Evening star., 1912-09-03
NODEMANDASYE
TOARB|TRATE TOLLS
British Foreign Office Denies
Any Announcement on
the Subject.
CHARGES ON THE CANAL
STILL BEING CONSIDERED
Government Thus Far Has Not De-
cided What Steps to Take.
CALLS ACT TREATY VIOLATION
German Professor of International
Law Deals With Controversy
Point by Point-Courses
of Protest Open,
Government Thus Far Has Not De-
cided What Steps to Take.
CALLS ACT TREATY VIOLATION

LONDON. September 3.-A complete dis
avowal is given this morning by the Brit
ish foreign office of the so-called official
announcement that the British govern
ment will formally demand arbitration
on the Panama canal tolls question.
THE lines of action which lie before
the British government are now being
considered and any announcement of the
kind is premature"
This is the full text of the formal state
ment given out by the foreign office this
morning in reply to requests for details
as to the reported demand for arbitration.
Officials Deny Report.
In regard to the publication of the re-
port. the officials of the foreign Office said
in the first place it was wholly incorrect
for no announcement of any sort had
been made, nor even decided on by the
British government.
THE statement purporting to be official
was issued by the Press Association and
the Central News, two Of the leading
news agencies. 1t appeared at an hour
when 1t was too late to obtain independ-
ent confirmation or denial and all the
London newspapers printed 1t this MORN
ing as a fact.
No Change on Question.
Instead Of this being the case. how
ever, the Panama canal question remains
in exactly the same position 1t has oc-
Cupied for some time. The government
will in all probability propose its refer
ence to the court Of arbitration at The
Hague, but the method Of submitting 1t
TO that tribunal has not been decided
upon.
The foreign ONCE has been throughout
outspoken In its conversations with rep
resentatives OF the press in the state
ment that arbitration is the only pos
sible course.
No Chance to Decide.
Sir Edward Grey. the secretary of state
for foreign affairs. and other members
of the British cabinet have been scattered
all over the United Kingdom and the
continent ever since the Panama canal
bill became law and in consequence there
has not been any opportunity for the
government to frame its program
1t is possible the government will await
the result of the elections In the United
States lin the hope that the United States
government may find way afterward Of
meeting British wishes.
Violation of Treaty, He Says.
BERLIN, September 3.-The privi-
leges accorded by the Panama canal
act to American vessels engaged in
the coasting trade is a violation Of the
Hay-Pauncefote treaty, according to
Wilhelm Kaufmann, the well known
professor of International law at Ber-
in University.
In an article published in today's
ageblatt. in which the professor deals
.sDfv,
1e says that in many respects the
United States is entitled to impose
compensatory dues or exclude entirely
the ships OF nations which pay SUBJ
sides and thus violate the conditions
of entire equality provided for by the
treaty. The exclusion of railroad
owned shipping is. he says, justified
because those vessels are practically
subsidized