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The Panama Canal was going to the Panamanians no matter who stood at the White House. Regan would have likely made the deal if Carter hadn't. Congress had been suggesting this since the early 70s. The Panamanians had this idea that the canal actually made a profit and that they should be owning the canal to 'suck' up that profit. They used to go to political rallies in Panama and talk of hundreds of millions in terms of profit. After the treaty was signed and the slow turn-over started...the politicans began to shut up about profit. The truth is that the canal never made a penny of profit ever. The transit payments paid strictly for daily operations and the staff...thats it. The US actually paid for major improvements out of its own pocket in order to keep the transit cost low. When Panama started to finally take over the canal...they suddenly woke up and realized that they would have to front these improvement costs and have no profit. Originally talking of massive transit fees...they finally got realistic and edged them up around 20 to 30 percent. The money-maker now as far as they are concerned is the docks and freight area. Most of the big name politicans have various deals that help float money under the table from the dock to them. The public in Panama has never made any money off the canal or the docks. The standard of living is no better than the 1980s when the Americans were there with a large military prescence....and in most cases, worse.

As for Carter and the treaty...it actually has saved the US government $500 million a year (from 1980s numbers)...from military operations there to the canal improvements. Thats the one positive. As for the shape of the canal in 20 years...obviously, Panama will either have to drastically increase transit costs or ask Uncle Sam to front big bills. I wouldn't give Carter any big credits...but the US government did not really need to run the canal or spend government money on the thing. Either the commerical world pays their share or else it closes.

Are you sure we haven't been paying the cost to operate the canal all these years, hmmm, let me see, say, through foreign aid?

FReegards

"...As for the shape of the canal in 20 years..."

How does new, union built, taxpayer paid, public housing look in 20 years?