IMPACT OF THE PANAMA CANAL TREATIES ON THE PANAMA CANAL (continued) 

INITIAL TREATY IMPLEMENTATION

The Protocol of Exchange of Instruments of Ratification of the two treaties was signed in Panama City, Panama, on June 16, 1978, by President Carter and General Torrijos, during President Carter's two-day visit to Panama City. The instruments of ratification had established October 1, 1979, as the date when the treaties became legally binding. The legislation required to implement the treaties (the Panama Canal Act of 1979) was approved by the U.S. Congress virtually on the eve of treaty implementation. The treaties entered into force October 1, 1979.

On that date, the Canal Zone and the Canal Zone Government were dissolved (with about 65 percent of the Canal Zone transferred to Panama), and the Panama Canal Company was replaced by a bi-national Panama Canal Commission, with a board of directors consisting of five Americans and four Panamanians. Since October 1, 1979, U.S. military presence in the former Canal Zone had been governed by governed by a Status of Forces Agreement (SOFA) similar to those which the United States has with governments in other parts of the world. The SOFA was the Agreement in Implementation of Article IV of the Panama Canal Treaty, which accompanied the Panama Canal Treaty.

TREATY PROVISIONS

Canal Operation

The United States was responsible for operation of the canal until noon December 31, 1999. It continued to have access to and the right to use land and water areas and facilities necessary for the operation and maintenance of the canal during the Treaty period (through 1999).

The Panama Canal Commission (a U.S. Government agency, as designated by Article III of the Panama Canal Treaty and by the U.S. implementing legislation of 1979) managed, operated, and maintained the canal. The authority of the President of the United States with respect to the Panama Canal was exercised through the Secretary of Defense and the Secretary of the Army, as was the practice with the Commission's predecessor agency, the Panama Canal Company. In February 1996, the Commission was converted to a wholly owned U.S. Government corporation under Public Law 104-106 (Defense Authorization Act for fiscal year 1996). This Act opened the way for changes to be made to other laws that allow the agency to operate in a more businesslike fashion and better meet transition needs, according to Commission officials.

Five American and four Panamanians constituted the Commission's Supervisory Board (Board of Directors), with one of the U.S. members being the Board's chairman. Panamanian board members were proposed by Panama and appointed by the U.S. President. During the first part of the treaty transition period, the Chairman was the Assistant Secretary of the Army for Civil Works, but later the position was filled by either the Under Secretary or Secretary of the Army. Chairmen of the Board during the life of the Panama Canal Commission were: Michael Blumenfeld, William R. Gianelli, Robert W. Page, Michael P.W. Stone, John W. Shannon, Joe R. Reeder, Togo West, and Louis Caldera. (Stone, Shannon, and West were Secretaries of the Army, as was Caldera; Reeder was Under Secretary of the Army.)