigor de este tratado por la CompaRia del Canal de Panaml o por el Gobierno de la Zona del Canal, que no serAn realizadas por La Comisi6n del Canal de PanamA, estAn estipulados en el Anexo.
5. La Comisi6n del Canal de Panamd reembolsart a la Repdblica de Panamd los gastos en que dsta incurra al suministrar alas Areas de funcionamiento del Canal y alas Areas de vivienda expresadas en el Acuerdo para la Ejecuci6n del Articulo III de este tratado y ocupadas tanto por panameios como por estadounidenses, empleados de La Comisi6n del Canal de PanamA, los siguientes servicios pblicos: policfa, protecci6n contra incendio, mantenimiento de las calles, alumbrado pcblico, limpieza de las calles, control de trAnsito y recolecci6n de basuras. La Comisi6n del Canal de PanamA pagard a la Repdblica de PanamA la suma de diez millones de d61ares de los Estados Unidos de Amdrica ($10.000.000.00), por aio, por raz6n de los anteriores servicios.

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49
Se convene que cada tres a2os, desde la fecha en que entre en vigencia este tratado, el coste erogado al suministrar los referidos servicios, ser& reexaminado para determinar si se requiere un ajuste en el pago anual para compensar por la inflaci6n y otros factores importantes que afecten los costes de dichos servicios.
6. La Repdblica de PanamA serge responsable por el suministro a todas las Areas comprendidas en lo que constituy6 la Zona del Canal, de servicios de naturaleza jurisdiccional general como aduanas e inmigraci6n, servicios postales, administraci6n de justicia y expedici6n de licencias, de conformidad con este tratado y sus acuerdo conexos.
7. Los Estados Unidos de Amdrica y la Repdblica de PanamA establecer~n un Comitd Consultivo del Canal de Panamd, compuesto por un namero paritario de representantes de alto nivel de los Estados Unidos de America y de la Repablica de PanamA, el cual tendr& la facultad de nombrar los subcomit~s que estime conveniente. Este Comit6 asesorarl a los Estados Unidos de Amrica y la Reptblica de PanamA en cuestiones de political que afecten el funcionamiento del Canal. En vista del interns especial de ambas Partes enla continuidad y eficiencia del funcionamiento del Canal en el futuro, el Comit& asesorard en cuestiones tales como polftica general de peajes; political de empleo y adiestramiento para incrementar la participaci6n de ciudadanos panameRos en el manejo del Canal y political internacionales sobre asuntos concernientes al Canal. Las recomendaciones del Comit6 se transmitirfn a los dos gobiernos, los cuales les darAn plena consideracidn en la formulaci6n de decisiones de political.
8. AdemAs de la participaci6n de ciudadanos panameios en los altos niveles de la direcci6n de La Comisi6n del Canal de Panama, seg6O se dispone en el pArrafo 3 de este articulo, habrS una creciente participaci6n de ciudadanos panamerios en todos los demls niveles y esfe-

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50
ras de empleo en dicha Comisi6n, con el objeto de hacer los preparativos para que la Repdblica de Panaml pueda asumir, de una manera ordenada y eficiente, la plena responsabilidad por la direcci6n, funcionamiento y mantenimiento del Canal al expirar este tratado.
9. El uso de las Areas, aguas e instalaciones con respecto alas cuales se le han otorgado a los Estados Unidos de Amdrica derechos de conformidad con este articulo, y los derechos y condici6n juridica de los organismos y empleados de los Estados Unidos de Amdrica que operarfn en la Rep6blica de PanamA de conformidad con este articulo, se regirgn por el acuerdo para la ejecuci6n de este articulo, firmado en esta fecha.
10. Los organismos de los Estados Unidos de Amdrica, conocidos como la Compafla del Canal de PanamA y el Gobierno de la Zona del Canal, dejardn de funcionar dentro del territorio de la Repdblica de PanamA que constituy6 la Zona del Canal, a la entrada en vigor de este tratado.
ARTICULO IV
Protecci6n y Defensa
1. Los Estados Unidos de Amdrica y la Reptblica de PanamA se
comprometen a proteger y defender el Canal de PanamA. Cada Parte, conforme a sus procedimientos constitucionales, tomard medidas para hacer frente al peligro resultante de un ataque armado u otras acciones que amenacen la seguridad del Canal de PanamA o de los barcos que transiten por 41.
2. Durante la vigencia de este tratado, los Estados Unidos de Amnrica tendrAn la responsabilidad primaria de proteger y defender el Canal. Los derechos de los Estados Unidos de Amrica a estacionar, adiestrar y transportar fuerzas militares en la Repablica de Panama,

