the american economy a historical encyclopedia phần 10 pdf

shall so be interpreted, to assure the transit of such ves-
sels through the Canal as quickly as possible, without
any impediment, with expedited treatment, and in
case of need or emergency, to go to the head of the line
of vessels in order to transit the Canal rapidly.’’’
(b) CONDITIONS:
(1) Notwithstanding the provisions of Article V or any
other provision of the Treaty, if the Canal is closed, or
its operations are interfered with, the United States of
America and the Republic of Panama shall each inde-
pendently have the right to take such steps as each
deems necessary, in accordance with its constitutional
processes, including the use of military force in the
Republic of Panama, to reopen the Canal or restore
the operations of the Canal, as the case may be.
(2) The instruments of ratification of the Treaty shall be
exchanged only upon the conclusion of a Protocol of
Exchange, to be signed by authorized representatives
of both Governments, which shall constitute an inte-
gral part of the Treaty documents and which shall
include the following:
“Nothing in the Treaty shall preclude the Republic of
Panama and the United States of America from mak-
ing, in accordance with their respective constitutional
processes, any agreement or arrangement between the
two countries to facilitate performance at any time
after December 31, 1999, of their responsibilities to
maintain the regime of neutrality established in the
Treaty, including agreements or arrangements for the
stationing of any United States military forces or the
maintenance of defense sites after that date in the

Republic of Panama that the Republic of Panama and
the United States of America may deem necessary or
appropriate.”
(c) RESERVATIONS:
1) Before the date of entry into force of the Treaty, the
two Parties shall begin to negotiate for an agreement
under which the American Battle Monuments
Commission would, upon the date of entry into force
of such agreement and thereafter, administer, free of
all taxes and other charges and without compensation
to the Republic of Panama and in accordance with the
practices, privileges, and immunities associated with
the administration of cemeteries outside the United
States of America by the American Battle Monuments
Commission, including the display of the flag of the
United States of America, such part of Corozal
Cemetery in the former Canal Zone as encompasses
the remains of citizens of the United States of
America.
(2) The flag of the United States of America may be dis-
played, pursuant to the provisions of paragraph 3 of
Article VII of the Panama Canal Treaty, at such part of
Corozal Cemetery in the former Canal Zone as
encompasses the remains of citizens of the United
States of America.
(3) The President—
(A) shall have announced, before the date of entry
into force of the Treaty, his intention to transfer,
consistent with an agreement with the Republic
of Panama, and before the date of termination of

the Panama Canal Treaty, to the American Battle
Monuments Commission the administration of
such part of Corozal Cemetery as encompasses
the remains of citizens of the United States of
America; and
(B) shall have announced, immediately after the date
of exchange of instruments of ratification, plans,
to be carried out at the expense of the Govern-
ment of the United States of America, for
(i) removing, before the date of entry into force
of the Treaty, the remains of citizens of the
United States of America from Mount Hope
Cemetery to such part of Corozal Cemetery
as encompasses such remains, except that
the remains of any citizen whose next of kin
objects in writing to the Secretary of the
Army not later than three months after the
date of exchange of the instruments of rati-
fication of the Treaty shall not be removed;
and
(ii) transporting to the United States of Amer-
ica for reinterment, if the next of kin so re-
quests, not later than thirty months after
the date of entry into force of the Treaty,
any such remains encompassed by Corozal
Cemetery and, before the date of entry into
force of the Treaty, any remains removed
from Mount Hope Cemetery pursuant to
subclause (i); and
(C) shall have fully advised, before the date of entry

into force of the Treaty, the next of kin objecting
under clause (B) (i) of all available options and
their implications.
(4) To carry out the purposes of Article III of the Treaty
of assuring the security, efficiency, and proper main-
tenance of the Panama Canal, the United States of
America and the Republic of Panama, during their
respective periods of responsibility for Canal opera-
tion and maintenance, shall, unless the amount of the
operating revenues of the Canal exceeds the amount
needed to carry out the purposes of such Article, use
such revenues of the Canal only for purposes consis-
tent with the purposes of Article III.
(d) UNDERSTANDING:
(1) Paragraph 1 (c) of Article III of the Treaty shall be
construed as requiring, before any adjustment in tolls
for use of the Canal, that the effects of any such toll
adjustment on the trade patterns of the two Parties
shall be given full consideration, including considera-
tion of the following factors in a manner consistent
with the regime of neutrality:
630 Panama Canal Treaty of 1977
(A) the costs of operating and maintaining the
Panama Canal;
(B) the competitive position of the use of the Canal
in relation to other means of transportation;
(C) the interests of both Parties in maintaining their
domestic fleets;
(D) the impact of such an adjustment on the various
geographic areas of each of the two Parties; and

