"In 1977, U.S. President Jimmy Carter and Panamanian leader General Omar Torrijos signed treaties that called for the transfer of the Panama Canal to Panama and the withdrawal of U.S. military presence from Panama by December 31, 1999. Earlier this year, we issued a classified report to you on issues related to the U.S. military drawdown in Panama. Since that time, most of the classified information has been declassified. On the basis of discussions with your staff and because of the likelihood that U.S. military drawdown issues will come before the Congress in the near future, we have updated the information in our earlier report and are issuing this unclassified report. Specifically, we are providing information on the potential for a post-1999 U.S. presence, the status of transfers of Department of Defense (DOD) properties and Panama's preparedness to accept them, the coordination to address treaty-related issues, DOD environmental and property valuation policies, DOD efforts to address employee terminations due to the drawdown, and the cost of the U.S. military drawdown. This report does not deal with the transfer of the Panama Canal to Panama."
General Accountability Office: http://www.gao.gov/