Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-07-13
To Decide The Panama
Great Britain Matter.
Secretary Knox IN Long Letter
o. To The Senate Outlines
Objections and Leaves Entire Mat.
ter in Hands Of Congress.

Washington, July l2.-Ihe Senate
was officially notified of the British
protest against the Panama canal adj
ADMINISTRATION when Secretary of State
Knox, in a letter to Senator Brandegee,
chairman of the Senate inter ocean ca
nails committee, outlined tue objections
raised by Great Britain. The letter,
paraphasing the profess by Charge
D.Affaires Innes was generally accept
ed as voicing the decision Of the SITE
department TO leaYe the entire matter
in the hands of Congress, where he
legislation in dispute is now pending.
Secretary Knox's letter says.
Sri have the honor to bring to
the knowledge of Your corpmittee the
fact that "A communication. dated the
sth inst. Just received from tire Brit
ish charge d'affaires, indicates that the
attention of the British COVER men.
having been called to yaFieus proposals
from time to time made for the reliey-
ing of American shipping from the
payment of tolls on vessels passing
through the Panama canal. that gov
eminent has studied carefully those
proposals, and the arguments in sup
port of them. with view to bearins
thereon of the proyisions OF the treaty
between the United States and Great
Britain of Nov IS. 1901. The communal
cation sums up the proposals. mention
ed as:
4 (D-To exempt all American ship
ping from tolls:
t2)-One to refund TO all American
ships tolls which they might pay.
(3)-One to exempt from the pay
ment of tolls American ships engaged
in the coastwise trade, and (4) one to
repay to the last named class of Amer
lean ships tolls which they might pay
The communication indicates it to ne
the opinion of his Britanic Majesty's
government that to exempt all Amer
lean shipping from the payment Of
tolls, would involve an infraction 81
the treaty and indicate further the
opinion that there would be no differ
enee in principle between charging
Tolls only thereafter to refund them
and renting such tolls altogether
The opinion is expressed that the
method of charging but refunding
tolls. while perhaps complying with
the letter of the treaty, would still
-eontrayene it's spirit The commuHi-
cation admits there is nothing in the
Hay Pauncefote treaty TO prevent the
United States from substituting its
shipping but claims that there is a
great distinction between Il general
either to shipping at large or
to shipping engaged in any given trade
and a subsidy calculated particularly
with reference to the amount of use
of the canal by the subsidized lines
of vessels. Such a subsidy. if grant
ed. would not. in the opinion of His
BBritanio Majesty's government be in
accordance with the obligations of the
treaty.
with respect to the proposal that
exemptions shall be given to vessels
engaged in the coastwise trade, the
communication states that 1T may be-
that no objection could be taken II
the trade should be SO regulated as
to made it certain only bonafide
coastsyise traftiv which is reserved for
American vessels would be benefited
by this exemption; but that it APP
pears to His Britanic Majesty's gov
eminent that it would be impossible
to frame regulations which would pre-
Nent the exemption from resulting in
4 preference to American shipping and
CONSEQUENTLY in an infracticn of the
treaty.
The state department has taken the
attitude that the poorest of the Brit
ish government against free Ameri-
can ships IS not properly a matter
for diplomatic treatment at this time.
The note outlining the British objec-
a / "A