The Dominion. TUESDAY, FEBRUARY 24, 1914. PANAMA TOLLS.

Dominion, Volume 7, Issue 1992, 24 February 1914, Page 4

The Dominion. TUESDAY, FEBRUARY 24, 1914. PANAMA TOLLS.

The Panama toll's controversy has now reached a critical stage, and Congress will soon have to give a definite decision on tho points that have been raised. It has becfl generally understood for some time past that PltEsiDENf Wilson re-Bognised the justicfe-of'tha' British claims, and that the reason far his delay in dealing ,with the, matter -was his'uu* willingness to run the-'risk of''causing a division in his party by pressing forward another debatable measure while the tariff was' still under consideration. But Mow that the Tariff and Currency Bills have been disposed of, he is taking steps to secure from Congress, a- reversal of its previous policy in regard to the tolls question, A few days ago it was announced that the difficulty had been practically Settled in a manner that wouM give satisfaction to Britain, but .later information discloses the fact that the proposal to repeal the exemption clause will probably meet with a good deal of opposition. The point at issue is a very simple one, namely, whether United States vessels' passing through tho Canal shall ho. tre'aiiti in the same way as the shipping of other nations as regards the payment of tolls. The I*ana»a Canal Act of 1912 contains a clause which allows American coastwise; shipping to' make Use of the Canal free of dues. Against'this provision Britain protested on. the ground that it was an infringement of treaty rights,' ancl the questions involved have since been the .subject of a cOßsiiferable amount of diplomatic' discussion. The .British case,is based upon the Hay-Pauncefotb -Treaty of 1901, which.- provides for the neutrality pf the Canal in the following terms:— °

Ihe United Stpfes adopts, as Hie basis of the neutralisation bf such ship-canal* the Wowing rules substaniialbr' <,„,. bodied iu tho Convention of CGnstafltinople, sifjiied October % Mi, for the free navigation of the Suez' Canal: *'' ""The Canal Shall'lie free and open * ~° yess fo oi CQinnierce and of ttar of all nations obsarvinit these rules, on terms of entire ecpialitj-, & that there shall be no disdrimiiiiitioil ilßainst afly such nation, or its citizens or sabjects, in_ respect of the ijoaditiqns or ciiarßeS of. traffic or otherwise. Sijeli c'onditio'i'i* and charges of twifiic BialJ be just and equitable.'"

The above provisions clearly prohibit .any-preferential treatment for American shipping, and this is the view held by some- of the most eniin* entauthorities in'tho United States. It is, however,, contended by these who favour the! exemption clause in the. Canal Act that the words "all nations" as used in the Treaty should be interpreted as meaning "all nations other than'the United States." The British reply to this is that if. American shipping does not bear its share of the cost of maintaining tho Gaiial, the charges of traffic, would not he "ju.sk arid equitable," as provided in tli6 Treaty, and thafc,tne interpretation the United States Gfivernmetit. gives to tho words "all nations'" conflicts both with the meaning of the Treaty and the history of the negotiations. Pbe's-Ujexj', Wilson emphatically endorses tho British contention. Ho states th&t thcs nfliversal view throughout Europe is that the attitude of the United States is wrong, and that the only honmu able course _ is to rectify it'. This is what'he is now-asking Congress to do, and he has a way of gist-ting things done in accordance with his wishes. He has already shown great ability in handling difficult situations', and he is not lilwly to come to grief over the tolls problem, especially now that it is realised that, the repeal of the exemption clause is'important to the fioliiitry.s foreign' policy. As the Cjiuai will probably be open for traffic before the end of the year, the decision cannot be delayed much longer. Indeed, the Chairman of the Rules Committee of the House predicts thattho matter will be. put right within the next tvrp montH so that

when tho time comes for ships? to pass through tho. Canal the vessels of all nations will probably be able to use it "on terms of entire equality," as provided in the Hay* Pauncefote Treaty.