Article: U.S., Panama Study Ways to Alter, Bypass Canal;Proposals Could Improve the Waterway or Render It Technically Obsolete by Year 2000

While worried how the present crisis in Panama might bode for the future of the U.S.-controlled Panama Canal, the Reagan administration is taking steps that might render the strategic and historic waterway irrelevant by the time Panama gets control of it 12 years from now.

Scientists from the United States, Japan and Panama are conducting a $20 million, five-year study, instigated by the State Department, to determine whether the canal will be a white elephant in 2000, when Panama inherits it. If they conclude that the waterway, by then nearly a century old, will be unable to compete with technological advances that are beginning to transform the shipping world, then the United States and ...

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