Following is the text of the Panama Canal treaty that the Senate will vote on today. The treaty, one of two that would turn over the Canal Zone to Panama, is on the permanent neutrality and operation of the canal. The words in italics are added to the original language of the treaty by the Senate.

The United States of America and the Republic of Panama have agreed upon the following: Article I

The Republic of Panama declares that the Canal, as an international transit waterway, shall be permanently neutral in according with the regime established in this Treaty. The same regime of neutrality shall apply to any other international waterway that my be built either partially or wholly in the territory of the Republic of Panama. Article II

The Republic of Panama declares the neutrality of the canal in order that both in time of peace and in time of war it shall remain secure and open to peaceful transit by the vessels of all nations on terms of entire equality, so that there will be no discrimination against any nation, or its citizens or subjects, concerning the conditions or charges of transit, or for any other reason, and so that the canal, and therefore the Isthmus of Panama, shall not be the target of reprisals in any armed conflict between other nations of the world. The following shall be subject to the following requirements:

(a) Payment of tolls and other charges for transit and ancillary services, provided they have been fixed in conformity with the provisions of Article (c:

(b) Compliance with applicable rules and regulations, provided such rules and regulations are applied in comfority with the provisions of Article III;

(c) the requirement that transiting vessels commit no acts of hostility while in the canal, and

(d) such other conditions and restriction as are established by this treaty. Article III

[1]

For purposes of the security, efficiency and proper maintenance of the Canal the following rules shall apply:

(a) the canal shall be operated efficiently in accordance with conditions of transit through the Canal, and rules and regulations that shall be just, equitable and reasonable, and limited to those necessary for safe navigation and efficient, sanitary operation of the canal;

(b) ancillary services necessary for transit through the canal shall be provided;

(c) tolls and other charges for transit and ancillary services shall be just, reasonable, equitable and consistent with the principles of international law;

(d) as a pre-condition of transit, vessels may be required to establish clearly the financial responsibility and guarantees for payment of reasonable and adequate indemnification, consistent with international practice and standards, for damages resulting from acts or ommissions of such vessels when passing through the canal. In the case of vessels owned or operated by a State or for which it has acknowledged responsibility, a certification by that State that it shall observe its obligations under international law to pay for damages resulting from the act or ommissions of such vessels when passing through the Canal shall be deemed sufficient to establish such financial responsibility;

(e) vessels of war and auxiliary vessels of all nations shall at all times be entitled to transit the canal irrespective of their internal operation, means of propulsion, origin, destination or armament, without being subjected, as a condition of transit, to inspection, search or surveillance. However, such vessels may be required to certify that they have complied with all applicable health, sanitation and quarantine regulations. In addition, such vessels shall be entitled to refuse to disclose their internal operation, origin, armament, cargo or destination. However, auxiliary vessels may be required to present written assurances, certifide by an official at a high level of the Government of the State requesting the exemption, that they are owned or operated by that Government and in this case are being used only on Government noncommercial service.

[2]

For the purposes of this treaty, the terms "Canal," "vessel of war," "auxiliary vessel," "internal operation," "armament" and "inspection" shall have the meanings assigned them in Annex A to this treaty. Article IV

The United States of America and the Republic of Panama agree to maintain the regime of neutrality established in this Treaty, which shall be maintained in order that the Canal shall remain permanently neutral, notwithstanding the termination of any other treaties entered into by the two contracting Parties.

A correct and authoritative statement of certain rights and duties of the parties under the foregoing is contained in the statement of understanding issued by the government of the United States of America on October 14, 1977, and by the government of the Republic of Panama on October 18, 1977, which is hereby incorporated as an integral part of this treaty, as follows:

Under the treaty concerning the permanent neutrality and operation of the Panama Canal (the neutrality treaty), Panama and the United States have the responsibility to assure that the Panama Canal will remain open and secure to ships of all nations. The correct interretation of this principle is that each of the two countries shall, in accordance with their respective constitutional processes, defend the canal against any threat to the regime of neutrality, and consequently shall have the right to act against any aggression or threat directed against the canal or against the peaceful transit of vessels through the canal.

