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FOCUS-Clinton says China no threat in Panama Canal
Updated 3:28 PM ET November 30, 1999
By Mark Egan
WASHINGTON, (Reuters) - President Clinton Tuesday dismissed the notion that
Chinese control of the Panama Canal could hurt national security once the
United States cedes control at the end of the year.

Hutchison Whampoa, a Hong Kong-based company with ties to Beijing, has won
the right to control the ports at both ends of the canal, leading some to
fear that the Chinese might abuse their effective control of the 51 mile long
canal once the U.S. military pulls out of the area.

"I think the Chinese will in fact be bending over backward to make sure that
they run it in a competent and able and fair manner," Clinton said at a news
briefing.

"This is like them -- is like China coming into the World Trade Organization;
I'll think they'll want to demonstrate to a distant part of the world that
they can be a responsible partner," he said. "I would be very surprised if
any adverse consequences flowed from the Chinese running the canal."

The Panama Canal will pass to Panamanian from U.S. control Dec. 31, ending a
96-year American military presence in Panama.

Earlier this week retired Adm. Thomas Moorer, a former chairman of the Joint
Chiefs of Staff, said China was plotting to take over the canal once the
United States relinquishes control. He suggested China could use the area to
launch a nuclear attack on America.

White House National Security Council spokesman David Leavy Tuesday also
sought to allay those fears.

"Responsibility for operation of the canal following the transfer will rest
solely with the government of Panama," he said. "The company in question will
have no control over, or role in, the operation of the canal."

Clinton said he was confident the Panamanian government would run the canal
in an appropriate fashion and reiterated his support of the handover.

"I think it's the right thing to do," Clinton said. "I think that the new
government of Panama is committed to maintaining the canal in an appropriate
way and keeping it open and working with us to do so and having good
relations."

Clinton told reporters his decision not to attend the handover event was due
to the number of foreign trips he had already taken this year and not a snub
of the event. Former President Jimmy Carter and Secretary of State Madeleine
Albright will head the U.S. delegation to the ceremony.

"The people of Panama should know that this president and our government
strongly support both the treaty and the event," Clinton said.

State Department spokesman James Rubin said Carter's appearance at the
transfer was in recognition of his role in negotiating the transfer.

Rubin stressed that Hutchison Whampoa, which controls 10 percent of global
maritime container traffic, had contracts to run the ports, not the canal
itself.

"We have no reason to believe there's any risk of any problem as a result of
(Hutchison Whampoa) running the ports," he told a news briefing Tuesday.

But U.S. lawmakers have also raised concerns on the issue as the transfer
nears.

In August Senate Majority leader Trent Lott, a Mississippi Republican, wrote
to Secretary of Defense William Cohen, saying "U.S. naval ships will be at
the mercy of Chinese-controlled pilots and could even be denied passage
through the canal by Hutchison, an arm of the People's Liberation Army."

In October Rep. Dana Rohrabacher, a California Republican, told a Senate
hearing on the issue he believed Hutchison Whampoa's billionaire chairman, Li
Ka-shing, was a member of the inner circle of the Chinese leadership.




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