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QUESTIONS SUBMITTED BY SENATOR STROM THURMOND, ANSWERS SUPPLIED BY
SECRETARY BLUMENFELD, CHAIRMAN OF THE BOARD, PANAMA CANAL
COMMISSION
Question. Mr. Secretary, did any of the Panama members oppose your selection as Board Chairman?
Answer. Senator, the Panamanians desired that the Chairmanship be rotated between the United States and the Republic of Panama. That proposition, however, was not accepted by the Board. During the subsequent vote on election of the Chairman, the Panamanians abstained; therefore, they did not vote against my selection.
Question. Were all the Board members present at the first meeting?
Answer. Yes, all United States and Panamanian members were present.
Question. Provide for the Record the actions of the Board to date.
Answer. Senator, as you are aware, the Board has had one meeting. A number of significant actions were accomplished. They were:
a. Adoption of internal regulations which will govern Board operations.
b. Election of a Chairman.
c. Organization of Board committees (Executive committee; Budget/Finance; and a special committee on long-range Canal improvement).
d. Approval of major decisions made by the Administrator since October 1, 1979 with the proviso that certain actions will be reviewed in depth by the various committees of the Board at a future date to determine whether revision or modification might be indicated.
e. Appointment of a Secretary, Panama Canal Commission.
f. In-depth discussion of:
1. Code of Conduct.
2. Chief Financial Officer, Chief Engineer and Ombudsman roles.
3. Current wage policies and systems.
4. Capital programming and budget.
5. Financial status of Commission.
6. Personnel structure of Commission, and vehicles for increasing Panamanian employment in technical, professional and managerial positions.
These are a few of the topics discussed or decided upon during the first Board meeting. As you might well imagine, a considerable amount of time was consumed in organizing the Board.
Question. Provide for the Record any proposals on which there was a division between the U.S. and Panama members.
Answer. Senator, as in any deliberation by any organized body, there are disagreements. The Board of the Commission is no different. There were disagreements on a number of issues but these disagreements were solved either by vote or by referring the matter to the proper committee for study. The committees will then report to the Board and if it is necessary for the Board to take action on the recommendation, it will do so.
Question. Why is Panama being paid on a monthly basis?
Answer. From a financial management point of view, monthly payments are more convenient for both the Commission and the Republic of Panama than would be a single annuity.
Question. What has been the impact of the lower oil shipments?
Answer. Most of the nearly $6.0 million shortfall in tolls revenue during the first eight months of the fiscal year is due to lower than budgeted shipments of Alaska North Slope oil through the Canal. Shipments averaged 400 thousand barrels daily compared to the budget estimated of 475 thousand barrels per day. Tolls generated by this trade totaled $22.6 million, approximately $4.3 million below the estimate for the period.
Question. What would you expect future impacts to be?
Answer. The North Slope oil trade through the Canal has been increasing the last four months, averaging 526 thousand barrels daily in April and May. Recent estimates indicates that shipments during the next few months should perform at forecast levels of 500 thousand barrels daily. No impact is therefore expected from this trade for the balance of the fiscal year. Since this commodity is the most prominent one, any significant increase or decrease in traffic could have a major impact on Canal operations.
Question. Have you recommended any changes in the 1979 Act other than those in your statement?