290 a short history of the united states
To make matters worse for the Carter administration, a “sting”
operation conducted by the FBI revealed that a number of congressmen
took bribes in return for official favors. A front organization, called Ab-
dul Enterprises Ltd. (Abscam was the name of the sting), solicited busi-
ness by claiming that its agents represented Arab businessmen who were
prepared to offer bribes for legislative favors. FBI agents dressed as Arab
sheikhs videotaped their meetings with congressmen. A number of
members were indicted and found guilty in 1980 and 1981. Several re-
signed and others were defeated for reelection. Michael Myers, a Demo-
cratic representative from Pennsylvania, was the first to be convicted of
bribery, conspiracy, and interstate travel to aid racketeering; and on Oc-
tober 2 , 1980 , he had the dubious distinction of being the first member to
be expelled from the House since 1861. Even Carter himself and his
brother Billy were investigated but cleared by a federal special prosecutor
of possible loan violations in connection with their peanut business.
Although things went steadily downhill for the Carter administra-
tion, in foreign affairs there were several successes. The President
signed a Panama Canal treaty in Washington with the head of the
Panamanian government which provided for the repeal of the
Hay-Bunau-Varilla Treaty of 1903 , the turning over of ownership and
control of the canal to Panama in 2000 , and guaranteeing the neutral-
ity of the canal in war and peace. The treaty was ratified by two-thirds
of the electorate in Panama in a referendum on October 23 , 1977 , but
just barely by the U.S. Senate on March 16 , 1978. The Senate vote was
68 to 32 , winning passage by one vote, and only after adding an amend-
ment and reservation that safeguarded the right of the United States to
protect the canal by force if necessary.
Regarding the People’s Republic of China, the U.S. entered into for-
mal diplomatic relations in 1979 , with an exchange of ambassadors, and
Carter withdrew recognition of the Republic of China in Taiwan and
renounced the mutual defense treaty between it and the United States.
Carter’s most notable achievement in foreign affairs was his man-
agement of a peace treaty between Israel and Egypt. Those two nations
had been at war since 1973 , when Egypt and other Arab states launched
a surprise attack on Israel. Under pressure from Washington, President
Anwar el-Sadat of Egypt and Prime Minister Menachem Begin of Is-
rael exchanged visits in 1977 but failed to reach an agreement. Then