MARVIN MANDEL, Governor                       3033

(3) The Thomson-Urrutia Treaty of April 6, 1914,
proclaimed March 30, 1922, between the Republic of
Colombia and the United States, under which the Republic
of Colombia recognized that title to the Canal and the
Panama Railroad is vested "entirely and absolutely" in
the United States, which treaty granted important rights
in the use of the Canal and Railroad to Colombia.

The United States, in addition to having acquired
title to and ownership of the Canal Zone, purchased all
privately owned land and property in the Zone, from
individual owners, making the Zone the most costly United
States territorial possession.

The United States since 1903 has continuously
occupied and exercised sovereign control over the Zone,
constructed the Canal, and, since 1914, for a period of
60 years, operated the Canal in a highly efficient manner
without interruption, under the terms of the above
mentioned treaties, thereby honoring its obligations, at
reasonable toll rates to the ships of all nations without
discrimination.

From 1904 through June 30, 1971, the United States
made a total investment in the Canal, including defense,
at a cost to the taxpayers of the United States of over
$5,695,745,000.

Under the terms of the 1903 treaty and the 1936 and
1955 revisions thereof, Panama has been adequately
compensated for the rights it granted to the United
States, in such significantly beneficial manner that the
compensation and correlated benefits have constituted the
major portion of the economy of Panama, giving it the
highest per capita income in all of Central America.

The Canal is of vital and imperative importance to
Hemispheric defense and to the security of the United
States and Panama.

Approximately 70 percent of Canal traffic either
originates or terminates in United States ports, making
the continued operation of the Canal by the United States
vital to its economy.

The present negotiations and a recently disclosed
statement of "principles of agreement11 by our treaty
negotiator, Ambassador Ellsworth Bunker, and Panamanian
Foreign Minister Juan Tack, Panama treaty negotiator,
constitute a clear and present danger to Hemispheric
security and the successful operation of the Canal by the
United States under its treaty obligations.

The present treaty negotiations are being conducted
by our diplomatic representatives under a cloak of