Foreign Relations of the United States, 1969–1976, Volume XXII, Panama, 1973–1976

56. Presidential Determination No. 75–4¹

Washington, October 29, 1974.

MEMORANDUM FOR THE SECRETARY OF STATE

SUBJECT

• Waiver of Section 3(b) of the Foreign Military Sales Act, as Amended—Panama

Pursuant to the authority vested in me by Section 3(b) of the Foreign Military Sales Act, as amended, I hereby waive the provisions of Section 3(b) of the Foreign Military Sales Act, as amended, with respect to sales, credits or guaranties to the Government of Panama. Reasonable assurances have been received from the Government of Panama that future violations of Section 3(b) of the Act will not occur.²

You are requested on my behalf to report this waiver to the Speaker of the House of Representatives and to the Chairman of the Senate Foreign Relations Committee, as required by law.

I have concluded, pursuant to Section 654(c) of the Foreign Assistance Act of 1961, as amended, that this determination and waiver shall be classified “Confidential” and shall not be published in The Federal Register. Such publication would be harmful to the national security of the United States in view of the serious and delicate negotiations now going on between the United States and the Government of Panama concerning a new Panama Canal treaty.

Gerald R. Ford

Justification for Presidential Waiver of Section 3(b) of the Foreign Military Sales Act, as Amended

On April 17, 1974, Panama seized an American fishing vessel for having engaged in fishing more than twelve miles from the Panamanian coast but within Panama’s claimed 200-mile territorial sea. Section 3(b) of the Foreign Military Sales Act, as amended, requires the suspension of all sales, credits and guaranties under the Act to any country which has so seized an American fishing vessel. Such suspension is to remain in effect for a period of one year from the date of the seizure in question. The President is authorized to waive this suspension either (a) if reasonable assurances are received from the country concerned that future violations of Section 3(b) will not occur or (b) if the President determines that such a waiver is important to the security of the United States.

The United States Ambassador in Panama has discussed the matter of the seizure with a senior official of the Government of Panama, who has informed the Ambassador that the commander of the patrol boat which effected the April 17 seizure had acted on his own initiative, and that as a matter of policy Panama would not rely upon seizures of foreign fishing boats to implement its territorial sea claims. These representations constitute reasonable assurances that future violations of U.S. fishing rights will not occur.

1. Source: National Archives, Ford Library, National Security Adviser, NSC Latin American Affairs Staff Files, 1974–77, Box 6, Panama—Political, Military (1). Confidential.
2. In an October 23 memorandum to Ford, Kissinger recommended granting Panama a waiver of Section 3(b) stating that “General Omar Torrijos, the Chief of Government, informed our Ambassador that the April 17 seizure was carried out by the patrol boat commander on his own initiative.” Kissinger noted that failure to grant the waiver would “precipitate a serious deterioration between the [Panamanian National] Guard and U.S. forces in Panama as well as between our two Governments,” adding, “Congressional reaction to Panama’s recent recognition of Cuba has been light and I do not anticipate any significant degree of criticism if this waiver is granted.” (Ibid.)