Evening star., 1923-02-04
PANAMA INSISTS
ON TARIFF RIGHTS
Would Curb U. S. in Canal
Zone in New Pact to Sup
plant Taft Agreement.
IRRITATED AT DRY LAW
Declares Roosevelt Promised Area
Never Would Be Ameri- ..
can Colony.

By the Associated Press
TIE State Department has been in
formed by the Panamanian govern
ment that in forthcoming negotia-
tions for a new treaty to supplant
the Taft agreement covering Canal
Zone relationships. the right of the
original treaty over foreign COM
merce in the Canal Zone will be re-
asserted.
The point has been made by the
Psnamanian authorities that assur-
ances were given by President Roose-
Welt that the United States had no in
tention of making the zone All in
dependent colony in the middle Of the
republic of Panama. The representa-
tions to the State Department are
understood to declare plainly that the
government of Panama would be un-
able to accept any new agreement
which might bring about such re-
suit.
L. s. Attitude Not Disclosed.
So far as known the terms of the
draft treaty prepared in recent con-
ferences between State and War De-
partment officials. including Gov
Morrow of the Canal Zone, has not yet
been communicated to the Panama
authorities. Nor will officials here
discuss what notice will be taken in
these negotitions Of various matters
in which the people of Panama are
held by their government to have
been adversely affected through
American activities in the zone.
Among these points is the ques-
tion of acquisition Of further lands
for the canal or its fertilization. The
Panama authorities have put forth
the view that the canal should be
pronounced by treaty a completed
project, and the existing authority
for taking over additional lands
should be nullified. a new method
is urged for appraising lands which
it might become necessary to take
at a later date.
Railroad Gives Concern.
road Company, with reference to
rents it collects in the city Of Colon
and with reference to taxes Collect
able upon railroad property also is a
matter of concern sto the Panama
government, as s,the right of canal
authorities to peht canal structures
to the gensral public, to. establish
bonded wxrehouses or to monopolize
the BUSINESS Of supplying ships using
the Sanal.
The Panama government desires
also to establish its own customs
service at canal terminals to deal
with passengers or commodities
bound for the adjacent cities Of Pan
anna and Colon, and to have an un-
derstanding as to enforcement Of the
Volstead act in the, zone to the end
that this American prohibition meas
ure shall not interfere with FREQ
traffic In liquors between Panama
and foreign nations or between diff
ferent parts Of the republic whore
passage through the Canal Zone is
necessary.
Another Question Raised.
A variety Of other questions has
been raised by Panama FOR Settle
ment in the treaty negotiations The
assurance Is given that the Panama
government has no purpose OF pre-
senting any attitude antogonistic to
the interests of the United States,
but. it has been pointed out that
while the canal was not designed by
the, United States as a purely COM
enterprise, some administra-
tors had followed course tending
to make tho zone a competing entity
against the economic life Of Pana-
manian cities.