WASHINGTON D C 20506 sECR January 2 1970 NATIO N A L SE CURITY ST U D Y MEMORANDUM 86 TO S e c retary of State Secretary of Defense SUBJE CT Panam a Canal My m em orandum to you of Septem ber 3 requested a brief review for the President of our interests and objectives with regard to concluding new canal treaties with Panam a in the light of recent developm ents and changes that have o ccurred since 1967 Because of the i mpo r t an c e of this subject the President has directed that this study be s ubrn i tt e d to the NSC Accordingly the revie w now being p rep a r e d by the NSC Inter­ departm e ntal G r o u p for Inter - Arn e r i c ari Affair s should be prepared for NSC consideration and should be subm itted to the Revie w Group by January 20 The study should analyze 1 O u r present interests a nd objectives with regard to co n­ cluding n e w treatie s w i t h Panam a including tim in g and the o p ti o n s open t o us to a chieve those o b j ectives 2 T h e objectives of the 1967 treaty package and ne gotiating plan whether any m ajor revisions or changes appear de­ si r able in the light of 1 abo ve and our options in this r egar d 3 R e l a t e the present internal situation in Panam a and our policy to ward the Torrijos r e gim e t o our poli cy o n the c a n a l treatie s 7 c c C hairm an Joint Chie § t f D ire ctor o f Ce n t r a l Lnt e l Li g e nc e' SECRET­