PANAMA CANAL.

Dominion, Volume 6, Issue 1649, 16 January 1913, Page 7

PANAMA CANAL.

p BRITISH RIGHTS. AMERICAN REPLY TO PROTEST. By Telegraph—Press Association—Copyright . Washington, January 14. Mr. Knox, United States Secretary of State, has replied to the British protest against the granting of free passages to American coastwise vessels through the 1 Panama Canal, which tho British Government alleges to bo an infraotion of tho Hay-Pauncefote Treaty. Tho reply follows the lines of Presi* dent Tnft's argument. Tho United States, Mr. Knox says, has full rights of control over coastwise shipping, and there is nothing in the Hay-Pnuncefoto Treaty amounting to surrender by tho United States of tho right to regulate its own shipping through the canal. _■ Mr. ICnox interprets Article 3 as binding on all nations except tho United States, which, however, is bound not to ; discriminate against any one of them, ' provided they'observe the rule governing 1 the management of tho canal. Mr. Knox- expresses the willingness of Americans to do everything to. adjust the dispute.': Ho does not mention arbitration. He is sending a further note to Britain. ' AN AMENDING BILL. . (Reo. January 15, 9.50 p.m.) i London, January 15. The "Daily Telegraph's" Washington correspondent reports .that the American Foreign Office's reply to Sir Edward Grey's protest against the Panama Canal Act is ready for Cabinet's consideration. It is understood that while adhering to tho right of free passage for- American, vessels, the Teply suggests the continuation • of the negotiations. . . [ Mr, Elihu Root has introduced a Bill in the Senate to eliminate the exemption provision of the Canal Act. : I AMERICAN VIEW OF THE TREATY. In its protest against the Panama Canal Act, lodged with tho American Govern--1 ment. during lust July, the British Government took exception to tho clauses relating to freedom from tolls for American coastwise shipping as an ihfringemdnt of the Ilay-Pauncefote Treaty, one of whose articles stipulated: "The Canal shall bo free and open to the vessels oi' commerce and : war . 1 of all nations observing theso rules, on,.terms:of entire equality, 60 that : i . thero shall bo' no discrimination against any such nation or its citi- , zens or subjects in respect of the conditions or charges of traffic .or other- : - wi3e. Such conditions' and charges \ ■ • of traffic:.shall;bo just and equit- , able." . ■ 5 As originally introduced into Congrera tho Canal Bill was free from tho objec- *. tionable section to which the -British Gov-' eminent takes excoption, and it Was inserted by tho .Senate. As; the .measure left the Senate, not only was American coastwise traffic to' pass toll free,' but American .foreign-going vessels', also.: -As a result of a conference with the House , of Representatives the. clause eiving free passage to Aiheriean- foreign-going ships Was eliminated, but the cla6se.-referring: to coastwise traffic remains, together with the sections aimed at railroads which own' steamship lines; such, for example,, as. the Canadian Pacific and the Kouth- ( ern Pacific Railways. : The - "Shipping: Gazette," of tpndon, really hits tho, nail on the head when , It declares! "Europe has developed, and is developing tho South' American Republics, . and American action over the Panama Canal.is merely -a .blustering .expression of opinion that tho movement has gone too-far . for tho Pan-Ainericah ideal." It is hoped and believed -by many. Americans that the Panama Canal will greatly aid 'iii divorting to the tJnited States trade 'with South .'America which now goes to Europe, providing, Of course, American vessels . enjoy, as . is contemplated, superior advantages to rival marines. ■. Advocates' of the Bill profess, to regard the Canal not as an l international high- \ way, but as America's private doorway, and for that. reason do not relish any. i proposed reference.to-The Hague, i Mr. Taft, in his memorandum on the Canal Bill, said:. "The British protest leads to the absurd conclusion that this Government, in constructing the Canal; maintaining,the Canal, and defending the Canal, finds itself shorn ,of the right to ! deal with its own commerce in its own way, ■ while,all! other nations using tho' Canal in competition with American com-, mere© enjoy that right and pflwer unimpaired. ■. ' ' "In view of the fact that the Panama : Canal is being constructed by the United States wholly at its own cost, upon tor- . ritory ceded to it by the • Republic of Panama for that purpose, and thati unless it has restricted itself* the/ United States enjoys , absolute rights of ownership and control, including the right ' to allow its own commerce the use,cf the; Canal upon such terms as it sees fit, the 6010 question is; Has the TJnited States, by the terms of the Hay-Pauncefote Treaty, deprived itself , of the exercise of the right to pass its own commerce free or to remit tolls collected for the use of the Canal?" The President points out that the rules fepecified to the article of the treaty which is made the basis for the British protest wero . adopted by the United; States as tho basis of the neutralisation of tho Canal, and.for no Other purpose.