[Pages S338-S339]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         SUBMITTED RESOLUTIONS

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  SENATE RESOLUTION 31--CALLING ON THE GOVERNMENT OF PANAMA TO EXPEL 
OFFICIALS AND INTERESTS OF THE PEOPLE'S REPUBLIC OF CHINA AND TERMINATE 
               CHINESE MANAGEMENT OF KEY PANAMANIAN PORTS

  Mr. SCHMITT (for himself, Mr. Cotton, Mr. Marshall, Mrs. Britt, Mrs. 
Blackburn, and Mr. Ricketts) submitted the following resolution; which 
was referred to the Committee on Foreign Relations:

                               S. Res. 31

       Whereas the strategic location of the Panama Canal is vital 
     to global trade and the security of the Western Hemisphere;
       Whereas Panamanians and Americans have invested 
     significantly to secure the sovereignty, stability, and 
     prosperity of Panama, including the construction, defense,

[[Page S339]]

     and transfer of the Panama Canal, ensuring it remains a 
     critical asset for global commerce;
       Whereas the construction of the Panama Canal by the United 
     States required more than a decade of work (1904-1914), 
     involved tens of thousands of workers, and cost approximately 
     $375,000,000, equivalent to more than $10,000,000,000 in 
     2025, with thousands of workers losing their lives due to 
     disease and hazardous conditions;
       Whereas the defense and operation of the Panama Canal 
     during the 20th century further demonstrated the United 
     States' commitment, at significant financial and human cost, 
     to maintaining the vital global trade route;
       Whereas the Treaty Concerning the Permanent Neutrality and 
     Operation of the Panama Canal, signed at Washington September 
     7, 1977 (commonly referred to as the ``Neutrality Treaty''), 
     prohibits actions that undermine the canal's neutrality or 
     threaten United States security interests and grants the 
     United States the right to act, unilaterally if necessary, to 
     defend the canal's neutrality and ensure its operational 
     security;
       Whereas the Neutrality Treaty obligates Panama and the 
     United States to act against any threat to the neutrality or 
     peaceful operation of the Panama Canal, including undue 
     foreign control over its infrastructure or management;
  

       Whereas when President Carter ratified the Neutrality 
     Treaty, President Carter accepted a legally binding condition 
     to the Treaty, adopted by the United States Senate, 
     establishing an independent right of the United States to 
     intervene militarily, consistent with United States 
     constitutional processes, to reopen or restore the operations 
     of the Panama Canal, as the United States deems necessary, to 
     ensure the canal remains open, neutral, secure, and 
     accessible;
       Whereas the People's Republic of China, through state-owned 
     enterprises and Chinese government-affiliated private 
     entities, has expanded its influence with key infrastructure 
     projects and ports around the world, including in Panama, 
     raising concerns about undue leverage and potential threats 
     to free and fair navigation and trade;
       Whereas the People's Republic of China Belt and Road 
     Initiative fosters economic dependence and exerts outsized 
     geopolitical influence through its investments;
       Whereas Panama joined the Belt and Road Initiative in 
     December 2018;
       Whereas the involvement of Chinese government-affiliated 
     enterprises in the construction, management, and maintenance 
     of other critical infrastructure, such as a proposed fourth 
     bridge spanning the Panama Canal, calls into question the 
     ability of Panama and the United States to defend the canal's 
     neutrality and ensure its operational security;
       Whereas two major ports in Panama, the ports of Balboa and 
     Cristobal, are currently managed by Chinese-affiliated 
     entities, such as Hutchison Ports, a Hong Kong-based operator 
     with significant ties to China's economic and political 
     ecosystem, threatening the sovereignty of Panama and the 
     security of the Western Hemisphere;
       Whereas the involvement of officials from the People's 
     Republic of China and entities that are subject to the 
     National Security Law of the People's Republic of China and 
     similar laws in Panamanian ports and infrastructure 
     compromises international security and disrupts critical 
     trade routes;
       Whereas the People's Republic of China's control over 
     portions of the infrastructure of the Panama Canal poses a 
     direct threat to the national security and strategic 
     interests of the United States;
       Whereas allowing foreign exploitation of Panama's ports and 
     infrastructure undermines the sacrifices made to secure 
     Panama's independence and the shared values between Panama 
     and the United States; and
       Whereas the United States and Panama have a long history of 
     partnership and shared commitment to democratic governance, 
     sovereignty, and the rule of law: Now, therefore, be it
       Resolved, That the Senate--
       (1) expresses profound concern about the presence and 
     influence of the People's Republic of China in Panamanian 
     ports and infrastructure, particularly in facilities of 
     strategic significance such as the ports of Balboa and 
     Cristobal;
       (2) calls upon the Government of Panama to--
       (A) reaffirm its commitment to the ``permanent neutrality'' 
     of the Panama Canal as defined by the Neutrality Treaty by 
     seeking management structures that ensure unbiased, equitable 
     access for vessels of all nations;
       (B) review and terminate agreements allowing Chinese state-
     owned enterprises or China-based so-called private entities 
     to manage strategic infrastructure, including the ports of 
     Balboa and Cristobal;
       (C) expel all officials from the People's Republic of China 
     operating within Panamanian ports and other critical 
     infrastructure projects; and
  

       (D) reaffirm its commitment to maintaining the sovereignty 
     of Panama and protecting the security of the Western 
     Hemisphere by seeking partnerships that align with democratic 
     values and mutual respect;
       (3) urges the Government of the United States to--
       (A) leverage provisions in the Neutrality Treaty, including 
     Condition (1), to monitor and address threats to the 
     neutrality of the Panama Canal, acting decisively to counter 
     undue foreign influence;
       (B) provide technical, financial, and strategic support to 
     Panama as it seeks to assert sovereignty over its critical 
     infrastructure and reduce its dependence on entities 
     affiliated with the People's Republic of China;
       (C) strengthen collaboration with Panama and other allies 
     in the region to promote transparent and sustainable 
     investments in infrastructure projects;
       (D) establish a framework to restore operational control of 
     the Panama Canal to a collaborative partnership between the 
     United States and Panama, which should honor the spirit of 
     the Neutrality Treaty, respect Panama's sovereignty, and 
     incorporate United States expertise and resources to benefit 
     both nations;
       (E) offer significant United States investments to 
     modernize Panama's canal infrastructure and provide 
     alternatives to Chinese-funded projects; and
       (F) develop a joint United States-Panama task force to 
     oversee canal security and operations, enhancing regional 
     security and ensuring freedom of navigation;
       (4) encourages Panama and other regional and global allies 
     to monitor and counter efforts by authoritarian regimes to 
     exploit economic vulnerabilities to gain strategic leverage 
     in the Western Hemisphere; and
       (5) directs that the Secretary of the Senate transmit a 
     copy of this resolution to the President of the United 
     States, the Secretary of State, the President of Panama, and 
     the National Assembly of Panama.

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