The Birmingham age-herald., 1912-12-10
ENGLAND'S FORMAL
 NOTE OF PROTEST IS
 PRESENTED TO KNOX
tCon,inucd From Page onep

are the only matters alluded to. to which that naturalization must refer. Ut eer- tainly was not the intention of the United States government" said Earl Grey, that any responsibility for the 1 protection of the canal should attach to them i'll the future. Naturalization, therefore must refer to the system or equal rights
 The note then declares that the sit uation created by the substitution of the Hay Pauneefote treaty for the Clay ton Bulwer treaty was identical with that resulting from the boundary wa ters treaty of 1909 between Great Brit ain and the United States, which in brief provided that the boundary wa ters should be free and open 10 com merce applying equally and without discrimination to the inhabitants, ships vessels and boats of both countries but all such rules and regula- tions and all tolls charged shall apply alike to the subjects or citizens of the high contracting parties, and they shall be placed on terms of equality in tho use thereof"
 It is also asserted that similar though more restricted provision. ap- peared in the treaty of Washing gton and it is recalled how strenuously the United States protested, as q violation of equal rights against the system which Canada had introduced of n re- bate of q large portion of the tolls on certain freights on the Welland canal, and how in the face of that protest the system was abandoned
 Refers to Suez Canal Rules
 Referring to the third article of the Hay Pauncefote treaty, the note points out that the first of the Suez canal rules, which the treaty adopted for the Panama canal, is that the waterway shall be free and open to the vessels of commerce and war of all nations ob serving the rules on terms of entire equality, so that there shall be no discrimination against any such na- ton. It is said the Presidents state ment of the case is wholly at variance with the real provisions when he treats the words "all nations" as excluding the United States because it had con structed the canal on it's own territory and thereby acquired an absolute right of ownership, including the right to al- low it's own commerce the use of the canal upon such terms as it saw fit.
 They (the British government con sider," says Sir Edward Grey. that by the Clayton n-Bulwer treaty, the United States had surrendered the right to con
 
 fote treaty they recovered that right upon the footing that the canal should be opened to British and United States yes sells upon terms of equal treatment. $ If the rules set out in the Hay Pauncefote treaty secure to Great Britain no more than most favored nation treat ment the value of the consideration given for superceding the Clayton Bulwer treaty is not apparent to his majesty's s.oyernment Nor is it easy 10 see in what way the principle of Article VIII nf the Clayton Bulwer treaty, which pro- ydes for equal treatment of British and United States ships, has been main tained."
 The argument advanced in the United States Senate that the words ''all na- tions" cannot include the United States, which would, otherwise, be prevented from using it's own territory for revictual- ing it's warships or landing troops, is briefly dismissed by the statement that 1t is completely overturned by reading of the Hay-Pauncefote treaty in connec- ton with the SueZ canal conventions. As the United States did not own the canal zone when the Hay-Pauncefote treaty was made. it did not include the Suez canal rules, which recognized the right of Turkey. the local sovereign and of Egypt, to take such measures as might be necessary for the defense of her pos sessions.
 Grey continues:
 Sir Edward Recognizes Rights
 Now that the United States has be- come the practical sovereign of the canal. his majesty's government may not ques- ton it's title to exercise belligerent rights its protection"
 The next point made Is that exemption of American coastwise shipping from tolls would violate the undertaking that the tolls should be just and equitable" Unless the whole volume of shipping passing through the canal is taken into account. there are no means of dster- mining whether the tolls charged upon any particular vessel represents her fair