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1475

1976

COMMITTEE ON MERCHANT MARINE AND FISHERIES

LEONOR K. (MRS. JOHN B.) SULLIVAN, Missouri, Chairman THOMAS L. ASHLEY, Ohio

PHILIP E. RUPPE, Michigan JOHN D. DINGELL, Michigan

CHARLES A. MOSHER, Ohio THOMAS N. DOWNING, Virginia

PAUL N. MCCLOSKEY, JR., California PAUL G. ROGERS, Florida

GENE SNYDER, Kentucky JOHN M. MURPHY, New York

EDWIN B. FORSYTHE, New Jersey WALTER B. JONES, North Carolina

PIERRE S. (PETE) DU PONT, Delaware ROBERT L. LEGGETT, California

DAVID C. TREEN, Louisiana MARIO BIAGGI, New York

JOEL PRITCHARD, Washington GLENN M. ANDERSON, California

DON YOUNG, Alaska E (KIKA) DE LA GARZA, Texas

ROBERT BAUMAN, Maryland RALPH M. METCALFE, Illinois

NORMAN F. LENT, New York JOHN B. BREAUX, Louisiana

MATTHEW J. RINALDO, New Jersey FRED B. ROONEY, Pennsylvania

DAVID F. EMERY, Maine
PAUL S. SARBANES, Maryland
BO GINN, Georgia
GERRY E. STUDDS, Massachusetts
DAVID R. BOWEN, Mississippi
JOSHUA EILBERG, Pennsylvania
RON DE LUGO, Virgin Islands
CARROLL HUBBARD, JR., Kentucky
DON BONKER, Washington
LES AUCOIN, Oregon
NORMAN E. D'AMOURS, New Hampshire
JERRY M. PATTERSON, California
LEO C. ZEFERETTI, New York,
JAMES L. OBERSTAR, Minnesota

ERNEST J. CORRADO, Chief Counsel

FRANCES STILL, Chief Clerk
W. PATRICK MORRIS, Chief Minority Counsel

SUBCOMMITTEE ON PANAMA CANAL

RALPH H, METCALFE, Illinois, Chairman ROBERT L LEGGETT, California

GENE SNYDER, Kentucky THOMAS N. DOWNING, Virginia

MATTHEW J. RINALDO, New Jersey JOHN M. MURPHY, New York MARIO BIAGGI, New York

PHILIP E. RUPPE, Michigan, ex o poio
DAVID R. BOWEN, Mississippi
CARROLL HUBBARD, JB., Kentucky
LEONOR K. SULLIVAN, Missouri,
ex officio

TERRENCE W. MODGLIN, Professional Stall Member
NICHOLAS T. NONNENMACHER, Minority Professional ștaj

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Page

1
243
393

Ilearings held-

April 6, 1976

April 7, 1976.

April 8, 1976.

Text of -

H.R. 12641...

Reports from—

General Accounting Office

Office of Management and Budget..

Panama Canal Company -

Treasury Department -

Statement of -

American Federation of State, County and Municipal Employees -

American Federation of Teachers, AFL-CIO -

American Federation of Teachers, AFL-CIO, Local No. 29.

Bell, Minister S. Morey, Deputy Negotiator and Country Director

for Panama, Department of State

Bunker, Hon. Ellsworth, Ambassador at Large, Department of State..

Cheville, Dr. Richard, Pacific Civic Council..

Clark, Earl W., Co-Directors, Labor-Management Maritime Com-

mittee

Coffey, William John, Secretary-Treasurer, American Institute of

Merchant Shipping, Washington, D.C.--

Constant, Thomas M., Secretary, Panama Canal Company -

Dolvin, Lt. Gen. Wellborn, U.S. negotiating team -

Drummond, William R., president, Canal Zone Police Union and

director, Canal Zone Nonprofit Public Information Corp----

DuVal, Miles P., Jr., Captain, U.S. Navy (Retired) -
Frick, Gordon M., Personnel director, Panama Canal Company.
Gaskin, Edward, business agent, NMU, in Panama.-
Graham, Alfred J., president, Canal Zone Central Labor Union &

Metal Traders Council, AFL-CIO...
Heath, Glenn Richard, control house operator, supervisor, Gatum

Locks, Canal Zone; business manager for local union 677, IBEW

representing the Northern District of the Panama Canal.'-

Johnson, Eugene A., president of the Congress of Latin American

Civic Councils, Canal Zone..

Kane, Donald V., partner in the Washington, D.C., office, Arthur

Andersen & Co

Koczak, Stephen A., director of resea

search, American Federation of

Government employees, AFL-CIO..
Kozak, Michael G., attorney-adviser, Office of the Legal Adviser,

Department of State..
Kujawa, Leonard J., partner in Arthur Andersen & Co., certified

public accountants...
Lewis, Elwin E., national vice president, American Federation of

Government Employees, AFL-CIO.-

Lioeanjie, Rene, regional representative of NMU in Panama.

