0 THE WHITE HOUSE I -sEGR t' t WASHINGTON June 5 1970 National SccuLt Decision cmorandum 64 TO The Secretary of State The Secretary of Defense The Secretary of the Arm y SUBJECT Panan a Canal l have reviewed the paper prepared in response to NSSM 86 and agency comments on the issues containec 1 therein and I have decided the following 1 We should be prepared to discuss vith Panama our fundamental canal relationship an l to negotiate new treaty arrangements if Panan1a asks us to do so and if there are reasonable prospects for achieving a satisfactory new treaty ar1·angc1nent 2 I authorize 1hP Secretary of State io coordinate exploratory ancl prcl · b ry tc kc wjf l thP Panarnanian governmeni designed to dctern ine Pana1na 1 s vie·ws in more d e t a il and to reach a judg1nent as to whether n utually satisfactory ne v treaty arrangem cnts can be expected It should be 1nadc clea1· to the Pana1nanians that these 1 alks are preliminary and exploratory and not themselves ncgoti i tions j i t r l 3 I authorize the Secretary of State and Ambassador Andci-son to coordinate consultations with the US Congress at such tin1c as they lcein advisable on the question of our uf-ure canal relationship with Pa11an1a 1 4 hltcx-agcncy recon1111endations should be submitted to me based on what is learned as a result of the steps authorized by 2 and 3 above as to a whether and when to open fonnal negotiations on new treaties rnd b what our Gpccific negotiating objective should be These i-ccommcn lations should be coordinated and suu1nittccl to n1e by the Under Sccrctarie s Committee 5 If forn1al negotiations appear lesirablc I would prcfc1· in t hc abscnc-e of overriding rea5ons to the contrary ·that lhi sc not hq• in 0 O£CL SStft£0 e o 12ase sec s s NICJt 110• 111ti11• STATE OEPT GUIDE Ltt4£S JV s blt-- --- NARA DATf 1 0o-t PHO fOCOPY FROM GERALD FORD LIBR R-Y -- C • - z- SE€R T I I until early 19J l to permit receipt and evaluation of the Canal St' 1-dy Co1nmission 1 cport and soundings with the new Congress These 1 reasons may be used to explain to the Pana1nanian goverruncnt why I we suggest th1 time frame 6 In any new negotiations three points are to be considered nonnegotiable a ' effective US control of canal operations b effective US control of canal defense and c continuation of these controls for an extended period of tirnc preferably open-ended 7 In the exploratory talks our represe1itai ives should be guided by the following with respect to those issues raised by the NSSlvi-86 paper a On expanded canal capacity Indicate in any new negotiations we would expect to negotiate definitive rights but without obligation to build a new sea--lcvei cana l and or enlarge the present canal However our final position in this regard would be fonned after we have evaluated the Canal St1 1dy Conunission Report I i I l b On cont l c ca al cn -ei-ations Test first P namam an receptivity to a continuation of exclusive USG control of canal operations and whether such a control pattern can be n-iacle palatable to Panama if it is clear that Panarba wHl not accept this then agree to explore a pattern of joint US-Panan1 anian aclrninistration with US majority control al 011g the lines the 196 7 cl raft treaties or som e sin1ilar arrangernent of c On defense Indicate that in any new negotiations we would seek rights for unilatera l clcfens of the canal ancl canal areas Defer or the time b e ing discu s sion of the hernisphcre clc cnsc issue in view of the pending Defense Department review of Southern Conunand