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14. M53:96-22

PANAMA GUNRUNNING

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06-1 HEARINGS

BEFORE THE

SUBCOMMITTEE ON THE PANAMA CANAL

AND THE

COMMITTEE ON

MERCHANT MARINE AND FISHERIES
HOUSE OF REPRESENTATIVES

NINETY-SIXTH CONGRESS

FIRST SESSION

ON

THE INVOLVEMENT OF THE GOVERNMENT OF PANAMA IN THE
PURCHASE AND SHIPMENT OF ARMS DESTINED FOR THE USE
OF REVOLUTIONARIES IN LATIN AMERICA

JUNE 6, 7, AND JULY 10, 1979

Serial No. 96-22

UNIVERSITY

Printed for the use of the Committee on Merchant Marine and Fisheries

STANFOR

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COMMITTEE ON MERCHANT MARINE AND FISHERIES

JOHN M. MURPHY, New York, Chairman

THOMAS L. ASHLEY, Ohio
JOHN D. DINGELL, Michigan
WALTER B. JONES, North Carolina
MARIO BIAGGI, New York

GLENN M. ANDERSON, California
E (KIKA) DE LA GARZA, Texas
JOHN B. BREAUX, Louisiana
GERRY E. STUDDS, Massachusetts
DAVID R. BOWEN, Mississippi
CARROLL HUBBARD, JR., Kentucky
DON BONKER, Washington

LES AUCOIN, Oregon

NORMAN E. D'AMOURS, New Hampshire JAMES L. OBERSTAR, Minnesota WILLIAM J. HUGHES, New Jersey BARBARA A. MIKULSKI, Maryland DAVID E. BONIOR, Michigan

DANIEL K. AKAKA, Hawaii

MICHAEL OZZIE MYERS, Pennsylvania

JOE WYATT, Texas

MIKE LOWRY, Washington

EARL HUTTO, Florida

EDWARD J. STACK, Florida

PAUL N. MCCLOSKEY, JR., California
GENE SNYDER, Kentucky

EDWIN B. FORSYTHE, New Jersey
DAVID C. TREEN, Louisiana
JOEL PRITCHARD, Washington
DON YOUNG, Alaska
ROBERT E. BAUMAN, Maryland
NORMAN F. LENT, New York
DAVID F. EMERY, Maine
ROBERT K. DORNAN, California
THOMAS B. EVANS, JR., Delaware
PAUL S. TRIBLE, JR., Virginia
ROBERT W. DAVIS, Michigan
WILLIAM CARNEY, New York
MELVIN H. EVANS, Virgin Islands

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CONTENTS

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Thomas, Col. James C., U.S. Air Force (retired)

Ulloa, Jose Carlos, Nicaraguan Customs Official

Additional material submitted-

Dornan, Hon. Robert K.:

Analysis of "Law of the Land"

Hansen, Hon. George:

Article by Don Phillips

Article by Jim Adams..

Article by Joe Crankshaw: "Arms Smuggled by Panamanians, Investi-
gator Says".

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227

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Additional material submitted-Continued
Hansen, Hon. George-Continued

Page

Excerpt from Congressional Record: "Protect U.S. Taxpayers and
Consumers-Stop the Payaway"

228

223

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List of 100 .30 Caliber Universal, carbine rifles sold to Jose Alvarez ...
Communications submitted-

98

Aldrich, George H.: Memorandum of October 25, 1974, on intervention in
the internal affairs of other states....

Murphy, Hon. John M.: Letter of January 31, 1977, to the President

242

208

PANAMA GUNRUNNING

WEDNESDAY, JUNE 6, 1979

HOUSE OF REPRESENTATIVES,

COMMITTEE ON MERCHANT MARINE AND FISHERIES,

SUBCOMMITTEE ON PANAMA CANAL,

Washington, D.C.

The subcommittee met, pursuant to notice, at 10:17 a.m., in room 1334, Longworth House Office Building, Hon. Carroll Hubbard, Jr., chairman of the subcommittee, presiding.

Present: Representatives Hubbard, Biaggi, Anderson, Bowen, Oberstar, Hughes, Bonior, Lowry, McCloskey, Bauman, Davis, Carney, and Evans of the Virgin Islands.

Also present: Representatives Lagomarsino and Hansen.

Staff present: Carl Perian, chief of staff; Larry O'Brien, chief counsel; Penny Perian, administrator; Terry Modglin, professional staff; Jack Sands, minority chief counsel; Kai Midboe, minority counsel; Susan Baffa, press secretary; Jean Fling, secretary to chief of staff; Marty McLaughlin, press assistant; Taddy McAllister, clerk; Molly Dominick, secretary; Michael Smith, staff; and Ken Fendley, staff.

Mr. HUBBARD. The Panama Canal Subcommittee of the Merchant Marine and Fisheries Committee will now come to order. The chairman has been on the House floor asking the Speaker and the House for unanimous consent that we meet today. Under the 5-minute rule, under which the House is now proceeding, we need unanimous consent permission that we be allowed to meet while the House is proceeding. That permission was granted.

Fellow committee members, distinguished witnesses, and visitors, we are convening these hearings, less than 3 months after the completion of hearings on implementing legislation, to give overview to a set of concerns that have emerged in clearer focus. Consonant with the spirit of collegiality in our committee, we are here at the written request of the Honorable Robert Bauman, ranking minority member of the Panama Canal Subcommittee.

As chairman, I am prepared to let the evidence from important sources speak for itself. Witnesses from the nations affected by the matter at hand have been invited to be heard. Congressional colleagues and officers of the executive branch will also disclose information they have gathered from long and careful investigation. Now to the issue.

During the past several weeks, there has been exposure of a number of incidents of gun smuggling along the Gulf of Mexico from Texas to Florida. In each episode, the Panamanian Government was involved with the purchase and shipment of arms des

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