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shall so be interpreted, to assure the transit of such vessels through the Canal as quickly as possible, without any impediment, with expedited treatment, and in case of need or emergency, to go to the head of the line of vessels in order to transit the Canal rapidly.’’’ (b) CONDITIONS: (1) Notwithstanding the provisions of Article V or any other provision of the Treaty, if the Canal is closed, or its operations are interfered with, the United States of America and the Republic of Panama shall each inde- pendently have the right to take such steps as each deems necessary, in accordance with its constitutional processes, including the use of military force in the Republic of Panama, to reopen the Canal or restore the operations of the Canal, as the case may be. (2) The instruments of ratification of the Treaty shall be exchanged only upon the conclusion of a Protocol of Exchange, to be signed by authorized representatives of both Governments, which shall constitute an inte- gral part of the Treaty documents and which shall include the following: “Nothing in the Treaty shall preclude the Republic of Panama and the United States of America from making, in accordance with their respective constitutional processes, any agreement or arrangement between the two countries to facilitate performance at any time after December 31, 1999, of their responsibilities to maintain the regime of neutrality established in the Treaty, including agreements or arrangements for the stationing of any United States military forces or the maintenance of defense sites after that date in the Republic of Panama that the Republic of Panama and the United States of America may deem necessary or appropriate.” (c) RESERVATIONS: 1) Before the date of entry into force of the Treaty, the two Parties shall begin to negotiate for an agreement under which the American Battle Monuments Commission would, upon the date of entry into force of such agreement and thereafter, administer, free of all taxes and other charges and without compensation to the Republic of Panama and in accordance with the practices, privileges, and immunities associated with the administration of cemeteries outside the United States of America by the American Battle Monuments Commission, including the display of the flag of the United States of America, such part of Corozal Cemetery in the former Canal Zone as encompasses the remains of citizens of the United States of America. (2) The flag of the United States of America may be dis- played, pursuant to the provisions of paragraph 3 of Article VII of the Panama Canal Treaty, at such part of Corozal Cemetery in the former Canal Zone as encompasses the remains of citizens of the United States of America. (3) The President— (A) shall have announced, before the date of entry into force of the Treaty, his intention to transfer, consistent with an agreement with the Republic of Panama, and before the date of termination of the Panama Canal Treaty, to the American Battle Monuments Commission the administration of such part of Corozal Cemetery as encompasses the remains of citizens of the United States of America; and (B) shall have announced, immediately after the date of exchange of instruments of ratification, plans, to be carried out at the expense of the Govern- ment of the United States of America, for (i) removing, before the date of entry into force of the Treaty, the remains of citizens of the United States of America from Mount Hope Cemetery to such part of Corozal Cemetery as encompasses such remains, except that the remains of any citizen whose next of kin objects in writing to the Secretary of the Army not later than three months after the date of exchange of the instruments of ratification of the Treaty shall not be removed; and (ii) transporting to the United States of Amer- ica for reinterment, if the next of kin so re- quests, not later than thirty months after the date of entry into force of the Treaty, any such remains encompassed by Corozal Cemetery and, before the date of entry into force of the Treaty, any remains removed from Mount Hope Cemetery pursuant to subclause (i); and (C) shall have fully advised, before the date of entry into force of the Treaty, the next of kin objecting under clause (B) (i) of all available options and their implications. (4) To carry out the purposes of Article III of the Treaty of assuring the security, efficiency, and proper maintenance of the Panama Canal, the United States of America and the Republic of Panama, during their respective periods of responsibility for Canal opera- tion and maintenance, shall, unless the amount of the operating revenues of the Canal exceeds the amount needed to carry out the purposes of such Article, use such revenues of the Canal only for purposes consistent with the purposes of Article III. (d) UNDERSTANDING: (1) Paragraph 1 (c) of Article III of the Treaty shall be construed as requiring, before any adjustment in tolls for use of the Canal, that the effects of any such toll adjustment on the trade patterns of the two Parties shall be given full consideration, including consideration of the following factors in a manner consistent with the regime of neutrality: 630 Panama Canal Treaty of 1977 (A) the costs of operating and maintaining the Panama Canal; (B) the competitive position of the use of the Canal in relation to other means of transportation; (C) the interests of both Parties in maintaining their domestic fleets; (D) the impact of such an adjustment on the various geographic areas of each of the two Parties; and (E) the interests of both Parties in maximizing their international commerce. The United States of America and the Republic of Panama shall coop- erate