9
TREATY TRANSITION
The Treaty has now been in effect over eight months. While not a great deal of time, it is enough for an initial assessment of our programs. I believe that, for the Panama Canal Commission, we have been moving in a positive and favorable manner.
Considering the many possibilities for disruption of activities when the Treaty went into effect, I am pleased to report that October 1 passed smoothly without any adverse incidents. The Canal organization transferred functions such as health, education, postal, and retail services to the Department of Defense. Responsibility for jurisdiction, port and railroad operations, customs and immigration services was transferred to the Government of Panama. The two governments began to share responsibility for fire protection and police protection in the area. The interagency and binational planning involved in the transfer of these activities was substantial, with many built-in hazards and chances for failure, but the record now shows that the extensive prior planning, coordination and and preparation paid dividends. Personnel of both the United States and the Republic of Panama prepared seriously for the transition and put forth their best efforts to assure its success.
From the first day of the Treaty, the same spirit of cooperation has contributed to successful continuation of all activities by their new managers. The bulk of the bilateral agreements between the United States and Panama have been put into effect smoothly to the benefit of our organization and our people. Notable among these are the success of the joint police patrols in the Canal Housing areas and the coordinated fire protection services, as well as arrangements made by Panama to facilitate employee documentation, and automobile and driver licensing. The joint police patrols have been a particular source of reassurance to all.
A good indication of the new relationship now existing between the United States and Panama was evidenced on January 9. the anniversary date of the 1964 riots. The anniversary was celebrated with a march through the former Canal Zone and passed with less than the usual display of anti-Americanism.
Two major functions transferred to Panama on October 1 were the ports of Balboa and Cristobal and the Panama Railroad. The transfer of facilities and equipment was accomplished as planned, and both the ports and railroad continued normal operations under Panama's management. The Commission provided experienced personnel on a loan labor, reimbursable basis to advise and assist in the transition of these activities to Panamanian management.
Panama was experiencing problems of congestion in the operation of its ports, particularly the Port of Cristobal, due to an increased volume of container traffic, difficulties associated with the maintenance of materials handling equipment at the terminals, and labor problems. Panama, however, has taken steps toward resolution of these problems. Recently, as a result of a reorganization of the Treaty affairs function within the Panamanian Government, the railroad was reassigned to the National Port Authority, the agency responsible for operation of all ports in Panama. We view this as a positive step, and the arrangement seems to be working well.
Major functions transferred from Canal agencies to the Department of Defense were those related to health services and the Hospitals; dependent schools, including the Panama Canal College; the commissary stores; and postal service. These activities have continued to provide services to the authorized military and civilian communities. These transfers, however, did experience difficulties in adjusting to the new conditions-for example, the Army commissary system had a significant increase in customers-but major efforts have been made to continue acceptable levels of service.
During the first eight months of the new Treaty, the Canal organization has continued to fulfill its mission of transiting vessels safely and efficiently through the waterway. During that period, approximately, 8,942 oceangoing vessels transited the Canal, a number slightly above the level of the same period of the previous year. There has been no apparent decrease in traffic because of the 29.3 percent toll rate increase that was placed in effect on October 1, 1979.
The smoothness of the transition should not, however, cause us to lose sight of the traumatic impact of the Treaty on the Canal organization and its work force. The Commission's organization is still settling down after the massive personnel turbulence experienced last year. Some additional organizational changes are being implemented to meet Treaty requirements but these are designed to have minimal personnel impact.