The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-29

knoN's reply to the British protest
against the exemption OF American
eoastwise shipping from Panama Ca
nal tolls assures the British govern
ment that domestic coastwise trade
Will not be permitted TO extend opera
tions into foreign competitive fields
and that increased tolls will not be
laid on foreign shipping to balance
the remission to American ships. If
Great Britain is not satisfied on these
points America proposes special
commission OF adjustment.
The communication is devoted to
the purpose of reducing TO the smallest
point and number the issues upon
which the two governments failed to
agree and as TO these-only two
IL is contended that they are entirely
susceptible of adjustment by diplo-
matte means and without recourse TO
arbitration.
IL this course should not prove ac-
ceptable TO the British government. it
Is suggested that the whole controver-
sy be referred to special commission
Of inquiry. provision for which was
made In the unratihed Knox-Bryce
general arbitration treaty. That con-
vention was spproved by the senate
with an amendment which curtailed
the power OF the special commission
.f Nrsss
report and refused to permit the com
mission TO bind either country to a
course OF arbitration.
Because OF this amendment, Pres
ident Taft has so far declined to con-
summate the treaty by exchanging
Publications with the British govern
ment.
To meet the needs OF this present
issue, Secretary Knox now offers to
give life TO the treaty by an imme-
diate exchange OF ratification, which
would insure the existence Of a gen.
eral arbitration treaty between Ameri-
ca ami Great Britain after the lapse
OF the existing Hay -Pauncefote treaty
June 4, next AS an alternative the
secretary Is willing that a commission
be created for the special purpose
OF ascerttlning the facts in regard
TO the effect upon British shipping
OF the Panama canal tolls act and the
presidents proclamation fixing the
tolls.
Much Of the secretary's argument
rested upon the contention that Sir
Edward Grey's protest, being made in
advance OF the issuance of the prcsi-
dents proclamation fixing the tolls.
is entirely inapplcable To the contro-
} versy In it's present state and that as
matter of fact, the British conten-
tion rests upon apprehension of things
that might happen in the future to
the injury of British shipping. which.
in all probability. never will occur.
Secretary Knox begins his note,
which was delivered TO the British
foreign Office through Mr.. Laughlin,
the American charge de'affaires at
London. by the fiat statement that he
can not agree with the British inter-
probation OF the canal treaties, so far
as they limit the freedom Of action of
America or infringe British treaty
rights. Pointing out that the Grey
note was issued without consideration
OF the presidents toll proclamation,
the secretary states that Sir Edward
deals chiefly with the possibilities of
what The president might do under
the canal act. whereas the proclama-
tion has entirely changed the situa-
ton.
Taking up the three objections
made by the British government. Sec
retary Knox first discusses that which
applies To the exemption from tolls OF
the government vessels Of Panama.
This hc declares 70 be great and
complete surprise To the United
states. which always had asserted
without challenge that the status OF
the countries Immediately concerned
by reason 90 their political relation To
the territory la which the canal was
20 be constructed. was different from
that Of all other countries. lie does
not believe. therefore. that the Brit
ism government intends To- propose
Arbitration OF this question.
In regard To- a second British oh
jcCtion that the Panama canal act
might be- thought To confer upon the
president the power To- discriminate
in the use Of the canal for all ships
belonging Co the United states and It's
citlzcns. even i'm the foreign trade, by
granting them reduced tolls the note
nuoles from tho memnrnndum nttach-