in exchanging information necessary for the consideration of such factors. (2) The agreement “to maintain the regime of neutrality established in this Treaty” in Article IV of the Treaty means that either of the two Parties to the Treaty may, in accordance with its constitutional processes, take unilateral action to defend the Panama Canal against any threat, as determined by the Party taking such action. (3) The determination of “need or emergency” for the purpose of any vessel of war or auxiliary vessel of the United States of America or the Republic of Panama going to the head of the line of vessels in order to transit the Panama Canal rapidly shall be made by the nation operating such vessel. (4) Nothing in the Treaty, in Annex A or B thereto, in the Protocol relating to the Treaty, or in any other agreement relating to the Treaty, obligates the United States of America to provide any economic assistance, military grant assistance, security supporting assistance, foreign military sales credits, or international military education and training to the Republic of Panama. (5) The President shall include all amendments, conditions, reservations, and understandings incorporated by the Senate in this resolution of ratification in the instrument of ratification to be exchanged with the Government of the Republic of Panama. Panama Canal Treaty of 1977 631 Ronald Reagan’s Remarks and a Question and Answer Session with Reporters on the Air Traffic Controllers’ Strike (1981) During the Pullman Strike of 1894 the government forced American Railway Union members, who the U.S. attorney general claimed had violated the Sherman Anti-Trust Act, to return to work after the railway system had been shut down when all employees joined the strike. The importance of the transportation system caused the government to intercede. The same problem occurred in 1981 when members of the Air Traffic Controllers Union, in violation of their contract, called for a strike, a tactic that would have grounded all planes in the United States. President Ronald Reagan warned the union that he would fire all air traffic controllers who went out on strike and he did so when they ignored his warning; he explained his actions in a press conference on August 3, 1981. Source: http://www.reagan/utexas.edu/resource/speeches/ 1981/8038/a.htm. August 3, 1981 The President. This morning at 7 A.M. the union represent- ing those who man America’s air traffic control facilities called a strike. This was the culmination of 7 months of negotiations between the Federal Aviation Administration and the union. At one point in these negotiations agreement was reached and signed by both sides, granting a $40 million increase in salaries and benefits. This is twice what other government employees can expect. It was granted in recognition of the difficulties inherent in the work these people perform. Now, however, the union demands are 17 times what had been agreed to—$681 million. This would impose a tax bur- den on their fellow citizens which is unacceptable. I would like to thank the supervisors and controllers who are on the job today, helping to get the nation’s air system operating safely. In the New York area, for example, four supervisors were scheduled to report for work, and 17 addi- tionally volunteered. At National Airport a traffic controller told a newsperson he had resigned from the union and reported to work because,“How can I ask my kids to obey the law if I don’t?” This is a great tribute to America. Let me make one thing plain. I respect the right of work- ers in the private sector to strike. Indeed, as president of my own union, I led the first strike ever called by that union. I guess I’m maybe the first one to ever hold this office who is a lifetime member of an AFL-CIO union. But we cannot com- pare labor-management relations in the private sector with government. Government cannot close down the assembly line. It has to provide without interruption the protective services which are government’s reason for being. It was in recognition of this that the Congress passed a law forbidding strikes by government employees against the public safety. Let me read the solemn oath taken by each of these employees, a sworn affidavit, when they accepted their jobs: “I am not participating in any strike against the Government of the United States or any agency thereof, and I will not so participate while an employee of the Government of the United States or any agency thereof.” It is for this reason that I must tell those who fail to report for duty this morning they are in violation of the law, and if they do not report for work within 48 hours, they have for- feited their jobs and will be terminated. Q[uestion]. Mr. President, are you going to order any union members who violate the law to go to jail? The President. We ll, I have some people around here, and maybe I should refer that question to the Attorney General. Q[uestion]. Do you think that they should go to jail, Mr. President, anybody who violates this law? The President. I told you what I think should be done. They’re terminated. The Attorney General: Well, as the President has said, strik- ing under these circumstances constitutes a violation of the law, and we intend to initiate in appropriate cases criminal proceedings against those who have violated the law. Q[uestion]. How quickly will you initiate criminal proceedings, Mr. Attorney General? 