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B-197052 1 (1980-04-22)

handle is hein.gao/gaobadier0001 and id is 1 raw text is: 01i6.~ F_/I,41;// 7 ~N1\THE COMPTRO~LLER GENERAL DEISION OP TKI- U NITED STATES WVASHINGTON, 0.C. 20546 FILE: B-197052 DATE: April 22, 1980 MATTER OF: Panama Canal Commission Liability anp Settlement Authority on Claims DIGEST: The Panama Canal Commission, successor agency to the Canal Zone Government and the Panama Canal Company, may assume liability or those claims that arose against both the Government and the Company prior to the ef- fective date of the Panama Canal Treaty of 1977. The Commission also has settlement authority to adjust claims arising against the Government and the Company, if such authority had existed with those latter agencies/ Sep Panama Canal Act of 1979, Pub. L. 96-70. Any claim arising against the Commission after October 1, 1979, must be administered pursuant to chapter 4 of Pub. L. 96-70. I/ / /) The Administrator of the Panama Canal Commissio requests our opinion on the Commission's liability for certain claims an its au ho- rity to settle and pay such claims. These issues have arisen as a result of the operation of the Panama Canal Treaty of 1977 and its resulting implementing legislation, the Panama Canal Act of 1979, Public Law No. 96-70, 93 Stat. 452 (1972). On October 1, 1979, the date that the Panama Canal Treaty of 1977 entered into force, the Panama Canal Act of 1979, supra, also Went into effect. This statute established a new United StatesTo-vernment agency called the Panama Canal Commission (Commission) which is to manage, operate, and maintain the Panama Canal for the life of the Treaty. The Commission replaced two entities that had previously operated the Pana- ma Canal and the Panama Canal Zone, the Panama Canal Company, (Com- pany), a corporate instrumentality of the United States which maintained and operated the canal, and the Canal Zone Government, an independent agency of the United States which performed the various duties connected with the civil government of the Canal Zone. Both were dissolved on October 1, 1979, by section 3303(a) of the implementing Act. Pub. L. No. 96-70, 93 Stat. 499. This has resulted in confusion concerning the Commission's liability for, and authority to settle and pay claims presented to the Company and x214r IVIf, - g .4 . J-l . Dn

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