PANAMA CANAL COMMISSION AUTHORIZATION, FISCAL YEAR 1981 THURSDAY, JUNE 12, 1980 U.S. SENATE, COMMITTEE ON ARMED SERVICES, Washington, D.C. The committee met at 8:24 a.m., pursuant to call in room 212, Russell Senate Office Building, Hon. Carl Levin presiding. Present: Senators Levin and Byrd. Staff present: John C. Roberts, general counsel; Edward B. Kenny, professional staff member; Christine E. Cowart, assistant chief clerk; and Karen A. Love, clerical assistant. Also present: Frank Krebs, assistant to Senator Cannon; Quentin Crommelin, assistant to Senator Byrd; Charles Stevenson, assistant to Senator Culver; Peter Lennon, assistant to Senator Levin; and Mike Donley, assistant to Senator Jepsen. OPENING STATEMENT BY SENATOR CARL LEVIN, PRESIDING Senator LEVIN. Good morning, gentlemen. At the request of Chairman Stennis, I am chairing this morning the 1981 authorization for the Panama Canal Commission. The press of other committee business necessitated that we meet at this hour. I appreciate all you coming by at this time of the day. The Panama Canal Act of 1979 established the Panama Canal authorization and appropriation scrutiny by the Congress. Although many of us initially had reservations about this approach, including myself, we accepted it because many others felt that it would provide some additional protection to the U.S. Treasury and taxpayers while still allowing adequate flexibility to the Board and Administra-... tor in the operation of the canal. The annual authorization cycle, of which this hearing is a part, is our opportunity to assure that both of these objectives are met. We are now well in the first year of operation under the new treaty and under the new operating partnership with Panama. I hope that our witnesses today will inform us briefly as to the status of that new arrangement and any actions that we and the Congress can take on this authorization bill, or any other areas for that matter, to assure the continued smooth and efficient functioning of the canal. Last year the Senate and the House were unable to resolve their differences over some provisions of the fiscal year 1980 authorization bill and, as a result, that bill was never enacted into law. The Commission has, therefore, been operating on its appropriation but without the more precise guidance of authorizing legislation. The (1)