(E) the interests of both Parties in maximizing their
international commerce. The United States of
America and the Republic of Panama shall coop-
erate in exchanging information necessary for the
consideration of such factors.
(2) The agreement “to maintain the regime of neutrality
established in this Treaty” in Article IV of the Treaty
means that either of the two Parties to the Treaty may,
in accordance with its constitutional processes, take
unilateral action to defend the Panama Canal against
any threat, as determined by the Party taking such
action.
(3) The determination of “need or emergency” for the
purpose of any vessel of war or auxiliary vessel of the
United States of America or the Republic of Panama
going to the head of the line of vessels in order to
transit the Panama Canal rapidly shall be made by the
nation operating such vessel.
(4) Nothing in the Treaty, in Annex A or B thereto, in the
Protocol relating to the Treaty, or in any other agree-
ment relating to the Treaty, obligates the United States
of America to provide any economic assistance, mili-
tary grant assistance, security supporting assistance,
foreign military sales credits, or international military
education and training to the Republic of Panama.
(5) The President shall include all amendments, condi-
tions, reservations, and understandings incorporated
by the Senate in this resolution of ratification in the
instrument of ratification to be exchanged with the
Government of the Republic of Panama.

Panama Canal Treaty of 1977 631
Ronald Reagan’s Remarks and a
Question and Answer Session
with Reporters on the Air Traffic
Controllers’ Strike (1981)
During the Pullman Strike of 1894 the government forced
American Railway Union members, who the U.S. attorney
general claimed had violated the Sherman Anti-Trust Act, to
return to work after the railway system had been shut down
when all employees joined the strike. The importance of the
transportation system caused the government to intercede.
The same problem occurred in 1981 when members of the
Air Traffic Controllers Union, in violation of their contract,
called for a strike, a tactic that would have grounded all
planes in the United States. President Ronald Reagan warned
the union that he would fire all air traffic controllers who
went out on strike and he did so when they ignored his
warning; he explained his actions in a press conference on
August 3, 1981.
Source: gan/utexas.edu/resource/speeches/
1981/8038/a.htm.
August 3, 1981
The President. This morning at 7
A.M. the union represent-
ing those who man America’s air traffic control facilities
called a strike. This was the culmination of 7 months of nego-
tiations between the Federal Aviation Administration and the
union. At one point in these negotiations agreement was
reached and signed by both sides, granting a $40 million
increase in salaries and benefits. This is twice what other gov-

ernment employees can expect. It was granted in recognition
of the difficulties inherent in the work these people perform.
Now, however, the union demands are 17 times what had
been agreed to—$681 million. This would impose a tax bur-
den on their fellow citizens which is unacceptable.
I would like to thank the supervisors and controllers who
are on the job today, helping to get the nation’s air system
operating safely. In the New York area, for example, four
supervisors were scheduled to report for work, and 17 addi-
tionally volunteered. At National Airport a traffic controller
told a newsperson he had resigned from the union and
reported to work because,“How can I ask my kids to obey the
law if I don’t?” This is a great tribute to America.
Let me make one thing plain. I respect the right of work-
ers in the private sector to strike. Indeed, as president of my
own union, I led the first strike ever called by that union. I
guess I’m maybe the first one to ever hold this office who is a
lifetime member of an AFL-CIO union. But we cannot com-
pare labor-management relations in the private sector with
government. Government cannot close down the assembly
line. It has to provide without interruption the protective
services which are government’s reason for being.
It was in recognition of this that the Congress passed a law
forbidding strikes by government employees against the pub-
lic safety. Let me read the solemn oath taken by each of these
employees, a sworn affidavit, when they accepted their jobs:
“I am not participating in any strike against the Government
of the United States or any agency thereof, and I will not so
participate while an employee of the Government of the
United States or any agency thereof.”

It is for this reason that I must tell those who fail to report
for duty this morning they are in violation of the law, and if
they do not report for work within 48 hours, they have for-
feited their jobs and will be terminated.
Q[uestion]. Mr. President, are you going to order any
union members who violate the law to go to jail?
The President. We ll, I have some people around here, and
maybe I should refer that question to the Attorney General.
Q[uestion]. Do you think that they should go to jail, Mr.
President, anybody who violates this law?
The President. I told you what I think should be done.
They’re terminated.
The Attorney General: Well, as the President has said, strik-
ing under these circumstances constitutes a violation of the
law, and we intend to initiate in appropriate cases criminal
proceedings against those who have violated the law.
Q[uestion]. How quickly will you initiate criminal pro-
ceedings, Mr. Attorney General?
632
The Attorney General: We will initiate those proceedings as
soon as we can.
Q[uestion]. To d a y?
The Attorney General: The process will be underway prob-
ably by noon today.
Q[uestion]. Are you going to try and fine the union $1 mil-
lion per day?
The Attorney General: Well, that’s the prerogative of the
court. In the event that any individuals are found guilty of
contempt of a court order, the penalty for that, of course, is
imposed by the court.

