THE SUEZ AND PANAMA CANALS

Wanganui Chronicle, Volume LXXXIII, Issue 20128, 23 April 1928, Page 6

THE SUEZ AND PANAMA CANALS

'pHE RECENT disagreement between Egypt and Great Britain

over the Anglo-Egyptian Treaty is essentially similar to the more quiescent conflict between the United States and Panama over the treaty of 1926 rejected by Panama three months ago. The Suez Canal. Britain considers to be the chief artery of her Empire. Through it she exchanges manufactured goods for.the food and raw materials of Australia, New Zealand, India and the Orient. Without it her Empire would be greatly weakened. In much the same -way the Panama Canal is the key to the naval defence of the United States. Without it, in war time, American naval vessels would have to spend at least six weeks beating their way round the Horn in order to reinforce the defence of either coast.

The Panama Canal Zone, therefore, is probably the most, carefully defended area in the Western Hemisphere. The Republic of Panama does not object to this. What it objects to is a treaty concluded in 1926, but later rejected, by which Panama would be compelled to join in any war in which the United States is involved and by which Panama, even in peace lime, would be required to submit to American inspection of all her wireless stations and could grant no aviation or wireless permits to any place within her own territory without the permission of the United States.

While Panama objects to the foregoing, her greatest objection is to the fact that the commissaries of the United States War Department established within the Canal Zone, and therefore paying no taxes or import duties on their goods, sell coal and oil and beef, and even silks, diamonds and luxuries, to ships transiting the canal. Since Panaman merchants live outside the zone where they must pay taxes and import, duties, their higher prices made competition impossible. Panama, therefore. cites a former statement by William Howard Taft, who negotiated the first treaty, that titular sovereignty over the Canal Zone actually rests with Panama. She has rejected the treaty until this question can be settled.

Thus the two most powerful nations in the world find themselves in almost identical circumstances regarding their maritime defence.