The Sentinel=record., 1913-03-02
REPLY TO KNOX NOTE so TIMED AS TO LEAVE DECISION WITH
 NEW REGIME.
NO ANSWER IS NECESSARY
Ambassador Bryce lntimates That English Statesmen Do Not Care to Discuss a Purely Hypothe-
 tical Question

Washington, March l.--Great Bri- 1 tain's final word to the Taft admins i tration on the Panama canal tells dispute made public today, insisted
 that q case for settlement under the
 hay-Paunceiote treaty has arisen but suggested in effect that there would not be time to discuss the subject further before the United States gov ernment changed hands.
 Secretary Knox acknowledged re- ceipt of this communication without committing the state department to an answer reserving to his success sor the decision of the question oi whether it is proper to make such
 answer at all or to await another communication from England conGnu- ing the argument This latest British note which was submitted to Secre- Gary Knox yesterday, instead of De-
 ing communication from Sir Ed
 ward Grey, the foreign minister was set of observations by Ambassa- dor Bryce. The ambassador explain ed his reasons for submitting at this state an objection to the contention
 in the last American note that Sir Edward Grey was arguing n hypho' thetical case and that there was no reason for his protest in advance or
 the actual collection of tolls from
 British ships, while American ships werG allowed to pass free
 The note follows:
 His Majestys government is un- able before the administration leaves office to reply fully to the arguments contained in your despatch of the l7th ulto, to the United States charge Affaires at London regarding the dir ference of opinion that has arisen be- tween our two governments as to the interpretation of the Hay-Pauncefote treaty but it desires in the meantime to offer the following observations with regard to the argument that no case has yet arisen calling for any submission to arbitration of the points in difference between his
 majestys government and that of the United States on the interpreta- ton of the Hay-Pauncefote treaty be- cause no actual injury has yet arisen to any British interest and all that has been done so far is to pass an act
 of congress under which action held by his majesty's government to be preiudicial to British interests might
 be taken.
 From this view his majesty's gov ernment feels bound to express their dissent. They conceive that interna- tional law or usage does not support the doctrine that the passing of sta tute in contravention of a treaty right affords no ground of complaint for the infraction of that right and that the nation which holds that it's treaty rights have been so infringed or brought into question by denial that they exist must. before protesting and seeking a means of determining the point at issue wait until some
 further action violating those acts is a concrete instance has been tax.
 en, which in the present instance, would. according to your argument seem to mean. until tolls have been actually levied upon British vessels from which vessels owned by citizens if the United States have been ex- empted.
 The terms of the proclamation is- sued by the president fixing the canal tolls and the method which your note sets forth as having been adopted by
 him, in his discretion, on given oc- casion for determining on what basis they should be fixed, do not appear to his majesty's government to affect the general issue as to the meaning of the ay-Pauncefote treaty which they have raised. ln their view, the ] act of congress when it declared that on tolls should be levied on ships en- gagged in the coasting trade Of the United States and when, in further directing the present to fix those tolls within certain limits. it distinguished between vessels of the citizens of the Unted States and other vessels was in itself and apparent from any ac- ton which may be taken under 1t, in- consistent with the provisions of the , Hay-pauncefote treaty for equality ot treatment between the vessels of na- tions The exemption referred to as to his maiesty's government to con 9ict with the express words of rule che of article of the Hay-Pauncefote treaty and the act gave the President
 no power to modify or discontinue the exemption.
 Tn their opinion the mere con ferring by congress of power to fix
 lower tolls on United States ships
 than on British ships amounts to a
 denial of the right of British ship ping to equality of treatment and, is
 therefore inconsistent with the treaty. irrespective of the particular way in