Evening star., 1923-02-04
BN BEN MckELwAY.

out lS downright alarmed over what
she believes to be Uncle Sans de-
termination to make the canal and
the Canal Zone more lucrative in
Vestment for the United States to the
detriment of Panama's own growth
and development. She has grave
doubts as to whether former Presi-
dent Roosevelt's declaration that the
United States have not the slight
est intention of establishing an in
dependent colony In the middle of
the state of Panama" holds true to-
day.
Negotiations are now pending be-
tween the United States and Panama
looking toward convention to re-
place the so-called Taft agreement"
entered into December. 1904, to in
terpret certain portions of the canal
treaty and determine the juridical
status of the Canal Zone. Just what
changes the United States would sug-
gest are not known. The State and
War departments are working on
them now. and Col ]. J. Morrow, Gov
ernor OF the Canal Zone. went back
to Panama few days ago. after his
second visit to Washington in con-
nection with this question.
Note to State Department.
Panama. however, is very frank in
her attitude concerning the present
policy of operating the Canal Zone
and has outlined her views in a note
to the State Department, a copy of
which, made public in Panama by
the foreign Office. reached Washing
ton last week. Panama voices her
fear in this note that the United
States seeks modification of the Taft
agreement in order to make the canal
more flourishing business enter
prise than at present
The frequently recurring difficult
ties between Canal Zone officials and
the government of Panama originate
IN the Fundamental fact. as explained
in the Panama note. that while the
republic of Panama feels that the
use, occupation and control of the
Canal Zone were ceded for the spe-
cif1c purpose of the building of the
canal, and that the canal represented
and still represents for the United
States something of a higher charac-
ter than an investment of capital for
speculative purposes. some of the off,
cfals who have been in charge of the
administration of the canal seem to
be under the impression that what
they have In hand is merely a bust
ness proposition which must pay. and
which they will make pay without
regard or consideration for the in
terests of the republic of Panama,
which made such great sacrifices
when she signed the treaty of No
vember IS, 1903'
The no-s hastens to state that the
stipulatio1v of the Taft agreement.
whose principal provision is that no
foreign goods, except those imported
by the United States for the canal
and its employees. can be imported to
the Canal Zone through it's terminal
ports without the payment Of customs
duties TO the .apublic OF Panama, 'are
in conformit. with the theory of the
government O. Panama that the fiscal
jurisdiction of the Canal Zone, from
the international point of view-that ,
is TO say, so far as imports and eX-
ports are concerned-has not ceased
10 be vested in the republic of
Panama"
Rights Not Surrendered.
Panama points out that her juris-
diction over foreign commerce in the
Canal Zone was not ceded by the |
canal treaty, which sought to give
the United States all that was neces-
eary ior the construction, operation, ,
maintenance, sanitation and protec-
tion of the canal--but nothing more. |
In order to accomplish these pur-
poses," says the note, 1.-The United |
States does not need, and, in fact. ;
never has needed, TO convert the zone
into a colony or into, a national entity |
capable of giving the death blow to
the very nation that tore open its |
territory with a view to facilitate |
the building of a great waterway. |
which is so vital to the commerce of
fhe world and for the strength Of the
United States as a great world
power"
Claiming that through various in ]
terpretations of the treaty Panama |
must continue to receive prices cur
rent in 1903 for any kind of property |
which may be appropriated from her |
fifty or hundred years hence. the |
note declares the time has arrived
when the United States should state
formally that it has taken over all
the land and property necessary for
the construction, operation, main
senance, sanitation and protection o.
the canal.
The construction Of the canal rep.
resented no goose that would con-
ffnue to lay golden eggs for Panama
Admitting that 1.-The republic has at
tained considerable welfare and prog
ress from 1903 to the present time"
Panama adds that this is not solely
due to the construction of the canal.
Results Disappointing.
Panama rightly expected a much
greater boom than has taken place in
hAr territory" the note complains,
h1And the SO maGA vaunted millions
xhAS eere TO circulate in Panama
Mave only been a great illusion. The
millions that have been spent in the
building of the canal have remained
IN the United States and only a negllgi-
Bile portion of them have remained in
Panama The reason is that the canal
works have been conducted in such q
manner that there has been no opportu-
nifty for Panamarian commerce and cap
ital to derive any considerable benefits
from the construction Of the canal. |
Merchants havei seen their business |
enormously impaired by the extraor-
binary development given to the |
Panama railroad or canal commissa-
,.fes, where the employees of the canal !
gan buy any lining from the most nec-