PANAMA CANAL.

Taranaki Daily News, Volume LV, Issue 48, 15 July 1912, Page 5

PANAMA CANAL.

BRITAIN'S PROTEST. By Cable—Pre?s Association—Copyright. Received 14, 5.5 p.m. New York, July 13. A canvass of the Senate reveals that a majority favors freedom from tolls for American users of the Panama Canal. Considerable difference of opinion exists in Congress. Some characterise Britain's interference as meddlesome, and others declare that it is warranted.

A consensus of newspaper opinion favors the British attitude. The New York Herald holds that the Bill violates the Hay-Pauncefote Treaty. The Times says tliat the United States seeks to convert an enterprise of worldwide proportions into a selfish advantage by discrimination. "England's intervention," it says, "is in our o\Vn interests more truly than the interests of those for whom England speaks," The Herald say.s that incapacity and indecision mark the entire course of the administration of Congress. The Tribune says that it is difficult to see wherein the Bill conflicts with the Hay-Pauncefote Treaty.

Mr. Knox, in a letter to the Senate, outlined the British protest. He said that the exemption of American shipping would be an infraction of the treaty. The refunding of tolls, while complying with the letter, would be a contravention of the spirit of the treaty. Britain admits that the United States is at liberty to subsidise shipping, but there is a great distinction between a general subsidy and a subsidy calculated upon the use made of the Canal by subsidised steamers. Britain believes that it is impossible to frame regulations exempting bona fide coastwise traffic, as other American shipping would benefit, entailing an infraction of the treaty.

It is understood that Mr. Knox does not regard the protest as a matter for diplomatic treatment, and is prepared to leave the matter in the hands of Congress.

It is understood that those barking against the Bill claim the right of reimbursing tolls. European Governments using the Suez Canal already pay similar subsidies.

'Mr. Elihu Root strongly opposes the exemption of coasting vessels. Senator Burton, of the Foreign Relations Committee, considers the exemption contrary to the treaty. Washington, July 12. Politicians expect a lengthy diplomatic struggle as the result of the British objections to the Panama Canal proposals. Already Americans are talking of referring the question to the Hague Tribunal.