No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 a -_ •• J i • •- - _ · • THE SECRETARY OF STATE »-- -H-_ WASHINGTON January 27 1977 MEMORANDUM FOR The President FROM Cyrus Vance C 1 Panama canal Negotiations I am encouraged by the progress that we are making in preparing for the Panama Canal negotiation At the PRC meeting this morning we agreed to recommend to you that a The Tack-Kissinger principles should be reaffirmed as the basis for further negotiations b We should commence negotiations within the first two weeks of February r L'' c We should accept the year 2000 as the termination date of the treaty and 4 d We should not attempt to hammer out our final position before starting negotiations but should have our negotiators explore on a what-if basis what the Panamanians would be prepared to give on the remaining issues if we agreed to the year 2000 $ ' a· f'A _ 7i - ti I tr ' _ 1116 - All of these recommendations will come to you for decision promptly in a Presidential Decision Memorandum I After my meeting next Monday with Foreign Minister Boyd I recommend that we publiclX reaffirm the Tack-Kissinger principles for dealing with the Panama canal talk and state that our negotiators will resume negotiations in the first or second week of - iE February I was most favorably impressed by the Chiefs' attitude this morning George Brown is prepared publicly to support the Administration's position and the Chiefs' willingness to help with Congress press and public opinion will be essential to achieving C _ the broad national support that we must obtain -- SECRET GDS No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 No Objection T Declassifi ation in Full _2013 11 18 NLC-7-17-7-8-1 SECRET -2- I spoke with Cranston Cranston has contacted all 17 Democrats who signed the Thurmond resolution last time and has commitments from 15 to delay at least until the progress of the new negotiations can be evaluated This includes for example Harry Byrd and Jim Allen 1 Cranston believes Thurmond will not introduce the resolution unless he has one-third of the Senate plus one--enough to block the Treaty He therefore recommends that you not call anyone at this time The last procedural question I am wrestling with is to try to find a way to get Sol Linowitz on board as Co-Negotiator without having the Senate hold formal hearings on his nomination that would quickly turn into a wide ranging debate onfue Panama issue of the kind that we should avoid for the time being d k u r j • · 2 US-Brazil Nuclear Issue While Brazilian press play and some leaks from Foreign Ministry sources indicate considerable indignation over reports of US initiatives to block the FRGBrazil enrichment reprocessing transfer official Brazilian government reaction has so far been restrained Last night I sent a personal message to Foreign Minister Silveira assuring him that the United States intends to consult Brazil on a full range of issues including our objections to certain aspects of the arrangement with West Germany I stated that we of course recognize the Brazilians' pressing energy needs and are ready to discuss ways in which they can be met without running substantial dangers of nuclear proliferation I have asked the Brazilian Ambassador to come in to see me tomorrow and will reiterate these points to him 3 Syrian Troops in Southern Lebanon As a follow-up to my conversation with Dinitz yesterday evening Allon sent me a message today stating again that his government views the presence of Syrian troops in the Nabitiyah area as a threat to Israel's security Israel is willing to allow Sarkis several days grace to achieve a withdrawal The Israelis say that they are not anxious to damage his prestige but until they receive word that Sarkis will in fact withdraw the troops they will increase their readiness in the area Dinitz added that his government is going to hold a regular cabinet meeting on Sunday and would appreciate an authoritative reply from us to their request for withdrawal before this meeting I have sent word to our representative in Beirut to tell Sarkis that the Israelis have given an opening for compromise by allowing the Syrians a reasonable amount of time to achieve their SECRET No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 SECRET -3- stated purpose to collect heavy weapons remaining from the civil war Sarkis will be told that the Israelis want to be told of a definite timetable for the withdrawal of the Syrian troops and that they are increasing their readiness n the region I also let Sarkis know that The Isrealis say the Syrian troops have'moved several kilometers south of Nabitiyah since our last communication with him on Tuesday -- The Israelis want him to take action before the Sunday cabinet meeting in order to calm Israeli public opinion and dampen pressures for a stronger Israeli reaction against the Syrian presence It is clear that Israeli domestic politics are having a significant effect on Rabin's behavior and on the deadlines he is setting I do not however see the Israelis moving into Lebanon in the next several days even if Sarkis is unable or unwilling to ask the Syrians to withdraw C- 4 Missions for Clark Clifford and Charlie Yost As I indicated briefly to you today I am delighted that Clark Clifford has agreed to take on the Cyprus mission I will work out with him the timing on this and keep you informed I am also thinking about asking Charlie Yost to go to Vietnam to look into the MIA issue I think that he would handle the mission well It might be desirable for him to take along two l members of the Montgomery Committee I believe that it is in our _ interest to move premptly to try to pre-empt an action by the Vietnamese in the UN We can talk more of this on Saturday 5 Rhodesian Situation African reactions to Smith's speech and the present impasse in Rhodesian negotiations indicate a growing militance and frustration Nyerere has