632 The Attorney General: We will initiate those proceedings as soon as we can. Q[uestion]. To d a y? The Attorney General: The process will be underway probably by noon today. Q[uestion]. Are you going to try and fine the union $1 million per day? The Attorney General: Well, that’s the prerogative of the court. In the event that any individuals are found guilty of contempt of a court order, the penalty for that, of course, is imposed by the court. Q[uestion]. How much more is the government prepared to offer the union? The Secretary of Transportation. We think we had a very satisfactory offer on the table. It’s twice what other Government employees are going to get—11.4 percent. Their demands were so unreasonable there was no spot to negotiate, when you’re talking to somebody 17 times away from where you presently are. We do not plan to increase our offer to the union. Q[uestion]. Under no circumstances? The Secretary of Transportation. As far as I’m concerned, under no circumstance. Q[uestion]. Will you continue to meet with them? The Secretary of Transportation. We will not meet with the union as long as they’re on strike. When they’re off of strike, and assuming that they are not decertified, we will meet with the union and try to negotiate a satisfactory contract. Q[uestion]. Do you have any idea how it’s going at the airports around the country? The Secretary of Transportation. Relatively, it’s going quite well. We’re operating somewhat in excess of 50 percent capac- ity. We could increase that. We have determined, until we feel we’re in total control of the system, that we will not increase that. Also, as you probably know, we have some rather severe weather in the Midwest, and our first priority is safety. Q[uestion]. What can you tell us about possible decertification of the union and impoundment of its strike funds? The Secretary of Transportation. There has been a court action to impound the strike fund of $3.5 million. We are going before the National Labor Relations Authority this morning and ask for decertification of the union. Q[uestion]. When you say that you’re not going to increase your offer, are you referring to the original offer or the last offer which you’ve made? Is that still valid? The Secretary of Transportation. The last offer we made in present value was exactly the same as the first offer. Mr. Poli (Robert Poli, Professional Air Traffic Controllers Organi- zation) asked me about 11 o’clock last evening if he could phase the increase in over a period of time. For that reason, we phased it in over a longer period of time. It would have given him a larger increase in terms of where he would be when the next negotiations started, but in present value it was the $40 million originally on the table. Q[uestion]. Mr. Attorney General, in seeking criminal action against the union leaders, will you seek to put them in jail if they do not order these people back to work? The Attorney General. Well, we will seek whatever penalty is appropriate under the circumstances in each individual case. Q[uestion]. Do you think that is an appropriate circumstance? The Attorney General. It is certainly one of the penalties that is provided for in the law, and in appropriate cases, we could very well seek that penalty. Q[uestion]. What’s appropriate? The Attorney General. Well, that depends upon the fact of each case. Q[uestion]. What makes the difference? Q[uestion]. Can I go back to my “fine” question? How much would you like to see the union fined every day? The Attorney General. Well, there’s no way to answer that question. We would just have to wait until we get into court, see what the circumstances are, and determine what position we would take in the various cases under the facts as they develop. Q[uestion]. But you won’t go to court and ask the court for a specific amount? The Attorney General. Well, I’m sure we will when we reach that point, but there’s no way to pick a figure now. Q[uestion]. Mr. President, will you delay your trip to California or cancel it if the strike is still on later this week? The President. If any situation should arise that would require my presence here, naturally I will do that. So, that will be a decision that awaits what’s going to happen. May I just— because I have to be back in there for another appointment— may I just say one thing on top of this? With all this talk of penalties and everything else, I hope that you’ll emphasize, again, the possibility of termination, because I believe that there are a great many of those people—and they’re fine people—who have been swept up in this and probably have not really considered the result—the fact that they had taken an oath, the fact that this is now in violation of the law, as that one supervisor referred to with regard to his children. And I am hoping that they will in a sense remove themselves from the lawbreaker situation by returning to their posts. I have no way to know whether this had been conveyed to them by their union leaders, who had been informed that this would be the result of a strike. Q[uestion]. Your deadline is 7 o’clock Wednesday morning for them to return to work? The President. Forty-eight hours. The Secretary of Transportation. It’s 11 o’clock Wednesday morning. Q[uestion]. Mr. President, why have you taken such strong action as your first action? Why not some lesser action at this point? The President. What lesser action can there be? The law is very explicit. They are violating the law. And as I say, we called this to the attention of their leadership. Whether this was conveyed to the membership before they voted to strike, I don’t know. But this is one of the reasons why there can be no further negotiation while this situation continues. You can’t sit and negotiate with a union that’s in violation of the law. Ronald Reagan’s Remarks on the Air Traffic Controllers’ Strike 633 The Secretary of Transportation. And their oath. The President. And their oath. Q[uestion]. Are you more likely to proceed in the criminal direction toward the leadership than the rank and file, Mr. President? The