Evening star., 1951-10-10
Panama Cracks Down on Ships
SoiIinq for Ports in Red China
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munist China and North Korea
and forbidding them to carry war
materials" even to any port where
there are grounds for suspecting'
it might be trans-shipped. Penalty
is loss of registry.
Decree Held Effective.
Officials of both the State De-
partment and the Senate Com
merce Committee staff said the
decree apparently is proving ef-
fective. They know of no case SO
far in which a Panamanian flag
ship has carried goods to Red
ports in violation Of the decree,
although one or two suspected
violations are under investigation.
Before Panama's tough policy
in support of the United Nations
embargo on war material bound
for areas under control of the Reds
fighting U. N. forces In Korea
went into effect. officials estimate
that ships flying the Panamanian
flag had carried about 10000 tons
of cargo to Red China this year.
Probably none of the 50 ships
involved actually was owned by
citizens of Panama. The little
Central American country has lib
eral ship registration laws that
attract to its flag many shipown-
ers of other Municipalities out to
earn an "easy dollar" in shady
operations they could not get by
with under their own flags. as
we'll as those engaged in legitimate
enterprises.
Shipping experts say that gen.
orally operation of a vessel under
the Panamanian flag is cheaper,
with freedom from the higher
taxes of many countries, and
has fewer government
controls.
AS a result, the merchant feet
under Panama's flag
is among the first 10 in the world
On last June 80. there were $50
ships of over 1000 gross tons reg
istered in Panama. BY way Of
comparison, the United States had
:, 1886: Great Britain. 1850; Nor
way, 965; Sweden. $50. and
France, 534.
Others Tighten Controls.
After the United Nations adopted
its embargo against war materials
going to Communist China and
North Korea, last May 18, there
was a gradual tightening up on
shipping by Britain and other sea-
faring nations to prevent leaks.
Officials here said there appeared,
for a short time, to be a trend for
transferring ships to Panamanian
to get by the controls.
But that trend has been stopped
by Panama's tough action. these
officials say.
Actual nationality Of the owners
Of ships flying Panama's flag is
difficult, and in most cases i'm
possible, to determine. Generally.
dummy corporations are set up in
Panama for purposes Of ship reg
istration, and the Panama gov
ernment itself doesn't know who
is behind those corporations.
American officials say many are
owned by Greek interests, and
some by British and Americans
Senator O'Conor has said that
in most instances, the owners are
European or Asiatic individuals
or organizations" He added that
it has been rumored frequently
that some Of the owners are Amer
ican citizens or aliens living In
this country.
Panama's decree cracking down
on the traffic with Red China was
based on the u. N embargo and
what the Panamanian government
described as "its unavoidable duty
to cooperate by all means within
its power in combating aggres-
sion and Fastening the event OF
international peace"
Main Provisions.
It's major provisions:
Vessels Of the national mer-
chant marine are hereby pro-
hibited from putting in at any
ports that are under the authority
or control Of the government OF