Group Title: Panama Canal spillway : el Canal de Panamá spillway
Title: The Panama Canal spillway =
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00094771/01161
 Material Information
Title: The Panama Canal spillway = el Canal de Panamá spillway
Alternate Title: Spillway
Canal de Panamá Spillway
Spillway del Canal de Panamá
Physical Description: 37 v. : ill. ; 43 cm.
Language: English
Creator: Canal Zone
Canal Zone
Panama Canal Company
United States -- Panama Canal Commission
United States
Publisher: Panama Canal
Place of Publication: Balboa Hights C.Z
Balboa Hights, C.Z
Publication Date: March 10, 1978
Frequency: biweekly[jan. 6, 1984-1999]
weekly[ former -dec. 23, 1983]
biweekly
regular
 Subjects
Subjects / Keywords: Periodicals -- Canal Zone   ( lcsh )
Periodicals -- Panama Canal (Panama)   ( lcsh )
Genre: federal government publication   ( marcgt )
periodical   ( marcgt )
 Notes
Language: Text in English and Spanish; Spanish text inverted.
Dates or Sequential Designation: Vol. 1, no. 33 (Feb. 1, 1963)-Vol. 37, no. 26 (Dec. 30, 1999).
Issuing Body: Issued by: Government of the Canal Zone <June 24, 1966-June 13 1969>; by the Panama Canal Company, <Aug. 13, 1976>-Sept. 14, 1979; by the Panama Canal Commission, Sept. 20, 1979-Dec. 1999.
General Note: "Official Panama Canal publication."
General Note: Imprint varies: Balboa Hights, <1966-1978>; Miami, Fla., <1979-1982>; Balboa Heights, Pan. <1983>-1999.
General Note: Description based on: Vol. 5, no. 1 (June 24, 1966); title from caption.
General Note: Vols. for 1994-1995 distributed to depository libraries in microfiche.
General Note: Special "80th anniversary supplement" issue published on Aug. 12, 1994.
General Note: Special ed. for 65th anniversary of the Panama Canal issued at end of Oct. 1979, is also a joint issue with: The News: authorized unofficial publication of the U.S. Armed Forces, Quarry Heights, Panama, and includes the text of the Panama Canal Act.
 Record Information
Bibliographic ID: UF00094771
Volume ID: VID01161
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 02582102
lccn - 83642750
issn - 0364-8044
Classification: lcc - HE538 .A37
ddc - 386/.444/05
 Related Items
Preceded by: Spillway
Succeeded by: Faro (Balboa, Panama)

Full Text
qc, u -70


Gift of the Panama Canal Museum
More Than 63 Years of Service to World Commerce


The Panama Canal Spillway


Vol. XVI, No. 29


Friday, March 10, 1978


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The Text of


A Bill to Implement the Panama Canal Treaty of 1977

and Related Agreements, and for Other Purposes


Friday, March 10, 1978









THE PANAMA CANAL SPILLWAY


March 10, 1978


Table of Contents


Section
2 Definitions and General Provisions


TITLE I-PANAMANIAN RELATIONS AND
SECURITY MATTERS
U.S.-Panama Joint Committees; Sea Level Canal Study
Security Legislation
Arms Export Control
Privileges and Immunities
Termination of Canal Zone Government; Transfer of Records

TITLE II-PANAMA CANAL COMMISSION
Organizational Matters
Establishment; Purposes; Location of Offices
Payment of Interest to U.S. Treasury; Repeal of Requirement
Expenditures and Payments to Panama
Public Service Payments to Panama
Board fo Directors of Commission v"
Quorum of Board of Directors
Administrator and Deputy
Suits against Commission
Applicability of Government Corporation Control Act
Commission Property and Assets; Depreciation and
Amortization
Regulations Regarding Navigation, Passage and Pilotage
Furnishing of Services; .Reimbursement
Public Property and Procurement; Transfers and Cross
Servicing


Chapter 2. Tolls
230 Measurement Rules; Changes in Rates
231 Setting of Rates under New Treaty
232 Bases of Tolls


Chapter 3. Claims
260 Measure of Damages; Time for Filing; Board of Local
Inspectors

TITLE III-EMPLOYEES AND POSTAL MATTERS
Chapter 1. Employment System
301 Repealers and Changes in Canal Zone Code
302 Definitions
303 Panama Canal Employment System
304 Continuation of Canal Zone Merit System
305 Overseas Recruitment and Retention
306 Transfer of Federal Employees to Commission
307 Merit and Other Employment Requirements
308 Regulations; Examining Office
:309 Compensation of Military, Naval or Public Health Service
Personnel Servicing Commission

Chapter 2. Conditions of Employment, Placement, and Retirement
321 Transferred Employees
322 Placement
323 Educational Travel Benefits
324 Adjustment of Compensation for Loss of Benefits
325 Early Retirement Eligibilty
326 Early Retirement Computation
327 Employees of Related Organizations
328 Applicability of Benefits to Non-citizens
329 Non-U.S. Citizen Retirement
330 Technical Amendments


Chapter
341


401
402
403
404
405
406
407
408
409
410


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3, Postal Matters
Postal Service

TITLE IV-COURTS AND RELATED FUNCTIONS
Continuation of Code and Other Laws
Jurisdiction during Transition Period
Division and Terms of District Court
Term of Certain Offices
Residence Requirements
Special District Judge
Magistrates' Courts
Oath
Transition Authority
Special Immigrants


TITLE V-MISCELLANEOUS PROVISIONS
501 Health Director; Hospitals
502 Effective Date


Panama Canal Spillway
HIAOLD R. PAIIJITT RICHAlR) L. HUNT FRANK A. BALDWIN
Governor of the Canal Zone Lieutenant Governor Information Officer
The SeI..lWAY is an official Panama Canal publication. Articles may be
reprinted without further clearance. News items should arrive in the
Press Office by noon, Friday, thle week prior to publication. Only urgent,
official material will he accepted after the deadline. Yearly subscriptions:
regular inail $0; regular mail students $4: airmail $19. Send check or
money order payable to the Panama Canal Company to Chief, Admlin-
istrative Services Division. Box M, Balboa Heights, C.Z.


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Chapter 1.
201
202
203
204
205
206(
207
208
209
210

211
212
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March 10, 1978


THE PANAMA CANAL SPILLWAY


Introduction
The Canal Zone Government has
obtained a working draft of the
legislation to implement the pending
Panama Canal Treaties. The text
of this draft has been forwarded to
the Senate by the Department of
State. While the draft bill has the
general concurrence of the execu-
tive departments primarily con-
cerned with the treaties, it is still
under active consideration within
the executive branch, and review
by other agencies and clearance by
the Office of Management and
Budget are being sought. Ac-
cordingly, it should be understood
that changes in the draft may occur
as a result of that process.
The text of the draft of the legis-
lation in English is published in
this edition of the SPILLWAY. The
Spanish text will appear in the
March 17 edition.
Many sections of the bill would
amend provisions of law currently
contained in the Canal Zone Code
and the United States Code. In
order to understand the effect of
some of these proposed changes to
existing law, it will be necessary to
refer to pertinent portions of the
aforementioned codes, copies of
which are available at the Canal
Zone Library in Ancon and its
branch in the Cristobal Junior-
Senior High School, as well as the
Law Library in the district court-
house in Ancon.

