PROJECT REVIVED

Evening Post, Volume CXXVII, Issue 33, 9 February 1939, Page 12

PROJECT REVIVED

NICARAGUAN CANAL

IMPORTANCE IN STRATEGY

Discussion has lately been renewed in the United States regarding th£ project for an interoceanic canal across Nicaragua, wrote 'the New York correspondent of the "Manchester Guardian" recently. When the Panama Canal was, built there was a hot debate as to whether Nicaragua should not be chosen instead, and the balance in favour of Panama seemed a narrow one. It is now .suggested that the canal across Nicaragua be dug as an alternative additional route.

The chief argument today is the military one. When the Panama Canal was dug no one dreamed of anything like the modern bombing aeroplane. The fortifications at Panama are as nearly impregnable as possible, and army engineers express confidence that there is no serious danger that the canal could be destroyed. It might, however, be damaged to an that would interfere temporarily with the movement of vessels, and such, damage jyould of course come at a time when full use of the canal was of the greatest importance. A second transoceanic waterway across Nicaragua would obviously reduce the risk by one-half. Indeed, the nature of the terrain is such that the danger of successful attack would be smaller than at Panama. DEFENCE OF THE CONTINENT. If the new canal were dug the United States would be relieved of the need for a "two-ocean navy," about which a great deal of talk is now* being heard. The fleet could be kept either in the Atlantic or , the Pacific, or divided between the two, with the assurance that vessels could be moved from :>ne ocean to the other without any serious loss of time. The question becomes of even greater importance because American officials are now talking about "hemispherical defence." They propose that the United States shall assume the chief burden of defending North, Central, and South America against any Asiatic or European attack. While the co-operation of the Latin republics will be invited and expected, it is considered likely that -the main reliance must continue to be on the United States. The Nicaraguan Canal would have commercial as well as strategic value. It would shorten the route between the east and west coasts of the United States by 700 miles, which would mean a great saving in the cost of operating vessels. WOULD LIMIT ITS SCOPE. If this canal were built, it seems likely that the one at Panama would only ■be used on transoceanic routes and by ships going between either coast of North America and the opposits South American coast. The cost would be about £100.000.000. An interesting unsolved question is whether British vessels would be asked to pay tolls if they used the new Nicaraguan Canal. The Hay-Paun-cefote Treaty exempted British ships from paying larger sums than do American vessels at Panama. This situation has often been attacked by American politicians, and efforts have several times been made to abrogate the agreement. Whether the treaty would cover a second canal, to be built now, is a matter the legal experts would have to decide. If the canal were built, it would be accompanied in all probability by a large American naval base on the Gulf of Fonseca. 700 miles north of Panama. The United States has the right to build such a base under existing agreements with Nicaragua. In contrast with the activity on the. waterfront last week and the week before, when some ships were forced to remain idle and others were delayed as a result of a shortage of labour, there were very few ships in port today. Excluding those on the slip, in dock, and in the stream, the number of vessels in port was nine. Of these only two were overseas ships, the Huntingdon, which arrived on Monday from Napier, and the Gera, which is loading for Continental ports. The remaining ships are all coasters. *