Through the military assistance program, the United States has provided training and equipment to improve the responsiveness and capability of selected units. The provision of vehicles and communications equipment has contributed significantly to this improvement. In some cases, where the threat has warranted and the resources of the country have been inadequate, the assistance program has included helicopters, unsophisticated aircraft, and small boats for coastal and river patrol missions. Engineer equipment and training has supported civic action projects that have been instrumental in reducing the opportunities for guerrillas to develop secure operating areas. The military assistance program has been progressively reduced as the capabilities of recipient countries have improved. From a peak of $82.8 million in 1966 (which included expenses of the Dominican operation) the total value of materiel and training for the 17 recipient countries dropped to less than $20 million in FY70 and is currently programmed at $16 million for FY71. Ten million of this amount is devoted to the military assistance training program. The "Big Five" of South America (Argentina, Brazil. Chile, Peru and Venezuela) have received no new materiel assistance since FY68, and the $5 million in grant materiel programmed for the 11 remaining countries in FY71 is almost entirely devoted to follow-on support to assist with the maintenance of equipment already provided. The present scale of the program is marginal for the achievement of our military assistance objectives. [Security deletion.] It thus contributes to one of its essential objectives which is to preclude the diversion of scarce national resources-and foreign exchange-from socio-economic purposes to counterinsurgency operations. Another important element in our support of the security of Latin American countries is the military advisor. We maintain advisory groups in 17 Latin American countries, including the Dominican Republic. These advisors are essential to the smooth integration of military assistance into the country team effort. Advisory efforts and military assistance are mutually supporting. For example, the substantial strength and effectiveness of the civil action program in some countries has been developed because our advisors have convinced the host government of the value of the program and then have been able to provide impetus through materiel and training assistance. As a matter of particular interest to this subcommittee, I should like to emphasize that one of the most effective surveillance systems that can be employed against infiltration and resupply of guerrillas or agents from Cuba or other outside sources is a loyal population in the target area. [Security deletion.] The military efforts that I have been describing are categorized under the label of internal security, although they deal with internal problems that are in part the product of external communist stimulation. I will now discuss some activities that are directly related to the protection of countries in the Caribbean basin and Latin America from the threat of Cuban infiltration or attack. To improve the effectiveness of the Latin American military forces and to reduce deep rooted nationalism and rivalries among the countries, we have continued to encourage inter-service and regional cooperation. A first step was the establishment of Joint Operations Centers and support facilities for the command and control of such operations. Centers have been established in Colombia, Venezuela and Honduras. Other nations have embraced the concept in varying degrees commensurate with their own individual requirement and capabilities. USSOUTHCOM supported joint and combined training exercises, such as the annual Caribbean surveillance and intercept exercise HALCON VISTA (in English, Hawk's View) have greatly contributed to increasing the effectiveness of the Armed Forces of the participating nations, and, most important, have promoted regional coordination and cooperation. As a result of HALCON VISTA, standard surveillance/intercept procedures have been adopted by the Central American countries and Colombia and Venezuela. Additionally, as a result of combined exercises, a greater understanding and rapport have developed among the participants, doing much to counter conflicts and jealousy of long standing. Progress has been made in the establishment of regional organizations and activities which are in consonance with the interest of section 507(b) of the Foreign Assistance Act. The Central American Defense Council (CONDECA), despite the impact of the El Salvador/Honduras conflict, continues to show promise as a viable regional organization. CONDECA's day-to-day activities are conducted by its Permanent Commission (COPECODECA) located in Guatemala City. CONDECA has established a voice communications net linking COPECODECA with the Ministers of Defense of each of the member nations and Panama. Further, with USSOUTHCOM assistance, it has successfully planned and conducted three surveillance/intercept exercises, three counter-insurgency oriented exercises, and is presently engaged in planning its fourth surveillance/ intercept exercise to be conducted this September. It is a pleasure to report that we have almost worked ourselves out of having to assist COPECODECA in planning these exercises, as personnel of its staff are becoming increasingly competent. We have encouraged and supported regional conferences and seminars to consider ways and means by which Latin American security forces can improve their capabilities in such fields as intelligence, law, medicine, and communications. An example is the establishment, in early 1970, of the Permanent Commission of Inter-American Military Communications (COPECOMI). The purpose of COPECOMI is to coordinate communications matters among the armies of the American Republics and to establish a communications network connecting their respective headquarters. Another highly effective means which has done much to promote regional cooperation, camaraderie and at the same time reduce existing animosities among the Latin American military is through the military school system in the Canal Zone. The U.S. Army School of the Americas, the Inter-American Air Forces Academy and the Small Craft Inspection and Training Team give instruction in