President. We ll, that again is not for me to answer. Q[uestion]. Mr. Secretary, what can you tell us about the possible use of military air controllers—how many, how quickly can they get on the job? The Secretary of Transportation. In answer to the previous question, we will move both civil and criminal, probably more civil than criminal, and we now have papers in the U.S. attorneys offices, under the Attorney General, in about 20 locations around the country where would be involved two or three principal people. As far as the military personnel are concerned, they are going to fundamentally be backup to the supervisory personnel. We had 150 on the job, supposedly, about a half-hour ago. We’re going to increase that to somewhere between 700 and 850. Q[uestion]. Mr. Secretary, are you ready to hire other people should these other people not return? The Secretary of Transportation. Yes, we will, and we hope we do not reach that point. Again as the President said, we’re hoping these people come back to work. They do a fine job. If that does not take place, we have a training school, as you know. We will be advertising. We have a number of applicants right now. There’s a waiting list in terms of people that want to be controllers, and we’ll start retraining and reorganize the entire FAA traffic controller group. Q[uestion]. Just to clarify, is your deadline 7 A.M. We dnedsay or 11 o’clock? The Secretary of Transportation. It’s 11 A.M.Wednesday. The President said 48 hours, and that would be 48 hours. Q[uestion]. If you actually fire these people, won’t it put your air traffic control system in a hole for years to come, since you can’t just cook up a controller in—[inaudible]? The Secretary of Transportation. That obviously depends on how many return to work. Right now we’re able to oper- ate the system. In some areas, we’ve been very gratified by the support we’ve received. In other areas, we’ve been disap- pointed. And until I see the numbers, there’s no way I can answer that question. Q[uestion]. Mr. Lewis, did you tell the union leadership when you were talking to them that their members would be fired if they went out on strike? The Secretary of Transportation. I told Mr. Poli yesterday that the President gave me three instructions in terms of the firmness of the negotiations: one is there would be no amnesty; the second there would be no negotiations during the strike; and third is that if they went on strike, these people would no longer be government employees. Q[uestion]. Mr. Secretary, you said no negotiations. What about informal meetings of any kind with Mr. Poli? The Secretary of Transportation. We will have no meetings until the strike is terminated with the union. Q[uestion]. Have you served Poli at this point? Has he been served by the Attorney General? The Attorney General. In the civil action that was filed this morning, the service was made on the attorney for the union, and the court has determined that that was appropriate service on all of the officers of the union. Q[uestion]. My previous question about whether you’re going to take a harder line on the leadership than rank and file in terms of any criminal prosecution, can you give us an answer on that? The Attorney General. No,I can’t answer that except to say that each case will be investigated on its own merits, and action will be taken as appropriate in each of those cases. Q[uestion]. Mr. Lewis, do you know how many applica- tions for controller jobs you have on file now? The Secretary of Transportation. I do not know. I’m going to check when I get back. I am aware there’s a waiting list, and I do not have the figure. If you care to have that, you can call our office, and we’ll tell you. Also, we’ll be advertising and recruiting people for this job if necessary. Q[uestion]. Mr. Secretary, how long are you prepared to hold out if there’s a partial but not complete strike? The Secretary of Transportation. I think the President made it very clear that as of 48 hours from now, if the people are not back on the job, they will not be government employees at any time in the future. Q[uestion]. How long are you prepared to run the air controller system—[inaudible]? The Secretary of Transportation. For years, if we have to. Q[uestion]. How long does it take to train a new controller, from the waiting list? The Secretary of Transportation. It varies; it depends on the type of center they’re going to be in. For someone to start in the system and work through the more minor office types of control situations till they get to, let’s say, a Chicago or a Washington National, it takes about 3 years. So in this case, what we’ll have to do if some of the major metropolitan areas are shut down or a considerable portion is shut down, we’ll be bringing people in from other areas that are qualified and then start bringing people through the training schools in the smaller cities and smaller airports. Q[uestion]. Mr. Secretary, have you definitely made your final offer to the union? The Secretary of Transportation. Yes, we have. Q[uestion]. Thank you. NOTE: The President read the statement to reporters at 10:55 A.M. in the Rose Garden at the White House. 634 Ronald Reagan’s Remarks on the Air Traffic Controllers’ Strike Bibliography 635 Books and Articles Abbott, George C. Sugar. New York: Routledge, 1990. Abolafia, Mitchel Y. Making Markets: Opportunism and Re- straint on Wall Street. Cambridge, MA: Harvard University Press, 1996. Abrams, Ann Uhry. The Pilgrims and Pocahontas: Rival Myths of American Origin. Boulder, CO: Westview Press, 1999. Adams, Gordon. The Iron Triangle. 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(3) The President— (A) shall have announced,

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