9
to recommend settlements and perhaps some court to approve or
disapprove of that settlement; some court that is not only author-
ized to do that kind of work, empowered to make that kind of judg-
ment, but manned with the right personnel, equipment, and exper-
tise to do a good job. I am not sure this Congress can do it.
Mr. Chairman, I want to commend you for calling these hearings
and for calling this very serious problem to our attention. I hope as
a result of these hearings, we can come up with some new system
of settling these claims that will involve the Commission and the
courts rather than the Congress.
Thank you for the time.
Mr. HUBBARD. Thank you very much, Congressman Tauzin.
Mr. Sunia, do you have any remarks you would like to make at
this time? We again express our appreciation to you for being with
US.
Mr. SUNIA. I have nothing to say. I just thought I would stop by
and see what you all are doing.
Mr. TAUZIN. Somebody ought to.
Mr. SUNIA. I appreciate your allowing me to sit with you this
morning.
Mr. HUBBARD. Thank you again.
We would now ask our first witnesses to come forward.
Bill Gianelli, we will ask you to please go first.
STATEMENTS OF WILLIAM R. GIANELLI, ASSISTANT SECRETARY
OF THE ARMY (CIVIL WORKS), CHAIRMAN OF THE BOARD OF
DIRECTORS-PANAMA CANAL COMMISSION; AND DENNIS P.
McAULIFFE, ADMINISTRATOR-PANAMA CANAL COMMISSION
Mr. GIANELLI. Thank you very much, Mr. Chairman, members of
the subcommittee. For the record, I am William R. Gianelli, Assist-
ant Secretary of the Army for Civil Works and Chairman of the
Board of the Panama Canal Commission. At the table with me
today is Mr. Dennis P. McAuliffe, Administrator of the Panama
Canal Commission. General McAuliffe is on the site and runs the
canal on a day-to-day basis.
It is a pleasure for me to appear before you today as you receive
testimony 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. I think the dialog that
has taken place, Mr. Chairman, by you and your subcommittee
members indicated the nature of the problem.
My statement is very short. I would like to submit it for the
record. Following that, Mr. McAuliffe will elaborate further.
Mr. HUBBARD. Fine.
Mr. GIANELLI. Concern has been expressed by various sources-
the Panama Canal Commission, by the Office of Management and
Budget, by the U.S. General Accounting Office, by international
shipping, as well as by the Congress itself-relative to the liability
of the Commission for ship accidents which occur outside the
Panama Canal locks where the damages sustained are in excess of
$120,000. A definite need exists to clarify this matter for all parties
involved. Accordingly, I welcome your efforts in this regard today.