News Release The Conservative Caucus, Inc.

Two news statements given by Howard Phillips, Chairman of The Conservative Caucus, in Panama City, Panama on December 14, 1999
SECOND STATEMENT IS ON THIS SAME PAGE

HOLD FOR RELEASE TUESDAY, DECEMBER 14, 1999  9:00 AM
For further information, please contact Charles Orndorff at 703-938-9626

Howard Phillips, Chairman of The Conservative Caucus, the grassroots lobbying organization which led the campaign against the 1978 Carter-Torrijos Panama Canal treaties told a news conference in Panama City this morning:

"We have come here today to express the solidarity of millions of Americans with the overwhelming majority of the Panamanian people who recognize that it is in the common interest of both our countries to restore a U.S. military presence in Panama which will help deter and defeat physical threats to the Panama Canal.

"An ounce of prevention is worth a pound of cure. It is not enough to say that U.S. forces can be re-introduced once a threat has been perceived and the canal has been disabled," Phillips said.

"For example, were there to be a successful act of terrorism at Gatun, the canal could be closed for as long as three years, no matter how many troops might be introduced after the fact. Such an eventuality would be a tragedy for commercial interests throughout the world, and a particular problem for the economy of Panama, even more than that of the United States.

"From a military standpoint, closure of the canal would gravely undermine America's military capabilities worldwide," Phillips added.

"The people of Panama are no less honest and God-fearing than the people of the United States of America. In both countries, hard working citizens are revulsed and disgusted by examples of corruption and bribery. Clearly the contract awarding Hutchison Whampoa control of Balboa and Cristobal was corruptly concluded.

"It is in the best interests of Panama and the United States to revoke this corrupt contract and to reopen negotiations in such a manner that the process will be transparent and the result will be accepted as just by all concerned.

"To this end, Larry Klayman, the founder of Judicial Watch, and I, as Chairman of The Conservative Caucus, will work with officials of the U.S. government to encourage the government of Panama to revoke the Hutchison Whampoa contract and reopen the bidding process."

"In the same vein, we are ready to explore with citizens of Panama and members of the Panamanian legislature opportunities to review and revoke this contract in the courts of Panama as well as by legislation or executive decision.

"Finally, in order to facilitate negotiation of an arrangement whereby the governments of Panama and the United States would agree to the reintroduction of a U.S. military presence to assure defense of the canal, we are prepared to work in the United States for the appropriation of funds which would make it economically advantageous to Panama to participate in such an arrangement, just as it will be economically advantageous to the United States not to have to fully replicate in other venues the kinds of facilities and strategic resources which have been temporarily abandoned in Panama.

"It is less expensive for the United States, and, indeed, it is more just, for us to pay reasonable leasing fees to the Republic of Panama than to expend hundreds of millions of dollars on alternative arrangements in such places as Ecuador, Belize, Aruba, Curacao, and Costa Rica, as well as Hawaii, Puerto Rico, and Florida.

"It is, moreover, our position that once such arrangements for joint military activity have been concluded in a way mutually satisfactory to the people of Panama and the United States, the United States Congress should appropriate necessary funds to restore facilities, firing ranges, and other facilities in the former Canal Zone to a level of safety which will satisfy the just demands of the people of Panama.

"Our purpose in coming today is to help lay the groundwork for a mutually secure future for all the peoples of Panama, the United States, and the entire Western Hemisphere."

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HOLD FOR RELEASE TUESDAY, DECEMBER 14, 1999  9:00 AM AT PANAMA CITY

STATEMENT OF HOWARD PHILLIPS, CHAIRMAN, THE CONSERVATIVE CAUCUS
For further information, please contact Charles Orndorff at 703-938-9626

 HUTCHISON WHAMPOA CONTRACT SHOULD BE REVOKED

The Conservative Caucus (TCC), founded in 1974, is a nationwide, non-partisan, grass-roots policy action organization which, during three decades, has worked to advance policies to defend the vital national security and geostrategic interests of the United States.

During 1977 and 1978, TCC led a nationwide campaign in opposition to the Jimmy Carter-Howard Baker-Sol Linowitz-Omar Torrijos Panama Canal treaties.

I personally traveled to every one of the 50 states, organizing rallies, building coalitions, and communicating information about risks to U.S. vital interests implicit in the 1977 treaties.

We participated in literally hundreds of newspaper, TV, and radio interviews, while directly contacting millions of Americans by telephone, in the mail, and in person.

Although we fell two votes short of blocking ratification of the treaties in the U.S. Senate, TCC's efforts played an important part in the defeat and retirement from office of many Senators who had voted in favor of the surrender of the U.S. Canal and Zone at Panama.

During the presidencies of Ronald Reagan, George Bush, and Bill Clinton, TCC has persistently urged the Executive Branch and the Congress to take action to prevent a political vacuum from being created by the withdrawal of U.S. forces from Panama.

For example, we have repeatedly called on the U.S. government to negotiate an arrangement with the government of Panama wherein U.S. base rights would be preserved and U.S. forces continue to serve in Panama.

