Assumption of community-support functions.

Another significant part of the impact of the Panama Canal Treaty on the U.S. military was the assumption by Department of Defense agencies on October 1, 1979, of several community support functions previously performed by the former Panama Canal Company or Canal Zone Government. The Treaty prohibited the Panama Canal Commission from performing many of the community-support and retail functions previously performed by the Panama Canal Company or Canal Zone Government for the U.S. community in the Panama Canal Area. Other functions, such as running the Panama Railroad and the ports of Cristobal on the Atlantic side and Balboa on the Pacific side, were transferred to the Panama.)

Thus, Southern Command's components -- particularly the Army, which had already been the primary base operations support provider to the military in Panama -- were assigned additional or expanded missions. Extensive planning to take on the new missions (as well as incorporating into the civilian workforce of the Armed Forces the employees of those functions) was conducted by the Southern Command and its service components in coordination with several military commands in the United States, the military departments and the Joint Staff and the Office of Secretary of Defense.

The Treaty permitted U.S.-citizen employees of the Panama Canal Commission and their dependents to be provided military commissary, post exchange, and postal services during the first five years of the Treaty (through September 1984). Those employees and their dependents were provided education and medical care throughout the period of the Treaty.