Security Positions 37. Underlying our personnel statistics is a concept that emanated from Congress under which certain positions within the Canal organization are designated as fillable only by U. S. citizens. With a view toward affording Panamanian citizens increased opportunity for upward mobility within the Canal organization, the number of such positions has been reduced over the years, and now stands at 567. 38. There are four categories of positions so designated: those required by law to be filled by U. S. citizens, such as my own position (6); those involving access to classified defense information (137); those essential to the protection of Government property, which are certain positions in the police and fire departments (158); and those considered necessary to assure continuity of Canal operations (266). 39 The concept of the continuity of operations nucleus assumes the need to operate on a short-range basis at a reduced level in the event the normal work force residing in the Panama were unable to report for work. postulates the continued availability of a relatively large number of U.S. citizen employees, even though they occupy positions not designated as security, and the support of Panamanian workers living in or temporarily in the Canal Zone. The overall rationale for all security positions is based on the existing situation and its approach would obviously require reevaluation in the event of a new treaty relationship with Panama. U. S. Citizen Turnover Rate It 40. Since February, 1974, when the announcement was made of the Joint Statement of Principles signed by Secretary of State Kissinger and Panamanian Foreign Minister Tack, for the negotiation of a new treaty, the Canal agencies have experienced an increased rate of resignations. In addition to the uncertainties resulting from the treaty negotiations, certain management decisions have caused U. S. citizens to perceive a general whittling away of their benefits. These include a necessary program of austerity measures along with other measures designed to ameliorate conditions which were perceived by our Panamanian employees as discriminatory. When compared to the period 1973-1975, the resignation rate among our U. S. citizen employees during 1976 was up 60%. The rate so far during 1977 is 49% over the comparable 1973-1975 base period. 41. The total number of resignations from January 1, 1974 to May 31, 1977 among U. S. citizens in permanent positions was 748, or an average of 18 per month. Although the number is not of such magnitude as to cause great concern, what we are concerned about is the trend--the fact that this could snowball and ultimately seriously affect our ability to perform the Canal's mission. 42. During this same period there were also 458 retirements of 94-468 - 77-6 certain hard-to-fill categories which do concern us, however, including Canal pilots, towboat and dredge masters and engineers, nurses, medical officers, machinists, electricians and some others. It takes an active program of recruitment within the United States to fill these positions. Recruitment problems have stemmed from the adverse publicity in the U.S. concerning the situation in the Canal Zone and the Republic of Panama. Prospective employees are wary in seeking employment with the Panama Canal when doubt exists as to the future security and tenure of the position and the conditions which might prevail under a new treaty. Nevertheless, to date we have managed to fill our essential requirements. 43. Of the total 1,206 vacancies over the 41 months since January 1, 1974, we have filled 1,039 of the positions with U. S. citizens; the difference is accounted for by reduced requirements, by some recruiting lag, and by the hiring of non-U.S. citizens. 44. The 15-point Paper on Employee Assurances To dispel some of the uncertainties about the treaty negotiations. the Secretary of the Army, with the concurrence of the U. S. treaty negotiators, authorized in March of this year the release to our employees of a 15-point list of assurances concerning employee rights that constituted the benefits and protections being sought for employees of the Canal enterprise. A copy of the 15-point paper is submitted for the record. 45.Employee response to the announcement has been cautious and reserved to date. They are generally appreciative for having been authoritatively informed; however, there is a general feeling that the assurances are inadequate and leave many questions unanswered. In June, at the invitation of the U. S. negotiators, Alfred J. Graham, a canal employee and union representative, was designated by the AFL-CIO to serve as the representative of organized labor to the U. S. negotiators. Poll on Continuing Employment 46. Because of the status and classified nature of treaty negotiations, the Company has had no valid basis on which it could poll or project how many workers would be willing to remain with the Canal operation under changed conditions resulting from a new treaty. The only known effort in this direction was an informal poll conducted in April, 1977 by the Canal Zone Civic Council, which is an organization of community representatives. Of the limited sampling of 285 U. S. citizens contacted, 62.8% said they would not consider remaining in the Canal area and working for the Canal organization if there were complete Panamanian jurisdiction. 47. Although this survey may not be a true measure of employee intentions, it is certainly a measure of their apprehensions. As such, it confirms the need for an extremely high degree of attention in the treaty negotiation process to the problem of retention of necessary U. S. citizen personnel. 