The special relationship between Panama and the United States dates back to 1850 with the first trans-Isthmus railroad and the 1903 treaty to build the Panama Canal. This relationship will be tested over the next four years when the Canal and its related properties are transferred to Panama under the 1977 Carter-Torrijos Treaties, and the U.S. Southern Command moves its headquarters to Florida. Nearly a decade was lost in this transition, and most of the tasks remain ahead. In each area, political consensus is needed to move ahead on key issues.
Time is short and much remains to be done.
The work force already has all of the necessary skills and is over 90 percent Panamanian. The operations and maintenance of the Canal are well understood by managers who also are aware that the eyes of the world are watching how they handle this transition. The prospects are good that the Canal will continue to run efficiently, barring any problems that are outside the control of the Canal management. This will require new thinking by the post-transition management. Both governments are cooperating to ensure that the same level of talented, highly respected managers remain in key positions throughout the transition.