status d On sovcrcign y and j urisc li c tion Test first P 1 namanian receptivity to the idea of a nnrk cdly reduced Zone with contimuncc of USG control therein but with 11cgotiation for Pan m tni an jurisdiction ovc·r com1nercial and non-essential governnwntal functions Option A of paper If pursuing thi cour e is ckarly not fruitful cxplo1·c joint US-Panamanianjuri nclict ion along the 196 7 clr ift lrca Ly rnodcl Option n --- I 0 J I · • - PHOfOC'OPY FROM GERALD FORD LIBRARY - ·- S£E Jit BT - 3 c On duration O ur objective should be an open-ended arran gem cnt we should consider specific provision for ptriodic review -- £ On econon'lic benefits In d icatc the U S is prepared to seek ways to create substantial additional revenue for Pana1na 1 i cc Chahman Joint Chiefs of Staff Director Central Intelligence A gency Ainbassador Robert Anderson Special Representative for US Panama Relations 0 - f PHO fOC'OPY FROM GERALD FORD LIBRAR I THC WIIITC IIOUSC I 'ASllltJ 101 J June 1 J 971 V 'IO The SC'c re t n-y of State 'fhc S c rct a ry of Defense _S UBJECT -Panama C_a nal T-rcat y Negotiations - I have reviewed An1bat sador Anderson's letter of April 12 1971 and the 1·eport of the NSC Undc1· Secret des Con m Htce elate cl June 10 1971 con_ccrning Unitc cl States goals and obje ct i ·cs or negotiaii ms wi-1 i P a i 12 nm on canal treaty rc a io1i s b11 ·t11c·· b a sis of tha t 1·cvicw - I have- decided to aut l orizc An1bassador A n derson undertak e formv l ·ncgotin tiow with Pa nan1a with a view to obtaining ii rccn c nt on the ie-xt of a draft treaty this -year The princi_p es set orth· in N'SD v1 64 wi11 continue to provi de the b i sis for the United States p ot ition in O1e f orth c omi llg nc got i a ti ons e cc pt insofar a they a rc modified or c - p ui 1°ecl by t1 c fol c- ing s pcr ifi c dccii ions to __ Recon-imcndations throu ------- ---B-3 ____ ____ _ h report oi the NSC Uncle 1 7 cont a inc cl in the June l 0 1971 Sec rctarics· Conu11ittec a re approved -- Q s pec t to RccmT11 1c 1ida_ _jon J3 r of the NSC Under Secretaries Coinn-1it t c report cc 1ccrning t h e du ra tion of the t caty I h a ve decided tha 1 the Unit eel Stat-cs negotiating objective should continue to be control of canal opc 1·ations and lc c_nsc for an opcn-en lccl period Provision for review of thi a rr ngcn1cni il t_ son1 _specific future cl d e may be inc uc1_cd in the U S position Shoulcl_Amb s saclor Anderson conclude · in the course of negotia tions that ach5cvcmcnt f O r n 10 j9r g oti jc cti VC will rcqu i r _ a g rec ncnt to a flxc l-tcnn tre 1y -1- i ll be -p1•cj rcd to·consic1cr promptly a rcvisio '1 of this objcictivc 0 t- ob _ -- _ -- W5 th n•f ncct to r ccon-ii w rnl tion B-2° of the NSC Un ckr Sccrc1i ric s · · r t ncc r11i -ig j11 ·5f di tjon ov r th Can tl Zone· 1 ha ·c C ciclcd · i ha t Oic ini ti ' r trnfH cl 5-l t 's - l t oti tiJ_ g jc cl i IC s J O l Hl be to·-pc r - n it U S juri dic·li o 1 tcJ bi ph - cl ·ou within a n1ininH11n of ty •c• ity prut clj1 g non-ner oti b c rjt hl for U S control 11d ob • 1 · DECLASSIFIED e o 12951 SEC S 5 · • NIC M lf0 1114181 i T«rf OEl'l' GUfOEt lNES PHorocoPY FRoM'blt Lo t-ORD t 1ffi•R-¢TE rt3 7-t o-z 2 I clcfc nsc of the c 111 d ftir the tlu r 1 i on of the treaty J-Iowcvc r Arn1J 1r uJor rndl 'l So 1 i 1 ull1uri • ecl to nC'gotiatc a t horlc 1· iirnc pcrjocl for th p11a c--o-qL of jui-i t1iction i -i ftcr initial negotiation he clc c r 1 such action nccc ai y 1 o achieve our nonneg0Hc1blc objecti ye Such a fall-hack pocition should