told the British High Commissioner he is glad Smith rejected the British proposals so that the nationalists can now proceed with a military solution Even moderate states like Liberia and radicals like Somalia have mentioned the possibility of sending troops for Mozambique's defense We doubt they will do so the tone of their rhetoric will increase I am sending letters to the Front Line Pre idents this evening stating our opposition to Smith's internal solution and our intention to see the Byrd Amendment repealed SECRET No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 C No ObJe gtton To _eclassification in Full 2013 11 18 NLC-7-17-7-8-1 SECRET -4- We have already asked the South Africans for their views on next steps Vorster will address his Parliament tomorrow but probably will not reveal any specifics of what South Africa intends to do Ivor Richard's mission in Africa is continuing and he has scheduled talks in Botswana and Zambia We are examining a range of policy options to discuss with the British and I will be prepared to discuss these with you at the Saturday meeting C 6 Economic Help for Egypt Last week's riots in Egypt resulting from the government's announcement of consumer price increases now rescinded have seriously eroded Sadat's political position It may be desirable for us to assist him in regaining public confidence While we are not in a position to offer additional economic assistance for this purpose we could make a visible gesture by announcing a new economic assistance package consisting of already appropriated funds reprogrammed so as to make a more immediate economic impact We are exploring this possibility within the Executive Branch and are consulting on the Hill with the Foreign Relations and Appropriations Committees I may wish to discuss this further with you Saturday SECRET No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 No Objection To Declassification in Full 2013 11 18 NLC-7-17-7-8-1 -tab S enclosure to Policy Review Memorandum Panama Joint Statement by the Honorable Henry A Kissinger Secretary of State of the United States of America and His Excellency Juan Antonio Tack Minister of Foreign Affairs of the Republic of Panama on Febn ary 7 19 74 at Panama Ttie United States of America and the Republic of Panama have been engaged in negotiations to conclude an entirely new treaty respecting the Panama Canal negotiations which were made possible by the Joint Declaration between the two countries of April 3 1964 agreed to under the auspices of the Permanent Council of the Organization of American States acting provisionally as the Oroan of Consultation The ne• treaty would abrogate the treaty existing since 1903 2nd its subsequent amendments establishing t ie necessary conditions for a modern relationship between the two countries based on the most profound mutual respect Since the end of last November the authorized representatives of the t vo governments have been holding important conversations whichoJ1ave permitted agreement to be reached on a s t of fuhdarr n' al _ principles which will serve to guide the negot1at1ons m the effort to conclude a just and equitable treaty eliminating once and for all the causes of conflict between the two countries The principles to which we have agreed on behalf of our respective governments are as follows _ 1 The treaty of 1903 and its amendments will be abrogated by the conclusion of an entirely new It interoceanic canal treaty 2 The concept of perpetuity will be eliminated The new treaty co_ncerning the lock canal snail have a - fixed termination date 3 Termination of United States juristiiction o er Panamanian territory shall ta_k_e pl_ace promptly 1n accordance with terms spec1f1ed 1n the treaty 4 The Panamanian territory in which the canal is situa ed shall be returned to the jurisdiction of the Republic of Panama The Republic o Panama in its capacity as territorial sovereign sr all grant to the United States of America for the duration of the new interoceanic canal tre3ty and in accordance with what - that treaty states the right to use the lands waters and airspace which may be necessary for the operation ma1n enance protection and defense of the canal and the transit of ships · 5 The Republic of Panama shall have a just and equitable share of the benefits derived from tne operation of the canal in its territory It is recognize · that the geographic position of its territory cor s it i es the principal resource of the Republic of Panama 6 The Republic of _Panama shall particiome in the administration of the canal in accordance with a procedure to be agreed upon in the treaty T ie i ea y shall also provide that Panama will assume Jotat 1 responsibility for the operation of the canal l oon 1- e termination of the treaty The Republic of Pcr ama shall grant to the United States of America the rigr s necessary to regulate the transit of ships throug 1 - e canal and operate maintain protect and defena 1iie canal and to undertake any other specific act '1ity related to these ends as may be agreed upon in 1 - e treaty · · 7 The Republic of Panama shall participate with the United S 2 tes of America in the protection and defense of tne canal i_n accordance with what is agreed upon in the new treaty 8 The United States of America and the Re 1 t c of Panama recognizing the important serv ces rendered by the interoceanic Panama CanJI to international maritime traffic and bearing in rr nd - he possibility that the present canal could become inadequate for said traflic shall agree bilate a 1 y or provisions for new projects which will enlarge c r o i capacity Such provisions will be incor ora ted in - e new treaty in accord with the concepts establ snec r 1 principle 2 S4•11 d 11 u '-' - s -te ___· i 1o J _ i 4 1 ·• 1 ltJi -r 11 _ --- - - - ---- ·-·-· No Objection --- ·- '----· e _ k c 7 _ 1 w 4 · ' A -- r iliol J • 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