SECRET - XGDS THE WHITE HOUSE WASHINGTON August 18 1975 National Security Decision Memorandum 302 TO The Secretary of State The Secretary of Defense SUBJECT Panama Canal Treaty Negotiations · After considering the views expressed by the Departments of State and Defense concerning proposals for negotiating instructions on a new United States-Panama Canal Treaty I have decided to modify the negotiating instructions contained in NSDMs 131 and 115 and to supplement them as follows • -- The negotiators are authorized to propose to the Panamanians that the treaty duration applicable for defense be separated from its applicatio11 to operation of the Canal With regard to duration applicable to operation of the Canal the United States negotiators should seek to obtain the longest possible period to terminate not earlier than December 31 1999 With regard to duration applicable to defense of the Canal they should seek to obtain a minimum of 50 years but are authorized to recede to no less than 40 years They should also make efforts to obtain a right in principle for the United States to participate in Canal defense including a limited military presence in Panama following the expiration of the treaty period applicable to defense such participation to be of a nature and under terms to be agreed upon between the parties not less than one year prior to the treaty's expiration As a fallback if deemed necessary to achieve the objective of an extended period for Canal defense or other critical negotiating objectives the Negotiators may offer a reduction of the duration period applicable to Canal operation to a period of not less than 20 ye rs - - With regard to Canal expansion the United States Negotiators should seek to obtain the longest possible period up to the termination of United States responsibility for operation for a SEGRBAI' - XGDS 3 DECLASSIFIED E O 12958 SEC 3 5 ' r✓· 1·0· 'Q NSC MEMO 11 f2 98 STATE Of Pl GU S BY HARA DATE 4 o-i PHOTO COPY FROM GERALD FORD blBRAR I z United States option to exercise definitive and exclusive rights to expand the Canal's capacity whether by addition of a third lane of · locks or the construction of a sea-level canal As a fallback they may seek to obtain -- either in lieu of or in combination with definitive rig ht s - - commitments that a Panama w ill not permit the con tructio n oi a sea level canal in its territory during the period of linitcd States control of the existing Canal uriless it has tirst offc red to the tin it I St i l e s the option to construct st ch a canal That Oj t ion h odci b e under terms and conditions which would accord to the United States rights relating to operation and · defense commensurate v- ith the due protection and enjoyment of a United State s investment of t k i t ina nitude b no country other than the Unite d States or P ina ma s hall have r e sponsibility for operation and defense of an iflteroccanic canal in Panama and c the neutrality ua ran tee apµlicable to the cxbting Canal will pply to any new can 1 built in I anama -- With re g ard to l JI d l •_· - u · the L'ni t ed States Negotiato r s hould i L• k o obLi 1n P rn n- a' s arc-eptaoce or the United Sta t s off of Janu i ry b 19 7 modi fied by t h e addition of such of the follo w in reas as the Negotiators find necessary in order to further our objective Cristobal Piers - Lancl and itc r A rcas in Gatun Lake Fort Sherman jungle training area south or the 22nd grid Coco S o l o Fo r t Randolph and access to them via R a ndolph Road - Portions of the Albrook Clayton Training Areas IC agreement is not possible on the basis of these offers the United States Negotiators shou ld request further instructions from the President SECRET - XGDS PHO rocopy FROM GERALD FORD LIBR R 3 SEGRE' ' - XGDS -- With regard to the negotiating process the United States Negotiators should seek to obtain Panama 1 s agreement that the negotiations will remain confidential so that the Panama Canal issue will not be injected into the domestic political process in the United States in 1976 -- With regard to the resumption of negotiations the United States Negotiators should proceed promptly to continue their task -- With regard to the creation of a favorable national enviromnent for treaty ratification the Departments of State and Defense should join in regular consultations with the Congress on the course of treaty negotiations and should initiate an effort to build support for cc a new tr aty aA✓ · 1 The Chairman Joint Chiefs of Staff The Director of Central Intelligence The Chief Negotiator for the Panaina Canal Treaty -5E RET - XGDS PHd rocoPY FROM GERALD FORb LlBRARY r -t