text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``United States-Panama Security Act of 
  1997''.
  
  SEC. 2. FINDINGS.
  
      The Congress finds the following:
              (1) The United States secured the independence of the 
          Republic of Panama, built the Panama Canal at considerable cost 
          in blood and treasure, and has provided for its management, 
          operations, maintenance, improvement, and defense throughout 
          the 20th century, providing a vital service to the peaceful 
          commerce of all nations as well as substantial returns to the 
          national interests of both the United States and Panama.
              (2) The Panama Canal continues to play a vital role both in 
          international trade and in the national security of the United 
          States, reducing the distance by sea between New York and San 
          Francisco by some 8,000 miles, contributing critical strategic 
          mobility to naval forces of the United States and substantial 
          savings to maritime commerce.
              (3) Absent any new base-rights agreement between the United 
          States Government and the Government of the Republic of Panama 
          allowing for a post-2000 United States military presence, 
          United States forces in Panama will be reduced to zero by 
          December 31, 1999, calling into question the ability of the 
          United States to continue to protect its interests in the area.
              (4) The Roosevelt Corollary to the Monroe Doctrine 
          proclaimed in 1904 that it was a national security concern of 
          the United States when foreign powers attempted to use public 
          or private investment as a vehicle for the expansion of 
          political and military influence in the Western Hemisphere.
              (5) The recent grant to Hutchison Whampoa, a Chinese firm 
          with ties to the Government of the People's Republic of China, 
          of management control of the Panamanian ports of Balboa and San 
          Cristobal, located at either end of the Panama Canal, has 
          raised the specter of the expansion of Chinese political 
          influence in Panama--a situation aggravated by unanswered 
          questions concerning the methods used by the Chinese firm to 
          win its bids.
              (6) In addition, Article V of the Treaty Concerning the 
          Permanent Neutrality and Operation of the Panama Canal, states 
          that only the Republic of Panama shall maintain military 
          forces, defense sites, and military installations in its 
          national territory after December 31, 1999.
  
  SEC. 3. LIMITATION ON ASSISTANCE TO THE REPUBLIC OF PANAMA IF FORMER 
                UNITED STATES MILITARY FACILITIES IN THE REPUBLIC OF 
                PANAMA ARE CONVEYED TO ANY FOREIGN GOVERNMENT-OWNED 
                ENTITY.
  
      (a) Limitation on United States Assistance.--United States 
  assistance may not be provided to the Republic of Panama for any period 
  of time beginning after the date of the enactment of this Act during 
  which a defense site or military installation, that is located within 
  the territory of the Republic of Panama and that was at any time part 
  of a defense site or military installation built or formerly operated 
  by the United States, has been conveyed by the Government of the 
  Republic of Panama to any foreign government-owned entity.
      (b) Opposition to Assistance From International Financial 
  Institutions.--The President shall instruct the United States 
  representative to each international financial institution to which the 
  United States is a member to use the voice and vote of the United 
  States to oppose any loans or other forms of assistance from that 
  institution to the Republic of Panama for any period of time during 
  which the Government of the Republic of Panama is in violation of the 
  requirements of subsection (a).
  
  SEC. 4. REPORTING REQUIREMENTS.
  
      (a) Report by the President.--Not later than 60 days after the date 
  of the enactment of this Act, the President shall prepare and transmit 
  to the Congress a report containing a description of how Hutchison 
  Whampoa, a Chinese firm with ties to the Government of the People's 
  Republic of China, was selected to receive a grant for management 
  control of the Panamanian ports of Balboa and San Cristobal, located at 
  either end of the Panama Canal, including whether or not the United 
  States Government--
              (1) had any information concerning the bid by Hutchison 
          Whampoa to receive such grant;
              (2) provided adequate support to bids by United States 
          firms for such grant; and
              (3) had any knowledge of ties that exist between Hutchison 
          Whampoa and the Government of the People's Republic of China.
      (b) Report by the Secretary of Defense.--Not later than 60 days 
  after the date of the enactment of this Act, the Secretary of Defense 
  shall prepare and submit to the Congress a report containing--
              (1) a description of the extent to which the control of the 
          ports San Cristobal and Balboa in the Republic of Panama by 
          Hutchison Whampoa, a Chinese firm with ties to the Government 
          of the People's Republic of China, poses a threat to the 
          security of the United States; and
              (2) a description of how the strategic interests of the 
          United States with respect to the Panama Canal will continue to 
          be protected after the Government of the Republic of Panama 
          assumes sole responsibility for the defense of the Canal and 
          becomes the only entity entitled to have military forces, 
          defense sites, or military installations in Panama after 
          December 31, 1999.
      (c) Reports by the Director of Central Intelligence.--Not later 
  than March 31 of each year, the Director of Central Intelligence, in 
  cooperation with the heads of other appropriate Federal agencies, 
  including the Director of the National Security Agency, the Director of 
  the Federal Bureau of Investigation, the Secretary of Defense, the 
  Secretary of the Treasury, the Secretary of Commerce and the Secretary 
  of State, shall prepare and submit to the Congress a report, in both 
  classified and unclassified form, on the intelligence activities of the 
  People's Republic of China against or affecting United States interests 
  in the Republic of Panama, including a description of--
              (1) the extent of political, military, and economic 
          espionage by the People's Republic of China;
              (2) the extent of intelligence activities by the People's 
          Republic of China designed to gain political influence;
              (3) efforts by the People's Republic of China to gain 
          direct or indirect influence through commercial or 
          noncommercial intermediaries subject to control by the People's 
          Republic of China, including enterprises controlled by the 
          People's Liberation Army; and
              (4) disinformation or press manipulation directed against 
          the United States.
      (d) Report by the Director of the Office of National Drug Control 
  Policy.--Not later than 60 days after the date of the enactment of this 
  Act, the Director of the Office of National Drug Control Policy shall 
  prepare and submit to the Congress a report on the utility of 
  maintaining a military presence in the Republic of Panama for 
  interdicting illegal drugs.
  