A Bill
To implement the Panama Canal
Treaty of 1977 and related agree-
ments, and for other purposes.
Be it enacted by the Senate and
House of Representatives of the
United States of America in Con-
gress assembled, That it is the pur-
pose of this Act to provide legisla-
tion necessary to or desirable for
the implementation of the Panama
Canal Treaty of 1977 between the
United States of America and the
Republic of Panama and of the
related agreements accompanying
that Treaty.
Section 2. Definitions and Gen-
eral Provisions.
(a) As used in this Act, references
to the Panama Canal Treaty of
1977 and related agreements mean


the Panama Canal Treaty between
the United States of America and
the Republic of Panama signed
September 7, 1977, and the agree-
ments relating to and implementing
that Treaty signed on the same
date.
(b) The Canal Zone Code is
hereby redesignated the Panama
Canal Code.
(c) Except as otherwise provided
in, or where inconsistent with, the
provisions of this Act, the following
words and phrases are amended as
follows wherever they appear in
the Panama Canal Code and other
laws of the United States, unless
in context the changes are clearly
not intended, or unless such words
and phrases refer to a time prior
to the effective date of this Act, as
defined in Section 502 (herein called
"the effective date"):
(1) "Panama Canal Com-
pany" to read "Panama Canal
Commission".
(2) "Company" to read
"Commission" wherever the
word "Company" has reference
to the Panama Canal Com-
pany.
(3) "Canal Zone Govern-
ment" to read "Panama Canal
Commission".
(4) "Governor" or "Governor
of the Canal Zone" to read
"Panama Canal Commission"
wherever the reference is to
the Governor of the Canal
Zone.
(5) "President" to read "Ad-
ministrator" wherever the word
"President" has reference to
the president of the Panama
Canal Company.
(6) "Government of the
Canal Zone", or "Government",
wherever the reference is to
the Government of the Canal
Zone, to read "United States
of America".
(7) "Canal Zone waters" and
"waters of the Canal Zone"
to read "Panama Canal waters"
and "waters of the Panama
Canal", respectively.
(8) "Canal Zone Merit Sys-
tem" to read "Panama Canal
Employment System"..
(9) "Canal Zone koard of
Appeals" to read "Panama
Canal Board of Appeals".


(d) Reference to the Canal Zone
in provisions of the Panama Canal
Code or other laws of the United
States which apply to transactions,
occurrences, or status after (treaty
effective date) shall be deemed to
be to areas and installations in the
Republic of Panama made available
to the United States pursuant to
the Panama Canal Treaty of 1977
and related agreements.
(e) The President shall, within
two years after the Panama Canal
Treaty of 1977 enters into force,
submit to the Congress proposed
legislation which would-
(1) amend or repeal provi-
sions of law which in their
present form are applicable
only during the transition
period prescribed in Article XI
of that Treaty, and
*(2) incorporate the remaining
provisions of the Panama Canal
Code into the United States
Code, proposing any changes
thereto considered advisable
in light of the experience as
of that time under that Treaty.
TITLE I-PANAMANIAN RELA-
TIONS AND SECURITY
MATTERS
Section 101. United States-Pan-
ama Joint Committees; Sea Level
Canal Study.
(a) The President shall appoint
the representatives of the United
States to the Joint Commission on
the Environment to be established
under .paragraph 2 of Article VI
of the Panama Canal Treaty of
1977, and to any joint committee or
body with the Republic of Panama
to study the possibility of a sea
level canal in the Republic of Pan-
ama pursuant to Article XII of that
Treaty.
(b) Upon the completion of any
joint study between the United
States and the Republic of Panama
concerning the feasibility of a sea
level canal in the Republic of Pan-
ama pursuant to paragraph 1 of
Article XII of the Panama Canal
Treaty of 1977,'the text of the study
shall be transmitted by the Pres-
ident to the President of the Senate
and to the Speaker of the House
of Representatives.
(c) No construction of a sea level
canal by the United States in the
Republic of Panama shall be under-


taken except with express Con-
gressional authorization after sub-
mission of the study by the Pres-
ident as provided in subsection (b).
(d) The President shall designate
and the Secretary of State shall
coordinate the participation of the
representatives of the United States
to the Consultative Committee be-
tween the United States and the
Republic of Panama to be estab-
lished under paragraph 7 of Article
III of the Panama Canal Treaty
of 1977.
Section 102. Security Legisla-
tion.
(a) Sections 34 and 35 of title 2
of the Panama Canal Code are
repealed.
(b) Section 1 of title II of the
Act of June 15, 1917 (50 U.S.C.
191) is amended by (1) striking
the second paragraph of that sec-
tion, and by (2) striking the term.
"the Canal Zone,".
(c) Section 2 of the Act of
November 15, 1941 (50 U.S.C.
191b) is repealed.
(d) Section 1 of title XIII of the
Act -of June 15, 1917 (50 U.S.C.
195) is amended by striking the
term "the Canal Zone and".
(e) Section 1 of the Act of
August 9, 1954 (50 U.S.C. 196)
is amended by striking the term
"including the Canal Zone,".
Section 103. Arms Export Con-
trol.
Section 38 of the Arms Export
Control Act (22 U.S.C. 2778) is
amended by striking out subsection
(d) thereof.
Section 104. Privileges and Im-
munities.
The Secretary of State shall. from
among persons recommended by
the Panama Canal Commission
determine, and shall maintain and
from time to time furnish to the
Government of the Republic of
Panama, the list of those officials
and other persons who shall enjoy
the privileges and immunities ac-
corded under Article VIII of the
Panama Canal Treaty of 1977.
Section 105. Termination of
Canal Zone Government; Extradi-
tion with Panama; Transfer of
Records.
(a) Sections 1, 2, 3, 31, 32, 33,
333, and 334 of title 2 and sec-
tions 5081-5092 of title 6 of the


Panama Canal Code are repealed.
(b) The Panama Canal Commis-
sion, other agencies or departments,
and United States courts in the
Republic of Panama are authorized
to transfer any of their records, or
copies thereof, including records
acquired from the Canal Zone Gov-
ernment or Panama Canal Company
such as vital statistics records, to
other agencies, departments or
courts of the United States and,
under the coordination and with the
approval of the Ambassador, to the
Government of the Republic of
Panama.
TITLE II-PANAMA CANAL
COMMISSION
Chapter 1. Commission: Fiscal
matters.
Section 201. (a) Section 61 of
title 2 of the Panama Canal Code
is amended to read as follows:
"Sec. 61. Continuation, pur-
poses, offices and residence of
the Commission. (a) For the
purposes of managing, oper-
ating and maintaining the Pan-
ama Canal and its complemen-
tary works, installations and
equipment, and of conducting
operations incident thereto, in
accordance with the Panama
Canal Treaty of 1977 and re-
lated agreements, the Panama
Canal Commission is estab-
lished as a body corporate and
as an agency and instrumental-
ity of the United States, and is
declared to be the successor to
the Panama Canal Company.
"(b) The principal office of
the Commission shall be lo-
cated in the Republic of Pan-
ama in one of the areas made
available for the use of the
United States under the Pan-
ama Canal Treaty of 1977
and related agreements, but
the Commissi.rn ma.,,' etablli-h
agencies or bLrarn.h i- tces in
such other place as it deems
necessary or appropriate m the
conduct of its 'uines \Widan
the meaning of th.: laws of
the United States relating to
jurisdiction or venue in civil
actions, the Commission is an
inhabitant and resident of the
District of Columbia, and of
the eastern judicial district of
Louisiana."


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THE PANAMA CANAL SPILWAY


March 10, 1978


(Ib) Subsection (a) of section 62
of title 2 of the Panama Canal Code
is amended by substituting the
words "Panama Canal Company"
for "Company" and the words
"Panama Canal Commission" for
"Painama Canal Company".
Section 202. (a) Subsection (e)
of section 62 of title 2 of the Pan-
ama Canal Code is repealed.
(b) Subsection (f) of section 62
of title 2 of the Panama Canal Code
is amended by substituting the
words "compute its capital surplus
account" for "account for its sur-
plus", and by deleting the words
"in determining the base for the
interest payments required by sub-
section (e) of this section".
(c) Section 70 of title 2 of the
Panama Canal Code is amended by
deleting the words "in determining
the base for interest payments re-
quired by section 62(e) of this
title", and by inserting the term
"including operating expenses and
payments required by Article 111(5)
and Article XIII(4)(a), (b) and (c)
of the Panama Canal Treaty of
1977," after the term "working
capital requirements,".
(b) Section 72 of title 2 of the
Panama Canal Code is amended by
deleting the words "pursuant to
section 62(e) of this title".
Section 203. (a) Subsection (g)
of section 62 of title 2 of the Pan-
ama Canal Code is amended to
read as follows:
"(g) The Panama Canal
Commission shall pay directly
from Canal operating revenues
to the Republic of Panama
those pj,.mnient r-.iu:ir.d] under
paragraph 4 of Article XIII of
the Panama Canal Treaty of
1977. In determining the
adequacy of operating revenues
for the purpose of payments to
Panama under paragraph 4(c)
of that. Article, such operating
revenues of a given- fiscal
period shall be reduced by all
expenditures of that period in-
cluding: (i) amounts paid or
payable for operations and
maintenance, inventory, goods,
services and that portion .of
unfunded liabilities paid or
currently payable; (ii) pay-
ments to Panama under para-
graphs 4(a) and 4(b) of that
Article and under paragraph 5
of Article III of the Treaty;
(iii) amounts payable into a
capital reserve account pro-
gramed to fund requirements
for plant replacement, expan-
sion and improvements; (iv)
amounts payable into pro-
gramed reserve accounts es-
tablished prior to the effective
date of an increase in tolls
for the purpose of matching
revenues with expenses during
the period projected for a
given toll rate to remain in
effect; and (v) the accumulative
sum from prior years (be-
ginning with the year in which
the Panama Canal Treaty of
1977 enters into force) of any
excess of such expenditures of
the Commission over operating
revenues.
(b) Title I of the Act of Novem-
her 27, 1973 (87 Stat. 636) is
amended by striking out the heading
"Payment to the Republic of Pan-
ama" and all that follows under
that heading.
Section 204. Section 62 of title 2
of the Panama Canal Code is
amended by adding a new subsec-
tion (h) reading as follows:
"(h) Payments by the Coin-


