PANAMA CANAL TOLLS

Waikato Times, Volume 94, Issue 14774, 13 October 1921, Page 4

PANAMA CANAL TOLLS

It is unfortunate that the Borah Bill, giving Arricrican coastwise ships free passage through the Panama Canal, should be passed in the American Senate \vnile« the American State Department is negotiating with the British Foreign Office with the object of inducing the latter to consent to such a modification of the terms of the Hay-Pauncefote Treaty as is embodied in the chief operative clause of the Bill referred to. By the terms of that treaty, arrived at between Britain and the United States, the Canal was declared "free and open to the vessels of commerce and war of all nations observing these rules (the rules governing the free navigation of the Suez Canal) on terms of entire equality, so that there shall be no discrimination against any such nation or its citizens or subjects, in respect of the conditions or charges of traffic or otherwise." Ten years later, as we described in dealing with this subject some few months ago when Senator Borah introduced his Bill, on President Tnft's suggestion, Congress passed a Bill providing for a system of rebates on the tolls on American vessels using the Canal. This flagrant breach of th 3 treaty was defended by the President on the ground, for which no warrant existed, that the words "all nations" in the clause we have quoted meant all "nations other than the United States." In the following year, however, President Wilson urged upon Congress "the justice, the wisdom, and the large policy" of repealing an Act which by a quibbling interpretation of words defeated the intention of the treaty. His plea prevailed, and Congress righted the wrong it had committed, and in so doing wiped a stain from America's honour. The incident had caused some feeling against the United States on the part of the other countries affected, and some lack of confidence in America's good faith, and it is generally to be feared that as the Borah Bill has been passed before the negotiations with the British Government have reached a satisfactory conclusion this feeling of resentment and distrust will be revived in England, just at the time when friendship and confidence between the two countries is most desirable. Senator Colt's assertion that all efforts to maintain the world's peace would be Undermined by the passage of the Bill and the consequent violation of the treaty may (a contemporary remarks) be an overstatement of the case, but it is difficult to believe that such action would not tend to create among other nations doubt as to America's conception of treaty obligations, a feeling that might militate against the success of the coming Disarmament Conference in Washington. Of course, the Bill will have to be signed by the President before it becomes law. The exemption of American ships from Canal tolls was a plank in the Republican Party's platform in last year's election, and was supported by Mr Harding, but it is understood that he has now modified his views to the extent of desiring tint the modification of the treaty should be reached by an arrangement with Croat Britain. It is probable, therefore, that he will veto the Bill if it comes before him for signature. Even then, however, the world will recognise that the American Senate is prepared, on purely mercenary grounds, to regard a treaty as a "scrap of paper," and was only prevented from carrying its views into practice by the honesty of the President.