article: SECTION 1. SHORT TITLE. This Act may be cited as the ``United States-Panama Security Act of 1997''. SEC. 2. FINDINGS. The Congress finds the following: (1) The United States secured the independence of the Republic of Panama, built the Panama Canal at considerable cost in blood and treasure, and has provided for its management, operations, maintenance, improvement, and defense throughout the 20th century, providing a vital service to the peaceful commerce of all nations as well as substantial returns to the national interests of both the United States and Panama. (2) The Panama Canal continues to play a vital role both in international trade and in the national security of the United States, reducing the distance by sea between New York and San Francisco by some 8,000 miles, contributing critical strategic mobility to naval forces of the United States and substantial savings to maritime commerce. (3) Absent any new base-rights agreement between the United States Government and the Government of the Republic of Panama allowing for a post-2000 United States military presence, United States forces in Panama will be reduced to zero by December 31, 1999, calling into question the ability of the United States to continue to protect its interests in the area. (4) The Roosevelt Corollary to the Monroe Doctrine proclaimed in 1904 that it was a national security concern of the United States when foreign powers attempted to use public or private investment as a vehicle for the expansion of political and military influence in the Western Hemisphere. (5) The recent grant to Hutchison Whampoa, a Chinese firm with ties to the Government of the People's Republic of China, of management control of the Panamanian ports of Balboa and San Cristobal, located at either end of the Panama Canal, has raised the specter of the expansion of Chinese political influence in Panama--a situation aggravated by unanswered questions concerning the methods used by the Chinese firm to win its bids. (6) In addition, Article V of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal, states that only the Republic of Panama shall maintain military forces, defense sites, and military installations in its national territory after December 31, 1999. SEC. 3. LIMITATION ON ASSISTANCE TO THE REPUBLIC OF PANAMA IF FORMER UNITED STATES MILITARY FACILITIES IN THE REPUBLIC OF PANAMA ARE CONVEYED TO ANY FOREIGN GOVERNMENT-OWNED ENTITY. (a) Limitation on United States Assistance.--United States assistance may not be provided to the Republic of Panama for any period of time beginning after the date of the enactment of this Act during which a defense site or military installation, that is located within the territory of the Republic of Panama and that was at any time part of a defense site or military installation built or formerly operated by the United States, has been conveyed by the Government of the Republic of Panama to any foreign government-owned entity. (b) Opposition to Assistance From International Financial Institutions.--The President shall instruct the United States representative to each international financial institution to which the United States is a member to use the voice and vote of the United States to oppose any loans or other forms of assistance from that institution to the Republic of Panama for any period of time during which the Government of the Republic of Panama is in violation of the requirements of subsection (a). SEC. 4. REPORTING REQUIREMENTS. (a) Report by the President.--Not later than 60 days after the date of the enactment of this Act, the President shall prepare and transmit to the Congress a report containing a description of how Hutchison Whampoa, a Chinese firm with ties to the Government of the People's Republic of China, was selected to receive a grant for management control of the Panamanian ports of Balboa and San Cristobal, located at either end of the Panama Canal, including whether or not the United States Government-- (1) had any information concerning the bid by Hutchison Whampoa to receive such grant; (2) provided adequate support to bids by United States firms for such grant; and (3) had any knowledge of ties that exist between Hutchison Whampoa and the Government of the People's Republic of China. (b) Report by the Secretary of Defense.--Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall prepare and submit to the Congress a report containing-- (1) a description of the extent to which the control of the ports San Cristobal and Balboa in the Republic of Panama by Hutchison Whampoa, a Chinese firm with ties to the Government of the People's Republic of China, poses a threat to the security of the United States; and (2) a description of how the strategic interests of the United States with respect to the Panama Canal will continue to be protected after the Government of the Republic of Panama assumes sole responsibility for the defense of the Canal and becomes the only entity entitled to have military forces, defense sites, or military installations in Panama after December 31, 1999. (c) Reports by the Director of Central Intelligence.--Not later than March 31 of each year, the Director of Central Intelligence, in cooperation with the heads of other appropriate Federal agencies, including the Director of the National Security Agency, the Director of the Federal Bureau of Investigation, the Secretary of Defense, the Secretary of the Treasury, the Secretary of Commerce and the Secretary of State, shall prepare and submit to the Congress a report, in both classified and unclassified form, on the intelligence activities of the People's Republic of China against or affecting United States interests in the Republic of Panama, including a description of-- (1) the extent of political, military, and economic espionage by the People's Republic of China; (2) the extent of intelligence activities by the People's Republic of China designed to gain political influence; (3) efforts by the People's Republic of China to gain direct or indirect influence through commercial or noncommercial intermediaries subject to control by the People's Republic of China, including enterprises controlled by the People's Liberation Army; and (4) disinformation or press manipulation directed against the United States. (d) Report by the Director of the Office of National Drug Control Policy.