mission to the Republic of
Panama for providing public
services in accordance with
paragraph (5) of Article III of
the Panama Canal Treaty of
1977 shall be treated for all
purposes as an operating cost
of the Commission."
Section 205. Subsection (a) of
section 63 of title 2 of the Panama
Canal Code is amended to read as
follows:
"(a) A board of directors
shall manage the affairs of
the Panama Canal Commission.
The President of the United
States shall appoint the mem-
bers of the board in accord-
ance with paragraph 3 of
Article III of the Panama Canal
Treaty of 1977, and neither
this chapter nor any other law
prevents the appointment and
service as a director, or as an
officer of the Commission, of
an officer or employee of the
United States, or of a person
who is not a national of the
United States. Each director
so appointed shall, subject to
paragraph 3 of Article III of
the Panama Canal Treaty of
1977, hold office at the pleasure
of the President, and, before
entering upon his duties, shall
take an oath faithfully to dis-
charge the duties of his office."
Section 206. Subsection (c) of
section 63 of title 2 of the Panama
Canal Code is amended to read
as follows:
"(c) The directors shall hold
meetings as provided by the
bylaws of the Panama Canal
Commission. A quorum for
the transaction of business shall
consist of a majority of the
directors of which a majority
of those present are citizens
of the United States."
Section 207. Section 64 of title 2
of the Panama Canal Code is
amended to read as follows:
"Sec. 64. Administrator andul
Deputy. The President of the
United States shall appoint.the
Administrator and Deputy Ad-
ministrator of the Panama
Canal Commission. The Ad-
ministrator shall, subject to the
direction and under the super-
vision of the Board, be the
chief executive officer of the
Commission. The Administrator
and Deputy Administrator shall
hold office at the pleasure of
the President."
Section 208. Paragraph (3) of
subsection (a) of section 65 of title 2
of the Panama Canal Code is
amended to read as follows:
"(3) Sue and be sued in its
corporate name, except that-
"(A) its amenability to
suit is limited by the im-
munities provided by Ar-
ticle VIII of the Panama
Canal Treaty of 1977, and
otherwise by law;
"(B) salaries or other
moneys owed by the Com-
mission to its employees
shall not be subject to
attachment, garnishment or
similar process, except as
otherwise expressly pro-
vided by the laws of the
United States; and
"(C) it is exempt from
any liability for prejudg-
ment interest."
Section 209. The opening clause
of subsection (a) of section 66 of
title 2 of the Panama Canal Code
is amended to read as follows:
"(a) Subject to the Govern-
ment Corporation Control Act


(31 U.S.C., sec. 841 et seq.),.
and to the Panama Canal
Treaty of 1977 and related
agreements, the Panama Canal
Commission may:"
Section 210. Sections 67 and 73
of title 2 of the Panama Canal Code
are repealed. Section 68 of that
title is amended to read as follows:
"Sec. 68. Assets and Liabili-
ties. (a) Property and other
assets of the Panama Canal
Company and of the Canal
Zone Government which are
not transferred to other United
States Government agencies or
to the Republic of Panama, or
otherwise disposed of, shall be
the property and assets of the
Panama Canal Commission
from and after the effective
date, and except as otherwise
provided by law, the Com-
mission shall assume the liabili-
ties of the Panama Canal Com-
pany and Canal Zone Govern-
ment then outstanding.
"(b) The Commission may
depreciate the Panama Canal,
its complementary works, in-
stallations and equipment, and
all other property and assets
of the Commission, and may
amortize over the life of the
Panama Canal Treaty of 1977
the right to use certain assets
such as housing made available
to the United States under that
Treaty and related agreements.
"(c) The assets and liabili-
ties referred to in this section
shall be deemed to have been
accepted and assumed by the
Commission without the neces-
sity of any act on the part of
the Commission except as
otherwise stipulated by section
62 of this title."
Section 211. Section 1331 of
title 2 of the Panama Canal Code
is amended to read as follows:
"Sec. 1331. Regulations gov-
erning navigation, transiting
and pilotage. The Commission
may prescribe, and from time
to time amend, regulations
governing:
"(1) the navigation of
the waters of the Panama
Canal and areas adjacent
thereto including the ports
of Balboa and Cristobal;
"(2) the passage and
control of vessels through
the Panama Canal or
any part thereof, including
the locks and approaches
thereto; and
"(3) pilotage in the
Canal or the approaches
thereto through the ad-
jacent waters."
Section 212. Funds and ac-
counts. (a) Section 231 of title 2
of the Panama Canal Code is
repealed.
(b) Section 232 of title 2 of the
Panama Canal Code is amended to
read as follows:
"Sec. 232. Furnishing of serv-
ices; reimbursements.
"(a) The Department of De-
fense shall reimburse the Pan-
ama Canal Commission for
amounts expended by the Com-
mission in maintaining defense
facilities in standby condition
for the Department of Defense.
"(b) Notwithstanding any
other law, appropriations of the
Department of Defense, or
such other agency or agencies
as may be designated for this
purpose by the President, are
made available for conducting
the educational and health
care activities, including kin-


dergartens and college, for-
merly carried out by the Canal
Zone Government, and for
providing the services re-
lated thereto to the categories
of persons formerly served
thereby. Amounts so expended
for furnishing services to em-
ployees of other agencies and
their dependents, less amounts
payable by such persons, shall
be fully reimbursible to the
agency furnishing the services.
The appropriations or funds of
the agency bearing the cost of
the compensation of the em-
ployee concerned are made
available for such reimburse-
ments. In addition, the appro-
priations or funds of agencies
conducting operations in the
Republic of Panama are made
available for provision of health
care services to elderly or dis-
abled persons who were eligi-
ble for such services prior to
the effective date."
(c) Section 233 of title 2 of the
Panama Canal Code is amended
by striking the terms "Canal Zone
Government or the Panama Canal
Company" and by inserting in their
place the term "Panama Canal
Commission".
(d) Section 234 of title 2 of the
Panama Canal Code is amended by
striking the term "Canal Zone" and
by inserting in its place the term
"Panama Canal Commission".
(e) Section 235 of title 2 of the
Panama Canal Code is- amended by
striking the term "Canal Zone Gov-
ernment and the Panama Canal
Company" and by inserting in its
place the term "Panama Canal
Commission".
Section 213. Public property
and procurement.
(a) Section 371 of title 2 of the
Panama Canal Code is repealed.
(b) Section 372 of title 2 of the
Panama Canal Code is amended to
read as follows:
"Sec. 372. Transfers and
cross-servicing between agen-
cies. (a) In the interest of
economy and maximum effi-
ciency in the utilization of
Government property and facil-
ities, there are authorized to
be transferred between de-
partments and agencies, with
or without exchange of funds,
all or so much of the facilities,
buildings, structures, improve-
ments, stock and equipment of
their activities located in the
Republic of Panama as may be
mutually agreed upon by the
departments and agencies in-
volved and approved by the
President of the United States
or his designee. With respect
to transfers without exchange
of funds, transfers to or from
the Panama Canal Commis-
sion are subject to section 62
of this title, as amended.
"(b)) The Panama Canal Com-
mission and other agencies of
the United States may enter
into cross-servicing agreements
for the use of facilities, fur-
nishing of services, or per-
formance of functions."
Chapter 2. Tolls
Section 230. Section 411 of
title 2 of the Panama Canal Code
is amended to read as follows:
"Sec. 411. Prescription of
measurement rules and tolls.
(a) The Panama Canal Com-
mission may prescribe, and
from time to time change:
"(1) the rules for the
measurement of vessels for
the Panama Canal; and