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51
esthn descritos en el acuerdo para la ejecuc16n de este articulo, firmado en esta fecha. El uso delas Areas e instalaciones y el estado Juridico de las Fuerzas Armadas de los Estados Unidos de Amdrica en la Rep6blica de PanamA. se regirAnpor el referido acuerdo.
3. Con el fin de facilitar la participaci6n y cooperaci6n de las Fuerzas Armadas de ambas Partes en la protecci6n y defensa del Canal, los Estados Unidos de Amdricay la Repdblica de Panam& establecerIn una Junta Combinada compuesta por un ndmero igual de representantes militares de alto rango de cada Parte. Estos representantes estarAn encargados por sus respectivos gobiernos de consultar y cooperar en todos los asuntos relativos a la protecci6n y defensa del Canal y de planificar las medidas que deberAn tomarse en concerto para tal fin. Dichos acuerdos para la protecci6n y defensa combinadas no restrigirAn la identidad ni las lineas de.mando de las Fuerzas Armadas de la Repdblica de Panam& o de los Estados Unidos de Ambrica. La Junta Combinada se encargarg de la coordinaci6n y cooperaci6n en asuntos como:
(a) La preparaci6n de planes de contingencia para la protecci6n y defensa del Canal a base de los esfuerzos cooperativos de las Fuerzas Armadas de ambas Partes;
(b) La planificaci6n y ejecucidn de ejercicios militares comSinados; y
(c) La ejecuci6n de operaciones militares estadounidenses y panameias para la protecci6n y defensa del Canal.
4. La Junta Combinada,:a intervalos quinquenales, durante la vida de este tratado, examinarg los recursos que ambas Partes hubiesen dispuesto para la protecci6n y defensa del Canal. Ademls, la Junta Combinada formulary a los dos Gobiernos recomendaciones adecuadas en relaci6n con las necesidades proyectadas, la eficaz utilizaci6n de los recursos disponibles por ambas Partes y otros asuntos de interns mutuo

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referentes a la protecci6n y defensa del Canal.
5, En la medida posible, consistente con su responsabilidad primaria para la protecci6n y defensa del Canal, los Estados Unidos de
Ambrica procurargn mantener sus fuerzas armadas en PanamA durante tiempos normales a un nivel que no exceda del de las Fuerzas Armadas de los
Estados Unidos de Amdrica en el territorio que constituy6 la Zona del Canal de PanamS con anterioridad inmediata a la fecha de vigencia de
este tratado.
ARTICULO V
Principio de No Intervenci6n
Los empleados de La Comisi6n del Canal de PanamA que fueren nacionales de los Estados Unidos de America, sus dependientes y los contratistas designados por La Comisi6n del Canal de Panaml que fueren nacionales de los Estados Unidos de Amdrica, respetardn las leyes de la
Reptblica de Panam& y se abstendrAn de cualquier actividad incompatible con el espiritu de este tratado. En consecuencia, se abstendr~n de
toda actividad political en la Repdblica de Panama, ast como de
cualquier intervenci6n en los asuntos internos de la Repdblica de
PanamA. Los Estados Unidos de Amdrica adoptarAn todas las medidas dentro de sus facultades para asegurar el cumplimiento de las disposiciones de este articulo.
ARTICULO VI
Protecci6n del ambiente natural
1. Los Estados Unidos de Ambrica y la Repdblica de PanamA se comprometen a aplicar este tratado de modo consistente con la protecci6n del medio ambiente natural de la Repablica de PanamA. Para este fin,
las Partes se consultarAn y colaborarAn en forma apropiada para asegu-

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rar que darn la atenci6n debida a la protecci6n y conservaci6n del medio ambiente.
2. Se establecerd una Comisi6n Mixta sobre el Medio Ambiente
con igual representaci6n de los Estados Unidos de Amdrica y de la Repdblica de Panaml, la cual examinarg peri6dicamente la aplicaci6n de este tratado y recomendard a los dos Gobiernos, en cuanto fuere propio, medidas para evitar,y si esto no fuere posible, mitigar los efectos ambientales adversos que pudieran derivarse de sus respectivas acciones conforme al tratado.
3. Los Estados Unidos de America y la Repdblica de PanamA suministrarln a la Comisi6n Mixta sobre el Medio Ambiente la informaci6n completa sobre cualquier acci6n que se tome de conformidad con este tratado y que a juicio de ambos pudiera tener un efecto significativo sobre el medio ambiente. Tal informaci6n se pondrd a disposici6n de la Comisi6n Mixta con la mayor antelaci6n posible a la acci6n planeada, a fin de facilitar el estudio, por parte de dicha Comisi6n, de cualesquier posibles problemas ambientales y para permitir que se consideren las recomendaciones de la Comisi6n Mixta antes de que la acci6n prevista se ponga en ejecuci6n.
ARTICULO VII
Banderas
1. Todo el territorio de la Repfblica de Panama, incluso las 6reas cuyo uso la Repdblica de PanamA pone a disposici6n de los Estados Unidos de America, conforme a este tratado y sus acuerdos conexos, estard bajo la bandera de la Repdblica de PanamA y, en consecuencia, dicha bandera ocuparg siempre la posici6n de honor.
2. La bandera de los Estados Unidos de America podrb ser desplegada, junto a la bandera de la Repdblica de PanamA, en la sede de La