he ihc n1axin1um that C n h c r ucccssfully Jlc otiatcd with the Government o P 1 namn ccmsislent wifh an orderly tr 1 nsfor of jurisdiction to Panan1a c Hcdi ·_c U S control nd _c lcfcnsc of the canal afte·r such jurisclicticm is phased out· ·· wd Co ngrc sional acccpi ancc _ ' j I • I I I • - _ - -- Ce nj rc -s 5 _n J cnnsnlbtions should he initiatccl as_- 9on as _posiiblc to test r uppo ·t for a tr e aty along the lines outlinc d above - - 'Ihe NSC Under Secretaries Cornn1itte c h ould subm it to n1c by July 5 1971 rccornmcncbU ons and or op j ons for U S po iqr tow p xc1'°1 fJ1a ma n the event treaty negotiations rc l'ch ' n in1passe or n1ust-be b i oken off - - ' -- • · Arn bassaclor Anderson intcmb t o rc111ain in close consultation with the · ·s-c rctaric-s of •State ·a 1_9_Defc_E C du1·ing the pcxiod of ncnotiations and I have asked him to keep 1ne closely and r crioclic ally infor1110d as to the siatus of negotiations and Congressional_ consnltn tions • I _ cc · The CJ1airma n - NSC Undl 1·· Sc·cr·c l f f s- C-on1fr itt 'The Secretary of the Arrny 1 hc Chairrnan Joint Chief of Staff •r11e j rector o Ccn rnl l n t c l ig c n c c Spcci il l tcprC s cJ1t i vc f Jnlc _ OCCilJllC Canal Ncgoli d ions -· · o r · · · ·• · ' - - · · _ - •' t PHOTOCOPY FROM GERALD FORD LIBRARY THt WHITE HOUSE WACHINOTON '' £ tivr ·11 11 - tv Y ' · ic 1 · mor r um l 31 ---------- ----·-·- -- ----------Tr t r oc r1 6 ry of Stnte Tho G- c reta 1 ·y of Defonao ' I 1 - ve i-e vic' ed l' --n - tJ rntlol A 1c crt o n 1 s letter of A tq u t 20 1971 as well as tn views o t c Depart - cnto of St to a nd Defo n 3e conccroing modification of Ambasza dor Anderson's nc 0 ot i tin3 in t uctions on •· in On the ba cio 0£ durt tion of a new trc ty as i ct forth NSDM 115 thcl review 1 have made the follO ving d ci iona I •- An1b u sado1 Ander8on in uthorizcd t tho thne h 0 feels rnost appropriate to in form Pnn i n'la that t11c U S vhilc strongly - i --i ag »- Vpt ii -cuUcU t i-cd iy i villin tQ CC d r the poc ibility o f a ter mination formufo p -ovided that the duration negoti tccl i s a long one and th t other provi ions of the trc ty pac a c are tt tinfactory to· the U S Ii sn h a formn lilnppcn rs unobt in blc he i s m thorizc d to fall h • ck to con i 1 er 1 tion of a treat y providing for a ixc l d te o i ·z rmination In cHher cn r e the r_st i ati - £ te i _i_ f £ LclJ c_ ' l dl tio11 of a t c s t fifty ye ar s with n-oviaiot f o1· iln adtliti l3 0 S O i 7 C pacit y_j 1 _dc$c i 1 -' '-- • ln add ition ho should occk to obtain i' S part of any new t r c ty providin2 a formul a oi· spccHic d cte for tcnninatfon ' 1 V'v _ u · 1 _ v jol t U S - ar tmani n guo rantcc lh t upon tc ·minaUon of I _ J · tho trc 1 ty tho C i n l would be o pc _i iQ o tltl •ihiu pi nrt _ - - l · i 22_ut s ri1- 1inatjQ l t 1· on blq to Us and h · t Panarna - - r t v' Wv l l t kc no tction that v ould hamp e r tho c fidt•nt opera I tion of the watcrw•ay OECIMSIFIED fili$RJ T CXDJS E O 12958 SEC 3 5 • ttr• '°' 11 Nl98 STATE Of Pl GUl i SY_ i 11 11 ---- NARA D'-TE z i '-- · • PHO fOC'OPY FROM GERALD fORD LIBRAR'I ---- s eftE I' EXDlS Con rcsnion l co lsultations nhi ttld be continued to teot Bup rort or a trc ty doii3 th lin s outlin d above • cc ' be Chairman NSC Unde Secretal'fos Com1nittee 'Il1c Secretary of the Army •rt _o •r•l i' · ' • ·-· - --- - -------·-----------T - M-♦ rl n G -c 'Th nirectn of Ccntr Intr JHeencc j Special Rcp t 'sentativc for foteroceanic Canal Negotiations 1 J li I PHOTOCOPY FROM GERALD FORD LIBRAR '