Norwich bulletin., 1912-12-10

VI dbnlDS ton, DeC. y.-lJTeaL b1Ildlll formal note of protest against that section of the Panama canal act which eXempts American coastwise shipping fam payment of tolls for passing through the Panama canal a docu- ment written by Sir Edward Grey, British minister for foreign affairs, was presented to the secretary of state, Philander c. Knox, tonight, by the British ambassador, James Bryce, who read the note word for word to the secretary at the latter's home. It is an elaboration of the points of ob- jection in the note presented to the state department last July.
 In brief these objections are:
 Objection Applies Also to coastwise
 Shipping.
 That while it was clearly in viola tion of the Hay -Pauncefote treaty either to remit or refund. tolls on all American shipping using the canal, the same objection probably would apply to the coastwise shipping in view of the probable impossbility of framing regulations that would not re- suit in a preference to American ship ping.
 Will Resist Exclusion of Canadian
 Ships.
 In addition to supporting these points by long arguments, Sir Edward Grey indicates very clearly that strong resistance will be offered to any at tempt to exclude from the canal Brit 1sh ships owned by Canadian rail roads or whose owners may be guilty of violating the sherman antitrust act. He holds that this section of the act cannot apply to British shipping, but only to United States vessels.
 Fears Exemption May Be Extended.
 He also indica tes in his note that underlying the objection to the ex- emption from toll of American coast wise ships is an apprehension that in the future the principle might be ex- tended to cover American ships in the foreign trade.
 Arbitration Proposed.
 Otherwise the note is devoted al- most entirely to an effort to demon- strate that any such exemption of American shipping as is proposed is In direct conflict with the terms of the Hay -Paucefote treaty and that President Taft was clearly wrong when he took the contrary views. Gener-
 
 up as a clear definition of the diff ferences between the two governments regarding the construction of the Hay Pauncefote treaty, winding up with a proposal that the issues should be set tied by arbitration. providing that they cannot be adjusted by mutual agree ment, for which a way remains open. Will Receive Lengthy Consideration
 Secretary Knox listened attentively to the reading of the note and prom ised to take the matter under consid- eratiOn, which he. felt would require some time. It has been strongly in- timated in official circles. however, that 1t was the presidents intention to settle this important question be- 1 fore closing his administration, either by recommending that the senate agree | to submit 1t to arbitration or prob | ably by the more direct means of an agreement between the two nations. referred to in today's British note. l The ambassador was accompanied by MT. Innes, the counsellor and first | secretary of the embassy, and in read ing the entire British note to the sec retary followed precisely the instruc- ton of Earl Grey, the writer of the note.
 Failed to Appreciate British Point of
 View.
 Sir Edward Grey begins his note with the statement that the president | does not fully appreciate the British point of view and his misunderstood even the note of July 8. He says it is not the case that the British govern ment seeks to prevent the United States from granting subsidies to it's own shipping passing through the canal nor does 1t seek to deprive the United States of any liberty which is open either to themselves or to any l other nation, to encourage its own shipping or own commerce by subsi- dies. The purpose of the United States in negotiating the Hay -Pauce- fOte treaty was to recover their free dom of action and obtain the right which they had surrendered in the | Clayton -Bufwer treaty to construct the canal themselves. but this complete | liberty of action to be limited by the maintenance of the complete principle of equal treatment for both English and United States ships.
 Article Provides for Equal Rights.'
 The word naturalization" in the preamble of the Hay -Pauncefote treaty I tfons but refers to the system oi equal rights for which article pro- vides. Joint protection and equa, treatment are the only matters all luded to. to which that naturalization must refer. Tt certainly was not the intention of the United States" says Sir Edward Grey, that any responsi- bility for the protection of the cana i should attach to them in the future Naturalization, therefore, must refer to the system of equal rights" / Similar to Boundary Waters Treaty
 The note then declares that the sit uation created by the substitution oi the Hay -Pauncefote treaty for the Clayton Bulwer treaty was identical with that resulting from the boundary waters treaty of 1909 between Great Britain and the United States whick in brief provided that the boundary waters should bo free and open tC commerce applying equally and with out discrimination to the inhabitants ships vessels and boats of both coun. tries, but all such rules and regula. tiaRs and all tolls charged shall ap- ply alike to the subjects or citizens | of the high contracting parties ane they snail be placed on terms of equal. ity ir the use thereof" It is alsf asserted that a similar, though more | restricted provision appeared in the treaty of Washington and it is re. called Thew sffeRueusly the United i States protested as a violation of eaua rights. against the system which Can. ada had introduced of a rebate of {