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Comis6n del Canal de Panam& y en la sede de la Junta Combinada y segdn se dispone en el Acuerdo para la Ejecuci6n del Articulo IV de este tratado.
3. La bandera de los Estados Unidos de America podrd tambidn ser desplegada en otros lugares ? en algunas ocasiones, seg~n lo acuerden ambas Partes.
ARTICULO VIII
Privilegios e Inmunidades
1. Serin inviolables las :instalaciones pertenecientes a los organismos o dependencias de los Estados Unidos de America que funcionan en la Repdblica de Panaml de conformidad con este tratado y acuerdos afines, y las usadas por ellos as como los archivos y documentos oficiales. Las dos Partes acordar~n los procedimientos que seguird la Reptblica de PanamA en la conducci6n de las investigaciones criminales en dichos lugares.
2. Los organismos y dependencias del Gobierno de los Estados
Unidos de America que operan en la Repdblica de PanamA de conformidad con este tratado y acuerdos conexos, serAn inmunes a la jurisdicci6n de la Repdblica de PanamA.
3. En adici6n a los otros ,privilegios e inmunidades que se otorgan a los empleados del Gobierno de los Estados Unidos de America y sus dependientes de conformidad con este tratado, los Estados Unidos de America podrAn nombrar hasta veinte funcionarios de La Comisi6n del Canal de Panaml quienes, junto con sus dependientes, gozargn de los privilegios e inmunidades que se otorgan a los agentes diplomsticos y sus dependientes conforme al derecho y prActicas internacionales. Los Estados Unidos de America proporcionargn a la Repdblica de Panams una lista con los nombres de dichos funcionarios y sus dependientes,

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identificando los cargos que ocupan dentro del Gobierno de los Estados Unidos de Amdrica y mantendrAn dicha lista actualizada en todo momento.
ARTICULO IX
Leyes Aplicables y Ejecuci6n de Leyes
1. De conformidad con las estipulaciones de este tratado y sus acuerdos conexos, las leyes de:la Repdblica de Panaml se aplicarIn en las Areas puestas a disposici6n de los Estados Unidos de Amdrica para su uso de acuerdo con este tratado. Las leyes de la Repdblica de PanamA se aplicarAn a asuntos o hechos ocurridos en lo que constituy6 la Zona del Canal antes de la entrada en vigencia de este tratado, s6lo en la medida en que estuviere expresamente dispuesto en tratados o convenios anteriores.
2. Las personas naturales o juridicas que, en la fecha de entrada en vigencia de este tratado, se dedicaren a negocios o actividades no lucrativas en sitios del territorio que constituy6 la Zona del Canal, podrdn continuarlos en dichos sitios bajo las mismas condiciones existentes al entrar en vigor este tratado, por un periodo de transici6n de treinta meses, contados desde esa fecha. La Repdblica de PanamA mantendrA las mismas condiciones de operaci6n que se aplicaban alas empresas referidas, antes de la entrada en vigencia de este tratado, de modo que puedan obtener licencias para realizar negocios en la Rep6blica de PanamA, previo el cumplimiento de los requisitos de sus leyes. Posteriormente, dichas personas recibirAn el mismo trato conforme alas leyes de la Rep0blica de PanamA que el que se da a negoclos similares ya establecidos en el resto del territorio de la Repdblica de PanamA, sin discriminaci6n.
3. Los derechos de propiedad, como los reconocen los

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Estados Unidos de Amdrica, de que disfrutan las personas naturales o juridicas privadas, en edificios y otras mejoras ubicados en el territorio que constituy6 la Zona del Canal, ser~n reconocidos por la Repdblica de Panaml de conformidad con sus leyes.
4. Los propietarios de edificios y otras mejoras ubicados en las Areas de funcionamiento del Canal, las Areas de vivienda u otras Areas sujetas al procedimiento de expedici6n de licencias establecido en el Articulo IV del Acuerdo para la Ejecuci6n del Articulo III de este tratado, podr&n continuar utilizando el terreno en donde su propiedad estuviere localizada, de conformidad con los procedimientos establecidos en dicho articulo.
5. Los propietarios de edificios y otras mejoras ubicados en el territorio que constituy6 la Zona del Canal, a los cuales no fuere aplicable el procedimiento de expedici6n de licencias antes mencionado o dejare de serles aplicable durante la vigencia o a la terminaci6n de este tratado, podrAn continuar utilizando el terreno donde estuviere localizada su propiedad sujetos al pago de un precio razonable a la Repdblica de PanamA. Si la Repdblica de Panaml decidiese vender dicho terreno, ofrecerl a los propietarios aqui expresados, una primera opci6n de compra de dicho terreno a coste razonable. En caso de organizaciones no lucrativas tales como las iglesias y organizaciones fraternales, el precio de compra serd nominal, de confdrmidad con la prActica prevaleciente en el resto del territorio de la Repfblica de Panama.
6. Si la Repdiblica de Panama requiriese de alguna de las personas antes mencionadas, que descontinde sus actividades o desocupare su propiedad para fines p6blicos, serge compensada por la Rep6blica de PanamA segdn el valor justo-de mercado.
7. Las disposiciones de losp Arrafos 2 al 6, ambos inclusive, se aplicardn alas personas naturales o jurnidicas que hubieren estado de-

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