DATE=8/12/1999
TYPE=CORRESPONDENT REPORT
TITLE=U.S. / CHINA-PANAMA CANAL (L-ONLY)
NUMBER=2-225738
BYLINE=DEBORAH TATE
DATELINE=WHITE HOUSE
CONTENT=
VOICED AT:
INTRO: The Clinton administration is dismissing
concerns of a key Republican lawmaker about a Chinese
shipping company's control of two major ports at the
Panama Canal. Senate Majority Leader Trent Lott has
written to Defense Secretary William Cohen saying the
situation poses a security threat. Correspondent
Deborah Tate reports from the White House.
Text: At issue is a Hong Kong-based shipping company
that won a contract from the Panamanian government two
years ago to run two ports on the canal's Atlantic and
Pacific entrances.
At the time, the United States protested the way the
bidding process was handled. A number of U.S. firms
also had bid on the contract, but the Chinese firm,
Hutchinson Whampoa Limited, was chosen.
The firm is to take control of the ports after the
United States turns over ownership of the canal to
Panama, effective December 31st of this year, in
accordance with a 1977 treaty.
In his letter to Secretary Cohen, Senator Lott
expressed concern that the Chinese company will be
gaining broad authority over the canal, and could deny
passage to U.S. vessels. The United States is the
primary user of the facility.
The letter comes amid concern from lawmakers of both
political parties over China's strategic intentions in
the aftermath of its suspected spying at U.S. nuclear
laboratories and its illegal campaign donations to the
Democratic Party.
Recent news reports have linked the Chinese shipping
firm to the leadership in Beijing and its armed
forces, the People's Liberation Army. U.S. officials
could not confirm such ties.
At the White House, spokesman David Levy says the
United States is confident the Chinese company's
control of the two ports will not pose a security
threat.
// Levy actuality //
Our interests - both security and commercial -
will be protected.
// End Act //
That is expected to be the message of Secretary Cohen
when he responds to Mr. Lott's letter.
At the Pentagon, spokesman Ken Bacon added that the
administration is confident that shipping will not be
disrupted through the strategic waterway.
// Bacon actuality //
The company does not have any ability to stop or
impede traffic through the canal. In fact the
treaty that has been signed by the United States
and Panama calling for the transfer of the canal
at the end of this year provides a guarantee for
security of the canal, and it also says the
canal will be operated in a neutral way, open to
all ships of all countries. We do not
anticipate any problems whatsoever as a result
of the port facilities that are owned by Chinese
company.
// End Act //
The spokesman noted the treaty also gives the United
States the right to intervene militarily to protect
access to the canal - although he reiterated Mr.
Levy's comments that the issue does not pose a
national security threat. (Signed)
NEB/DAT/TVM/JO
12-Aug-1999 16:25 PM EDT (12-Aug-1999 2025 UTC)
NNNN
Source: Voice of America
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