"(2) subject to section
412 of this title, the tolls
that shall be levied for
the use of the Canal.
"(b) The Commission shall
give three months' notice, by
publication in the Federal Reg-
ister, of proposed changes in
basic rules of measurement or
in rates of tolls, during which
period a public hearing shall
be conducted. Changes in
basic rules of measurement
and changes in rates of tolls
shall be subject to and shall
take effect upon the approval
of the President of the United
States, whose action in such
matters shall be final."
Section 231. In order to insure
that the rates of tolls in effect on
the effective date are adequate to
meet the requirements of sec-
tion 412 of title 2 of the Panama
Canal Code, as amended by sec-
tion 232 of this Act, the Panama
Canal Company is authorized, in
advance of that date, to change the
rates, effective on the effective
date, such change to be subject to
the approval of the President whose
action in the matter shall be final.
If and to the extent thattime per-
mits, the Company shall give three
months' notice, by publication in
the Federal Register, of such
proposed changes in rates of tolls,
during which period a public
hearing shall be conducted. This
section shall become effective upon
the date of enactment of this Act.
Section 232. Bases of tolls.
(a) Subsection (b) of section 412 of
title 2 of the Panama Canal Code
is amended to read as follows:
"(b) Tolls shall be pre-
scribed at rates calculated to
cover as nearly as practicable
all anticipated costs of main-
taining and operating the Pan-
ama Canal, together with the
facilities and appurtenances
related thereto, including de-
preciation of assets, amortiza-
tion of use rights, and the pay-
ments to Panama pursuant to
paragraphs 4(a) and 4(b)- of
Article XIII of the Panama
Canal Treaty of 1977. In deter-
mining the rates of tolls, there
may also be taken into account
unrecovered past costs, funding
required to establish or main-
tain a capital reserve account
programed to fund require-
ments for plant replacement,
expansion, and improvements,
and the necessity of estab-
lishing reserves for the pur-
pose of matching revenues
with expenses during the
period projected for a given
toll rate to remain in effect."
(b) Subsection (d) of section 412
of title 2 of the Panama Canal
Code is amended by deleting the
words "of articles XVIII and XIX
of the convention between the
United States and Panama con-
cluded on November 18, 1903,
and", by inserting a comma in place
of the period at the end of the
subsection, and by adding there-
after "and of Articles II, III, and
VI of the Treaty Concerning the
Permanent Neutrality and Opera-
tion of the Panama Canal, between
the United States of America and
the Republic of Panama, signed
September 7, 1977."
Chapter 3. Claims
Section 260. Chapter 11 of
title 2 of the Panama Canal Code
is amended as follows:
(a) The title of the chapter is
amended to read, "Claims Arising
from Operation of Canal."


Page 4









March 10, 1978


THE PANAMA CANAL SPILLWAY


(b) Section 271 of title 2 of the
Panama Canal Code is repealed.
(c) The headings of subchapters
I and II are deleted.
(d) Section 291 of title 2 of the
Panama Canal CGode is amended as
follows:
(1) The period at the end of
the first sentence is changed to
a conmma, and the following
language is added: "unless it
is established that the injury
was not proximately caused by
the negligence or fault of any
of its officers or employees
acting within the scope of his
employment and in the line of
his duties in connection with
the operation of the Canal."
(2) In the fourth sentence.
the words "the side" are
amended to read "any portion
of the hull".
(e) Section 293 of title 2 of the
Panama Canal Code is amended to
read as follows:
"Sec. 293. Measure of daim-
ages.
"(a) In determining the
amount of the award of dam-
ages for injuries to a vessel for
which the Panama Canal Com-
mission is determined to be
liable, there may be included:
"(1) actual or estimated
cost of repairs;
"(2) charter hire ac-
tually lost by the owners,
or charter hire actually
paid, depending upon the
terms of the charter party,
for only the time the
vessel is actually under-
going repairs, on drydock
or otherwise;
"(3) maintenance of the
vessel and wages of the
crew, if they are found
to be actual additional
expenses or losses in-
curred outside of the
charter hire, for only the
time the vessel is actually
undergoing repairs, on
drydock or otherwise; and
"(4) except as prohibited
by subsection (b) of this
section, or by any other
provision of law, other ex-
penses which are definitely
and accurately shown to
have been incurred neces-
sarily and by reason of
the accident br injuries.
"(b) Agent's fees or com-
missions, general average ex-
penses, attorney's fees, bank
commissions, port charges or
other incidental expenses of
similar character, or any items
which are indefinite, indeter-
minable, speculative, or con-
jectural may not be allowed.
"(c) The Commission shall
be furnished such vouchers,
receipts, or other evidence as
-may be necessary in support
of any item of a claim. If a
Sessel is not operated under
charter but by the owner di-
rectlv, evidence shall Ib-e
secured if available as to the
sum for which vessels of the
same size and class can Ie
chartered in the market. If the
charter value cannot be de-
termined, the value of the use
of the vessel to its owners in
the business in which it was
engaged at the time of the
injuries shall be used as a
basis for estimating the dam-
ages for the vessel's detention;
and the books of the owner's
showing the vessel's earnings
about the time of the accident
or injuries shall Ie con-


sidered as evidence of probable
earnings during the time of
detention. If the books are
unavailable, such other evi-
dence shall be furnished as
may be necessary."
(f) Section 294 of title 2 of the
Panama Canal Code is amended by
deleting the word "or" in para-
graph (5), by renumbering the
present paragraph (6) as paragraph
(7). and by inserting a new para-
graph (6) reading as follows:
"(6) time necessary for investiga-
tion of marine accidents; or".
(g) Section 296 of title 2 of the
Panama Canal Code is amended by
deleting the words "United States
District Court for the District of
the Canal Zone" in the first sen-
tence and inserting in lieu thereof
the words "United States District
Court for the Eastern District of
Louisiana".
(h) The present section 297 of
title 2 of the Panama Canal Code
is designated as subsection (a), and
a new subsection (b) is added to
read as follows:
"(b) Lack of knowledge on
the part of the master, officers,
crew or passengers that an ac-
cident giving rise to a claim
under this chapter has occurred
does not excuse noncompliance
with the requirements of this
section."
(i) A new section 298 of title 2
of the Panama Canal Code is added,
to read as follows:
"Sec. 298. Time for pre-
senting claim and commencing
action. A claim against the
Commission under this chapter
shall be forever barred unless
it is presented in writing to
that agency within two years
after such claim accrues or
unless action is begun within
one year after the date of
mailing of notice of final deci-
sion on the claim by the Com-
mission."
(j) A new section 299 of title 2
of the Panama Canal Code is
added, to read as follows:
"Sec. 299. Board of Local
Inspectors.
"(a) There is established a
Board of Local Inspectors of
the Panama Canal Commission
which shall perform, in ac-
cordance with regulations pre-
scribed by the Commission,-
"(1) the investigations
called for by section 297
of this chapter; and
"(2) such other duties
in matters of a marine
character as it may be
assigned by the Commis-
sion.
"(b) The Commission shall,
by regulation, designate the
members of the Board and es-
tablish procedures by which
the Board carries out its func-
tions.
"(c) In conducting the in-
-estigations provided for by
subsection (a) of this section,
members of the Board may
summon witnesses, administer
oaths and require the produc-
tion of books and papers
necessary thereto."

