Text of Panama's Law No. 5
Giving special rights to Huchinson Whampoa's Panama Ports Company
Legislative Assembly Panama Law No. 5 (January 16, 1997)
"Whereby the contract between the State and the Panama Ports Company, S.A. corporation is approved, for the development, construction, operation, administration and management of the port terminals for containers, RO-RO, passengers, bulk cargo and general cargo in the ports of Balboa and Cristobal" Read more

Highlights of Law No. 5
Panama Law No. 5 (PL-5) is a state contract whereby the Republic of Panama gives the Panama Ports Company (PPC) complete control over two strategic port facilities at each end of the Canal, Cristobal on the Atlantic and Balboa on the Pacific. The length of this “lease” is for 25 years with an automatic additional 25-year option. (See Preamble and clauses 2.1, 2.2 and 2.9.)
In return, Panama received 10 percent of PPC’s stock and, subject to various contingencies, $22.2 million per year. (See clauses 2.3 and 2.4.) Read more

Panama Canal Treaty of 1977
President Jimmy Carter and Panamanian Chief of Government Omar Torrijos signed the Panama Canal Treaty and Neutrality Treaty on September 7, 1977. This agreement relinquishes American control over the canal by the year 2000 and guarantees its neutrality. On May 4, 1904, Panama granted the United States the right to build and operate the canal and control the five miles of land on either side of the water passage in exchange for annual payments. For the history of the Panama Canal, visit the Library of Congress† American Memory section. Read more