Fears Held For Panama Canal

Press, Volume CX, Issue 32367, 5 August 1970, Page 13

Fears Held For Panama Canal

(N.Z.P.A.-Reuter—Copyright)

WASHINGTON, August 4.

Panama would fall to the Communists if the United States negotiated a new treaty which did not give it control of the Canal Zone, a Congressional committee was told.

The canal is the jugular vein of the defence of the Western Hemisphere and must remain under United States control at all- costs, a representative, Mr Daniel Flood (Democrat, Pennsylvania) told the sub-committee on inter-American affairs of the House of Representatives. He was commenting on the reopening of AmericanPanamanian negotiations to construct a new canal.

The talks were suspended two years ago when the military junta took over in Panama. The United States now has exclusive rights in the Canal Zone, but the new proposed treaty would recognise Panama's sovereignty in the canal area and would return to it any land not needed for the new waterway. The new canal —needed to handle bigger ships and in-

crease shipping nearly beyond the capacity of the present waterway—would be run by a joint American-Panamanian commission.

Mr Flood said that Washington should avoid negotiating a new treaty with Panama. He added: “The surrender by the United States of the Canal Zone and canal would inevitably result in a Communist take-over of Panama, as occurred in Cuba, which would include the canal itself.” America could modernise the existing canal and avoid the need for a new waterway and new treaty, he said. The present treaty was signed in 1903 and many Panamanians feel it was forced on them. They claim the Canal Zone belongs to Panama and should come within its sovereignty.