THE ISTHMIAN CANAL.

Dominion, Volume 6, Issue 1618, 9 December 1912, Page 8

THE ISTHMIAN CANAL.

PANAMA VISITED. A NEW ZEALANDER'S IMPRESSIONS. . (By Geo. H. Scales.) Clayton-Bulwer Treaty. ■ The Isthmus of Panama is a narrow neck of land connecting the North and South Americas although tho lay of it runs east and west, instead of north and south. The Isthmus was originally part of' the Republic of Colombia, which extended from its southern boundaries in South America, up the coast o'f the Pacific on the west and the Cnrribenn Soa on the east, as far north'as the southern boundary of Costa Rica. The best means of transit between-these two-waters has, for about four hundred years been a question of great consideration, but little or nothing was done till about the year ISSO when-road transit was first' instituted across the Nicaraguan Isthmus, some fewhundred miles north of Panama, to be shortly followed by the construction of a railway at Panama by the citizens of the United States. ■ '

It was at about this time'that the Clay-ton-Bulwer 'Treaty was made between the United States and England, having for its effect the neutralisation of- tho zone through which any canal might, be constructed.

De, Lesseps's Company. ■•■ • From 1872, t01875 the United States Government pushed on with surveys and ex-, plorations, which resulted in 'a general recognition of the fact that a canal intersecting tli9 Panamaian Isthmus would be the best project. Whilst these-operations wero-in.progres, a Frenchman named Wyse received concessions from the Colombian Government, by virtue of which he was enabled to interest Ferdiuandde Lesseps in a canal construction proposition. : As the result' of 'Be Lessep's activities,' an International Science Congress was held at Paris in. May, 1879, which 'eventuated in the purchase by a company, w'ith De Lesseps at the heady of the Wyse ..concessions, and the commencement of operations in 1881. It is interesting to note that the representatives of the United .States attending the congress referred to .abstained-from voting on this—• to that country particularly—momentous question. When, however, it is borne in mind that the operations of this Power during 1872-5 are evidence of some totally different conception of, if not what should be done, who should do it, it is not difficult to.understand that the'action of the delegates at the Conference had previously received full consideration by their Government, having in vie,w futuro possibilities. . ' !'■"'•■ . . , De Lesseps's Company projected a sealevel canal (one without locks) with a depth: of waterway of 29ft. sin., and a bottom width of 72ft., tho total length being 17 miles,.and the estimated cost about ,£34,000,000. Before 1894 the company found itself unable to continue the work, having expended not only its original capital, but an amount in addition approximating .£20,000,000, ■• and-.-■.-'another company.was formed, but before'many years had passed it was' realised that the■ undertaking would, have to be doned.Colombian Negotiations. The Spanish-American war. in 1898 showed the United' States the difficulties that an extended sea frontage, at a distance "of many thousands of miles from its base, involved from a naval point of view, and negotiations were at once opened with the Colombian Government for the purpose of obtaining,the . necessary concessions to enable the .United -States ; to construct a canal for themselves. Theterms of "a treaty, by which' the United States was to pay the Republic, of Colombia .£2,000,000 in .return for a .hundred years' lease of the necessary area—renewable at the. United States optionwas rejected'by the Colombian Congress .in August, 1903.

The Hay-Pauncefote Treaty. As a naval war may be looked upon as the immediate cause, of the sudden desire by the United States for an Isthmian Canal, it may be easily conceived that one of the essentials would be that this power should have the sole control of it; but the Clayton-Bulwer Treaty stood in the way as it precluded tho right of either Power having possession or control of any such water-way. The British Government met the, United . States to", the extent' of superseding the ClaytonBulwer Treaty by the Hay-Pauncefote Treaty of 1901 which, whilst.conceding to the United States/the sole right of the construction and control, provides for the neutralisation of the canal by embodying the rules on this subject-contained in the i Suez Canal Convention, and declaring'that the Central American Canal

"Should be free and open to the vessels of commerce and. war of all . nations observing these rules on terms . of entire, equality, so that there shall be' ho discrimination against- any '• ' such nation or its citizens or its subjects in'respect'of the conditions or . charges of traffic or otherwise. Such conditions and charges shall be just and equitable." A Revolution—And After, ' Neither a Hay-Pauncefote nor a Clay-ton-Butwer Treaty was of any use to the United States without the right to. construct a canal, and this right tho owners of the Republic of Colombia refused to concede. What was to be done? Whilst the world waited for the _repl~ it came in the shape of a revolution in the Republic of Colombia. The rebellion started in, and did not extend beyond! that portion of the Republic forming the Isthmus of Panama, and eventuated in a declaration of secession by that Department and .of its independence as a separate kingdom. This independence was promptly acknowledged by tho United Stated and some other Powers, and whilst, of course, it would be improper to suggest that the rebellion was prompted by the United States, the fact of its happening at such an advantageous time could only be otherwise looked- upon as a remarkable coincidence.

