11
transit function. That we are succeeding is borne out by our safety
record. Over the 3 fiscal years which ended this past October, we
have averaged one accident for just over every 261 oceangoing
transits, which reflects a downward trend. I might also point out
that this figure includes those accidents which are due to steering
or engine failure aboard the vessel or to other causes not attributa-
ble to Commission employees or equipment. With the canal operat-
ing day and night and the number of vessels with beams of 80 to
106 feet using the canal increasing almost daily, we feel we can be
very proud of this record.
With regard to the specific provisions of law which govern the
Commission's liability for marine accidents, I am concerned that
confusion exists concerning that liability for accidents occurring in
the Panama canal outside the locks, where damages exceed
$120,000. This is a matter of financial importance both to the canal
and its users and we welcome the opportunity to explain the situa-
tion as it currently exists.
This ambiguity in the law required the Commission to deter-
mine, at the outset of the treaty period, whether this category of
marine accident would become a liability of this agency so as to re-
quire the inclusion of an expense provision in the tolls base. A deci-
sion on this question was particularly important in view of the re-
quirement-which is clear both in the statute and from its legisla-
tive history-that the canal be operated on a self-sustaining basis-
that is, at no cost to the U.S. taxpayer.
From the statute's requirement that nonlocks claims of over
$120,000 be submitted to the Congress with a special report con-
taining the Commission's recommendations, it appeared to the
agency more likely than not that meritorious claims would be hon-
ored-with the Commission's ultimately being directed to make the
payments. The General Accounting Office was consulted on the
question and agreed with the conclusion that the Commission
should recognize in its books the liability for such accidents. On
that basis, the Commission has included in the tolls base a provi-
sion to recover costs of all marine accidents which occur at the
canal, regardless of whether they occur inside or outside the locks
and regardless of their amount. By so doing, the agency has set
aside in the Panama Canal fund, moneys sufficient to cover its esti-
mated liability for nonlocks vessel accidents in excess of $120,000.
It would be extremely helpful if the Congress acted now to
remove this ambiguity which has existed in the law since October
1979.
Turning to another aspect of the vessel-accident provisions of the
Panama Canal Act, there exists a gap which the subcommittee
may, as a part of this amendatory process, wish to fill. It is present-
ly unclear if there is a statute of limitations which governs court
actions brought against the Commission on claims arising out of
vessel accidents occurring in the canal locks. In addition, there cur-
rently is no statutory limitation on the time in which vessel acci-
dent claims-whether they arise out of locks or nonlocks casual-
ties-must be presented to the Commission.
If the subcommittee considers that a statute of limitations would
be meritorious, the Commission would be prepared to work with
the subcommittee in perparing necessary legislative language. A