PANAMA CANAL.

Taranaki Daily News, Volume LV, Issue 175, 11 December 1912, Page 5

PANAMA CANAL.

AMERICAN RESTRICTIONS. THE CASE FOR BRITAIN. By Cable—Press Association—Copyright. London, December 9. Sit Edward Grey's dispatch to Washington on November 14 has been published. It states that there is no room for doubt that the provisions of the Canal Act are in conflict with the equality of all nations, which was a fundamental principle of the 1901 treaty. Britain recognises that many persons of note in the United States hold that the treaty has not been infringed; hence Britain is in perfect readiness to submit the question to arbitration. "FALSE AND UNNECESSARY." New York, December 9. Mr. Stimson, in his report to the President, says that the law giving rebates for coastwise tolls for the Panama Canal is a false and unnecessary policy. He suggests that, instead, American vessels should be subsidised by the amount paid into the Treasury as tolls. Six thousand troops, it is estimated, will be | required to defend the Canal fortifications at the Port and Harbor on the Island of Oahu, where a large naval base will be established. PRESIDENT TAFT'S DESIGN. ACTION BY LEADING AMERICANS. Received 10, 11 p.m. Washington, December 10. After Mr. Bryce presented his Note relating to the Panama Canal, Mr. Knox promised close consideration of it. Official circles declare that President Taft intends to settle the question before closing his administration. Either he will ask the Senate to agree to arbitration, or he will negotiate a settlement directly with Britain. A petition is being numerously signed by university professors, presidents of business concerns, and professional men, asking President Taft to keep faith in the matter, even if it means the loss of commercial advantages. The petition asserts that the United States would be the first to resent the breach of a solemn engagement by a foreign Power. i THE NEGOTIATIONS. . BRITAIN'S RESOLUTE STAND. Received 10, 11 p.m. London, December 10.

Sir Edward Grey's despatch to Mr. Bryce declares that Britain has no desire to embarrass the United States, but simply to urge the fulfilment of treaty obligations to the Powers. The ClaytonBulwer Treaty agreed not to obtain exclusive control of the Canal. The HayPauncefote Treaty, however, gave back tc the United States liberty of action on condition that equal treatment was guaranteed to ships of all nations. If any section of shipping paid no tolls, foreign shipping was necessarily affected, particularly British. If the Hay-Paunce-fote Treaty only secured the most favored nation treatment, the value of the consideration given for superseding the Clayton-Bnlwcr Treaty was not apparent. The British Government's despatch presumes that the provision forbidding ships owned by railways using the Canal applies to the United States, and is confident of the correctness of the British interpretation. Sir Edward Grey offers arbitration.