Manson, Frank A., assistant director, National Security-Foreign

Relations Division, The American Legion.-

Mauge, Saturnin, president, Local 900, American Federation of State,

County, and Municipal Employees.

McElligott, Paul G., attorney for Sea-Land Service, Inc.
McElyea, Stewart D., director Field Operations Division, U.S. General
Accounting Office, Washington, D.C..--

439
395
147
228

361

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365
297

523

Page.

542

363

541

297

Statement of-Continued

O'Leary, John J., chairman, on behalf of the Nassau County Com-

mittee of the New York State Conservative Party -

Oster, Captain G., president, Panama Canal Pilots Association..

Parfitt, Harold R., Governor of the Canal Zone, and president of the

Panama Canal Company -

Prepared statement..

Reurs, John H., chairman, New York Committee, International Com-

mittee of Passenger Lines.-

Reynolds, James J., president, American Institute of Merchant

Shipping-

Simpkins, Talmage E., codirector, Labor-Management Maritime

Committee

Prepared statement.

Steers, Philip L., Jr., financial vice president of the Panama Canal

Company -

Tice, Kenneth N., pricing manager, Domestic Central American

Services, Sea-Land Service, Inc.

Tolan, David J., executive vice president and general manager,

Caribbean/Latin American/Domestic Division, Sea-Land Service,

Inc..

Veysey, Victor, V., Assistant Secretary of the Army (Civil Works)..---

Prepared statement.

Wall, Shannon J., president, National Maritime Union..

Webber, Clyde M., national president, American Federation of Govern-

ment Employees, presented by Stephen A. Koczak.

Willenbucher, Franz Otto, Captain, U.S. Navy (Retired).

Wolfsperger, Ellsworth, international relations adviser, Department of

the Army.

Zito, Nicholas J., director of regulatory accounting, Sea-Land Service,

Inc.
Additional material supplied by
AIMS;

Court case: Panama Canal Company v. Grace Line, et al.---.

Number of transits by U.S.-flag ships.-
Andersen, Arthur, & Co.:

Dating of Arthur Andersen & Co. report--
Evaluation of accounting policy changes during fiscal year 1973-
Issuance of debt by Canal Company-

Services of Arthur Andersen & Co. for Panama Canal Company.

Bell, S. Morey: Joint minutes of the 107th meeting of the Panamanian

Commissioners with the Department of State relating to the

negotiation of agreements between the two countries, 1936.....

Comptroller General:

Report to the Congress-Examination of Financial Statements

fiscal years 1971 and 1970 Panama Canal Company and Canal

Zone Government.

Report to the Congress--Examination of the financial state-

ments of the Panama Canal Company and Canal Zone Govern-

ment for fiscal year 1973.--.

Drummond, William R.:

Advisers to the Directorate of the communist party ---

Alerta Panemeño...

An extract from the political declaration of the Lima Non-Aligned

Conference

¿Cuales Son Las Reglas Del Juego?-

Chapter XXII from The Fourth Floor: “What Does It All

Mean?

Comite Civico Democratico Pro Mejoramients de Panama.

Declaracion del Presidente Constitucional de la Republica de

Panama

Del movimiento de abogados independientes.

Directorate of the Communist Party of Panama.-

Empresas que ya se han Adherido Al Paro Nacional Hasta las

11 a.m.-

286
292

269

82
264
272

80

517

Additional material supplied by—Continued

Drummond, William R. (Con.):

Page

Hechos que nos preocupan.

474

Information paper.

494
Letters submitted for the record by Mr. Drummond may be
found on the following pages.

464, 465, 468, 500, 504

Los Anales legislativos -

476

One hundred truths..

447

One hundred Verdades.

442

Panama to have absolute Canal sovereignty

497

Panamanian Communist Party Report -

440
Report of latest Republic of Panama-State Department Pre-
Treaty Action...

490
Graham, Alfred J.:
General comments quoted from questionnaire.

534
Position paper of the Ad Hoc Committee of U.S. Labor Organiza-
tions and Civic Councils---

530

Johnson, Eugene A.:

Article from the Panama American of March 19, 1976: “Pana-

manians More Reliable Than U.S. Citizens".

528

Introduction of Ad Hoc Committee.

529

“Sickout” Continues: Ship Logjam Climbs to 140--

527

Metcalfe, Hon. Ralph:

Resolution of the Subcommittee of the Panama Canal..

536

McElligott, Paul J.:

Depreciation of excavations, titles, treaties, etc.-

338

Morgan, Col. Milton J.:

English language training for the Panama National Guard.... 504

Parfitt, Gov, Harold R.:

Changes in estimates of operating results-fiscal year 1976.

185

Depreciation..

177

Employees.

177

Fiscal year 1975 operating results.

