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 The United States bought rights to it, just as private timber companies buy rights from the U.S. Government to cut timber on Federal land. We pay a royalty to Panama. But we pay f ar less to the Panamanians than we charge American companies for the privilege of enjoying our Federi timber resource. We pay less than oil companies pay for exploration rights. Less than coal companies pay for mining rights. In fact, the U.S. Government collected $4 billion last year in royalties for just two resources, oil and uranium. Yet, we pay Panama only $2.3 million.
 IIt should be recognized that the canal itself is not now as critical to U.S. economic interests as it once -was. The largest supertankers and our 13 aircraft carriers cannot use the canal. There are many transportation options which are economically competitive. But no one denies that the canal is still valuable. That is why I am fascinated by the supposed logic of those who argue that on the one hand the canal remains vital to U.S. commercial interests, but on the other hand, are unwilling to pay the Panamanians what the canal is worth.
 This line of reasoning is based perhaps on a desire to continue the policy of economic barmain-huntingr, we foisted on Panama in 1903, or on a fear that if rates are raised, the- canal will lose its value to American commerce.
 Unfortunately, rates will not remain frozen no matter who operates the 'canal. American rate-setting for the canal still amounts to a commercial subsidy. The State Department estimates that inl 193T7 dollars, the per ton fee for use of the canal has declined from $1.31 in 1914 to 29 cents in 1976.
 The report of the Committee on Foreign Relations compares Panama Canal rates with Suez Canal rates: Current toll rates in Panama are $1.29 per PCT (Panama Canal Ton) for laden ships, and $1.03 per PCT for ships transiting in ballast. In contrast, the Suez Canal toll rates are $1.61 Special Drawing Rights (SDRs ) -($1.,98) Per Suez Canal to (generally equivalent to one PCT) for bulk cargo and tankers, and $1.77 SDR ($2.17) per ton for general cargo.
 Canal Company profits have been declining for most of the past decade, and the Company is in the black now only because of the North Slope oil bonanza. Rates will go up.

 BUDGETARY AND FINANCIAL 11IMPLICATIO-NS
 In my role as chairman of the Senate Budget Committee. I have studied closely the budgetary and financial implications of the Treaties.
 My committee experience has taught me that economic projections; are at best estimates which are based on certain assumptions about the fuLture. I am unable, as is each Member here, to predict the world economy 5 or 20 years from now or the way in which Panama will manage its affairs.
 I do know for sure that costs are escalating for operating the canal and alternate routes are more and more attractive. Tolls will have to be increased, with or without the treaties.
 The budgetary implications of the treaties reflecting the change inl the U.S. role in Panama f all into several categories. Let me summarize,
 First. There are two' kinds of retirement payments to'be made. Workers in the Canal Zone can ask the United States to turn over,