[Comments on H.R. 729]

Pursuant to a congressional request, GAO commented on H.R. 729, a bill that would amend the Panama Canal Act of 1979 to resolve claims for vessels damaged outside the locks in the same manner as those vessels damaged inside the locks. GAO concluded that: (1) Panama Canal Commission (PCC) liability for damages both inside and outside the locks would be consistent with the purpose of the amendment; (2) decreasing the limitation periods for vessel damage claims would not reduce the PCC exposure to vessel damage claims; (3) provisions authorizing PCC to purchase insurance to cover major unpredictable losses of income resulting from marine accidents did not comply with the general policy favoring self-insurance by government agencies; and (4) passage of the sections specifying that settlements could only be paid out of appropriated funds for the maintenance of the Panama Canal removed any doubt concerning the source for payment of damages.