nounced, Alvarez and Lopez were present. He actually witnessed a number of the sales. Mr. O'BRIEN. One final question. It is my understanding that your investigation is continuing, that you contemplate demonstrating possibly at tomorrow's hearing that Mr. Edgardo Lopez, who we established was the counsel from Miami, and Panama, may have been a recipient of funds disbursed from U. S. Federal agencies? Mr. GLEASON. That is my understanding. Hopefully we will be able to say something about that tomorrow. Mr. O'BRIEN. Thank you. I have no further questions. Mr. HUBBARD. Any other questions, from any member of the subcommittee, or visiting Congressmen? Thank you, Mr. Gleason. Mr. GLEASON. Thank you, Mr. Chairman. Mr. HUBBARD. Thank you again for your testimony. While we are waiting on any members to testify, we will repeat that Ambassador Carlos Lopez-Guevara, Ambassador from Panama to the United States, was invited by Chairman John Murphy, chairman of the Merchant Marine and Fisheries Committee, to testify before our subcommittee hearings, either today or tomorrow, but the Ambassador called to inform the chief of staff of our Merchant Marine and Fisheries Committee, namely Carl Perian, to my right, Mr. Lopez-Guevara informed Mr. Perian this morning that he would not be testifying, "because there has been too much misinformation spread abroad on this issue." Once again, the chairman of this subcommittee would invite Mr. Carlos Lopez-Guevara to come before us today or tomorrow to clear up that misinformation to which he refers. We would be delighted to have him testify, but regret that he has made the decision not to appear. Is Mr. George Hansen-the Congressman from Idaho-here? Congressman Hansen is attending to an amendment on the House floor. He does want to testify before this House subcommittee, and he can do that tomorrow. If there is no other business to come before us on this day, we will adjourn today and reconvene tomorrow, Thursday, June 7, at 10 a.m., in this same committee room. Thank you. [Whereupon, at 3:37 p.m., the subcommittee recessed, to reconvene at 10 a.m., Thursday, June 7, 1979.] PANAMA GUNRUNNING THURSDAY, JUNE 7, 1979 HOUSE OF REPRESENTATIVES, COMMITTEE ON MERCHANT MARINE AND FISHERIES, Washington, D.C. The subcommittee met, pursuant to recess, at 10:12 a.m., in room 1334, Longworth House Office Building, Hon. Carroll Hubbard, Jr., chairman of the subcommittee, presiding. Present: Representatives Hubbard, Studds, Bowen, Hughes, Bonior, Lowry, Bauman, Dornan, Carney and Evans of the Virgin Islands. Staff present: Carl Perian, chief of staff; Penny Perian, administrator; Larry O'Brien, chief counsel; Terry Modglin, counsel, Subcommittee on Panama Canal; Ken Merin, minority counsel, Subcommittee on Panama Canal; Kai Midboe, minority counsel; Taddy McAllister, clerk, Subcommittee on Panama Canal; Molly Dominick, secretary, Subcommittee on Panama Canal; Michael Smith, staff, Subcommittee on Panama Canal; Ken Fendley, staff, Subcommittee on Panama Canal; Jean Fling, secretary to chief of staff; Marvadell Zeeb, secretary to counsel; Susan Baffa, press secretary; and Paris Russell, staff. Mr. HUBBARD. The Subcommittee on the Panama Canal of the Committee on Merchant Marine and Fisheries is now called to order. Fellow committee members, distinguished witnesses, and visitors, we are reconvening this hearing today after nearly 6 hours of intensively interesting and revealing statements by authoritative witnesses yesterday. Again, let me assure you that I am prepared to let the evidence we examine this second day speak for itself. We have before us now another catalog of indepth findings that we want to use for our oversight benefit. In review, this issue we are concerned with is the alleged covert dealing in arms by the Panamanian Government. This weaponry has been appropriated for use by revolutionaries in Latin America. Our interest has been principally centered in Nicaragua. A résumé of findings that surfaced yesterday include these particulars: One, indictments and affidavits have been filed indicating that there is probable cause to believe that a gun smuggling conspiracy involving Panamanian nationals may exist. Two, erstwhile Panamanian Consul, Edgardo Lopez, appears to have been a principal participant in the conspiracy. He, according to our best information, has disappeared from the United States. (119) Three, Nicaraguan authorities have identified two streams of weapons reaching revolutionaries in their country: (a) The first stream originated in the Miami area and is identified by serial number cross-checking. These weapons were shipped to Nicaragua via Panama and then Costa Rica; and (b) stream two originated in Belgium early in 1960 according to affidavit. These war pieces were shipped to Nicaragua from Cuba via Costa Rica. Four, recent reports are known of Cuban military aircraft of Soviet origin unsuccessfully attempting to land in Nicaragua. Five, lastly, Panamanian aircraft and oceangoing vessels have apparently been used to transport military hardware out of the United States. A word of caution is in order. The subcommittee is aware of the pendency of criminal actions in two Federal courts arising from weapons transactions at issue. Those cases will not be tried in these proceedings. Please recognize that official