SEA-LEVEL PANAMA CANAL

Press, Volume XCVIII, Issue 29070, 5 December 1959, Page 10

SEA-LEVEL PANAMA CANAL

Warning From President (From a Reuter Correspondent) PANAMA CITY. Those dazzled by the idea of a new sea-level canal for Panama bringing greater prosperity to the region have received a warning from President Ernesto de la Guardia.

In operating the present locks system, the Panama Canal Corhpany employ about 3000 United States citizens and about 9000 Panamanians. In the recently concluded fiscal year, the wages paid to nonUnited States citizens,Hhe overwhelming majority of which are Panamanians, totalled 17,300,000 dollars (about £6,000,000 sterling).

President de la Guardia declares that the opening of a sea canal would throw all but a few hundred of the 9000 Panamanian employees of the present canal out of work and deprive Panama’s economy of its present considerable spending power. Implicit in his warning, included in his recent ‘‘State of the Nation” speech to the National Assembly, was the additional certainty that with the stretegic decline of the canal because of the rapidity with which non-garrison troops can now be

flown at short notice to troubhs spots, the money spent by the personnel of the United State military establishments would be correspondingly slashed.

This would have a crippiimeffect on the economy of a country which, with an annua) budget of about 60,000,000 dollar* (about £21,000,000 sterling) derives 90,000,000 dollars (about £32,00,000 sterling) directly or indirectly from the operationi of the Panama Canal. All in all, there are sound reasons for President de la Guardia’a warning that the changes in the economic structure of Panama brought about by the new sealevel canal might not necessarily be pleasant. The extensive use of big earth-moving machinery in construction jobs of this kind rather disposes of the hope that a large number of new jobs would become available. • Unlike Egypt in the case of the Suez Canal, Panama receives nothing from the tolls levied by the United States on vessels passing through the American-built waterway. It is assumed here that if the United States footed the bill tor making a sea-level canal, it would continue to collect the tolls, at least until its investment had been amortised. Though it is by no means certain -.that the sea-level canal will be built, some thoroughly prepared plans are in existence, be built, some thoroughly prepared plans are in existence. They range from an excavated route present locks waterway, to a new line to be blasted along the path which Balboa, the Spanish discoverer of the Pacific, took 1b 1513. The former project has been most carefully studied. It it estimated that it would cost about 3,688,000,000 dollars (£l3OO million sterling) and take 10 years to complete. During that time the present waterway could operate normally. The changeover would shut out shipping for only 10 days. The naval considerations, which, in 1903, produced such strong United States support for the building of the existing canal no longer apply. The canal's strategic importance has waned to the point where Thera is a feeling that it should come unde the United States Department of Commerce rather than the United States Army as at present. The various pressures of Am«ican politics being what they are. the Commerce Department stands less chance than the Defence Department of getting 3,688,000,00” dollars out of Congress. Politically and financially, an American-built sea-level canal at Panama would appear, at present, to be a distant prospect