Spanish, enabling us to reach thousands of outstanding students who are not able to speak English. These schools provide many technical skills needed in the internal development of Latin American countries. SUMMARY In closing, I think that the countries of Latin America generally have made substantial progress in recent years in coping with their problems of internal security and the threats of indirect communist aggression. We have contributed significantly to this progress through the military assistance program, advisory activities, and joint exercises. The most important product of this success has been an atmosphere in which the economic and social progress that is so desperately needed could take place with relative freedom from the disruption and strife of terrorist tactics. In all the years of the Alliance for Progress, the funds that the Congress has approved for military assistance in Latin America have amounted to about six percent of those approved for economic assistance. I am convinced that this has been a wise premium to have paid, and I believe that the officers and men who have served in our military missions during this period can take pride in the fact that some analysts are able to conclude that the communist threat has subsided. They have worked diligently to see that it did subside. I recognize that my treatment of the current issues affecting the Panama Canal and the Canal Zone has been brief. I welcome the opportunity to respond to your questions concerning specific interests of the subcommittee on this topic. Thank you. Mr. FASCELL. We will next hear from General Leber. MAJOR GENERAL WALTER P. LEBER Maj. Gen. Walter P. Leber, U.S. Army, was born in 1918, and is a native of St. Louis, Missouri. A graduate of the Missouri School of Mines, he was commissioned in the Army Reserve in 1940 and in the Regular Army in 1942. Called to active duty in 1941 he served in the European Theater of Operations during World War II. In 1946 he was assigned to the Manhattan District, Oak Ridge, Tenn., as Chief, X-10 Project; from 1947 to 1949 he served as Chief, Technical Branch, Military Liaison Committee to the Atomic Energy Commission, in Washington, D.C. In 1949-1950 he served in the North Pacific Division of the Corps of Engineers in Seattle and Walla Walla, Washington, then moved to Fort Sill, Oklahoma. first as Engineer Battalion Commander and then Group Commander. From 1952 to 1955 General Leber was assigned to the Department of the Army General Staff in Washington, D.C. He then attended the Command and General Staff College at Fort Leavenworth, Kansas. From 1956 to 1957 he was with the Eighth U.S. Army in Korea, first as Deputy Engineer, then as Commanding Officer, 2nd Engineer Group. In 1958-1961 he served as Executive Officer to the Chief of Engineers in Washington, D.C. From June 1961 to April 1963 General Leber was in Panama as Lieutenant Governor of the Canal Zone and Vice President of the Panama Canal Company. In April 1963 he was assigned as Ohio River Division Engineer for the Army Corps of Engineers, with headquarters in Cincinnati, Ohio. In July 1966 General Leber became Director of Civil Works, Office of the Chief of Engineers, Washington, D.C., assuming his present post as Governor of the Canal Zone in February, 1967. General Leber's awards and medals include the Legion of Merit (with 2 Oak leaf clusters), Bronze Star Medal, and Army Commendation Medal (with Oak Leaf Cluster). STATEMENT OF MAJ. GEN. WALTER P. LEBER, U.S. ARMY, GOVERNOR OF THE CANAL ZONE General LEBER. It is a pleasure to be here this morning. Mr. Chairman and members of the committee, I am Maj. Gen. Walter P. Leber, Governor of the Canal Zone and President of the Panama Canal Company. I was appointed Governor February 21, 1967. It is a pleasure to appear before you today for a discussion of the Panama Canal. THE PANAMA CANAL AND CANAL ZONE 2. The Panama Canal is a lock canal 51.2 miles long from deep water in the Caribbean Sea to deep water in the Pacific Ocean. Pursuant to treaty with the Republic of Panama, the United States constructed the canal during the period 1904 to 1914, and has operated, maintained, and defended the canal continuously since the inaugural day, August 15, 1914. 3. The canal lies generally in the center of the Canal Zone, located 9 degrees north of the equator, which bisects the Republic of Panama and is under the jurisdiction and control of the United States pursuant to treaty. The Canal Zone extends generally 5 miles on each side of the Panama Canal, covering an area of 558 square miles, exclusive of tidal waters. Its population in 1970, including uniformed personnel of the Armed Forces, was about 45,000. 4. Residence in the Canal Zone is restricted by treaty to persons connected with the operation, maintenance, and defense of the Panama Canal. There is no private ownership of land. Facilities, except for a few belonging to oil and steamship companies and agents, churches, and employee organizations, are owned and operated by the U.S. Government. The residents of the Canal Zone, therefore, are mainly employees of the U.S. Government or members of the Armed Forces of the United States, and their dependents. ORGANIZATION 5. The Panama Canal enterprise is divided into two agencies, both closely related in purpose, organization, and operation." govern 6. The Canal Zone Government is responsible for all civil ment functions in the Zone. The Panama Canal Company is concerned with operation of the waterway and supporting installations. 7. Both agencies are under the direction of the Governor, who is charged with administration of the Canal Zone Government and is "ex officio" a director and President of the Panama Canal Company. 8. The Company is required by law to recover all costs of operation and maintenance, including depreciation. It also is required to pay interest to the U.S. Treasury on the net direct investment of the U.S. Government in the Company. The Treasury is reimbursed by the Company for annuity payments to the Republic of Panama under the 1936 treaty. Also reimbursed is the net cost of operating the Canal Zone Government, including depreciation of fixed assets. 