The leader., 1904-12-10
IMPORTANT PROVISIONS IN
THE PANAMA AGREEMENT.
Comprehensive Regarding Tangible
Dlfferenees--Weak IN Relation
to lsthnnian comnllcations.

Comprehensive Regarding Tangible
Dlfferenees--Weak IN Relation
to Isthmian Complications.
Panama, Dec. 4.-Secretary Of War
Taft today issued an executive order
which covers the principal features Of
the agreement reached between him,
as representative of the United States
government, and the government Of
Panama. The order is to take effect
on December 18th, but is subject to
congressional sanction.
The agreement is comprehensive in
all matters where tangile differences
Of an administrative character exist.
1t does not provide for emergencies,
as Secretary Taft does not believe
that his jurisdiction extends to mat
ters dealing with untoward complica-
tons which might grow out of the
temper of the Panama people in the
future
Under the terms Of the order all
revenues are retained by Panama,
and, SO far as the canal zone is con-
cerned, the Dingley tariff is repeated.
The order directs that no importa-
tons shall be permitted at the ter.
minal canal ports, except of articles
which are specially provided for in
section Is of the treaty, and of articles
in transit across the isthmus, as well
as coal and fuel oil for seagoing yes
sells. In return Panama agrees to re-
duce the ad valorem rate of duty from
15 to 10.5 except on liquors and opium,
and the consular fees to so per cent
of the present rates. Both parties
agree to complete the establishment
Of free trade between the zone and
the republic at the earliest possible
moment.
The difficulties which arose from
the difference In the postal rates and
regulations are adjusted by the use Of
Panama's stamps in the zone, the au-
thorities of the canal strip paying 40
per cent of the face value to Panama,
while the rate between Panama and
the United States is reduced to 2 cents
in gold.
The maintenance Of separate ports
is to be continued, with entrance and
clearance privileges by the proper Of
flcials Of the respective parties, but
reciprocal arrangement is to be
inaugurated for the use of the facili-
ties of one port by vessels cleared
for another.
The zone authorities are to have
complete police jurisdiction over the
maritime harbors of the canal ports
and complete and immediate sanitary
and quarantine Jurisdiction over the
harbors of both the ports of the canal
zone and the territory of the republic.
The provisional delineation of PAN
anna and Colon made between Cow
Gen. Davis and the Panama govern
ment remains in force.
Immediate execution is provided for
the gold coinage and general currency
agreement.
The order contains a clause reciting
that its provisions and the fulfillment
of its conditions are not to be re-
garded as restrictive construction
of the rights Of either party under the
treaty.
1t is further agreed that the United
States shall maintain hospitals for the
insane, for lepers and the INDECENT
Panamans are to be admitted to these
institutions, provided that the repub-
lie furnishes the necessary land with
out further expense to the United
States.
Today Secretary Taft visited Pearl
Islands.
The first defalcation is one by
United States official, and was dis
covered in Ancon The delinquent is
postmaster Lathrop, an old soldier
from Maine. whose accounts showed
a shortage of $68. He was released
under bond.