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[blocks in formation]
[blocks in formation]

150,000. 35,000.

200 ft by 1,500 ft 200 ft by 1,500 ft Minimum, 140 ft by 160 ft by 1,450 ft by 50 ft. by 50 ft.

1,200 ft by 45 ft. by 65 ft.



1959 study, plan III.. 1947 study, plan II.. Various bills in 1970 JOCS

1.1 5
0.85 8 1.4



1970 10CS.

0.134 0.24.

0.85 .1.4.

2.95 5.4.

1 The above estimates do not include the “ultimate" phase which adds new lanes and raises Lake to 92 PLD.

2 Canal and Lock capacity-All projects would need additional water supply, except existing and sea level, to attain indicated capacity.

3 15,700 transits without Kearny improvements, no additional water required. With improvements 26,800 transits, water is required. (1969 estimates of ultimate capacity.) Present estimates of ultimate capacities less because of larger proportion of large ships.

Cost of Kearney improvements escalated to 1970. 5 Corps of Engineers estimate. From 1970 IOCS (Interoceanic Canal Studies—Corps of Engineers). o This project will cost only slightly more than the original 3d locks project since the project is

similar except for larger lock chambers.

7 Corps of Engineers estimate. From 1970 IOCS study. Cost of 2-lift plan is slightly less than 3-lift plan, but in rounding off cost estimate to 2 significant figures, the 2-lift and 3-lift round to the same amount.

8 Estimates in original congressional bills.

9 From IOCS study, estimate is for 3 new lanes of locks at Atlantic and Pacific, Cost will be less since only 1 will be built at Gatun and the existing locks modified.

10 1970 costs updated by Engineers News Record (ENR) construction cost index, using 1970 annual index of 1,385 and July 1977 index of 2,583.



Existing locks.-1969 Kearny study modifications to increase ultimate capac-ity to 26,800 (1969 estimate) consisted of miscellaneous improvements such as tugs, locomotives and deepening/sea water pumping (to provide sufficient water).

Original third locks.—Addition of one lane of locks (140' x 1200' x 45') at Gatun, Pedro Migruel and Miraflores. Existing locks would remain as is.

Modified third locks.—Same as original 3rd locks except size of chamber increased to 200 x 1500 x 50'.

Terminal Lake 3 lift-Initial phase.-Add triple lift one lane of locks (200' x 1500' x 50') at Gatun. Existing Gatun locks to remain as is. Remove Pedro Miguel locks. Add triple lift one lane of locks (200' x 1500' x 50') at Miraflores and add upper lock chambers to existing Miraflores Locks raising Miraflores Lake to present lake elevation.

Terminal Lake 2 lift-Initial phase.—Same as above except new locks are two lifts.

Flood Thurmond Rarick (Terminal Lake plan).–Add one triple lift lock lane not less than 140' x 1200' x 45' and modify existing locks for 92' Lake elevation at Gatun. Remove Pedro Miguel Locks. Pro 3 new lanes of triple lift Locks at Miraflores with one lane not less than 140' x 1200' x 45' and two lanes the same size as existing Locks.

IOCS deep draft.-Existing locks would not be modified. Add one triple lift lock lane (160' x 1450' x 65') at Gatun and Miraflores. New Miraflores Lock would raise ships directly to present lake level with a bypass of existing Pedro Miguel Locks.


Senator HELMs. Mr. Chairman, I would like to make one more point, and I appreciate your indulgence.

I was very interested in your comments, sir, and I want to join my colleagues in commending you on your candor. I expect that these hearings may be the best kept secret on Capitol Hill in terms of the news media.

There has been such a bias in favor of what I call "the giveaway of the Panama Canal" with hardly any reference at all to the case on the other side.

Senator Scott. Mr. Chairman, would the Senator yield very briefly in that connection?

What business were you in before you entered the Senate?

Senator HELMS. As the Senator knows, I was in the news business. I possibly may have some expertise in watching my former colleagues.

You said in your testimony, in response to Senator Scott, I believe, that our case-meaning the case of the United States and the operation of the Panama Canal-has not been "effectively made." I believe that those were your exact words.

Why do you think that is? Is it because our spokesmen have not really tried?

Governor PARFITT. Well, one reason is that the situation is a very, very complex one. I often say that people come to the Canal Zone for a short period of time to determine the situation and really leave with the conclusions that they had before they came, because the time it takes to really understand and appreciate the complex nature of the history of the organization and the operation is not available to those people.

Therefore, reports emanating from them, whether they be business groups or TV reporters or newspaper reporters, are sometimes distorted due, I think, to the sheer complexity of the situation and the emotions that surround answers to questions that are posed on the local scene.

Senator HELMs. I have a little different view of it. I think there is a concerted effort in the State Department to propagandize the American people in favor of giving away the Panama Canal. In a moment I will give you an illustration of what I mean.

