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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 31 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  1st Session
S. RES. 31

Calling on the Government of Panama to expel officials and interests of 
the People's Republic of China and terminate Chinese management of key 
                           Panamanian ports.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2025

 Mr. Schmitt (for himself, Mr. Cotton, Mr. Marshall, Mrs. Britt, Mrs. 
Blackburn, and Mr. Ricketts) submitted the following resolution; which 
           was referred to the Committee on Foreign Relations

_______________________________________________________________________

                               RESOLUTION

 
Calling on the Government of Panama to expel officials and interests of 
the People's Republic of China and terminate Chinese management of key 
                           Panamanian ports.

Whereas the strategic location of the Panama Canal is vital to global trade and 
        the security of the Western Hemisphere;
Whereas Panamanians and Americans have invested significantly to secure the 
        sovereignty, stability, and prosperity of Panama, including the 
        construction, defense, and transfer of the Panama Canal, ensuring it 
        remains a critical asset for global commerce;
Whereas the construction of the Panama Canal by the United States required more 
        than a decade of work (1904-1914), involved tens of thousands of 
        workers, and cost approximately $375,000,000, equivalent to more than 
        $10,000,000,000 in 2025, with thousands of workers losing their lives 
        due to disease and hazardous conditions;
Whereas the defense and operation of the Panama Canal during the 20th century 
        further demonstrated the United States' commitment, at significant 
        financial and human cost, to maintaining the vital global trade route;
Whereas the Treaty Concerning the Permanent Neutrality and Operation of the 
        Panama Canal, signed at Washington September 7, 1977 (commonly referred 
        to as the ``Neutrality Treaty''), prohibits actions that undermine the 
        canal's neutrality or threaten United States security interests and 
        grants the United States the right to act, unilaterally if necessary, to 
        defend the canal's neutrality and ensure its operational security;
Whereas the Neutrality Treaty obligates Panama and the United States to act 
        against any threat to the neutrality or peaceful operation of the Panama 
        Canal, including undue foreign control over its infrastructure or 
        management;
Whereas when President Carter ratified the Neutrality Treaty, President Carter 
        accepted a legally binding condition to the Treaty, adopted by the 
        United States Senate, establishing an independent right of the United 
        States to intervene militarily, consistent with United States 
        constitutional processes, to reopen or restore the operations of the 
        Panama Canal, as the United States deems necessary, to ensure the canal 
        remains open, neutral, secure, and accessible;
Whereas the People's Republic of China, through state-owned enterprises and 
        Chinese government-affiliated private entities, has expanded its 
        influence with key infrastructure projects and ports around the world, 
        including in Panama, raising concerns about undue leverage and potential 
        threats to free and fair navigation and trade;
Whereas the People's Republic of China Belt and Road Initiative fosters economic 
        dependence and exerts outsized geopolitical influence through its 
        investments;
Whereas Panama joined the Belt and Road Initiative in December 2018;
Whereas the involvement of Chinese government-affiliated enterprises in the 
        construction, management, and maintenance of other critical 
        infrastructure, such as a proposed fourth bridge spanning the Panama 
        Canal, calls into question the ability of Panama and the United States 
        to defend the canal's neutrality and ensure its operational security;
Whereas two major ports in Panama, the ports of Balboa and Cristobal, are 
        currently managed by Chinese-affiliated entities, such as Hutchison 
        Ports, a Hong Kong-based operator with significant ties to China's 
        economic and political ecosystem, threatening the sovereignty of Panama 
        and the security of the Western Hemisphere;
Whereas the involvement of officials from the People's Republic of China and 
        entities that are subject to the National Security Law of the People's 
        Republic of China and similar laws in Panamanian ports and 
        infrastructure compromises international security and disrupts critical 
        trade routes;
Whereas the People's Republic of China's control over portions of the 
        infrastructure of the Panama Canal poses a direct threat to the national 
        security and strategic interests of the United States;
Whereas allowing foreign exploitation of Panama's ports and infrastructure 
        undermines the sacrifices made to secure Panama's independence and the 
        shared values between Panama and the United States; and
Whereas the United States and Panama have a long history of partnership and 
        shared commitment to democratic governance, sovereignty, and the rule of 
        law: Now, therefore, be it
    Resolved, That the Senate--
            (1) expresses profound concern about the presence and 
        influence of the People's Republic of China in Panamanian ports 
        and infrastructure, particularly in facilities of strategic 
        significance such as the ports of Balboa and Cristobal;
            (2) calls upon the Government of Panama to--
                    (A) reaffirm its commitment to the ``permanent 
                neutrality'' of the Panama Canal as defined by the 
                Neutrality Treaty by seeking management structures that 
                ensure unbiased, equitable access for vessels of all 
                nations;
                    (B) review and terminate agreements allowing 
                Chinese state-owned enterprises or China-based so-
                called private entities to manage strategic 
                infrastructure, including the ports of Balboa and 
                Cristobal;
                    (C) expel all officials from the People's Republic 
                of China operating within Panamanian ports and other 
                critical infrastructure projects; and
                    (D) reaffirm its commitment to maintaining the 
                sovereignty of Panama and protecting the security of 
                the Western Hemisphere by seeking partnerships that 
                align with democratic values and mutual respect;
            (3) urges the Government of the United States to--
                    (A) leverage provisions in the Neutrality Treaty, 
                including Condition (1), to monitor and address threats 
                to the neutrality of the Panama Canal, acting 
                decisively to counter undue foreign influence;
                    (B) provide technical, financial, and strategic 
                support to Panama as it seeks to assert sovereignty 
                over its critical infrastructure and reduce its 
                dependence on entities affiliated with the People's 
                Republic of China;
                    (C) strengthen collaboration with Panama and other 
                allies in the region to promote transparent and 
                sustainable investments in infrastructure projects;
                    (D) establish a framework to restore operational 
                control of the Panama Canal to a collaborative 
                partnership between the United States and Panama, which 
                should honor the spirit of the Neutrality Treaty, 
                respect Panama's sovereignty, and incorporate United 
                States expertise and resources to benefit both nations;
                    (E) offer significant United States investments to 
                modernize Panama's canal infrastructure and provide 
                alternatives to Chinese-funded projects; and
                    (F) develop a joint United States-Panama task force 
                to oversee canal security and operations, enhancing 
                regional security and ensuring freedom of navigation;
            (4) encourages Panama and other regional and global allies 
        to monitor and counter efforts by authoritarian regimes to 
        exploit economic vulnerabilities to gain strategic leverage in 
        the Western Hemisphere; and
            (5) directs that the Secretary of the Senate transmit a 
        copy of this resolution to the President of the United States, 
        the Secretary of State, the President of Panama, and the 
        National Assembly of Panama.
                                 <all>
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