New-York tribune., 1902-12-31
n CANAL TREATY'S WAY.
ANNUITY FOR COLOMBIA.
4 Pppiea1ng Question Which Has
Brought Negotiations to a Halt
THY TELEGRAPH TO THE TRrBusE.I

Gle obstacle, the question Of annuity. Colombia,
az was exclusively announced in The Tribune
recently stands demand for about S6O0,o0
as an annual payment from this country The
United States, as said by one high in gov
eminent circles to-day, at present offers less
than ore-cuarter of this amount and less than
one-half of the original S25o0oo specified in the
original protocol. Here. then. the negotiations
which proceeded so rapidly after the departure
cf Senor Concha, the Colombian Minister, have
IF last come to a dead halt difference of
s5sloeo in the size Of the annuity. and not the
-rouble incident to the Venezuelan episode, pre-
vented the completion of the treaty and its sub
mission to Congress before the holidays, and
this same disagreement prevents its going 70
the Capitol when the Senate reconvenes on jan
nary = Every other point has been settled along
lines satisfactory TO this country
The question of the size Of this annuity is a
perplexing one. In the original protocol it was
agreed that after a period of fourteen years
Colombia was TO receive annual income of
s250ee0 in return for waving a similar sum
maid by the Panama Railroad. In addition,
lrnp sum Of S1.ea1.o00 was to be paid TO Co
lonbia by the United States at the outset This
has been modified that, under the terms OF
the present treaty still in process of negotiation
the United States will pay S1oOoooo0 bonus
and begin the payment of the annuity after ten
wears This wipes out the provision in the pro-
+ocoI which arranged for an increase Of annuity
10 he decided after twelve years by COLOMBIA
snd the United States and in case of disagree
rnent TO be fixed by a reference TO The hague
Two commissioners were to represent each coun-
,rv and the fifth member 10 be the president Of
The Hague tribunal.
AGREEMENT ON OTHER POINTS
Information reached The Tribune to-day from
trustworthy sources that concessions made by
Colombia in return for the demand OF an IN
creased bonus and annuity were as follows;
FIrst-The difficult and delicate question OF
sovereignty. which for a long time threatened to
break up the negotiations. had been settled by
Colombian consent to century lease reie"-
able at the pleasure OF this country
Second-That the annuity, instead OF oeihs
increased after fourteen years should con-
,ia j., rerne,1,itv at the rate agreed upon in
the present treaty
7-bira-Tbat the Panama Railroad. which
under existing agreements would revert TO The
Colombian Government after sixty years WILL
instead. revert to the United States
These are the main points OF agreement al-
ready reached and successfully passed IN eaeh
case by the adoption of an arrangement pro
1osed by the United States. Other points III
the treaty. such as the delimitation OF SIX
.17ife
,,olic and administer the strip, and the various
a.bxr noints' laid down in the protocol have
au been agreed to- in the main, in the FORM
included in the protocol.
The removal If all the previous objections to
.he ,-arious articles Of the treaty inspired the
f,ore Of an early agreement, but when the last
1,oint was reached and the question Of annuity
came up the absolute halt which has continued
now for several weeks, ensued The COLOMBIAN
position as has been told in The Tribune rests
on demand for a quid pro quo for the revenue
lost bv the cesson Of the isthmus, so lar as IL Is
eereed ia in the body of the treaty already out
lined The revenues Of the republic were caiieo
into the question and the Colombian figures
We're waited for additional evidence FROM
the isthrors at the present time Colombia claims
TO receive about S5O0oO0 annually. Half of this
comes from the yearly payment of the Panama
Railroad and the rest Is derived from port
dues. lighthouse dues and various other sources
of reyenue Moreover it is alleged that the
Colombian Government fears that when the
free zone provided for in the treaty is in opera
ton there will be wholesale smuggling along the
two new frontiers of nearly fifty miles each
opened on either side of the six-rnfle strip across
the isthrnus through which the canal is to run
All these considerations together with certain
other matters of value to the Colombians, seem
10 have combined TO influence them in demand
ing about s500o0O for return on the revenue
now derived
In Colombia. according to letters received
from commercial sources this is receiving the
closest attention. The proposition as IL Is ao-
ranced there is plain and simple demand OH
The United States to assure TO Colombia reVe-
nae she now possesses. together with a small
sum as return for the REIMBURSEMENT OF TINS
,,corne for a period of ten years-an Income
aor he
win amount to s., 100000. In TIN Spooner act
,b;cb sutborized the President to acquire a
s+-in NO, less than six miles wide for the canal
no price was fixed nor was there any mehlion
of an annuity The exact words OF this act
were:
rL.+ tne PRESIDENT of the United States is
hereby suthorized to acquire from the repunnc pl
Of Colombia upon such terms as ne may oee
reasonable
STATE DEPARTMENT NOT ALARMED
An annronriation of 100000, however. was
made toward the project The negotiations DC
tween the representatives of COLOMBIA ana sec
retarv Hay now hinge on the ques'oii as "
what sum is likely TO strike congress as iea
sonable annuity. The United states aho ooioii'
bia are at present about Son.oo al variance III
their estimates of this amount Apprehension
ss "a the action Congress is likely TO take ana
the long protraction of the negotiations seem
not TO have created any serious ahNfe'S III 'e
mind of the State Department
Perhaps the most serious contingency now
existing lies in Colombia rather than IN Con
greSs In official circles the return OF oehof
s-oncha to Colombia is awaited with a cohsioei-
able degree of interest not unmixed with appre-
hension While in charge OF the negotiations
Sefor Concha acquired some violent preJuolces
against the American position ana terms ano II