WASHINGTON -- Next month, the U.S. presence in Latin America will significantly change when the Panama Canal is ceded to the nation of Panama.

There are many concerns about what the change in ownership of the canal means to American commercial and security interests, especially given alleged maneuvering of the People's Republic of China and its supposed surrogates.This situation calls not for paranoia, but level heads and a new commitment to building friendships and partnerships with our neighbors in Latin America.

I am not an isolationist or a reactionary when it comes to foreign affairs. As a veteran of World War II, I witnessed the consequences of the United States shunning involvement on the world stage or taking a laissez faire attitude toward international relations.

Engaging other nations is vital, and I support pursuing a policy of dialogue and trade with China, though not at the expense of our traditional allies in the Pacific. I also advocate monitoring the activities of that nation, especially when it comes to its aspirations to be a global power. Certainly it is no surprise that China would target the United States for espionage activity, or that they might try to establish a presence in our own sphere of influence, the Americas. The jury is still out as to whether or not the Chinese are seeking to control the Panama Canal, but we must keep a wary eye on Beijing and any moves they might make which would undermine our strategic interests, which include both national security and commerce.

One step we must take to assure our national security is to stop taking our neighbors throughout the Americas for granted, and we should begin by working with the newly elected administration of Panamanian President Mireya Moscoso.

It is imperative that we begin the new century with a new commitment to partnerships with other American nations. Such partnerships will help to promote the continued evolution of democratic and stable governments in the Southern Hemisphere, increase trade and spur advances made by potential hostile nations in the region.

The United States and Panama share many common concerns and interests, and we should seek to work together with that nation in building agreements that strengthen the bond between our two nations.

I am confident that we can reach understandings guaranteeing access to the canal and military facilities. From there, we should work to the north and the south to build ties with nations from Argentina to Canada. It is absolutely inexcusable that we do not pay more attention to events throughout the Americas.

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Former President Carter is responsible for negotiating a treaty on the Panama Canal and American bases in Panama, which was disadvantageous to the United States. The treaty he negotiated has created the conditions that exist today where some worry that China is gaining control of what remains a strategically important waterway.

While there is nothing we can do about the past, there is plenty we can do about the future. The course of action we must set is to demonstrate that we are interested in being friends and allies with Panama, and nations throughout Latin America, and that their best interest lies in building ties with the United States and not the China or any other nation.

Completing his eighth term, Sen. Strom Thurmond, R-S.C., is the second ranking member on three Senate committees -- Armed Services, Judiciary and Veteran Affairs. At age 96, he is the senior member of Congress.

Knight Ridder/Tribune Information Services

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