17
RELATIONS WITH PANAMA
Senator LEVIN. What has been the relationship since the implementation legislation has taken effect between the two countries in Panama?
Mr. BLUMENFELD. I think the relationship has been quite good. I think we are addressing difficulties that exist in a cordial and open manner. I am encouraged by the state of relations thus far.
$1.1 MILLION REDUCTION IN HOUSE BILL
Senator LEVIN. General McAuliffe, on page 17 of your statement, after you go through some of the changes that were made by the House committee in the proposed bill, you indicate that you do not request the restoration of the million dollar cut, but merely a change in the specific language of the bill.
Would you welcome a restoration of that cut?
Mr. McAULIFFE. Yes, Mr. Chairman, I would welcome a restoration of the cut because these funds are needed overall for our operation, for the maintenance of our physical plant, and to assist in implementing the necessary capital projects for the future.
My willingness to accept a $1.1 million reduction is really a forthcoming offer in an effort to eliminate the specific ceilings on project categories that appear, or will appear, in the House bill. These specific ceilings will be, from my point of view, the point of view of the operator, exceedingly difficult to live with. I would be willing to offer up a reduction in the overall amount just to eliminate those ceilings.
RESTORATION OF HOUSE REDUCTION
Senator LEVIN. If the final product is going to have the flexibility you need, it may be necessary for us to insert the requested amount of funds as well at this point. We will have something to go to conference on?
Mr. McAULIFFE. Yes, sir.
Senator LEVIN. I am just wondering whether or not, if we did reinsert the funds, we would be putting in unneeded funds? We don't want to do that just for a conferenceable item.
Mr. McAULIFFE. I assure you, sir, we need and can use that additional $1 million.
Senator LEVIN. You prefer the flexibility if you are given a trade-off?
Mr. MCAULIFFE. That is correct.
PANAMA AREA WAGE BASE
Senator LEVIN. There was controversy, General McAuliffe, during consideration of the implementation legislation, on the question of ,wage rates. Many members, including myself, wanted a minimum wage law to apply to Commission employees, while others were concerned about the cost implications of applying the minimum wage law.
There was also some real possibility of inequities among employees doing the same job.