PANAMA CANAL.

Dominion, Volume 5, Issue 1492, 15 July 1912, Page 5

PANAMA CANAL.

BRITISH TREATY RIGHTS.

AMERICANS SEEK FREEDOM

FROM TOLLS.

A BATTLE IN CONGRESS,

By Telegraph—Press Association— Copvriclit

(Rec. July U, 5.5 p.m.)

Washington, inly 13. Politicians expect a lengthy diplomatic struggle as the result of the British objections to the Panama Canal proposals. Already Americans aro talking- of referring ' the ; question to Tho Hague Tribunal. A canvass of the Senate -reveals that tho majority of the Senate favours the freedom from tolls for American, users of tho Panama Canal. A considerable difference of opinion exists in Congress on the point. Some members characterise Great Britain's protests against discrimination vn the tolls rates as meddlesome interference, while others declare that they are warranted. The consensus of newspaper opinion is in favour of the British attitude. Tho Now York "World" holds that the Canal Bill violates the Eay-Pauncefoto Treaty. Tho New York "Times" says tho United States seeks to convert an enterprise of world proportions iuto a selfish advantage by its discrimination. England's intervention is in America's own interests more truly than in the interests of those for whom England speaks. Tho New York "Herald" declares that incapacity and indecision, mark tho entire course of. the Administration and of Congress. Tho ''Tribune," on the other hand, says it is difficult to see whero the Bill conflicts with the Hny-Pmineefolo Troat.v. Mr. Kuox, Secretary of State, in a let- . ter to the Senate, outlined ■ tho British protest that the exemption of American shipping from the tolls would be an infraction of the Treaty. The refunding of the tolls to American shipowners, while complying with the letter, would also contravene the spirit of the Troaty. Great Britain admits that tho United States is lit' liberty to. subsidise its shipping, but contends that there is a great distinction between a general subsidy and a subsidy calculated upon the use niado of tho canal by the subsidised steamers. Great Britain believes it impossible to frame regulations exempting ibona-fido coastwise traffic. If this were clone other than American shipping would benefit, thus entailing an infraction of tho Treaty. It is understood that Mr. Knox does not regard tho protest as a matter for diplomatic treatment, but will merely acknowledge its receipt, leaving the matter in the hands of Congress.' . ' It is , understood that those backing the Bill clnim the right of reimbursing the tolls, and declare that European Government? whose ships use the Suez Canal already pay similar subsidies. Senator Root strongly opposes the , exemption of coasting vessels; j Senator Burton, of tho Foreign Relations Committee, nlso considers that exemption would bfe contrary to tho Treaty.