MERCHANT MARINE AND FISHERIES
HOUSE OF REPRESENTATIVES

NINETY-FIFTH CONGRESS

FIRST SESSION

ON

THE ECONOMIC AND FINANCIAL RAMIFICATIONS OF THE
PROPOSED PANAMA CANAL TREATIES AND THE ROLE THE
SUBCOMMITTEE WOULD PLAY IN IMPLEMENTING THE

TREATIES

APPENDICES A THROUGH J

INTERNATIONAL BANKING INTERESTS RELATING TO PANAMA, AND OTHER TREATY-RELATED

STANFORDATTER

NOVEMBER 30, DECEMBER 1 19

า

Serial No. 95-2

GOV'T

DOC

IVERSITY

FEB 1979

Printed for the use of the Committee on Merchant MarineMNTFISKE, NTIME

25-605

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1978

COMMITTEE ON MERCHANT MARINE AND FISHERIES

JOHN M. MURPHY, New York, Chairman

TERRENCE W. MODGLIN, Professional Staff
COLEMAN CONROY, Professional Staff
BERNARD TANNENBAUM, Consultant

W. MERRILL WHITMAN, Consultant

NICHOLAS T. NONNENMACHER, Professional Staff, Minority

CONTENTS

Opening statement of Mr. Snyder, November 30, 1977--

Subcommittee note: A report entitled, "International Debt, the
Banks, and U.S. Foreign Policy," was issued in August 1977 by Sen-
ator Frank Church, chairman, Subcommittee on Foreign Economic
Policy, Senate Committee on Foreign Relations. Mr. Snyder's state-
ment referred at some length to that report, and is reprinted here as
background for his questions.

Appendix A: Questions of Mr. Snyder on various treaty-related matters for:
I. Governor of the Canal Zone__

II. Secretary of the Army---

Appendix B: December 30, 1977, response of the Department of Treasury
to Mr. Snyder's questions on "International Banking Interests Relat-
ing to Panama" based on the following items:

I. Article by Cheryl Payer, Bankers magazine, spring 1977, "Will
the Government Have to Bail Out the Banks?"
II. Article by Sidney Wise, The Times of London, April 25, 1977,
"Freedom Proves Lure To The Big Banks".

11

14

III. Article by Paul A. Fisher, Twin Circle, October 9, 1977,
"Panama Canal Treaty: A Money Deal-But Not For You"-
IV. Letter of Leopoldo Aragon to President Carter, August 28,
1977

V. Article by Desmond Wettern, London Daily Telegraph,
March 3, 1977, "Britain Once Ruled Sea and So Must
Approve Panama Transfer".

VI. Article by Hobart Rowen, Washington Post, December 14,
1976, "Other Nations' Debts May Plague U.S."
VII. Memorandum of Nicolas Arditto Barletta, Planification
Minister of Panama, 1976..

VIII. Article by H. J. Maidenberg, New York Times, February 5,
1974, "The Gnomes of Panama are Creating A Mushroom-
ing 'Latindollar' Market".

63

74

74

95

105

106

IX. Article by Murray N. Rothbard, Inquiry, December 5, 1977,
"The Treaty That Wall Street Wrote".

108

X. Agreed Minute to proposed Panama Canal Treaty.
XI. Article in Wall Street Journal, May 5, 1977-
XII. Article in West Watch, November 1977__

118

118

120

Appendix C: January 20, 1978, followup response of the Department of
Treasury with further answers to Mr. Snyder's questions based on:

II. The Times of London__.

Appendix D: February 27, 1978, second followup response of the Depart-
ment of Treasury with further answers to Mr. Snyder's questions
based on:

V. Daily Telegraph_

VIII. New York Times.

XII. West Watch...

123

124

124

125

208

207

207

March 17, 1978, third followup response of the Department of Treasury
with further answers to Mr. Snyder's questions based on:
XII. West Watch___.

Appendix E: January 30, 1978, response of the Department of State to
Mr. Snyder's questions on "International Banking Interests Relating to
Panama," based on the following items, and to other questions on
various treaty-related matters:

I. Editorial by Charles Bartlett, Washington Star, February 25,
1977, "Why Some Panamanians Are In No Rush On
Canal".