This does not mean, nor shall it be interpreted as a right of intervention of the United States in the internal affairs of Panama. Any United States action will be directed at insurging that the canal will remain open, secure, and accessible, and it shall never be directed against the territorial integrity or political independence of Panama. Article V

After the termination of the Panama Canal Treaty, only the Republic of Panama shall operate the canal and maintain military forces, defense sites and military installations within its national territory.

Article VI

[1]

In recognition of the imporant contributions of the United States of America and of the Republic of Panama to the construction, operation, maintenance, and protection and defense of the Canal, vessels of war and auxiliary vessels of those nations, shall, notwithstanding any other provisions of this treaty, be entitled to transit the Canal irrespective of their internal operation, means of propulsion, origin, destination, armament or cargo carried. Such vessels of war and auxiliary vessels will be entitled to transit the canal expeditiously.

In accordance with the statement of understanding mentioned in Article IV above; the neutrality treaty provides that the vessels of war and auxiliary vessels of the United States and Panama will be entitled to transit the canal expeditiously. This is intended, and it 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 repadily.

[2]

The United States of America, so long as it has responsibility for the operation of the canal, may continue to provide the Republic of Colombia toll-free transit through the canal for its troops, vessels and materials of war. Thereafter the Republic of Panama may provide the Republic of Colombia and the Republic of Costa Rica with the right of toll-free transit. Article VII

[1]

The United States of America and the Republic of Panama shall jointly sponsor a resolution in the Organization of American States opening to accession by all States of the world the protocol to this treaty whereby all the signatories will adhere to the objectives of this treaty, agreeing to respect the regime of neutrality set forth herein.

[2]

The Organization of American States shall act as the depositary for this treaty and related instruments. Article VIII

This treaty shall be subject to ratification in according with the constitutional procedures of the two Parties. The instruments of ratification of this Treaty shall be exchanged at Panama at the same time as the instruments of ratification of the Panama Canal Treaty, signed this date, are exchanged. This treaty shall enter into force, simultaneoulsy with the Panama Canal Treaty, six calender months from the date of the exchange of the instruments of ratification.

Done at Washington this 7th day of September, 1977, in duplicate, in the English and Spanish languages, both texts being equally authentic. Annex

[1]

"Canal" includes the existing Panama Canal, the entrances thereto, and the territorial seas of the Republic of Panama adjacent thereto, as defined on the map annexed hereto (Annex B), and any other inter-oceanic waterway in which the United States of America is a participant or in which the United States of America has participated in connection with the cosntruction or financing, that may be operated wholly or partially within the territory of the Republic of Panama, the entrances thereto and the territorial seas adjacent thereto.

[2]

"Vessel of war" means a ship belonging to the naval forces of a State, and bearing the external marks distinguishing warships of its nationality, under the command of an officer duly commissioned by the Government and whose name appears in the Navy List, and manned by a crew which is under regular naval discipline.

[3]

"Auxiliary vessels" means any ship, not a vessel of war, that is owned or operated by a State and used, for the time being, exclusively on Government noncommercial service.

[4]

"Internal operation" encompasses all machinery and propulsion systems, as well as the management and control of the vessel, including its crew.It does not include the measures necessary to transit vessels under the control of pilots while such vessels are in the canal.

[5]

"Armament" means arms, ammunitions, implements of war and other equipment of a vessel which possesses characteristics appropriate for use for warlike purposes.

[6]

"Inspection" includes on-board examination of vessel structure, cargo, armament and internal operation. It does not include those measures strictly necessary for admeasurement, nor those measures strictly necessary to assure safe, sanitary transit and navigation, including examination of deck and visual navigation equipment, nor in the case of live cargoes, such as cattle or other livestock, that may carry communicable diseases, those measures necessary to assure the health and sanitation requirement are satisfied.