Q[uestion]. How much more is the government prepared
to offer the union?
The Secretary of Transportation. We think we had a very
satisfactory offer on the table. It’s twice what other
Government employees are going to get—11.4 percent. Their
demands were so unreasonable there was no spot to negoti-
ate, when you’re talking to somebody 17 times away from
where you presently are. We do not plan to increase our offer
to the union.
Q[uestion]. Under no circumstances?
The Secretary of Transportation. As far as I’m concerned,
under no circumstance.
Q[uestion]. Will you continue to meet with them?
The Secretary of Transportation. We will not meet with the
union as long as they’re on strike. When they’re off of strike,
and assuming that they are not decertified, we will meet with
the union and try to negotiate a satisfactory contract.
Q[uestion]. Do you have any idea how it’s going at the air-
ports around the country?
The Secretary of Transportation. Relatively, it’s going quite
well. We’re operating somewhat in excess of 50 percent capac-
ity. We could increase that. We have determined, until we feel
we’re in total control of the system, that we will not increase
that. Also, as you probably know, we have some rather severe
weather in the Midwest, and our first priority is safety.
Q[uestion]. What can you tell us about possible decertifi-
cation of the union and impoundment of its strike funds?
The Secretary of Transportation. There has been a court
action to impound the strike fund of $3.5 million. We are
going before the National Labor Relations Authority this

morning and ask for decertification of the union.
Q[uestion]. When you say that you’re not going to increase
your offer, are you referring to the original offer or the last
offer which you’ve made? Is that still valid?
The Secretary of Transportation. The last offer we made in
present value was exactly the same as the first offer. Mr. Poli
(Robert Poli, Professional Air Traffic Controllers Organi-
zation) asked me about 11 o’clock last evening if he could
phase the increase in over a period of time. For that reason,
we phased it in over a longer period of time. It would have
given him a larger increase in terms of where he would be
when the next negotiations started, but in present value it was
the $40 million originally on the table.
Q[uestion]. Mr. Attorney General, in seeking criminal
action against the union leaders, will you seek to put them in
jail if they do not order these people back to work?
The Attorney General. Well, we will seek whatever penalty
is appropriate under the circumstances in each individual
case.
Q[uestion]. Do you think that is an appropriate circum-
stance?
The Attorney General. It is certainly one of the penalties
that is provided for in the law, and in appropriate cases, we
could very well seek that penalty.
Q[uestion]. What’s appropriate?
The Attorney General. Well, that depends upon the fact of
each case.
Q[uestion]. What makes the difference?
Q[uestion]. Can I go back to my “fine” question? How
much would you like to see the union fined every day?

The Attorney General. Well, there’s no way to answer that
question. We would just have to wait until we get into court,
see what the circumstances are, and determine what position
we would take in the various cases under the facts as they
develop.
Q[uestion]. But you won’t go to court and ask the court for
a specific amount?
The Attorney General. Well, I’m sure we will when we reach
that point, but there’s no way to pick a figure now.
Q[uestion]. Mr. President, will you delay your trip to
California or cancel it if the strike is still on later this week?
The President. If any situation should arise that would
require my presence here, naturally I will do that. So, that will
be a decision that awaits what’s going to happen. May I just—
because I have to be back in there for another appointment—
may I just say one thing on top of this? With all this talk of
penalties and everything else, I hope that you’ll emphasize,
again, the possibility of termination, because I believe that
there are a great many of those people—and they’re fine peo-
ple—who have been swept up in this and probably have not
really considered the result—the fact that they had taken an
oath, the fact that this is now in violation of the law, as that
one supervisor referred to with regard to his children. And I
am hoping that they will in a sense remove themselves from
the lawbreaker situation by returning to their posts.
I have no way to know whether this had been conveyed to
them by their union leaders, who had been informed that this
would be the result of a strike.
Q[uestion]. Your deadline is 7 o’clock Wednesday morning
for them to return to work?