9. The Canal Zone Government operates on annual gross appropriations from Congress. All revenues of the Canal Zone Government are returned to the Treasury. The net balance of the cost of the Canal Zone Government is then paid to the U.S. Treasury by the Panama Canal Company which operates from its own revenues. This system makes the entire canal enterprise self-sustaining. 10. The Panama Canal enterprise employs about 16,000 peoplenearly 12,000 Panamanians and about 4,000 U.S. citizens. SECURITY OF THE CANAL ZONE 11. The responsibility and authority of the Governor of the Canal Zone with reference to internal security or civil protection of the Canal Zone are prescribed by law and Executive order. The basic relevant provisions of the Canal Zone Code, enacted by the Congress of the United States, are sections 31-35 of title 2 which provide as follows: "Sec. 31. Canal Zone Government; administration and functions generally "The Canal Zone Government, an independent agency of the United States, shall: "(1) be administered, under the supervision of the President or such officer of the United States as may be designated by him, by a Governor of the Canal Zone; and “(2) be charged, except as otherwise provided by law, with the performance of the various duties connected with the civil government, including health, sanitation, and protection, of the Canal Zone. 76A Stat. 7. "Sec. 32. Appointment and term of Governor "The President, by and with the advice and consent of the Senate, shall appoint the Governor of the Canal Zone. The Governor shall hold office for a term of four years and until his successor is appointed and has qualified. 76A Stat. 7. "Sec. 33. General powers and duties of Governor "The Governor of the Canal Zone shall: (1) have official control and jurisdiction over the Canal Zone; and (2) perform all duties in connection with the civil government of the Canal Zone, which is to be held, treated and governed as an adjunct of the Canal. 76A Stat. 7. "Sec. 34. Army control in time of war or imminence of war "In time of war in which the United States is engaged, or when, in the opinion of the President, war is imminent, such officer of the Army as the President may designate shall, upon order of the President, assume and have exclusive authority and jurisdiction over the operation of the Panama Canal and all its adjuncts. appendants and appurtenances, including the entire control and government of the Canal Zone. During a continuation of this condition, the Governor of the Canal Zone shall be subject to the order and direction of the officer so appointed, in all respects and particulars as to : "(1) the operation of the Canal; and "(2) all duties, matters and transactions affecting the Canal Zone, 76A Stat. 8. "Sec. 35. Assistance of Armed Forces "The Governor of the Canal Zone may call upon the Commander of the Armed Forces of the United States in the Canal Zone for military assistance, whenever the Governor deems the assistance of the Armed Forces necessary to: "(1) protect the Canal Zone; "(2) preserve the peace: "(3) quell or disperse routs or riots; or "(4) disperse unlawful assemblies. 76A Stat. 8." 12. During World Wars I and II, the provisions of section 34 quoted above were activated by Presidential Executive order and the senior Army official, now known as the Commander in Chief, U.S. Southern Command, assumed the control and government of the Canal Zone. Except for those periods, the Governor is responsible for the internal security and civil protection of the canal and Canal Zone as distinguished from military security, protection and defense (35 Code of Federal Regulations 3.22). 13. The Canal Zone Government's principal civil protection force is the Canal Zone Police, numbering about 265 men, and an additional guard force of about 100 men employed in the security of the Panama Canal locks, piers, and the two dams. These forces perform all the usual civil law enforcement functions in civilian area of the Canal Zone pursuant to the Canal Zone Code and other laws enacted by the Congress for application in the Canal Zone. Among such other laws, for example, is section 191 of title 50 of the United States Code, pursuant to which the President has delegated to the Governor or the Canal Zone the authority and responsibilities provided by that law for the safeguarding of vessels, harbors, ports, and waterfront facilities in the Canal Zone (35 CFR Part 129). 14. The Canal Zone Police, in the performance of their ordinary police functions, work closely with the military police attached to the various military posts in the Canal Zone and also are in daily liaison with the Guardia Nacional of the Republic of Panama, which is that country's police force and military force combined. 15. To react to and control civil disturbances in the Canal Zone, specifically riots or demonstrations originating in Panama and directed at the Canal Zone at the open boundaries between the two jurisdictions, the Canal Zone Government and Panama Canal Company have a civil disturbance plan which is coordinated with and concurred in by the Commander in Chief, U.S. Southern Command. Under this plan, civil disturbances are controlled by the Canal Zone Police to the extent of that force's capability, with such cooperation as can be obtained in the specific circumstances from the Panamanian Guardia Nacional. If the disturbance is of such nature and magnitude as to threaten injury to persons or property in the Canal Zone beyond the protection capability of the limited Canal Zone Police force, the plan provides for the Governor of the Canal Zone to obtain such military assistance as is necessary pursuant to section 35 of title 2 of the Canal Zone Code, quoted above. Pursuant to this plan, full assistance of the military was sought and obtained by the Governor in disturbances in 1959 and 1964, for example. Under the plan, the civil and military authorities coordinate and cooperate fully and adopt various alert postures as required by circumstances whenever from time to time a situation requires such action. 16. In addition to daily close working relationships between military and civilian authorities, the Governor of the Canal Zone, the Commander in Chief, U.S. Southern Command, and the American Ambassador to Panama meet formally on a regular weekly schedule, and at other times on special call, to discuss and coordinate fully all aspects of their mutual responsibilities, plans, and activities bearing upon the canal and Canal Zone and relations with the Republic of Panama. |