--Not later than 60 days after the date of the enactment of this Act, the Director of the Office of National Drug Control Policy shall prepare and submit to the Congress a report on the utility of maintaining a military presence in the Republic of Panama for interdicting illegal drugs. SEC. 5. RENEGOTIATION OF THE PANAMA CANAL TREATY. (a) Renegotiation of Existing Treaties; Negotiation of New Treaty.--The President is authorized and directed to confer with the Government of the Republic of Panama to renegotiate the terms of the Panama Canal Treaty and the Treaty Concerning the Neutrality and Operation of the Panama Canal, or to negotiate a new agreement to supersede the such Treaties, for the purpose of providing for the security of the Canal into the 21st Century. (b) Sense of the Congress.--It is the sense of the Congress that any negotiations conducted under subsection (a) should include the following: (1) A ban on foreign government investment in, or management of, the Panama Canal and related projects or other infrastructure projects related to transit across the isthmus of Panama or through Panamanian territory. (2) The right to a continuing United States military presence in Panama to actively cooperate with Panama in the defense of the Panama Canal. (3) A continuing United States presence in Panama to actively cooperate with Panama in the interdiction and eradication of illegal drug trafficking through the territory of Panama or adjacent areas. (4) The right to control or prohibit the use of the Panama Canal by hostile powers, terrorist states, or criminal groups, by redefining the terms of the 1977 Treaty Concerning the Neutrality and Operation of the Panama Canal to apply only to its peaceful, non-belligerent use by states or entities other than the United States and Panama. SEC. 6. DEFINITIONS. As used in this Act: (1) Panama canal treaty.--The term ``Panama Canal Treaty'' means the Panama Canal Treaty between the United States and the Republic of Panama, signed at Washington on September 7, 1977 (33 UST 39). (2) Treaty concerning the permanent neutrality and operation of the panama canal.--The term ``Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal'' means the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal between the United States and the Republic of Panama, signed at Washington on September 7, 1977 (33 UST 1). (3) United states assistance.--The term ``United States assistance means-- (A) assistance under part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)(including programs under title IV of chapter 2 of such part; relating to the Overseas Private Investment Corporation), except that such term does not include humanitarian assistance; (B) assistance under chapter 2 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2311 et seq.; relating to military assistance), including the transfer of excess defense articles under section 516 of such Act; (C) assistance under chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to international military education and training); (D) assistance under the ``Foreign Military Financing Program'' under section 23 of the Arms Export Control Act (22 U.S.C. 2763); (E) the transfer of defense articles, defense services, or defense and construction services under Arms Export Control Act (22 U.S.C. 2751 et seq.), including defense articles and defense services licensed or approved for export under section 38 of such Act; or (F) financing under the Export-Import Bank Act of 1945.
summary: United States-Panama Security Act of 1997 - Bars U.S. assistance to Panama during any period in which a defense site or military installation located in Panama that was at any time part of a site or installation built or formerly operated by the United States has been conveyed by the Government of Panama to any foreign government-owned entity. Directs the President to instruct the U.S. representatives to the international financial institutions to oppose any loans or other assistance to Panama during any such period. Requires the President to report to the Congress on how Hutchison Whampoa, a Chinese firm with ties to the Chinese Government, was selected to receive a grant for management control of the Panamanian ports of Balboa and San Cristobal. Directs the Secretary of Defense to report to the Congress on: (1) the extent to which the control of such ports by such firm poses a threat to U.S. security; and (2) how U.S. strategic interests with respect to the Panama Canal will continue to be protected after the Government of Panama assumes sole responsibility for the defense of the Canal and becomes the only entity entitled to have military forces, defense sites, or military installations in Panama after December 31, 1999. Requires: (1) the Director of Central Intelligence to report annually to the Congress on the intelligence activities of China against or affecting U.S. interests in Panama; and (2) the Director of the Office of National Drug Control Policy to report to the Congress on the utility of maintaining a military presence in Panama for interdicting illegal drugs. Authorizes and directs the President to confer with the Government of Panama to renegotiate the terms of the Panama Canal Treaty and the Treaty Concerning the Neutrality and Operation of the Panama Canal or to negotiate a new agreement to supersede such treaties. Expresses the sense of the Congress that any negotiations should include: (1) a ban on foreign government investment in or management of the Canal and related projects; (2) the right to a continued U.S. military presence in Panama and a continued presence to interdict and eradicate illegal drug trafficking through Panama; and (3) the right to control or prohibit the use of the Canal by hostile powers, terrorist states, or criminal groups by redefining the terms of the 1977 Treaty Concerning the Neutrality and Operation of the Panama Canal.