The President. Forty-eight hours.
The Secretary of Transportation. It’s 11 o’clock Wednesday
morning.
Q[uestion]. Mr. President, why have you taken such strong
action as your first action? Why not some lesser action at this
point?
The President. What lesser action can there be? The law is
very explicit. They are violating the law. And as I say, we called
this to the attention of their leadership. Whether this was
conveyed to the membership before they voted to strike, I
don’t know. But this is one of the reasons why there can be no
further negotiation while this situation continues. You can’t
sit and negotiate with a union that’s in violation of the law.
Ronald Reagan’s Remarks on the Air Traffic Controllers’ Strike 633
The Secretary of Transportation. And their oath.
The President. And their oath.
Q[uestion]. Are you more likely to proceed in the criminal
direction toward the leadership than the rank and file, Mr.
President?
The President. We ll, that again is not for me to answer.
Q[uestion]. Mr. Secretary, what can you tell us about the
possible use of military air controllers—how many, how
quickly can they get on the job?
The Secretary of Transportation. In answer to the previous
question, we will move both civil and criminal, probably
more civil than criminal, and we now have papers in the U.S.
attorneys offices, under the Attorney General, in about 20
locations around the country where would be involved two
or three principal people.
As far as the military personnel are concerned, they are

going to fundamentally be backup to the supervisory person-
nel. We had 150 on the job, supposedly, about a half-hour
ago. We’re going to increase that to somewhere between 700
and 850.
Q[uestion]. Mr. Secretary, are you ready to hire other peo-
ple should these other people not return?
The Secretary of Transportation. Yes, we will, and we hope
we do not reach that point. Again as the President said, we’re
hoping these people come back to work. They do a fine job.
If that does not take place, we have a training school, as you
know. We will be advertising. We have a number of applicants
right now. There’s a waiting list in terms of people that want
to be controllers, and we’ll start retraining and reorganize the
entire FAA traffic controller group.
Q[uestion]. Just to clarify, is your deadline 7
A.M.
We dnedsay or 11 o’clock?
The Secretary of Transportation. It’s 11
A.M.Wednesday.
The President said 48 hours, and that would be 48 hours.
Q[uestion]. If you actually fire these people, won’t it put
your air traffic control system in a hole for years to come,
since you can’t just cook up a controller in—[inaudible]?
The Secretary of Transportation. That obviously depends
on how many return to work. Right now we’re able to oper-
ate the system. In some areas, we’ve been very gratified by the
support we’ve received. In other areas, we’ve been disap-
pointed. And until I see the numbers, there’s no way I can
answer that question.
Q[uestion]. Mr. Lewis, did you tell the union leadership

when you were talking to them that their members would be
fired if they went out on strike?
The Secretary of Transportation. I told Mr. Poli yesterday
that the President gave me three instructions in terms of the
firmness of the negotiations: one is there would be no
amnesty; the second there would be no negotiations during
the strike; and third is that if they went on strike, these peo-
ple would no longer be government employees.
Q[uestion]. Mr. Secretary, you said no negotiations. What
about informal meetings of any kind with Mr. Poli?
The Secretary of Transportation. We will have no meetings
until the strike is terminated with the union.
Q[uestion]. Have you served Poli at this point? Has he
been served by the Attorney General?
The Attorney General. In the civil action that was filed this
morning, the service was made on the attorney for the union,
and the court has determined that that was appropriate ser-
vice on all of the officers of the union.
Q[uestion]. My previous question about whether you’re
going to take a harder line on the leadership than rank and
file in terms of any criminal prosecution, can you give us an
answer on that?
The Attorney General. No,I can’t answer that except to say
that each case will be investigated on its own merits, and
action will be taken as appropriate in each of those cases.
Q[uestion]. Mr. Lewis, do you know how many applica-
tions for controller jobs you have on file now?
The Secretary of Transportation. I do not know. I’m going
to check when I get back. I am aware there’s a waiting list, and
I do not have the figure. If you care to have that, you can call

our office, and we’ll tell you. Also, we’ll be advertising and
recruiting people for this job if necessary.
Q[uestion]. Mr. Secretary, how long are you prepared to
hold out if there’s a partial but not complete strike?
The Secretary of Transportation. I think the President made
it very clear that as of 48 hours from now, if the people are
not back on the job, they will not be government employees
at any time in the future.
Q[uestion]. How long are you prepared to run the air con-
troller system—[inaudible]?
The Secretary of Transportation. For years, if we have to.
Q[uestion]. How long does it take to train a new controller,
from the waiting list?
The Secretary of Transportation. It varies; it depends on the
type of center they’re going to be in. For someone to start in
the system and work through the more minor office types of
control situations till they get to, let’s say, a Chicago or a
Washington National, it takes about 3 years. So in this case,
what we’ll have to do if some of the major metropolitan areas
are shut down or a considerable portion is shut down, we’ll
be bringing people in from other areas that are qualified and
then start bringing people through the training schools in the
smaller cities and smaller airports.
Q[uestion]. Mr. Secretary, have you definitely made your
final offer to the union?
The Secretary of Transportation. Yes, we have.
Q[uestion]. Thank you.
NOTE: The President read the statement to reporters at
10:55
A.M. in the Rose Garden at the White House.

634 Ronald Reagan’s Remarks on the Air Traffic Controllers’ Strike
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