THE PANAMA CANAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00803R000400030054-3
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Document Release Date: August 8, 2000
• Sequence Number: 54
• Publication Date: July 23, 1973
• Content Type: MF

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SECRET
NSC-U/SM-136
THE DEPUTY SECRETARY OF STATE
WASHINGTON
NSC UNDER SECRETARIES COMMIT'T'EE
July 23, 1973
MEMORANDUM FOR: ARA - Assistant Secretary Kubisch
Subject: The Panama Canal
Thank you for forwarding to me the Inter-Agency
Group',s review of our treaty relations with Panama
dated July 10, which I have read with interest.
This is an important and appropriate time to
examine our treaty position in depth, to assess the
possibilities in Congress, and to lay before the
President all of the available courses of action.
The basic question is whether the negotiators will
be able to arrive at a settlement. Your review and
current intelligence assessments indicate that agree-
ment cannot be expected unless at some time the US
offer is improved. The extent to which the US offer
can be changed, consistent with US interests,. is thus
a central factor in our Panama policy, as is the question
of what effect changes would have on the'acceptability of
a treaty in Congress.
In light of these circumstances, I ask that the
Inter-Agency Group in conjunction with Ambassador Ward
expand its paper to address the current treaty offer,
and to explore the pros and cons of revising our treaty
offer, now or in the future, so as to make possible a
settlement consistent with our control and defense
objectives.
The following questions should be among those
addressed:
SE CRET-GDS
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-- Is there a reasonable possibility that agree-
ment on a new treaty can be:reache.d on the
basis of terms we are currently offering?
-- If not, what changes in our offer might be
necessary to settle?
-- What would be the pros and cons of making such
changes?
-- What steps should we take to establish the
acceptability of such changes to Congress?
-- What should be the timing of a new offer,
if any?
-- What would be the effect on our relations with
Panama of deciding to hold closely to our
existing position -for quite some time?
-- What unilateral changes in the Canal Zone,
if any, should we make immediately, regardless
of the decision as to changing the treaty offer?
-- Should there be additional changes in the Zone
if it is decided to hold the offer more or less
in its present form?
The paper might usefully discuss one other option
under "Alternative Strategies for the US," namely that
of improving our treaty offer under prescribed circum-
stances while at the same time taking additional
unilateral actions. There should be more detailed
analysis of Congressional views throughout.
This Inter-Agency review should be submLt_ted o
the Under Secretaries Committee for. consideration by,
August 30, 1973.
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In addition, I also request that the Inter-Agency
Group undertake a separate study assessing the desira-
bility and feasibility of the following two measures:
I
-- Transfer of the Southern Command from the Canal
Zone (see attached terms of reference); and
-- Appointment of a civilian to head the Canal Zone
Government.
This study should also be submitted to the Under
Secretaries Committee for consideration by August 30,
1973.
Attachment:
Terms of Reference
Ffl1
Kenneth Rush
Chairman
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