The San Francisco call., 1904-12-05
PANAMA AND UNITED
STATES MAKE NEW PACT
Concessions Are Made
by Both Countries.
Import Duties Go to Small Republic

PANAMA, Dec. z-The difficulties
between the United States and Pana-
ma. which made necessary the visit of
Secretary OF War Taft 70 the isthmus,
were settled to-day by the issuance Of
an executive order signed by Secretary
Taft for President Roosevelt and as
sented TO IN q letter by President ANA
dor OF Panama
The order provides that no trade for
the canal zone or the republic Of Pana-
nR can enter the ports established by
he United States at either end OF the
canal. supplies for the construction Of
he canal and articles in transit being
excepted. This turns the customs re-
sslpts Of these ports over TO the Gov
srpment Of Panama.
Panama agrees TO reduce her tariff
from Is per cent ad valorem TO 10 per
cent This reduction applies TO all
goods except wines, liquors, alcohol
and opium. Panama also agrees TO re-
ouce her consular fees and port charges
10 60 per cent Of the rates at present
charged Absolute free trade is TO ap-
ply between the canal zone and the
republic OF Panama Vessels entering
the canal ports are granted free entry
10 the ports OF Colon and Panama and
vessels entering the latter ports are eX-
tended the same privileges in the
canal ports.
GOLD STANDARD REQUIRED.
Complete jurisdiction is granted the
United States in the harbors Of Colon
and Panama as to sanitation and quar-
antine regulations.
Panama reduces her rate Of postage
TO cents and is to furnish all stamps
IN the republic and in the canal zone
The zone authorities are to purchase
stamps from Panama at 40 per cent of
their face value.
The order Of Secretary Taft is to be
ineffective unless Panama shall put
into effect the gold standard, according
70 the currency agreement of June 90
1904. II also makes a stipulation re-
garding citizenship rights to Pana-
mans IN the canal zone and provi-
sion is also made in the order for
maintenance by the United States Of
important highways, partly in and
partly out Of the canal zone and also
for the building Of a hospital. The or
per IS made effective December p
1904, and the full text Of it is as fol-
lows:
PANAMA. Dec. BY direction Of the
President Il is ordered that subject 10 the ac-
tion q the Fffty-eighth Congress as contem-
bsats9 ~ The act OF Congress, approved April
Section No importation Of goods. wares
ana merchandise shall be entered at Ancon
or Crlstobal, the terminal ports OF the canal.
EXCEPT such goods. wares and merchandise as
are decided IN article Is Of the treaty be-
tween The republic Of Panama and the United
States, the ratihcations Of which were ex-
char-ed OF February 2s. 1904. and except
goods, wares and merchandise IN transit across
the isthmus zone for a destination without the
limits Of said isthmian zone, and except coal
End crloe mineral oil for fuel purposes 10 be
sod at Ancon or CristObal to seagoing vessels,
eaid coal and oil TO be admitted to these PORTS
iree or duties for said purposes II is pro-
Nidel. however that this order shall be in
operative, first, unless the republic Of Pan
ANA shall reduce the ad valorem duty on
Eooos described in the act Of the national
convention OF Panama passed July 3. 1904
and which took effect October y 1904 from
10 Der cent 70 10 Der cent and shall not in
cluoe articles described in other schedules Of
said tarln, except on all forms Of wines
liquors alcohol and opium. which the re-
public may TX higher rates; second. unless
ertlcle IS of the constitution Of the republic OF
Panama as modified by article 1z8 thereof
Tar as the importation ard sale Of all kinds
OF merchandise are concerned; third. unless
the consular fees aHd charges OF the republic
OF Panama in respect 10 the entry of ali YES
sels and imD0rtations into said ports OF Pan
anna and Colon shall be reduced TO co per cent
OF the rates now in force; and fourth unless
goods imported into the ports OF Panama and
colon and consigned 10 or destined for any
part ~ the canal zone. shall not be subjected
N the republic OF Panama 70 any other direct
or indirect impCst OF tax whatever.