The study addresses from a governmental perspective the legality of the 1977 Panama Canal Treaty, and related political, economic, and national interest aspects resulting from the transfer of control of the Panama Canal from the United States to Panama under the Treaty. Under the Treaty, the United States turned over to Panama, entirely gratis, $3.4 billion in lands and properties, including strategic military bases. The study concludes that the Panama Canal Treaty is illegal and unenforceable. Under international law, the terms of a treaty must be mutually agreed to by all signatories, but the United States and Panama never agreed to the same Treaty language. The Treaty language as approved by the United States Senate was never agreed to by Panama, and the Treaty has never been signed by the President of Panama, as required by the Constitution of Panama. Also, the Canal was ?property? of the United States, but its transfer was not approved by the House of Representatives, as provided for by Article IV of the United States Constitution. Counterarguments to these conclusions are presented. The Canal is wrapped inextricably with the free world and global strategy, and the United States? ability to utilize the Canal for uninterrupted commerce is essential to its commercial and financial wellbeing. The Canal has been critical to the United States military and commerce in the past, and it will continue to be so. Narco-terrorists are a potential threat to Panama and the Canal. Entire cities within Colombia, which borders Panama, are controlled by drug cartels and Colombia is fighting for its very existence. The Narco-terrorists are infectious and expansionistic and their threat of taking control of the Canal is genuine, and their hostile intentions against democracy and governmental functions are unambiguous.