TITLE III-EMPLOYEES AND
POSTAL MATTERS
Chapter 1. Employment System.
Section 301. (a) Sections 101,
102, 122, 123, 147 and 154 of
title 2 of the Panama Canal Code
are repealed.
(b) Section 103 of title 2 of the
Panama Canal Code is amended byl
striking the term "Canal Zone Gov-


erinnent, Panama Canal Company"
and inserting in lieu thereof the
term "Panama Canal Commission",
and by redesignating that section
as section 122 of that title and code.
Section 302. Section 141 of
title 2 of the Panama Canal Code
is amended as follows:
(a) The definition of the word
"department" is amended to read
as follows:
"'department' means (i) the
Panama Canal Commission.
and (ii) an executive agency
(within the meaning of see-
tion 105 of title 5 of the United
States Code) which makes an
election under section 142(1b)
of this chapter;"
(b) The definition of the word
"position" is amended to read as
follows:
'position' means those duties
and responsibilities of a civ-
ilian nature under the jurisdic-
tion of a department which
are performed in the Republic
of Panama."
Section 303. Section 142 of
title 2 of the Panama Canal Code
is amended by redesignating sub-
section (b) thereof as subsection (c),
and by striking the caption and
subsection (a) thereof and inserting
in their place the following:
"Section 142. Panama Canal
Employment System.
"(a) The Panama Canal Com-
mission shall conduct its wage
and employment practices in
accordance with a Panama
Canal Employment System
which shall be established in
accordance with-
"(1) the principles es-
tablished in the Panama
Canal Treaty of 1977 and
related agreements, and
with the provisions of this
chapter and other appli-
cable law; and
"(2) regulations promul-
gated by, or under the
authority of, the President
in accordance with this
chapter and taking into
account any recommenda-
tion of the Panama Canal
Commission.
"(b) The head of an execu-
tive agency other than the Pan-
ama Canal Commission may
elect in whole or in part to
have the Panama Canal Em-
ployment System made ap-
plicable to personnel of his
agency in the Republic of
Panama."
Section 304. Notwithstanding
other provisions of this chapter, the
provisions of subchapter III of
chapter 7 of title 2 of the Panama
Canal Code establishing the Canal
Zone Merit System, and the admin-
istrative regulations promulgated
thereunder, shall continue in effect
until such time as the Panama Canal
Employment System has been es-
tablished pursuant to section 303
of this Act.
Section 305. Section 144 of
title 2 of the Panama Canal Code
is amended by deleting subsec-
tion (d) thereof. Section' 146 is
amended to read as follows:
"Sec. 146. Recruitment and
retention remuneration. In ad-
dlition to basic compensation,
additional remuneration in such
amounts as the head of the
department concerned deter-
mines, may be paid, as over-
seas recruitment and retention
differentials, to (a) persons em-
ployed by the Panama Canal
Company, Canal Zone Govern-
ment or a department in the


Canal Zone prior to the effec-
tive date, andl (b) persons there-
after recruited outside of Pan-
ama for a position in the
Republic of Panama. Addi-
tional remuneration prescribed
under this section may not-Cex-
ceed by more than 25% the
rate of basic compensation for
the same or similar work per-
formed in the continental
United States by employees of
the Government of the United
States."
Section 306. Title 2 of the Pan-
anna Canal Code is amended by
adding a new section 147 to read
as follows:
"Sec. 147. Transfer of Fed-
eral Employees to Panama
Canal Commission. The head
of any Federal agency, in-
cluding the United States Postal
Service, is authorized to enter
into agreements for the transfer
or detail of that agency's em-
ployees, serving under per-
manent appointment, to the
Panama Canal Commission.
Under regulations prescribed
by the Civil Service Commis-
sion, any employee so trans-
ferred or detailed shall, upon
completion of his tour of duty
with the Commission, be en-
titled to reemployment with
the agency from which he was
transferred or detailed without
loss of pay, seniority or other
rights or benefits to which he
would have been entitled had
he remained on the rolls of
that agency."
Section 307. Section 149 of
title 2 of the Panama Canal Code
is amended to read as follows:
"Sec. 149. Merit and Other
Employment Requirements.
(a) Subject to this sub-
chapter, the President may,
from time to time and taking
into account any recommenda-
tion of the Panama Canal Com-
mission, amend or modify the
provisions of the Panama Canal
Employment System, including
provisions relating to selection
for appointment, reappoint-
ment, reinstatement, reemploy-
ment, and retention, with
respect to positions, employees,
and individuals under con-
sideration for appointment to
positions, established by reg-
ulations under section 142 of
this chapter.
"(b) The Panama Canal Em-
ployment System shall:
"(1) subject to and as
limited by the Panama
Canal Treaty of 1977 and
related agreements, be
based on the merit of the
employee or individual and
upon his qualifications and
fitness to hold the position
concerned;
"(2) conform generally to
policies, principles, and
standards for the competi-
tive civil service of the
Government of the United
States; and
"(3) include provision
for appropriate inter-
change, between the Pan-
ama Canal Employment
System and the competi-
tive civil service of the
Government of the United
States, of citizens of the
United States employed
by the Government of the
United States.
Section 308. Section 155 of
title 2 of the Panama Canal Code
is amended by redesignating sub,i


section (b) thereof as subsection (c),
and by inserting in lieu of subsec-
tion (a) thereof the following:
"(a) The President shall issue
regulations necessary and ap-
propriate to carry out the pro-
visions and accomplish the pur-
poses of this subchapter and,
in the event of any election
under section 142(b), co-
ordinate the policies and activi-
ties under this subchapter of
the departments involved.
"(b) In order to assist in
carrying out his coordination
responsibility under subsec-
tion (a) and in implementing
the provisions of the Panama
Canal Treaty of 1977 and re-
lated agreements relating to
recruitment, examination, de-
termination of qualification
standards and similar matters,
the President may establish, as
the successor to the Canal Zone
Central Examining Office, an
office which shall be an entity
within the Panama Canal Com-
mission."
Section 309. Subsection (a) of
section 201 of title 2 of the Pan-
ama Canal Code is amended by
deleting the words "Governor of
the Canal Zone and President of
the Panama Canal Company, or as
Lieutenant Governor of the Canal -
Zone and Vice President of the
Panama Canal Company," and in-
serting in lieu thereof the words
"Administrator or Deputy Admin-
istrator of the Panama Canal Com-
mission."
Chapter 2. Conditions of Enm-
ployment, Placement, and Retire-
ment.
Section 321. Title 2 of the Pan-
ama Canal Code is amended by
adding a new section 202 reading
as follows:
"Sec. 202. Transferred Em-
ployees. With respect to em-
ployees of the Panama Canal
Company or Canal Zone Gov-
ernment who are transferred to
employment with the Panama
Canal Commission or other
United States Government
agencies in the Republic of
Panama, the following terms
and conditions of employment
shall be generally no less favor-
able, from and after the date
of exchange of instruments of
ratification of the Panama
Canal Treaty of 1977, than the
terms and conditions of em-
ployment with the Panama
Canal Company and Canal
Zone Government immediately
prior to that date:
Wage rates; tropical dif-
ferential; premium pay and
night differential; rein-
statement and restora-
tion rights; injury and
death compensation bene-
fits; leave and travel, ex-
cept as modified to pro-
vide equity with other em-
ployees within the agency
i to which the employee is
transferred; transportation
and repatriation benefits;
group health and life
insurance; reduction in -
force rights; an employee
grievance system, and the
right to appeal adverse
and disciplinary actions as
well as position classifica-
tion actions; veteran's pre-
ference eligibility; holi-
days; saved pay provi-
sions; and severance pay
benefits."
Section 322. Title 2 of the Pan-
ama Canal Code is amended by


