PANAMA CANAL.

Hawera & Normanby Star, Volume LXVIII, Issue LXVIII, 15 July 1912, Page 5

PANAMA CANAL.

THE QUESTION OF TOL-LB,

BRITAIN'S PROTEST

m CAELB—PRESS ASSOCIATION—COPYEIGHT

NEW YORK, July 13

A canvass of the Senate reveals that ■a majeriity favors freedom from tolis for American users of the Panama

Canal

Considerable difference of opinion exists ir. Congress. Some characterise Britain's interference as meddlesome, and oohers declare that it is warranted.

A consensus of newspaper opinion favors the British attitude.

TJie New York Herald holds that the Bill violates the Hay-Pauncefote Treaty.

The Times says that the United ■States seeks to convert an enterprise of world-wide proportions into a seifish advantage by discrimination. "England's intervention," it says, "is in our own interests more truly than in the interests of those for whom England -speaks."

Tiie Herald says that incapacity and indecision mark the entire course of the administration of Congress.

The Tribune says that it is difficult ;t:> 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 boua ftde 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 Eiihu Root strongly opposes the exemption of coasting vessels.

Senator Burton, of the Foreign Relations Committee, considers the contrary to the treaty.