The Washington times., 1913-01-24
KNOX DECLARES II
CANAL PROTESTS
MOOT QUESTIONS
EngIand's Objection Merely
Speculative, Says Reply to
Sir Edward Grey.

Replying in a conciliatory, but firm,
OpSS Secretary of State Knox made
public last night the reply of this eoun-
try TO Sir Edward Grey's note contain
ing Great Britain's objections to the
manner in which the United States has
indicated it will administer the Panama
canal.
The objections raised by Great Britain
are moot questions. This is the attitude
taken by Secretary Knox. They are
questions arising from speculation over
possibilities, discussion of future con-
ditions not yet actually determined.
While thus attempting to brush aside
for the present Great Britain's protest,
Secretary Knox stoutly maintains that
the United States has cerain rtghs in
the Panama Canal which no other ma
ton possesses and suggests that IL
Great Britain wishes a closer definition
of the subject matter in dispute that it
be referred a joint high commission,
to be appointed under the treaty of 1911.
Arbitration Premature.
In any event, declares the Secretary,
arbitration is premature.
The subjects proposed for arbitration
are either not clearly set forth or are
questions involving the future, and,
therefore not arbitratable at the present
time. he claims.
The note may prove a document of
crucial Importance in the differences
manifested between the United States
and Great Britain. II England accepts
the conclusions of Secretary Knox, 1t
vii be shown that there are no great
differences between the two countries,
and that there Is possibility of these
being solved by a joint high commits
sion without the necessity of going to
the length of arbitration
If England should reply that her OBJ
jeccons are not moot objections but
live questions of present importance.
the. two chancellories will be at log
gerheads.
Right To Fix Tolls.
After declaring that the United states
has right to remit tolls to a portion
Of the traffic through the canal, Sec
retary Knox declares. practically, that
Sir Edward Grey has been stating
speculations rather than facts as a
basis for his charge of discrimination
against British shipping.
If. as a matter of fact" declares
Secretary Knox, 1.-THE tolls now fixed
tof which Sir Edward Grey seems un-
aware) do not exceed this requirement
dnterest on the capital expended and
the caeaD and. as heretofore pointed
out. there is no claim that they do. 1t
10 not apparent under Sir Edward
Grey's contention, how Great Britain
could be receiving unjust and inequit-
able treatment IL the United States ia
vors its coastwise vessels by not coll
lecting their share Of the tolls heces-
sary to meet, the requirements.
There Is very clear, distinction be-
tween an omission: 10 take into account.
the ccastwise tolls In order to determine
q just ard equitable rate. which is as
far as this obtjecuon goes. and the re-
nission of such tolls, or their collection
coupled with their repayment in the
fern of a subsidy"
Merely coastwise Subsidy.
In a previous paragraph Secretary
Knox had stated that the relative
amounts Of foreign and domestic traffic
had been calculated by Prof. Emory
Johnson when the rates were being fixed
ppon and that the ratio of domestic
commerce and its relation to whole ex-
pense of upkeep and maintenance had
been considered.
In it's aspect as law, the Hay-Paunce-
forte treaty may be violated, under the
the exercise of this power not its pos
session would be the proper subject of
international inquiry. In other words,
England sl.ould not yelp until hit, and
Secretary Knox denies that even a stone
has been thrown.
The note was made public In WASH
iigton at o'clock yesterday afternoon,
simultaneously with its transmission in
London to Parliament at noon.