Page 5








THE PANAMA CANAL SPILLWAY


March 10, 1978


adding a new section 203 reading
as follows:
"Sec. 203. Placement. (a)
A United States citizen who,
immediately preceding the date
of exchange of instruments of
ratification of the Panama
Canal Treaty of 1977 was an
employee of the Panama Canal
Company or Canal Zone Gov-
ernment, who separates or is
scheduled to separate on that
date or anytime thereafter
throughout the life of the Pan-
ama Canal Treaty of 1977 for
any reason other than miscon-
duct or delinquency, and who
is not placed in another ap-
propriate position with the
United States Government in
the Republic of Panama shall,
upon the employee's request,
be accorded appropriate place-
ment to vacancies with the
United States Government in
the United States."
"(b) A United States citizen
who, immediately preceding
the date of exchange of instru-
ments of ratification of the
Panama Canal Treaty of 1977
was an employee of an agency
of the United States Govern-
ment in the Canal Zone other
than the Panama Canal Com-
pany or Canal Zone Govern-
ment, whose position is elimi-
nated as the result of im-
plementing the Panama Canal
Treaty of 1977, and who is not
placed in another appropriate
position with the United States
Government in the Republic of
Panama shall, upon the em-
ployee's request, be accorded
the placement assistance pro-
vided for in subsection (a)."
"(c) The United States Civil
Service Commission shall de-
velop and administer a Federal
Government wide placement
program for all eligible em-
ployees who request placement
assistance under this section."
Section 323. Title 2 of the Pan-
ama Canal Code is amended by
adding a new section 204 to read
as follows:
"Sec. 204. Educational travel
benefits. Dependents of United
States citizen employees of
the Panama Canal Commission
who are eligible for educational
travel benefits under regula-
tions issued by the Commission
shall be entitled to one round
trip per year for undergraduate
studies in the United States
until they reach their 23d(
birthday."
Section 324. Adjustment of com-
pensation. United States citizen em-
ployees of the Panama Canal Com-
mission shall be paid an allowance
to offset the increased cost of
living that may result from the
withdrawal of the eligibility of such
employees and their dependents to
use military postal services, sales
stores and exchanges five years aft&r
the date of entry into force of the
Panama Canal Treaty of 1977. The
amount of the additional compensa-
tion shall be determined by the
Panama Canal Commission.
Section 325. Early Retirement
Eligibility.
Section 8336 of title 5 of the
United States Code is amended:
(1) by redesignating subsec-
tion (c) as subsection (c)(1) and
adding the following new para-
graph "(2) A law enforcement offi-
cer or firefighter employed by the
Panama Canal Company or the
Canal Zone Government imme-
diately prior to the date of ex-


change of instruments of ratification
or entry into force of the Panama
Canal Treaty of 1977, who is
separated from the service prior to
January 1, 2000, and, upon separa-
tion, meets the age and service
requirements in paragraph (1), or
who is separated within 2 years
prior to meeting the age and service
requirements in paragraph (1) is
entitled to an annuity."
(2) by redesignating subsection
(h) as subsection (k) and inserting
the following new subsections
"(h), (i), and (j)".
"(h) An employee of the
Panama Canal Commission or
of an Executive agency con-
ducting operations in the Canal
Zone or Republic of Panama,
who is separated from the serv-
ice prior to January 1, 2000-
(1) involuntarily, as a result
of the implementation of the
Panama Canal Treaty of 1977,
except by removal for cause on
charges of misconduct or
delinquency, after completing
20 years of service;
(2) voluntarily after com-
pleting 25 years of service or
after becoming age 50 and
completing 20 years of service;
or
(3) involuntarily, as a result
of the implementation of the
Panama Canal Treaty of 1977,
except by removal for cause
on charges of misconduct or
delinquency, or voluntarily
within 2 years prior to meeting
the age and/or service require-
ments in paragraph (2) is en-
titled to an annuity if he-
(A) was employed by
the Canal Zone Govern-
ment or the Panama
Canal Company immedia-
tely prior to the date of
exchange of instruments
of ratification or entry
into force of the Panama
Canal Treaty of 1977; and
(B) has been continu-
ously employed by the
Panama Canal Commis-
sion or by an Executive
agency conducting opera-
tions in the Canal Zone or
the Republic of Panama
since the date of ex-
change of. instruments of
ratification of the Panama
Canal Treaty of 1977 or
its entry into force."
"(i) An employee of the Pan-
ama Canal Commission or of
an Executive agency con-
ducting operations in the Canal
Zone or Republic of Panama,
who is separated from the serv-
ice as a result of the implemen-
tation of the Panama Canal
Treaty of 1977, prior to Jan-
uary 1, 2000-involuntarily,
except by removal for cause
on charges of misconduct or
delinquency-
(1) after completing 20 years
of service; or
(2) within 2 years prior to
meeting the age and/or serv-
ice requirements in paragraph
(2) of subsection (h) of this sec-
tion is entitled to an annuity
if he-
(A) was employed in
the Canal Zone by an
Executive agency other
than the Panama Canal
Company or the Canal
Zone Government imme-
diately prior to the date
of exchange of instruments
of ratification or entry into
force of the Panama Canal
Treaty of 1977; and


(B) has been continu-
ously employed by the
Panama Canal Commis-
sion or an Executive
agency conducting opera-
tions in the Canal Zone
or the Republic of Pan-
ama since the exchange
of instruments of ratifica-
tion of the Panama Canal
Treaty of 1977 or its entry
into force."
"(j) For the purpose of sub-
sections (h) and (i) of this sec-
tion, 'Executive agency' in-
cludes the Administrative Office
of the United States Courts and
the Smithsonian Institution."
Section 326. Early Retirement
Computation.
Section 8339 of title 5 of the
United States Code is amended-
(1) by inserting in subsection (f),
immediately after "subsections (a)-
(e)", the following: "and (n)";
(2) by inserting in subsection (i),
immediately after "subsections (a)-
(h)", the following: "and (n)";
(3) by inserting in subsections (j)
and (k) (1), immediately after "sub-
sections (a)-(i)" each time it appears,
the following: "and (n)";
(4) by inserting in subsection (1),
immediately after "subsections (a)-
(k)", the following "and (n)";
immediately after "subsections (a)-
(5) by inserting in subsection (m),
immediately after subsections (a)-
(e)", the following "and (n)"; and
(6) by adding at the end thereof
the following new subsections "(n),
(o), and (p)":
"(n) The annuity of an em-
ployee retiring under this sub-
chapter who was employed by
the Panama Canal Company or
Canal Zone Government im-
mediately prior to the entry
into force of the Panama Canal
Treaty of 1977, who continues
in employment with the Pan-
ama Canal Commission, or with
another Executive agency in
the Republic of Panama is com-
puted with respect to the pe-
riod of that service performed
on a continuous basis after the
entry into force of the Panama
Canal Treaty of 1977 by mul-
tiplying-
(A) 2% percent of the
employee's average pay by
so much of such service as
does not exceed 20 years;
plus,
(B) 2 percent of the em-
ployee's average pay mul-
tiplied by so much of such
service as exceeds 20
years.
"(o) The annuity computed
under subsection (n) of this
section for an employee who
was employed as a law en-
forcement officer or firefighter
shall be increased by $8 for
each full month of such service
in the Republic of Panama
after the entry into force of
the Panama Canal Treaty of
1977. This increase in annuity
shall not be paid with respect
to service performed after com-
pletion of 20 years as a law
enforcement officer or fire-
fighter."
"(p) The annuity computed
under this subchapter for an
employee who was employed
as a law enforcement officer or
firefighter by the Panama Canal
Company or the Canal Zone
Government immediately prior
to the date of exchange of
instruments of ratification or
entry into force of the Panama
Canal Treaty of 1977, who


does not qualify for retirement
under section 8336(c) of this
title shall be increased by $12
for each full month of such
service, prior to the entry into
force of the Panama Canal
Treaty of 1977. This increase
in annuity shall not be paid
with respect to service per-
formed after completion of
20 years as a law enforcement
officer or firefighter."
Section 327. Court, Canal Zone
Civilian Personnel Policy Coordi-
nating Board, andl Related Em-
ployees. For the purposes of sec-
tions 202, 203, and 204 of title 2 of
the Panama Canal Code, as amended
by sections 321, 322, and 323 of this
Act, and sections 325-326 of this
Act, the district judge, the clerk,
the court reporter, and other em-
ployees of the United States District
Court for the District of the Canal
Zone, the United States Attorney
for the District of the Canal Zone
and the Assistant United States At-
torneys and their clerical assistants,
and the United States Marshal for
the District of the Canal Zone and
his deputies and clerical assistants;
the Executive Director of the Canal
Zone Civilian Personnel Policy Co-
ordinating Board, the Manager,
Central Examining Office, and their
deputies and clerical assistants shall
be treated the same as employees
of the Panama Canal Commission.
Section 328. (a) Chapters 81
(Compensation for Work Injuries),
83 (Retirement), 87 (Life Insurance),
and 89 (Health Insurance) of title 5
of the United States Code are in-
applicable to persons who are not
citizens of the United States, who
are hired by the Panama Canal
Commission after the effective date
and who are covered by the Social
Security System of the Republic of
Panaiia pursuant to the Panama
Canal Treaty of 1977 and related
agreements.
(b) In section 8701 of title 5 of
the United States Code, the defini-
tion of "employee" in subsection (a)
is amended by revising paragraph
(B) to read as follows:
"(B) an employee who is
not a citizen or national of the
United States and whose per-
manent duty station is outside
the United States, unless such
person was an employee for the
purpose of this chapter on the
day before the effective date
by virtue of. service with a
Federal agency in the Canal
Zone.
(c) In section 8901 of title 5 of
the United States Code, the defini-
tion of employee in subsection (1)
is amended bv revising paragraph
(ii) to read as follows:
"(ii) an employee who is not
a citizen or national of the
United States and whose per-
manent duty station is outside
the United States unless such
person was an emnlovee for the
purpose of this chapter on the'
day before the effective date
by virtue of service with a Fed-
eral agency in the Canal Zone."
Section 329. Non-U.S. Citizen
Retirement Under Special Treaty
Provisions. (a) Under such regula-
tions as the President may prescribe,
there shall be paid to the Social Se-
curity System of the Republic of
Panama, out of funds deposited in
the Treasury of the United States
to the credit of the Civil Service
Retirement Fund under section
8334(a) (2) of title 5 of the United
States Code, such sums of money
as may be necessary to aid in the
purchase of a retirement equity in
that System for each person who is
separated from employment with the
Panama Canal Company, the Canal


