PANAMA CANAL.

Taranaki Daily News, Volume LV, Issue 74, 14 August 1912, Page 5

PANAMA CANAL.

ITS EFFECT IX SOUTH AFRICA. By Cable—Press Association—Copyright. Received 13, 11.*25 p.m. Capetown, August 131. Tlie Government Commission reports that the opening of the Panama Canal will prohahlv divert traffic especially to Australia and \ T e\v Zealand from the Cape route. therefore it is desirable to induce ships to call at Capetown by not charging dues and exempting port and wharfage dues.

THE HAY-PAUNVEFOTE TREATY. The Hay-Pauncefote treaty, which was entered into between Great liritain and the United States in 1001, contains the following provision in regard to the u-e of the Panama Canal: Ihe canal shall he free and open to the vessels of commerce and of war of all nations observing these rules (rules for neutrality) on terms of entire equality. so that there shall be 110 discrimination against any such nation, or its citizens or subjects, in respect to the conditions or charges of trallic, or otherwise. Such conditions and charges of trallic shall be just and equitable." Great liritain has a large stake, in the Panama trade. Of ten lines of ships in the regular trade on the Atlantic side of the isthmus, five are linger the British flag. (If the seven lines making regular calls at Panama on the Pacific side, two are British.

Great Britain recently forwarded a protest to Washington against the exemption of American vessels from the payment of tolls, and it was suggested that, failing an agreement, the question should be referred to the Hague Tribunal for arbitration.