New-York tribune., 1902-12-16
PANAMA CANAL TREATY.
AGREEMENT SEEM.S NE4R
Colombia Likely to 4sk 4bout Ten
Million Dollars.
[BY TELEGRAPH TO The rR1BUxF.l

Washington, Dec 15.-Negotiations with Co.
Ionaba for the canal treaty have at last reached
that poiLJ which, as exclusively announced in
The Tribune. mutually agreed upon as the
last consideration to be discussed namely the
amount of indemnity be paid by the United
States in return for the privilege to acquire a
six mile strip about the canal and also the
Panama Railroad. The question OF acquiring
territory proved for some time most difficult
rropositioE, as the Colombian constitution for
bade cession- This difficulty IT is understood
was finally bridged by an arrangement for a
one hundred year lease. renewable at the pleas
.1re Of the United States on its expiration Now
the question of price is under consideration and
Secretary Hay and DR.. Herran. who has been in
charge Of the Colombian Legation since the de-
parture of Minister Concha. have made rapid
progress
The original Colombian proposition was for
s7.0oo.ooo- As the present negotiations Jagged
and delays multiplied a feeling of apprehen-
zion was expressed lest Colombia should at last
demand so high price for It's agreement that
no treaty could be made Rumors OF demands
for S2o01aobo and S3000000O were circulated
and received credence- All this apprehension
seems in the light of the present situation. un-
warranted
NO EXORRITANT DEMANDS
The Colombian Government as was learned
by The Tribune correspondent to-day from
tireIy trustworthy sources contemplates no
such exorbitant demand. The Colombian people
feel that in the isthmus they have a valuable
revenue paying territory, From the Panama
Railroad alone the annual income Is $3.50 600.
In parting with this profitable possession the
Colombians ask an equivalent fixed income
or rather q sum OF money from which an
equivalent income can be derived, is the es-
sence OF the Colombian demand. That the 81
100000 originally suggested does not now sat
isfy the Colombians is probably true. On the
other hand, there is nothing to justify the ex-
pectation that any unreasonable demand viii
be made Ten million dollars seems to be the
which viii prove the smallest amount sat
isfactory 10 Colombia. The Colombian demand
may at the outset exceed this figure, but we'll
informed people here regard that as the prob
able price that viii ultimately be agreed upon.
Further satisfaction given friends of the
treaty by the news that Secretary Herran had
received q second message from his government
last Saturday. authorizing him to continue nego-
tiatons and confirming the authority conveyed
10 him on November %. The arrival of this
message coincident with the departure
from New-York Of Sefor COncha, the Colombian
minister who has set cut for home. While there
no conference on this matter to-day it is
likely that it will be considered at some length
this week
ALARMING RUMORS DISCREDITED.
Alarming rurnors. attributed to Nicaraguan
sources and alleging that Colombia was pre-
pairing to invade Nicaragua and take posses
sion Of the Mosquito coast, attracted some at
tention to-day It was intimated that this
was attempt to gain control Of both canal
routes. The explanation of this story, so far
as there is any explanation, lies in the fact
that Colombia has for many years maintained
claim to this territory and has from time to
time reasserted his claim. But within short
time six thousand Colombian troops have been
with drawn from the isth11us and sent home. !
Moreover. q dispatch from the American Min
lister at Bogota, received to-day, announces
that decree reducing the Colombian army by
one-thrd has been issued Such steps hardly !
warrant any apprehension OF hoStilities More
over, the Colombian Government has frequent !
ly offered 70 refer this matter TO arbitration
Nicaragua showed a hostile spirit TO the !
Colombian Government during the recent revo- |
JEtion and is apprehensive lest there
should be some reprisaL" Such was the ex-
PLANTATION which was given to a Tribune cor |
respondent to-day by a man well informed on |
South American subjects.