166
Net tonnage of a vessel..

181
Part 135— Rules for Measurement of Vessels, from the Federal
Register, March 31, 1976...

148
Recovery of general corporate overhead costs -

172

Panama Canal Company:

Panama Canal Company and Canal Zone Government outstand-

ing accounts receivable Panama Government by calendar year. 99

Supplementary comments of Philip L. Steers, Jr....

324
Sea-Land Service, Inc.:

Review of sensitivity estimates contained in Panama Canal toll
increase: Effect on the U.S. economy.

307
Snyder, Hon. Gene:

Article from the New York Times of September 16, 1975: "Pen-
tagon yielded to Ford on Canal".

227
News release of February 6, 1974.-

410
Steers, Philip L., Jr.:

Excerpts from General Accounting Office report to the Congress -- 163
Sullivan, Hon. Leonor K.:
Bidlack-Mallarino Treaty-

114
Hay-Bunau-Varilla Treaty-

117
Hay-Pauncefote Treaty.

115
Hull-Alfaro Treaty.

126
Moore memorandum.--

142
Spooner Act.

139
Text of the Panama Declaration of Independence signed Novem-
ber 4, 1903.

145
Thomson-Urrutia Treaty.

123
Treaty of Mutual Understanding and Cooperation Between the
United States of America and the Republic of Panama.--.

132
Sullivan, Hon. Leonor K. and Ralph II Metcalfe:

Analysis of the financial position and financial problems of the
canal organization ----

39
Analysis of the impact and equity of proposed rules for the
measurement of vessels.---

7
Marginal cost of operating canal.

57

Page

99
539

404

90
82

415
424

377

198
415
468

530
543

360

464

Additional material supplied by--Continued
Sullivan, Hon. Leonor K. and Ralph H. Metcalfe (Con.):

Alternative Financial Initiatives Designed To Improve the

Financial Position of the Canal Organization.--
Wiles, Harry G.: American Legion Resolution No. 173.
Willenbucher, Capt. Franz Otto: Article by Earl Harding: "The Un-

told Story of Panama-Chapter 4, The Baby Republic Is Born".
Communications submitted for the record-
Andersen, Arthur, & Co.:

Letter of August 24, 1973, to Philip L. Steers, Jr.-

Letter of April 30, 1972, to Philip L. Steers, Jr...-
Bell, S. Morey:

Letter of December 12, 1975, to Hon. Gene Snyder.

Letter of August 18, 1976, to Hon. M. Gene Snyder.
Beneman, Laverne T.: Letter of January 19, 1976, to the different

headquarters in the Department of Defense.
Conover, Richard M.; Memorandum of February 16, 1976, to six

agencies on wages..
Exchange of correspondence on 1936 Treaty
Falconett, Elias: Letter to General de Brigada
Graham, Alfred J.: Letter to Maj. Gen. Harold R. Parfitt with Ad

Hoc Committee Position Statement.--.
Hall, Paul: Letter of May 18, 1976, to Hon. Ralph Metcalfe..
Masterson, James E.:

Letter of July 27, 1974, to Paul J. McElligott----
Manzanares, Pablo, L.:

Letter of January 29, 1976, to Pan American World Airways.---
McElligott, Paul J.:

Letter of April 13, 1976, to Hon. Ralph H. Metcalfe-
Letter to Mr. Nicholas Nonnenmacher with enclosure-

Letter of July 1, 1974, to Elmer B. Staats-
Mendizabal, Carlos E.:

Letter of March 3, 1976, to General de Brigada.
Merin, Kenneth:

Memorandum of April 6, 1976, to Hon. Gene Snyder...
Parfitt, Gov. H.R.:

Letter of November 11, 1975, to Hon. Leonor K. Sullivan..
Potter, W. W.:

Letter of June 15, 1959, to Hon. Herbert C. Bonner with mem-

orandum on sovereignty over the Canal Zone..
Simpkins, Talmage E.:

Letter of May 13, 1976, to Hon. M. Gene Soyder.,
Snyder, Hon. Gene:

Letter of November 14, 1975, to Morey Bell.

Letter of December 15, 1976, to S. Morey Bell on 1936 Treaty..
Staats, Elmer B.:

Letter of reply to chairmen, Committee on Merchant Marine and

Fisheries, and Subcommittee on the Panama Canal with en-

closures
Steers, Philip L., Jr.:

Letter of April 12, 1976, to Terry Modglin...
Memorandum of May 30, 1972, to members of the Budget and

Finance Committee.
Sullivan, Hon. Leonor K., and Ralph H. Metcalfe:

Letter of February 2, 1976, to H.R. Parfitt with attachments..

Letter of February 2, 1976, to Elmer B. Staats.-
Wiles, Harry G.:

Letter of March 24, 1976, to the President.--

333
337
357

470

417

500

396

240

415
427

105

277

161

6
104

538

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