48. Demonstrations, Acts of Violence, and Illegal Intrusions into the Zone Periodic demonstrations, acts of violence and illegal intrusions into the Canal Zone have been a factor contributing to employee apprehensions. During the past two years there have been several public demonstrations by Panamanians against the United States and the Canal Zone and its residents, ranging from gatherings of a few dozen persons to major concentrations of students as occurred most recently on June 6 of this year. For the sake of brevity, I will refer only to the more significant of these demonstrations. By way of introduction, let me point out that the Panama National Guard, which I will mention here, serves both as the military force and the national police force for the Republic. Events of January 9, 1977 49. On January 9, 1977, the anniversary of the 1964 riots on the Canal Zone border, the radio and TV stations in Panama began broadcasting reenactments of events leading up to and occurring during those riots. A group of approximately 125 persons who were enroute to a cemetery near the border where memorial services were to be held, and who were under escort by motorcycle officers of the Traffic Section of the Panama National Guard, diverted from their route of march and crossed the boundary into the Canal Zone. Initial attempts by Canal Zone police to enlist the assistance of the National Guard in diverting the students back into Panama to avoid a confrontation were unsuccessful. The group planted several Panamanian flags, burned a U. S. flag and reentered Panama across Fourth of July Avenue. Events of June 6, 1977 50. On June 6, 1977, about 1,000 Panamanian student demonstrators gathered in the area of the Legislative Palace and then moved into Shaler Triangle in the Canal Zone. The students, in the presence of National Guard personnel, painted anti-U.S. slogans on walls in the area, removed the U.S. flag from its pole and raised a Panamanian flag in its place. The American flag was returned to Canal Zone authorities by members of the National Guard later that morning in a severely torn and damaged condition. On the Atlantic side, a group of about 300 Panamanian students marched into the Canal Zone and prevented the Panama Railroad train from leaving the station at Cristobal. While several students lay across the railroad tracks, others painted anti-U.S. slogans on the engine and several passenger cars. One contingent of demonstrators attempted to set fire to the railroad ties by igniting large pieces of cardboard and other paper materials which they had been carrying. Canal Zone fire units were able to extinguish the fire without further incident. 51. As a result of the seriousness of events involving the public desecration of the United States flag and the potential such actions hold for more serious confrontations leading to major eruptions of violence, formal diplomatic protests were lodged with the Panamanian Government for both the January 9 and June 6 incidents. Acts of Violence 52. With respect to acts of violence, between October 26 and November 1, 1976 several explosions occurred in the Canal Zone which resuled in damage to personal and Government property. There were three simultaneous bomb explosions on the Atlantic side at the Coco Solo Hospital parking lot and three separate explosions on the Pacific side, one of which cannot with certainty be attributed to a bomb. Although there were no personal injuries sustained in any of the incidents, four automobiles were destroyed and several others damaged. In addition, two buildings, including Coco Solo Hospital, were damaged. The property destroyed or damaged is appraised at $36,000, including $14,000 of Government property. One of the automobiles belonged to William Drummond, President of the local police union and an outspoken opponent of treaty negotiations. 53. Because of the seriousness of the situation, the Canal Zone police were assigned to 12-hour shifts and additional security coverage was provided at vital installations by military forces. No further incidents occurred and the emergency measures were lifted by mid-December. The additional costs of the emergency security measures, principally for overtime pay, amounted to $413,500. Illegal Intrusions into the Canal Zone 54. Since January 1, 1976, there have been many intrusions into the Canal Zone by members of the Panama National Guard, of which I will mention but a few. 55. On May 23, 1976, a Panama National Guard vessel fired upon, boarded and seized the United States registered yacht SEA WOLF. The incident occurred well within Canal Zone waters at a point approximately one-quarter mile outside the breakwater at Cristobal. The National Guard vessel, at the time of the incident, was unlighted and the yacht SEA WOLF's wheel-house was hit by a number of bullets fired from automatic weapons. The National Guard personnel searched the crew, confiscated two handguns, and sailed the vessel into Panama waters at Colon. The yacht was eventually released after having posted a bond with Panamanian judicial authorities. An official protest was made to the Panamanian Government. M 22 56. On July 10, 1976, a Panama National Guardsman appeared at the Panama Railroad ticket office in the Canal Zone and arrested a Canal Zone employee of that office on a non-support charge filed in Panama. The employee was driven away from his place of employment in a National Guard vehicle. The incident was not brought to the attention of the Canal Zone authorities until two days later. 57. On January 4, 1976, two National Guard privates operating in plain clothes in the Canal Zone shot in the foot a Panamanian national suspected of smoking marijuana. The incident occurred in the Venado Beach area on the west side of the Canal's Pacific entrance. The two National Guard privates stated that they had been directed to patrol the area by their immediate superior. The patrols were unknown to and unauthorized by United States officials. Violations of Rights of U. S. Citizens 58. Agreements with the Republic of Panama implementing various treaty arrangements provide U. S. citizens on the Isthmus certain rights of freedom of movement. One such agreement concerns the freedom of U. S. citizens who are the immigration responsibility of the Canal Zone to depart from Tocumen Airport in Panama without restriction. On February 11, 1977, Officer William Drummond, who was preparing to depart Tocumen Airport for Washington on union business, was detained by Panamanian authorities. Although the authorities maintained he was not under arrest, he was taken to National Guard Headquarters and questioned for 2-1/2 hours, allegedly in reference to the previously mentioned bombing incident in which his car was damaged. 59. The following day Mr. Drummond returned to Tocumen Airport, and was again detained briefly at planeside but was allowed to depart without further incident. However, several acquaintances who accompanied him to the airport were themselves subsequently detained and questioned for about half an hour. One of the members of this group had film from his camera confiscated by Panamanian officials. The entire incident was formally protested to the Panamanian Government. |