Zone Government, or the Panama
Canal Commission, as the result of
the implementation of the Panama
Canal Treaty of 1977 and related
agreements, and Ibecomes employed
under the Social Security System of
the Republic of Panama through
the transfer of a function or activity
to the Republic of Panama from the
United States or through a job
placement assistance program, pro-
vided such person-
(1) has been credited with at
least five years of Federal serv-
ice under the United States Ci-
vil Service Retirement System;
(2) is not eligible for an im-
mediate retirement annuity,
and does not elect a deferred
annuity under the United States
Civil Service Retirement Sys-
tem; and
(3) elects to withdraw the en-
tire amount of his contributions
to the United States Civil Serv-
ice Retirement System and
transfer it to the Social Secu-
rity System of the Republic of
Panama pursuant to the special
regime referred to in paragraph
3 of Article VIII of the Agree-
ment in Implementation of Ar-
ticle III of the Panama Canal
Treaty of 1977.
(b) The sums of money made
available under subsection (a) shall
not exceed, in an), case, the amount
of the employee contribution with-
drawn from the fund and paid over
to the Panamanian Social Security
System.
(c) (1) Pursuant to Paragraph
2(b) of Annex C tq the Agreement
in Implementation of Article IV of
the Panama Canal Treaty of 1977,
the President of the United States,
*or his designee, is authorized to pay
out of the general funds of the
United States Treasury, in accord-
ance with such regulations as the
President or his designee may pre-
scribe, such sums of money as mav
be necessary to purchase, or to sup-
plement the purchase of, a retire-
ment equity in the Social Security
System of the Republic of Panama
fdr the benefit of each employee of
the United States Forces in the
Republic of Panama-
(A) who is not a citizen of
the United States of America;
(B) who was employed prior
to and is employed upon the
effective date of the Panama
Canal Treaty of 1977 by an
instrumentality of the United
States Covernment in the Re-
public of Panama (including,
in the case of employment prior
to such date, the former Canal
Zone);
(C) who. for any period of
his or her employment with
that instrumentality of the
United States Government
prior to the effective date of
the Panama Canal Treaty of
1977 was not covered, on ac-
count of such employment, by
the Civil Service Retirement
System of the United States of
A(merica or another retirement
system providing benefits sim-
ilar to those retirement benefits
provided by the Social Secur-
ity System of the Republic of
Panama; and
(D) whose period of employ-
ment referred to in subpara-
graph (C) above was of such a
nature that he or she would
have been covered at that time
by the Social Security System
of the Republic of Panama had
such law been applicable.
(2) The retirement equity re-
ferred to in subparagraph (c)
(1) above will cover retroac-
tively, front the effective date
of the Panama Canal Treaty of
1977, all periods of employ-


Page 6









March 10, 1978


THE PANAMA CANAL SPILLWAY


inent of such persons with
United States Government in-
strumentalities in the Republic
of Panama (including the form-
er Canal Zone) during which
such persons were not covered
by the Civil Service Retirement
System of the United States of
America or any other retire-
ment system providing benefits
similar to those retirement be-
nefits provided by the Social
Security System of the Re-
public of Panama and during
which such persons' employ-
ment was of such a nature that
he or she would have been
covered by the Social Security
System of the Republic of Pan-
ama had such law been appli-
cable.
Section 330. (a) Section 63229(a)
of title 5 of the United States Code
is amended by deleting the words
"the Canal Zone, or", bv inserting
a comma in place of the period after
"the Trust Territory of the Pacific
Islands" at the end of the same sen-
tence, and by adding thereafter "or
the Republic of Panama."
(b) Subchapter III of Chapter 59
of title 5 of the United States Code,
pertaining to Overseas Differentials
and Allowances, is inapplicable to
employees assigned to work in the
Republic of Panama for the Pan-
ama Canal Commission or an ex-
ecutive agency which makes an
election under section 142(b) of title
2 of the Panama Canal Code.
(c) References to the Canal Zone
in the following sections of title 5
of the United States Code shall
henceforth be deemed to refer to
areas in the Republic of Panama
used or regulated by the United
States pursuant to the Panama Canal
Treaty of 1977 and related agree-
imlents:
(1) section 5595(a) (2) (iii);
(2) section 5724(a); and
(3) section 8102(b).
(d) Section 1(b) of the Act of
April 14, 1966 (20 U.S.C. 903(c))
and section 6(a) of the Act of July
17, 1959 (20 U.S.C. 904(a) (2)) are
inapplicable to teachers who are
emplo ed by the Canal Zone Gov-
ernment school system immediately
prior to the effective date and are
transferred to the Department of
Defense Overseas Dependent School
System.
Chapter 3. Postal Matters
Section 341. Postal service. (a)
The postal service established and
governed by chapter 73 of title 2 of
the Panama Canal Code shall be
discontinued unon the effective date.
(b) The provisions of chapter 73
relating to postal-savings deposits,
postal-savings certificates, postal
money orders, and the accounting
for funds shall continue to apply
for the purpose of meeting the
obligations of the United States
concerning outstanding postal sav-
ings and money orders and disposi-
tion of funds.
(c) The Panama Canal Cominis-
sion shall take possession of and
administer the funds of the postal
service and shall assume its obliga-
lions. The Coimmission and the
United States Postal Service are
authorized to enter into agreements
for the transfer of funds or property
and the assumption of administra-
live rights or responsibilities, with
respect to the outstanding obliga-
tions of the postal service.
(d) Mail addressed to the Canal
Zone from ior through the continen-
tal United States may be routed bvy
thie Uficted States Postal Service to
the military post offices of the
inlited States; Forces in the He-
public of Panama. Such military post
olficcs shall provide the required
dlirectortv services andi shall accept
*iicli 11lifii to Illc rxlent pernlftlcd