  SEC. 5. RENEGOTIATION OF THE PANAMA CANAL TREATY.
  
      (a) Renegotiation of Existing Treaties; Negotiation of New 
  Treaty.--The President is authorized and directed to confer with the 
  Government of the Republic of Panama to renegotiate the terms of the 
  Panama Canal Treaty and the Treaty Concerning the Neutrality and 
  Operation of the Panama Canal, or to negotiate a new agreement to 
  supersede the such Treaties, for the purpose of providing for the 
  security of the Canal into the 21st Century.
      (b) Sense of the Congress.--It is the sense of the Congress that 
  any negotiations conducted under subsection (a) should include the 
  following:
              (1) A ban on foreign government investment in, or 
          management of, the Panama Canal and related projects or other 
          infrastructure projects related to transit across the isthmus 
          of Panama or through Panamanian territory.
              (2) The right to a continuing United States military 
          presence in Panama to actively cooperate with Panama in the 
          defense of the Panama Canal.
              (3) A continuing United States presence in Panama to 
          actively cooperate with Panama in the interdiction and 
          eradication of illegal drug trafficking through the territory 
          of Panama or adjacent areas.
              (4) The right to control or prohibit the use of the Panama 
          Canal by hostile powers, terrorist states, or criminal groups, 
          by redefining the terms of the 1977 Treaty Concerning the 
          Neutrality and Operation of the Panama Canal to apply only to 
          its peaceful, non-belligerent use by states or entities other 
          than the United States and Panama.
  
  SEC. 6. DEFINITIONS.
  
      As used in this Act:
              (1) Panama canal treaty.--The term ``Panama Canal Treaty'' 
          means the Panama Canal Treaty between the United States and the 
          Republic of Panama, signed at Washington on September 7, 1977 
          (33 UST 39).
              (2) Treaty concerning the permanent neutrality and 
          operation of the panama canal.--The term ``Treaty Concerning 
          the Permanent Neutrality and Operation of the Panama Canal'' 
          means the Treaty Concerning the Permanent Neutrality and 
          Operation of the Panama Canal between the United States and the 
          Republic of Panama, signed at Washington on September 7, 1977 
          (33 UST 1).
              (3) United states assistance.--The term ``United States 
          assistance means--
                      (A) assistance under part I of the Foreign 
                  Assistance Act of 1961 (22 U.S.C. 2151 et 
                  seq.)(including programs under title IV of chapter 2 of 
                  such part; relating to the Overseas Private Investment 
                  Corporation), except that such term does not include 
                  humanitarian assistance;
                      (B) assistance under chapter 2 of part II of the 
                  Foreign Assistance Act of 1961 (22 U.S.C. 2311 et seq.; 
                  relating to military assistance), including the 
                  transfer of excess defense articles under section 516 
                  of such Act;
                      (C) assistance under chapter 5 of part II of the 
                  Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.; 
                  relating to international military education and 
                  training);
                      (D) assistance under the ``Foreign Military 
                  Financing Program'' under section 23 of the Arms Export 
                  Control Act (22 U.S.C. 2763);
                      (E) the transfer of defense articles, defense 
                  services, or defense and construction services under 
                  Arms Export Control Act (22 U.S.C. 2751 et seq.), 
                  including defense articles and defense services 
                  licensed or approved for export under section 38 of 
                  such Act; or
                      (F) financing under the Export-Import Bank Act of 
                  1945.
target: United States-Panama Security Act of 1997 - Bars U.S. assistance to Panama during any period in which a defense site or military installation located in Panama that was at any time part of a site or installation built or formerly operated by the United States has been conveyed by the Government of Panama to any foreign government-owned entity. 
  Directs the President to instruct the U.S. representatives to the international financial institutions to oppose any loans or other assistance to Panama during any such period. 
  Requires the President to report to the Congress on how Hutchison Whampoa, a Chinese firm with ties to the Chinese Government, was selected to receive a grant for management control of the Panamanian ports of Balboa and San Cristobal. 
  Directs the Secretary of Defense to report to the Congress on:  (1) the extent to which the control of such ports by such firm poses a threat to U.S. security; and (2) how U.S. strategic interests with respect to the Panama Canal will continue to be protected after the Government of Panama assumes sole responsibility for the defense of the Canal and becomes the only entity entitled to have military forces, defense sites, or military installations in Panama after December 31, 1999. 
  Requires:  (1) the Director of Central Intelligence to report annually to the Congress on the intelligence activities of China against or affecting U.S. interests in Panama; and (2) the Director of the Office of National Drug Control Policy to report to the Congress on the utility of maintaining a military presence in Panama for interdicting illegal drugs. 
  Authorizes and directs the President to confer with the Government of Panama to renegotiate the terms of the Panama Canal Treaty and the Treaty Concerning the Neutrality and Operation of the Panama Canal or to negotiate a new agreement to supersede such treaties. 
  Expresses the sense of the Congress that any negotiations should include:  (1) a ban on foreign government investment in or management of the Canal and related projects; (2) the right to a continued U.S. military presence in Panama and a continued presence to interdict and eradicate illegal drug trafficking through Panama; and (3) the right to control or prohibit the use of the Canal by hostile powers, terrorist states, or criminal groups by redefining the terms of the 1977 Treaty Concerning the Neutrality and Operation of the Panama Canal.
feat_title: United States-Panama Security Act of 1997