Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-08-20
TO ADJUST TROUBLE
Negotiations With the Pana-
man Government.
CAUSE OF DISPUTE
ISTHMIAN MERCHANTS APPRE-
HEND LOSS OF TRADE.
Alleged Seizure of Colombian Territory
by the Young Re-
public.
CAUSE OF DISPUTE

1t is said at the War Department that
while there has been some friction between
the Panamans and the administrative Off
GERS of the canal zone the matters at issue
have been taken in hand directly by the
members of the canal commission who are
now on the scene at Panama and Minister
Barrett, who is negotiating with the Pana-
man government at the same place. These
issues are said to be the direct result of
an agitation instigated by the merchants Of
Panama and Colon, mostly foreigners, by
the way, who are apprehensive that they
are to lose all their trade by diversion to
the new port of Ancon; which the canal
commission is to erect in the zone. 1t is
further said that these apprehensons are
as a matter of fact groundless, for large
part, for the government here intends to
deal with Panama in a most friendly spirit,
and the commission. being charged be-
fore 1t left Washington, is animated by
spirit of concession, which it is hoped will
lead to an early settlement of any differ
enceS.
No Intention to Destroy Trade.
There is absolutely no intention on the
part of the Washington authorities to de-
stroy the trade of the two principal Pana-
man ports of Panama and Colon, but it is
vide regulations to prevent smuggling, and
this can be accomplished only by the ap-
plication In the first place of the existing
American tariff act, and afterward by
making suitable provision for the trans
portation of goods in bond and reciprocal
trade.
AS far as post offices are concerned in
the canal strip, although the Panamans
are very desirous to retain this source OF
revenue. the government here is decidedly
80 ~ of,~S1, AL.
view Of the large number of Americans
who are going into the strip in years to
come while the canal is under construc-
ton 1t Is deemed necessary to make the
post office system there an adjunct of our
national postal system, and this could not
be operated by aliens.
This Governments Rights.
This government is quite clear in its own
view as to its powers in the canal strip,
and finds it hard to understand how the
Panamans can fail to accept the plain
reading of the treaty. Thus it is pointed
out that article III reads:
THE republic of Panama grants to the
United States all the rights, powers and
authority within the zone mentioned and
described in Article II of this agreement
and within the limits of all auxiliary lands
and water mentioned and described in said
Article II which the United States would
possess and exercise If it were the soyer-
eign Of the territory within which said
lands and waters are located, to the entire
exclusion Of the exercise by the republic
of Panama of any such sovereign rights
power or authority
The officials here can see absolutely no
foundation for the belief that this sweep
Ing provision does not confer upon the
United States absolute right of government
over the strip in every detail including the
right to establish post offices and seaports
and collect customs dues, and do anything
that is needful in the interest of sound
government.
Alleged Seizure of Territory.
Attention has been directed here to a
story emanating from Colombia to the eff
feet that the Panamans have established
a post on the Atrato river thus extending
by a zone of about twenty miles the south
eastern boundary of Panama at the ex-
pense of their Colombian neighbor At
least this Is the effect of the extension of
the claim as shown by the accepted United
States government charts.
No official notice of this action has
reached the State Department here, but 1t
Is expected that Minister Barrett from
Panama and Charge Snyder at Bogota will
report the facts to the State Department.
This government is naturally desirous to
avoid any friction between Colombia and
Panama, and had reason to hope that the
bitterness cherished by the former coun-