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This week's cover story on the new Panama Canal agreement engaged TIME Correspondents Jerry Hannifin and Bernard Diederich in the past as well as the present. Diederich, our Mexico City bureau chief since 1969 and the winner of the Maria Moors Cabot Prize for Latin American reporting, has been following the canal situation for seven years. Yet as he reported this week, his reflections went back 35 years to the time when, as a boy in a U.S. Merchant Marine T-2 tanker, he first traveled the waterway. The canal, he notes, was then bustling with wartime traffic...
Jerry Hannifin, who flew to Panama for an interview with Strongman Omar Torrijos Herrera, is also an old hemisphere hand. Says he of the canal: "In its time, it was the engineering equivalent of the U.S. landing men on the moon...
...feared collision between Congress and the President had not occurred, and as Congress recessed for a month last week, relations between the two branches of Government had considerably warmed. Jimmy Carter was losing some but winning others. He was optimistic about the prospect of soon signing a new Panama Canal treaty,* which will face a tough fight on Capitol Hill. And last week he unloaded his massive welfare-reform proposal on Congress...
...donned red coveralls and a white hard hat with "President Jimmy Carter" painted on in green-and pronounced himself in favor of further offshore exploration all along the Atlantic Coast. In fact, he said on returning to New Orleans, the U.S. should seriously consider building a new sea-level canal through Panama just to handle the Atlantic-Pacific oil trade. By the year 2000, the President reckoned, such a canal just "might be in the interests of national security militarily as well as economically...
Quiet Urging. The second agreement provides for defending the permanent neutrality of the canal-that is, some U.S. military guarantee that the Big Ditch will be open to ships from any nation. A number of the Latin American governments most openly in favor of turning the zone over to Panama have quietly urged the U.S. to insist on this guarantee. Otherwise, ask representatives from such heavy canal users as Ecuador, Colombia, Chile and Peru, how could they be certain that some future Panamanian ruler might not shut off the canal to their ships in a totally unforeseeable squabble? Largely because...