TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 131

CLASSIFIED

2. THE UNITED STATES OF AMERICA TRANSFERS, WITH-

TITLE OUT CHARGE, TO THE REPUBLIC OF PANAMA ALL RIGHT, AND INTEREST THE UNITED STATES OF AMERICA MAY HAVE WITH RESPECT 10 ALL REAL PROPERTY, INCLUDING NON-REMOVABLE IMPROVEMENTS THEREON, AS SET FORTH BELOW:

(A)

UPON THE ENTRY INTO FORCE OF THIS TREATY,

THE PANAMA RAILROAD AND SUCH PROPERTY THAT WAS LOCATED IN THE FORMER CANAL ZONE BUT THAT IS NOT WITHIN THE LAND AND WATER AREAS THE USE OF WHICH IS MADE AVAILABLE TO THE UNITED STATES OF AMERICA PURS UANT TO THIS TREATY. HOWEVER, IT IS AGREED THAT THE TRANSFER ON SUCH DATE SHALL NOT INCLUDE BUILDINGS AND OTHER FACIL IT IES, EXCEPT HOUSING, THE USE OF WHICH IS RETAINED BY THE UNITED STATES OF AMERICA PURSUANT TO THIS TREATY AND RELATED AGREEMENTS, OUTSIDE SUCH AREAS;

(B) SUCH PROPERTY LOCATED IN AN AREA OR A PORTION THEREOF AT SUCH TIME AS THE USE BY THE UNITED STATES OF AMERICA OF SUCH AREA OR PORTION THEREOF CEASES PURSUANT TO AGREEMENT BETWEEN THE TWO PARTIES.

•

(C) HOUSING UNITS MADE AVAILABLE FOR OCCU- PANCY BY MEMBERS OF THE ARMED FORCES OF THE REPUBLIC OF PANAMA IN ACCORDANCE WITH PARAGRAPH 5(B) OF ANNEX B TO THE AGREEMENT IN IMPLEMENTATION OF ARTICLE IV OF THIS TREATY AT SUCH TIME AS SUCH UNITS ARE MADE AVAILABLE TO THE REPUBLIC OF PANAMA.

(D) UPON TERMINATION OF THIS TREATY, ALL REAL PROPERTY, AND NON-REMOVABLE IMPROVEMENTS THAT WERE USED BY THE UNITED STATES OF AMERICA FOR THE PURPOSES OF THIS TREATY AND RELATED AGREEMENTS, AND EQUIPMENT RELATED TO THE MANAGEMENT, OPERATION AND MAINTENANCE OF THE CANAL REMA IN ING IN THE REPUBLIC OF PANAMA.

3. THE REPUBLIC OF PANAMA AGREES TO HOLD THE WITED STATES OF AMERICA HARMLESS WITH RESPECT TO ANY CLAIMS WHICH MAY BE MADE BY THIRD PARTIES RELATING TO RIGHTS, TITLE AND INTEREST IN SUCH PROPERTY.

A.

THE REPUBLIC OF PANAMA SHALL RECEIVE, IN ADDITION, FROM THE PANAMA CANAL COMMISSION A JUST AND EQUITABLE RETURN ON THE NATIONAL RESOURCES WHICH IT HAS DEDICATED TO THE EFFICIENT MANAGEMENT, OPERAT 10 MAINTENANCE, PROTECTION AND DEFENSE OF THE PANAMA CANAL, IN ACCORDANCE WITH THE FOLLOWING:

(A) AN ANNUAL AMOUNT TO BE PAID OUT OF CANAL OPERATING REVENUES COMPUTED AT A RATE OF THIRTY HUN- DREDTHS OF A UNITED STATES DOLLAR ($0.30) PER FANAMA CANAL NET TON, OR ITS EQUIVALENCY, FOR EACH VES SEL TRANSITING THE CANAL, AFTER THE ENTRY INTO FORCE OF

THE RATE OF THIS TREATY, FOR WHICH TOLLS ARE CHARGED. THIRTY HUNDREDTHS OF A UNITED STATES DOLLAR ($0.30) PER PANAMA CANAL NET TON, OR ITS EQUIVALENCY, WILL BE ADJUSTED TO REFLECT CHANGES IN THE UNITED STATES WHOLESALE PRICE INDEX FOR TOTAL MANUFACTURED GO ODS DURING BIENNIAL PERIODS. THE FIRST ADJUSTMENT SHALL TAKE FLACE FIVE YEARS AFTER ENTRY INTO FORCE OF THIS TREATY, TAKING INTO ACCOUNT THE CHANGES THAT OCCURRED IN SUCH PRICE INDEX DURING THE PRECEDING TWO YEARS. THEREAFTER

CCESSIVE ADJUSTMENTS SHALL TAKE PLACE AT THE END OF CH BIENNIAL PERIOD. IF THE UNITED STATES OF AMERI CA

THAT ANOTHER INDEXING METHOD IS PRE-

די

500 POSED TO THE REPUBLIC

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