PANAMA CANAL ACT OF 1979
THURSDAY, DECEMBER 2, 1982
HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON PANAMA CANAL/
OUTER CONTINENTAL SHELF,
COMMITTEE ON MERCHANT MARINE AND FISHERIES,
Washington, D.C.
The subcommittee met, pursuant to call, at 10:30 a.m., in room
1334, Longworth House Office Building, Hon. Carroll Hubbard, Jr.
(chairman of the subcommittee) presiding.
Present: Representatives Hubbard, Anderson, Tauzin, Sunia,
Lent, and Carney.
Also present: Jana Oakley, Janie Lawson, John Long, Robin
McClung, and Ed Welch.
Mr. HUBBARD. The Subcommittee on Panama Canal and Outer
Continental Shelf will come to order.
We do have three members present, all on the majority side. We
still do not have any representation from the minority side. How-
ever, I have been advised that none of them will object to our pro-
ceeding.
Congressman Anderson, Congressman Tauzin and I welcome our
distinguished colleague, Mr. Sunia, who sits in witness today. He is
a member of the full committee. We appreciate him very much for
being here for our subcommittee hearing.
Mr. SUNIA. Thank you.
Mr. HUBBARD. The subcommittee has scheduled an oversight
hearing for this morning to receive testimony from various inter-
ested parties on the possibility of amending the Panama Canal Act
of 1979 concerning the Panama Canal Commission's authority to
adjust and pay claims for vessel damage. Also to be discussed are
the Commission's accounting methods in setting aside toll revenues
to pay claims, and the status of pending vessel damage claims out-
side the locks exceeding $120,000.
Briefly summarizing the current law, the Panama Canal Act of
1979 directs the Panama Canal Commission to "adjust and pay"
claims on any vessel for damage which occurs while transiting the
Panama Canal. The act divides these claims into two categories-
inside the locks and outside the locks. If a vessel is damaged inside
the locks, there is no limit on the amount the Commission may
award. If a vessel is damaged outside the locks, the Commission
may pay only those claims not exceeding $120,000. Any claims for
outside-the-locks damage greater than $120,000 must be submitted
by the Commission to Congress along with a report stating the
facts behind the claim and the Commission's recommendation for
(1)