PANAMA CANAL.

Dominion, Volume 6, Issue 1620, 11 December 1912, Page 7

PANAMA CANAL.

THE BROKEN TREATYBRITISH PROTEST FORMALLY LODGED. MR. TAFT'S INTENTIONS. Br TelcEraph—Press Association-CoDyrieht London, December 9. Sir Edward Grey, Minister for Foreign. Affairs, commenting on the dispatch from Washington on November Id, states that there is no room to doubt that the provisions of the Canal Act conflict with the "equality of all nations" principle, which was the fundamental principle of the liay-Pminccfoto Treaty of 1901. He recognises that many persons of note in the United States 'hold that the treaty is not infringed, hence there ia perfect readiness to submit the question to arbitration.

SUBSIDIES V. REBATES, A MINISTER'S SUGGESTION. Washington, December 9. The Secretary of War, Mr. H. L. Stinson, in a report to tho. President, says that the law rebating the tolls paid by United States 'coastwise vessels using the Panama Canal is a false and unnecessary policy. Ho suggests instead that American vessels should be subsidised and tho amount paid into the Treasury as tolls. Six thousand troops, it is estimated, will be required to defend the Canalfortifications and the 'port harbour at the Island of Oahu, one of the Sandwich Islands, where a large naval base will bo established, A BARREN CONCESSION. BRITAIN'S TWO TREATIES. (Rec. December 10, 10.30 p.m.) London, December 10. Sir Edward Grey's dispatch to Mr. Bryce declares that Britain has no desire to embarrass the United States, but wishes simply to urge tho fulfilment of tho treaty obligations to the Powers. Under the old Claytbn-Bulwer Treaty the United States agreed not to obtain exclusive control' of the canal, but tho Hay-Paunccfoto Treaty subsequently gave the United States back liberty of action on condition that equal treatment was guaranteed to the ships of all nations. If any section of shipping paid no tolls, foreign shipping would necessarily bo affected, particularly that of Britain, and if the Hay-Pauncefoto Treaty only secured most-favoured-nation treatment, its value as a consideration given for superseding the Clayton-Bulwer Treaty was' not apparent to the British Government. 'The dispatch presumes that j the provision forbidding ships owned by railways to use the canal only applies to United States railways.-

As lie is confident of the correctness of the British interpretation, Sir Edward Grey offers to submit the points in dispute to arbitration.

A BREACH OF FAITH. PETITION TO ME. TAFT. (Rec. December 10, 11.35 p;m.) Washington, December 10. After Mr. Bryco bad presented tho Note relating to the Panama Canal, Mr. Knox, tko United States Secretary ■ of. State, promised that close consideration would be given to tho matter. Official circles declare, that Mr. Taft intends to settle tho question before closing his Administration. He will either ask tho Senate to agree to arbitration or will negotiate a settlement directly with Britain.

. A petition is being numerously signed by university professors and presidents, and business and professional men, asking Mr. Taft to keep faith in the. matter, even if it means the loss of commercial advantages. Tho petition asserts that the United States would be the first to resent a breach of a solemn engagement by a foreign Power. '