Prior to doing that, let me mention, Mr. Chairman, that in the past 2 years I have been to countries in South America representing more than three-fourths of the population, the land area, and the gross national product. I have met with the heads of state in those countries and their foreign ministers. I have discussed with each one of these heads of state and other citizens the Panama Canal issue. I have yet to hear anything from them other than, “Keep your canal. Do not turn it over to the Panamanians,” because as you yourself, sir, indicated, the advisers to General Torrijos are Communists, and the Communists are very anxious to gain control of the Panama Canal.

Let me illustrate the propagandizing effort of the State Department. A Member of Congress, who made a turnabout on the question of the Panama Canal, distributed in his State what was described as a "white paper," justifying his turnabout in favor of divesting U.S. power and control of the canal.

This paper was written in and by the State Department. It was distributed to all of the major news media, including the newspapers in this Member of Congress' State. This Member of Congress was immediately hailed by the major media as an enlightened legislator.

Therefore, it comes down to this: In the major news media, any. body who is in favor of giving away the Panama Canal is enlightened, and

anyone who raises a voice of concern about the strategic and economic consequences of such action is branded as a relic of the Dark Ages.

I mention that because I notice in your testimony that you said that you thought that a majority of the countries would come down on the side of Panama having control. I am sure you believe that, and it may be accurate in terms of a very few countries, but I would suggest, sir, that if you take a broader view based on the number of people, the gross national product of the entire area, and the geographical area, you might well come to a different conclusion.

Mr. Chairman, I thank you very much.

Governor PARFITT. I would just like to make one statement in that regard to make sure that my answer was understood in its proper context.

I gave you my impression from what I hear from visitors. I do not have any contact of any substantial nature outside of Panama. My contact with these countries is more or less with their ambassadors and individuals such as that. I only have an impression. The impression is the one that I have indicated in this testimony.

Senator HELMs. Well, I would say, sir, that that is an impression that has been carefully cultivated, in my judgment.

Thank you, sir.
Thank you, Mr. Chairman.


Senator ALLEN. General Parfitt, Senator Hatch asked you some questions about the annuity payments. Do these payments actually go to the big international banks that have extended large lines of credit to Panama ?

Governor PARFITT. My understanding is that the payments are deposited in New York in some banks, but it is at the direction of Panama for their accounts.

Senator ALLEN. Do you know the extent of the loans by the big domestic international banks to Panama?

Governor PARFITT. I do not know, sir, except from speculation in the press that indicate that there are substantial loans.

Senator ALLEN. You do know that they are heavily involved in the Panamanian economy and politics?

Governor PARFITT. Yes, sir. Senator ALLEN. They have an interest in this issue, do they not? Governor PARFITT. Yes, sir. Senator ALLEN. That is all. Thank you very much, General Parfitt. You have been a great help to the committee and we appreciate the courtesy you have shown us by coming all the way up here from the Canal Žone to testify.

Governor PARFITT. Thank you. I appreciate the opportunity to be here.

Senator ALLEN. We do appreciate it very much. [Biography and prepared statement of Governor Parfitt together with additional material for the record follows:]

Governor of the Canal Zone

Major General Harold R. Parfitt was appointed as Governor of the Canal Zone and President of the Panama Canal Company on April 1, 1975.

As Governor of the Canal Zone, Gen. Parfitt is responsible for administration of functions vital to the well-being of any contemporary community such as hospitals, public health, education, and police and fire protection.

As President of the Panama Canal Company, he is the chief executive officer of the Company, with general and active control of the Company's operations which include, among others, the waterway, harbor terminals, electric, telephone and water systems, and employee service activities.

Prior to this appointment Governor Parfitt served as commanding General, United States Army Engineer Center/Commandant, United States Army Engineer School at Fort Belvoir, Virginia, from late 1973 to March 1975.

From December 1969 to August 1973, he was Division Engineer, U.S. Army Engineer Division, Southwest, Dallas, Texas. He was Commanding officer, 20th Engineer Brigade in Vietnam from November 1968 to November 1969.

In June 1965, he became Lieutenant Governor of the Canal Zone and Vice President of the Panama Canal Company in Balboa Heights, serving unčil September 1968. He was Deputy, and later District Engineer of the Engineer Division, South Atlantic, in Jacksonville, Florida, from August 1962 to May 1965.

Governor Parfitt was born on August 6, 1921, in Coaldale, Pennsylvania. He received his B.S. degree from the United States Military Academy in 1943 and his M.S. degree from the Massachusetts Institute of Technology in 1948. He attended the United States Staff College and the Canadian National Defense College.

Major General Parfitt is the recipient of the distinguished Service Medal, the Purple Heart, and the Legion of Merit with Oak Leaf Cluster.,

He is married to the former Patricia Scully, and they have two daughters.

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