witnesses may circumscribe their testimony so as to protect individual rights and the Government's case chiefly. Let me indicate that in a leadership meeting this morning, in the whip's office, in the Capitol, the program for the House of Representatives for the week of June 11, 1979, was given to each of us in the leadership. The chairman of this subcommittee is included in that group as an associate whip. The Panama Canal legislation was not scheduled on the program for the House of Representatives for next week, except that I understand that at the insistence of the White House, this legislation is to be taken up next week, notwithstanding the fact that the House leadership did not plan to have it scheduled. It is our information that there is a barrage of well planned propaganda to be sent across the Nation in newspapers such as the Los Angeles Times, the New York Times, the Washington Post, as well as a barrage of telegrams to come in from distinguished Americans, including Henry Kissinger, former President Gerald Ford, John Wayne, and others, to urge that the House pass the implementation legislation Tuesday. In that this well planned barrage of propaganda in favor of implementation legislation has been planned, and is ready to go, it is my understanding that the White House insists that the House take up the implementation legislation next Tuesday, even though on Tuesday, June 12, the tentative schedule as announced by the leadership in the whip meeting included only House Resolution 198, to dismiss the contested election in Maryland's Seventh District, and House bill 3821, the intelligence related activities authorizations for fiscal year 1980. Those are the only two bills had been were scheduled for Tuesday, June 12. It is my understanding that 100-at least 100 Members of the House-are being invited to the White House Monday night for a session with President Carter regarding the implementation legislation. These facts, I think, should be known by the subcommittee and the members of the full committee, and the Members of Congress. As I said, apparently there is a strong push being made from the White House that the bill be taken up next Tuesday, again, I say notwithstanding the fact that the leadership of the House did not schedule it for next Tuesday. Again, according to one of the top ranking leaders of the House, at least 100 Members of the House are being invited to the White House for dinner and consultation with the President Monday night, preceding the Tuesday vote. Let me now turn to the Honorable Robert Bauman, ranking minority member of the subcommittee for any statement that he may wish to make at this time. Mr. BAUMAN. Mr. Chairman, thank you for yielding to me, but the minority has little to say about the scheduling of the House, and I will not have anything to say about that. I was not surprised, though, that the bill is not being brought up next week. I did want to say that I concur in the evidence that we heard yesterday. I think at least a prima facie case has been made to prove that Panamanian involvement, whether official or unofficial, occurred in Miami. I think the evidence yesterday traced that stream of weapons, in two instances, to Nicaragua, and into the hands of the Nicaraguan Government. I think today I would invite the subcommittee's close attention to the testimony that will be heard, particularly General Sumner. I do not know if you have had a chance to read it beforehand, because the implications of that testimony are great, indeed. They raise two questions in my mind. Whether or not the Congress was told the entire truth, the Congress and the administration, prior to the consideration of the Senate treaties. Second, whether or not these treaties have not in fact already been subject to violations; so I would hope that those questions might be addressed subsequent to the General's testimony. Thank you. Mr. HUBBARD. Before we recess the subcommittee to the vote now being held in the House, I would repeat, one more time, that from what was said this morning, apparently the implementation legislation will be taken up next Tuesday, at the insistence of the President of the United States, based on the fact that all this well planned propaganda and advertising on behalf of the Panama Canal treaties has already been scheduled and paid for. We will now recess for 15 minutes. [Short recess.] Mr. HUBBARD. The subcommittee will now come to order and we will resume the testimony of various witnesses. Next we will call Lt. Gen. Gordon Sumner, Jr. Lt. Gen. Gordon Sumner is a native of Albuquerque, N. Mex., U.S. Army, retired. To read just a portion of his biography, upon completion of his tour with the 80th Field Artillery, he was ordered to duty with the Strategic Operations Division of J-3, Joint Staff in Vietnam, where he served until February 1968. At this time he assumed command of the 25th Division Artillery at Cu Chi, Republic of Vietnam. In September of that year, he was assigned as Chief of Staff of the 25th Division. In March 1969 he returned to Washington, D.C., to assume duties as Chief of the Field Artillery Branch in the Office of Personnel Operations. In September of 1970 he was assigned as Senior Military Assistant to the Assistant to the Secretary of Defense and the Deputy Secretary of Defense. |