PANAMA CANAL BILL

Otago Daily Times, Issue 15553, 7 September 1912, Page 9

PANAMA CANAL BILL

REPLY TO AMERICA'S ARGUMENT.

STATEMENT BY SIR E. GREY,

Pxcsj Association—By Tologiaph-Ctpyright.

LONDON, Septembers. Sir Edward Grey, in a letter lo tho Newcastle Chamber of Commerce, rejects the American argument that inasmuch ns tho coastal trade is an American monopoly, the free passage of American coastal ships through tho canal docs not affect foreigners. '

Sir Edward points out that the bill also I contains provisions for the free passage | of American ships engaged in the foieign , trado under .certain conditions, and adds that if a largo part of the canal trado passes free, then tho canal's earnings will. , be diminished, and consequently tho general trado must be unduly taxed.

SHARE OF THE I3UIIDEN. DEFENCE OF AMERICA'S ATTITUDE. . WASHINGTON, September 61 (Received Sept. 7, at 1 a.m.) ; According to data prepaid by Mr Johnson, Special Commissioner "in Panama, the whole of tho American coastwise traffic likely to pass through lira -, caual when' it opens will amount to a million tons, During tho following five yeats • ho estimates an increase of a. million and a-half tons. Mr Johnson is inclined to tlio belie! Hat the British and other foreign coinmcrco will be obliged to bear tho 10 per cent, additional burden ovor the amount payable if tho Americans aro not exempted. He points out that a proportionate share of this burden will be bomo by American. ships, which will consequently then be on precise equality'with, foreign elitps. Ho suggests 4s as the rate for tho first year the canal is in ojicration in order to compete with tho Suez 'Canal. On the basis of a business of 10,000,000 tons yearly tho income will bo entirely inadequate to meet tlio charges for interest, sinking fund, and the sanitation of tho canal; consequently tho canal will bo operated by tho United States at a heavy loss. ,Ho claims that tho services granted to foreign ships on the basis of a 4s flat rato will be quite below the cost oC the services afforded; consequently no discrimination will bo imposed on foreign vessels. JUt CHAUNCEY DEPEW'S VIEWS. LONDON, September 6: (Received Sept. 7, at 0.2Q a.m.) < Mr Chaunccy Dcpcw, on being interviewed, said he did not think tho Panama Canal Bill would bo amended or arbilution adopted. iVmerica would certainly be'beaten if arbitration were adopted. MELBOURNE, September 6. (Received Sept. 7, at 0.20 mm.) ■ Correspondence from tho British Government in respect to tho Panama Canal lolls has been tabled in Ibo Federal House of Representatives.