The isthmus of Panama, at the belt buckle of the Western Hemisphere, is one of the most geostrategically crucial chokepoints in the world. It connects North and South America, as well as the Atlantic and Pacific Oceans. Significant U.S. assets in Panama contributed to the security of the entire hemisphere, as well as the defense of the Panama Canal in particular.

The Jungle Operation Training Base at Fort Sherman was of great value in preparing some 7,800 personnel annually in an environment which is climatologically and topographically unique.

Intelligence resources at Galeta Island and elsewhere at the isthmus not only enhanced America's advantages in time of military conflict, they have also helped thwart terrorists, guerrillas, and drug smugglers.

Howard Air Force, Rodman Naval Station, and other facilities have played an important part in deterring hostile action in the Caribbean, in Central America, and throughout Latin America.

At a time when America's naval capabilities have been sharply reduced, the near certainty that vessels could be rapidly transferred between the Atlantic and Pacific Oceans has been an incalculable asset in times of war and at times when war has been a looming possibility.

Tragically, America's leaders in Congress and at the White House have been blind to these dangers and have failed to avail themselves of opportunities to assure a continued U.S. military presence in Panama.

I know, from first-hand conversations with former Panamanian Presidents Guillermo Endara and Ernesto Peréz Balladares, that it was possible, during the Bush and Clinton Administrations, to work out arrangements which would be beneficial to the interests of both Panama and the United States.

Unfortunately, the desire and the willingness of Panamanian leaders to cooperate with the United States to this end were rebuffed by President Bush, President Clinton, National Security Adviser Brent Scowcroft, General Colin Powell, and others.

Now, U.S. forces have been withdrawn, U.S. bases have been closed, and a geostrategic vacuum has been created which constitutes a target of opportunity for regimes hostile to the principles of liberty revered by most citizens of the United States of America and the Republic of Panama alike.

The concerns shared by many U.S. citizens about the control of Balboa and Cristobal by Hutchison Whampoa are well founded, as are similar concerns about growing Communist Chinese economic influence in Panama.

We have come here today to express the solidarity of millions of Americans with the overwhelming majority of the Panamanian people who recognize that it is in the common interest of both our countries to restore a U.S. military presence in Panama which will help deter and defeat physical threats to the Panama Canal.

An ounce of prevention is worth a pound of cure. It is not enough to say that U.S. forces can be re-introduced once a threat has been perceived and the canal has been disabled.

For example, were there to be a successful act of terrorism at Gatun, the canal could be closed for as long as three years, no matter how many troops might be introduced after the fact. Such an eventuality would be a tragedy for commercial interests throughout the world, and a particular problem for the economy of Panama, even more than that of the United States.

From a military standpoint, closure of the canal would gravely undermine America's military capabilities worldwide.

The people of Panama are no less honest and God-fearing than the people of the United States of America. In both countries, hard working citizens are revulsed and disgusted by examples of corruption and bribery. Clearly the contract awarding Hutchison Whampoa control of Balboa and Cristobal was corruptly concluded.

It is widely understood, and cannot be disproven, that the bidding process was altered in mid-course in order to achieve a particular result favoring a company which had worked out a special relationship with politically powerful elements in the government of Panama.

It is in the best interests of Panama and the United States to revoke this corrupt contract and to reopen negotiations in such a manner that the process will be transparent and the result will be accepted as just by all concerned.

To this end, Larry Klayman, the founder of Judicial Watch, and I, as Chairman of The Conservative Caucus, will work with officials of the U.S. government to encourage the government of Panama to revoke the Hutchison Whampoa contract and reopen the bidding process.

In the same vein, we are ready to explore with citizens of Panama and members of the Panamanian legislature opportunities to review and revoke this contract in the courts of Panama as well as by legislation or executive decision.

Finally, in order to facilitate negotiation of an arrangement whereby the governments of Panama and the United States would agree to the reintroduction of a U.S. military presence to assure defense of the canal, we are prepared to work in the United States for the appropriation of funds which would make it economically advantageous to Panama to participate in such an arrangement, just as it will be economically advantageous to the United States not to have to fully replicate in other venues the kinds of facilities and strategic resources which have been temporarily abandoned in Panama.

It is less expensive for the United States, and, indeed, it is more just, for us to pay reasonable leasing fees to the Republic of Panama than to expend hundreds of millions of dollars on alternative arrangements in such places as Ecuador, Belize, Aruba, Curacao, and Costa Rica, as well as Hawaii, Puerto Rico, and Florida.

It is, moreover, our position that once such arrangements for joint military activity have been concluded in a way mutually satisfactory to the people of Panama and the United States, the United States Congress should appropriate necessary funds to restore facilities, firing ranges, and other facilities in the former Canal Zone to a level of safety which will satisfy the just demands of the people of Panama.

Our purpose in coming today is to help lay the groundwork for a mutually secure future for all the peoples of Panama, the United States, and the entire Western Hemisphere.

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