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How China is strengthening its Panama beachead

By G. Russell Evans
SPECIAL TO WORLD TRIBUNE.COM

Thursday, August 19, 1999

China is consolidating its control at the Panama Canal — big time — according to two recent fact-finding trips to Panama by private U.S. organizations, neither of which has been reported by the major media or acknowledged by the Clinton-Gore administration, which has its own agenda.

The big media protect the president. The continuing Clinton-Gore campaign protects the communist Chinese as a quid pro quo for generous cash donations to their 1996 re-election. This strategic political alliance is apparently more important than U.S. national security.

In June, a group led by Richard Delgaudio of the National Security Center observed extensive construction, barbed wire fences and Chinese guards at the Panama Ports Company, which is controlled by the Hutchison Whampoa group, which in turn is controlled by the Peoples' Liberation Army of China.

Mr. Delgaudio is rightly concerned about China's activities in the Panama Canal area in a year when the last U.S. military forces have been withdrawn from bases there and which will see the canal turned over to Panama by the United States on Dec. 31.

Article V of the Neutrality Treaty allows Panama only in defense sites. Article VI gives U.S. warships "head of line" priority. Not so, says Panama Law No. 5 in its 50-year lease to Red China's agent Hutchison Port Holdings, with "priority" at the ports and "occupation" of Rodman Naval Station and part of Albrook Air Force Station — where Red China can base missiles, submarines and J-11 bombers 900 miles from Miami.

Hutchison's construction projects at Balboa on the Pacific side include new piers and huge warehouses. Workers' uniforms and signs proclaim "Panama Ports Company," a smokescreen for Hutchison.

The new administration building at the Balboa port is also labeled "Panama Ports Company" and houses Hutchison offices and Midland Bank, which is now owned by Chinese interests. Nearby is Cable & Wireless Communications, which is 25 percent owned by the Chinese. This is all part of the $22.2 million per year lease engineered by Panamanian President Ernesto "Toro" Balladares behind the backs of American companies.

On the Atlantic side at Cristobal, also controlled by Hutchison, dozens of ships routinely await clearance. After the Canal surrender date of Dec. 31, Hutchison has authority under Panama Law No. 5 to use its own pilots and, with its "port priority," can certainly control "head of line" on a day-to-day basis.

Through Hutchison, China has in effect "established a strategic beachhead in Panama," Delgaudio's group concluded in their report (available care of the National Security Center, 10560 Main St., #217, Fairfax, Va 22030). Members of the group included Al Santoli, an aide to U.S. Rep. Dana Rohrbacher, California Republican, James Doran of the Senate Foreign Relations Committee, and Michael Waller, vice president of the American Foreign Policy Council.

Adm. Thomas Moorer, former chairman of the Joint Chiefs of Staff, has warned that President Clinton has made absolutely no effort to "prevent surrender of our Canal into enemy hands." He asks why Republicans in Congress have made no "substantive effort to stop this mad rush to disaster."

Why indeed? Perhaps they are afraid — afraid to criticize the president, the man so popular with voters for giving them "peace, prosperity and fat pocketbooks" which apparently, for most voters, is more important than national security and national honor — certainly more important than the Panama Canal. Politicians want votes, not a Canal.

My letter to eight congressional leaders carefully explained the Chinese threat with documentation. I have yet to hear a response from Senators Lott, Biden, Warner, Daschle and Robb — and from Congressmen Armey, DeLay and Scott.

Even so, it is our sacred duty to get through to the president, our two senators and congressmen that Hutchison is absolutely unacceptable as the gatekeeper at the Canal, the occupier of the defense sites established and until this year manned by U.S. armed forces. If Panama balks, the United States should abrogate the 1977 Panama Canal Treaties Act by authority of Article 62 of the Vienna Convention because of the "fundamental change of circumstances."

G. Russell Evans is a retired Coast Guard captain and author of the book "Death Knell of the Panama Canal?" which is available on the Internet at Amazon.com.


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