The new little Republic was taken under the wing of the hugo one flying the "Stars and Stripes," and an arrangement entered into by the two High Contracting Parties was signed on November 18, 1903. This Treaty provided for the construction and maintenance of the canal by the United States under a grant by Panama in perpetuity, and of the use of a zone five miles in width from the centre of the Canal, the United States to havo exclusive control for police, judicial, sanitary, and other fturposes, and, for the defence of the Canal, the coast-line of the Zono and certain islands in Panama Bay were conceded, the United State's to par Panama -,£2,000,000 down and .£50,000 annually as from 1912, It was, however, provided that the two cities of Colon and Panama, although actually within the Zone, should remain under 1 the authority of the Panamanian Government, excent that the United States should have "complete jurisdiction" so far n« quarantine and sanitation are concerned. . The "Rift In the Lute," Everything had gone well, and all the difficulties precedent to the inauguration had been overcome by diplomacy or strategy. There was only one, just one, little rift in the, lute," and that so small that it was not worth while considering— the fact that tho Republic of Colombia would not acknowledge the right of contract as between the United States and •their Department of Panama. It may bo mentioned here that even now, as a legal protest against what has taken place, a Governor of Panama is annually elected by the Colombian Congress. It may not mean any more than did the refusal of the United States representatives to record their vote at the Paris Conference in 1879, but still, as in that cas-e, it might have some bearing, there may be future possibilities. It may be as well to mention that England has recognised the independence of Panama.

Properties Acquired, The rights and properties of the French Company were purchased by the United States for ',£8,000,000, a figure which, according to the Teporb of the Canal Commission, has since been proved to have been well within the value of what was received. Included were excavations amounting to 30,000,000 cubic yards, now p»H of tli» present Canal, the Panama railroad, which cost nearly £ 1,000,000 but was taken over at half that sum, besides a very large quantity of locomotives, dredges, and other machinery, maps, data. £04 jrowrds, The most .vaiuabl* nnwosst

which are those recording the flow of the Chagres River for a period of fifteen years, as it is on the reliability of this data that, at any rate to a very large extent, the economic success of the undertaking stands.

The United States Government was, however; unable to acquire the whole of the interests in tlio Panama railroad somo few shareholders of the original company having refused to sell to Do Lesseps, and they still hold the said shares, but for all the then present practical ■purposes, the property and rights acquired were sufficient.

Isthmian Canal-Commission. The United States 'Government proceeded to set up a commission known as the Isthmian Canal Commission (1.C.C.), and this commission,. with the Secretary of War at its head, became the lessor of the Oanal Zone and commenced the canal operations. , The railroad ia still a separate corporation, presided over by one of the members of the I.C.C. To all intents and purposes the territory forming the canal zone is the actual property of the Government of the United States, but there is good reason to believe that the technical right of possession is vested in a United States corporation under a lease in perpetuity from the Eepublie of Panama, the railroad being separately rested in another United States corporation. Such an arrangement might, of course, prove useful should it be to the advantage of the Government to at any time claim that the canal zone was not United Slates territory.'

U.S. Mercantile Marine. Of. all the possibilities that may have been in view at the time this method was selected, it is not improbable that the Navigation Laws of the States was a prominent one. These, a 6 is well known, preclude— , . (a) Any ship not built in the United States flying the United States flag; (b) Any ship not flying the .United States flag carrying passengers or cargo between any two ports or places in the United States. This latter had to be abrogated as far as the Philippine Islands were concerned when they b?came United States territory, and -this abrogation has since been renewed, as' is still in force, the reason being that the United States did not possess then, any more than now, a sufficient., mercantile marine to carry on the trade. . . ■There ca>a be no doubt but that the protection offered to owners of United States built steamers engaged in their home trade by this Act is responsible entirely for the state of paralysis' the.United States commercial maritime suffers. With an enormous seaboard,, a population of nearly a hundred million people, this vast nation, numerically the greatest of white people on the globe, is dependent upon the mercantile fleets of other nations for the greater portion of the transport of its people and merchandise from and to any and every port of- the earth outside of the United States itself, with the exception of some sailing-ship tonnage and a few passenger steamers. A large- amount of British tonnage has, however, been acquired by the citizens of the States though this still trades under the British flag and in the names of the original corporations.

"Foreign-built'.' Ships. . Whilst foreign-built ships cannot be entered on the United States register, foreigners cannot be entered as owners on the British register, and therefore the acquisition of British tonnage, such as the White Star steamers' and others of the International Mercantile Marine . (commonly known as the. Morgan Combine), was obtained by? buying the shares from the individual shareholders of the various companies, thus obviating' any necessity for alteration in the registration of ownership of the vessels themselves. ' , Now, had the United States Govern-' ment become the actual possessor of the Canal Zone, the trade now carried on between New York, New Orleans, and Colon, would have been seriously prejudiced, as, with the exception of the Panama railroad boats, all the vessels engaged in it -an "foreign," i.e., not registered in the United States, and this would have involved either an abrogation of the Navigation Laws, a diversion.of the trade to foreign countries,' or' lieavily subsidising vessels which must either have been specially built or diverted from somo other trade..

TVhile there is room for doubt as to the exact terms of occupation of the Zone there is no doubt that Colon is situate within the Zone and that* foreign steamers plv regularly between it and various ports 'in the. United States. The principal companies operating are: The Royal Mail Steam Packet Company, who own the freehold of their wharf and buildings; The Hamburg-American Company; The United Fruit Company, a powerful Corporation operating very fine passenger steamers between Colon and other Central American ports and New York and New Orleans, flying the Union Jack and British built, but virtually owned in the United States. Besides these foreignowned lines The Panama Roil Road Company run a- Tegular steam service between Colon-and New York direct, and is the only line flying the "Stars and Stripes."