under the Panama Canal Treaty of
1977 and related agreements. The
Panama Canal Commission is author-
ized and directed to furnish person-
nel, records and other services to
said military post offices to assure
wherever appropriate the proper
distribution, rerouting, or return of
said mail.
(e) (1) The words, "Except
as provided in the Canal Zone
Code, the", in the second sen-
tence of section 403(a) of title
39 of the United States Code
are revised to read, "The";
(2) The words "each post
office in the Canal Zone postal
service," in section 3402(a) of
title :39 of the United States
Code are revised to read "each
military post office of the
United States Forces in the
Republic of Panama" and sec-
tion 3402(b) of title 39 of the
United States Code is deleted;
(3) Section 3682(b) (5) of title 39
of the United States Code is amend-
ed by striking the words "the Canal
Zone and": and
(4) Section 3401(b) of title 39 of
the United States Code is amended
by inserting the word "or" before
the words "the Virgin Islands" and
by striking the words "or the Canal
Zone."
TITLE IV
COURTS AND RELATED
FUNCTIONS
Section 401. Continuation of
Code and Other Laws.
(a) Exqept as otherwise provided
in this Act, the provisions of the
Panama Canal Code, as amended,
and other laws applicable in the
Canal Zone prior to the entry into
force of the Panama Canal Treaty
of 1977 by virtue of the territorial
jurisdiction of the United States in
the .Canal Zone shall continue in
force only for the purpose of the
exercise of the authority vested in
the United States by that Treaty
and related agreements.
(b) None of the provisions or laws
referred to in subsection (a) shall
henceforth be construed as regulat-
ing, or providing authority to reg-
ulate, any matter as to which the
United States mav not exercise ju-
risdiction under the Panama Canal
Treaty of 1977 and related agree-
ments.
Section 402. Jurisdiction during
Treaty Transition Period. (a) The
Congress of the United States finds
that Article XI of the Panama Canal
Treaty of 1977 prescribes certain
special provisions governing the ju-
risdiction of the United States in
the Republic of Panama during a
transition period of thirty months be-
ginning upon the date the Panama
Canal Treaty of 1977 enters into
force.
(b) Notwithstanding inconsistent
provisions of the Panama Canal Code
or any other law, the jurisdiction of
the district court and magistrates'
courts established pursuant to title
3 of the Panama Canal Code shall
he limited as provided by Article
XI of the Panamna Canal Treaty
of 1977.
(c) For thle purposes of the ex-
ercise of the aforesaid jurisdiction,
the terms "United States citizen em-
ployces," "members of the United
States Forces," "civilian compo-
nent," and "dependents" shall be
construed as they are defined in the
Panama Canal Treaty of 1977 and
related agreements. Similarly, the
term "areas and installations made
available for the us(e of the United
States" shall lbe construed to mean
(1) the Canal operating areas and
housing areas described in Annex A
to the Agreement in Implementa-
tion of 'Article III of that Treaty,
(2) tlii IPorts oif Balboa and Cristo-
1Iail idctcricdl ill I*noe\ B to that


Agreement, and (3) the Defense
Sites and Areas of Military Coordi-
nation described in Annex A to the
Agreement in Implementation of
Article IV of that Treaty.
Section 403. Divisions and terms
of district court.
(a) The United States District
Court for the District of the Canal
Zone is authorized to conduct its
affairs at such places within the
areas made available for the use of
the United States under the Pan-
ama Canal Treaty of 1977 and
related agreements, and at such
times, as the district judge may
designate by rule or order.
(b) Sections 2 and 3 of title,
3 of the Panama Canal Code
are repealed.
Section 404. Term of certain
offices. Notwithstanding the provi-
sions of sections 5, 41, 45 and 82
of title 3 of the Panama Canal Code,
the term of office of a district judge,
magistrate, United States attorney
or United States marshal appointed
after the date of enactment of this
Act shall extend for a period of 30
months beyond the date the Panama
Canal Treaty of 1977 enters into
force, and be subject to such exten-
sion of time as may be provided for
disposition of pending cases by
agreement between the United
States and the Republic of Panama
pursuant to the last sentence of
paragraph 7 of Article XI of the
Panama Canal Treaty of 1977.
Section 405. Residence require-
ments. Sections 5(d), 7(d), 41(d),
and 45(d) of title 3 of the Panama
Canal Code, the second sentence of
section 42 of that title, and the sec-
ond sentence of section 82(c).of that
title, which require that certain
court officials reside in the Canal
Zone, are repealed.
Section 406. (a) Section 6 of
title 3 of the Panama Canal Code
is amended to read as follows:
"Sec. 6. Special district
judge. The chief judge of the
judicial circuit of which the
district court is a part may
designate and assign a special
district judge, to act when
necessary:
(1) during the absence
.of the district judge;
(2) during the district
judge's disability or dis-
qualification, because of
,sickness or otherwise, to
discharge his duties, or
(3) when the office of
district judge is vacant.
(b) Each such designation and
assignment by the chief judge shall
be made in accordance with chap-
ter 13 of title 28 of the United
States Code, which shall be deemed,
to apply for such purposes.
Section 407. Magistrates' Courts.
(a) The two magistrates' courts
established pursuant to section 81
of title 3 of the Panama Canal Code
and existing immediately preceding


the date upon which the Panama
Canal Treaty of 1977 enters into
force shall continue in operation for
30 months from that date unless
discontinued during that period as
otherwise provided by this section.
(b) During the period referred to
in subsection (a), one or both mag-
istrates' courts, together with the
positions of magistrate and consta-
ble corresponding thereto, may be
abolished by the President or his
designee if in his judgment the
workload is insufficient to warrant
continuance of either or both courts.
If one of the courts is so abolished,
the remaining magistrate's court
shall exercise the jurisdiction that
otherwise would have been exercised
by the abolished court and shall
take custody of and administer all
its records.
(c) If both magistrates' courts
are abolished pursuant to subsec-
tion (b), the following provisions
shall thereafter apply:
(1) The district court shall
exercise the jurisdiction of the
magistrates' courts.
(2) All records of the mag-
istrates' courts shall be deemed
records of the district court.
(3) A criminal action that
otherwise would have come
within the original jurisdiction
of the magistrates' courts shall
be instituted in the district
court by a complaint executed
pursuant to section 3701 of
title 6 of the Panama Canal
Code, and the law and rules
applicable in the district court
shall thereafter apply. All other
criminal actions shall be in-
stituted in the district court by
the filing in each case of an
information pursuant to chapter
213 of title 6 of the Panama
Canal Code.
(4) The requirement of antI
procedures for preliminary ex-
aminations under section 172
of title 3 and sections 3801-
3806 of title 6 of the Panama
Canal Code shall not apply.
Section 408. Section 543 of
title 3 of the Panama Canal Code is
amended to read as follows:
"Sec. 543. Oath. Before re-
ceiving a certificate the ap-
plicant shall take and subscribe
in court an appropriate oath
prescribed by the district
judge."
Section 409. Transition Author-
ity. Except as expressly provided to
the contrary in this Act, in any other
statute, in the Panama Canal Treaty
of 1977 and related agreements, or
by executive order, any authority
necessary to the exercise during the
transition period of the rights and
responsibilities of the United States
specified in Article XI of the Pan-
ama Canal Treaty of 1977 shall be
vested in the Panama Canal Com-
mission.


Section 410. Special Immigrants.
(a) Section 101(a) (27) of the Im-
migration and Nationality Act (8
U.S.C. 1101(a) (27)) relating to the
definition of special immigrant, is
amended-
(1) by striking out "or" at the
end of subparagraph (C) and in-
serting "or" at the end of sub-
paragraph (D):
(2) by inserting after subpar-
agraph (D) the following new sub-
paragraph:
"(E) an immigrant who is an
employee of the Panama Canal
Company or Canal Zone Gov-
ernment, who is resident in the
Canal Zone on the date of the
exchange of instruments of
ratification of the Panama
Canal Treaty of 1977, and who
has performed faithful service
for one year, or more, and
his accompanying spouse and
children."
TITLE V
MISCELLANEOUS PROVISIONS
Section 501. Health -director;
hospitals. (a) In chapter 57 of
title 5 of the Panama Canal Code,
references to "hospitals", to the
"Health Bureau", and to the "health
director", shall be deemed to be.
respectively, to the hospitals oper-
ated by the United States in the
Republic of Panama after the-effec-
tive date, to the organizational unit
operating such hospitals, and to the
senior official in charge of such
hospitals.
(b) In section 4784 of title 6, sec-
tion 2 of title 7, and sections 32,
35-38 of title 8 of the Panama Canal
Code, references to the health direc-
tor shall be deemed to be to the
senior official in charge of the hos-
pitals operated by the United States
in the Republic of Panama after the
effective date.
Section 502. Effective date. Ex-
cept as otherwise provided in sec-
tions 231, 321, 322, 325, 404 and
411 of this Act, the provisions of
this Act shall take effect on



The Transfer-Vacancy Bul-
letins that would normally be
published in this SPILLWAY Will
be distributed to all units in-
dividually.

On page 1 the U.S. flag ship "Over-
seas New York," which is 894 feet
long and 106 feet in beam, broke
the Panama Canal cargo record
March 2 when she transited north-
bound carrying 63,885 long tons of
Alaskan North Slope crude oil. She
was enroute to a U.S. Gulf port.
The "Overseas New York" broke
the record of the "Melodic," which
transited November 29, 1973 with
61,078 long tons of coal. For the
first 5 months of Fiscal Year 1978,
North Slope transits have averaged
1.2 vessels per day.


a GATUN LAKE


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Page 7








THE PANAMA CANAL SPILLWAY


March 10, 1978


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Page 8




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