-Caveat Lector-

THURSDAY
JUNE 24
1999

The threat to U.S.
in Panama
Chinese dominance of canal zone
a danger, says Congress report

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� 1999 WorldNetDaily.com

A U.S. congressional delegation that toured Central America in anticipation
of the hand-over of the Panama Canal at the end of this year concluded that
the Communist Chinese dominance of the canal zone represents a threat to
U.S. security, according to a report obtained by WorldNetDaily columnist
Charles Smith.
"U.S. and Panamanian security officials stated that Panama has become the
central base of operations for communist China in Latin America," the report
states. "Panama is a Pacific Ocean port, and the canal is vital to commerce
between the Asia-Pacific region and the Americas. [Europe also uses the
Canal for a substantial mount of its trade with Asia.] It is also a vital
component to emerging Chinese communist strategy to dominate the Pacific and
to undermine and isolate the United States. The Number Two user of the
canal, after the United Slates is Japan, with China and Taiwan competing for
the third position."

The report points out that the unofficial representative of the People's
Republic of China is believed to be a senior intelligence officer who
operates out of an office on the top floor of a bank building in Panama
City, with a staff of 14 assistants.

"Worldwide, China appears to be progressively positioning itself
commercially and militarily along the key naval choke points between the
Indian Ocean [its bases in Burma]; the South China Sea [Hong Kong]; the
Straits of Malacca [the Spratley Islands and a growing role in Cambodia];
the central Pacific [a major land satellite tracking station on Tarawa]; the
coast of Hawaii [a major ocean mining tract]; the Caribbean [Cuba and the
Bahamas]; and now the Panama Canal," says the report. "China's flagship
commercial shipping fleet, China Ocean Shipping Company [COSCO], is directly
connected to the People's Liberation Army and Chinese communist government.
COSCO ships have served as careers for massive smuggling operations around
the world -- including the United States -- of weapons, drugs and illegal
aliens. In addition, COSCO has been used by the Chinese government to ship
missiles -- and components of weapons of mass destruction to rogue nations
such as Pakistan and Iran."

Colombian insurgents have reportedly been conducting raids deep inside
Panama, taking advantage of the U.S. troop withdrawals. General Charles E.
Wihlem of the U.S. Army Southern Command said Panama's defense forces are
"not manned, trained or equipped" to deal with the raiding Columbian
guerrillas. According to the blacked-out congressional report, the Colombian
insurgents are backed and supplied by Cuba, Russia and China.

"The growing anti-U.S./NATO 'strategic partnership' of China and Russia
poses an increasing threat. There is a well-documented history of both
Russian and Chinese organized crime organizations working as tools of their
governments. In Panama, where government corruption is rampant, there is a
dangerous convergence of well-financed Chinese and Russian mobs with Cuban
government operatives and Latin American drug lords, leftists and
narco-terrorist militants. This dark partnership is a threat to democracy in
Panama and in neighboring countries, and is a direct long-term threat to
Mexico and the United States."

The Panama Canal, one of the world's key strategic waterways, is scheduled
to be turned over to the Panamanian government on Dec. 31, 1999.
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� 1999 WorldNetDaily.com, Inc.
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