Evening star., 1927-09-11
j. S. CANAL DISPUTE
W|THPANAMAA AIRED
At GENEVA PARLEY
Or. Morales Says Difference
Should Be Settled by
Impartial Court.
DECLARES COMPROMISE
ON MATTER IMPOSSIBLE
Claims Present Treaty Is Worded
"as if U. S. Possesses
Sovereignty

GENEVA, Switzerland, september
10.-The status of the Panama Canal
Zone-a question deemed here to be
vital for the United States, because
it is connected with the problem OF
American national security-was
raised suddenly at the session of the
assembly of the League of Nations
tonight.
DR.. Fusebio Morales, former For
eiyn Minister of Panama, brought
the subject up and suggested that
unless the United States accepted
Panamas claim to sovereignty over
tbe canal zone. this controversy and
any other dispute should be SUP
mitted for settlement to an Impartial
court of justice.
Opposes Special American League
If was inferred that DIR. Morales
advocated referring the Panama con-
troversy to the World Court OF JUS
tice at The Hague, because, In Wig
orouslv opposing the creation of
special League of Nations for the
American continent, he advanced as
one of his reasons that such a step
would involve the establishment OF
snecial American court, Whlch, ne
held. would offer no greater guaran-
tee of impartiality than The hague
Court of Justice. created under the
auspices of the League OF Natlons.
Dir. Morales declared that Panama
In order to permit the construction
of the remarkable passage linking the
Atlantic and Pacific Oceans had grant
ed to the United States in perpetulty
the use, occupation and control OF
a zone 10 miles wide across her terri
tory for the construction, admins
tration, maintenance, sanitation ana
protection of the canal and the exer-
else of all rights, power and authority
over the zone by the United States
''as if. the United States possessed
sovereignty over the territory.
But. he explained, a serious ques-
tion had arisen, in regard to which
no compromise was possible, because
IL could not be settled unless one of
the parties completely adopted the
views of the other.
Claims Panaman Sovereignty.
DIR. Morales insisted that in handing
over certain rights to the United
States, Panama did not grant the
whole of her sovereign rights over
the Canal Zone, and expressed ms
confidence that the American Govern
ment, whose friendship for Panama
has always been sincere and cordial,
finally would accept Panama's inter-
nretation that the real sovereignty re-
mains vested in Panama.
After advocating submission OF the
dispute to a court of justice, he de-
scribed the United States as a just
country, a lover of peace and an en-.
thusiastic supporter Of international
arbitration.
.'It is unthinkable, therefore" he
added, ''that a dispute with small,
weak country the United States
should refuse to submit a matter aris-
ing out of the Interpretation of
treaty to impartial judges, and stlli
more unthinkable that the United
States should attempt to impose its
own Interpretation by some extra
judicial means"
Answering the criticism that the
Panaman-American treaty signed at
! Washington last year violates the
covenant of the League or Nations
DIR. Morales admitted that Panama is
committed to cooperation with the
United States in defending the Canai
and to regarding herself as at war IN
any conflict in which the United
states is involved as belligerent, but
that under this provision Panama
merely gives her assistance Tor de-
fense of a part of her territory in
which another country possesses vital
interests.
Panama maintains that she has
not renounced or transferred to the
limited States the whole or her
sovereign rights over the Canal zone,
he declared, land that consequently
II the Panama Canal is attacked by
frxy if iS Panama 6
right and duty to defend it"
No RancOr in Dispute.
Defending his country against the
criticism that. Panama had not been
true to the League, DIR. Morales con
tended that the stipulation to help
the United States il purely oeieh
sive provision in case OF an attach VI
tho panama Canal. which would IN
volve the United states as pellsei
ent. but that 1t does not refer TO
conflict involving Panama as one OF
the principal parties. In such case
he contended, the usual league pro
cedure of arbitration must naturally
be resorted to. >. -
Dr. Morales asserted that it was
false TO saw that the United states
had forced Panama to accept thl'
clause, which was actually propose'
in it's essentials by the Panaman gov
ernment itself. Remarking that con
troversy with the United States ovel
the sovereignty of the zone ha'
caused no rancor, the speaker eH
dressed the opinion that all difference
with the United States would %
settled by arbitration or court 0
justice.
Negotiations for d treaty petWeeI
the United States and Panama nav
been going on for some time. liner
was considerable agitation in Panam
against the new treaty, which pro
yides, among other things, that IN
armed forces of the United States WI
have free passage through the cour
try in time of peace and that Panam
shall declare herself in a state of wa
''in the case of any war in which TN
United States should be a belllgerant.
The treaty is the supplement 10
that of 1903.
Chamberlain Addresses League.
Sir Austen Chamberlain, BIRTHS
foreign secretary. addressing the a
sembly this afternoon, Joined ArlsuC
BRAND and Gustav Stresemann, I'll
French and German foreign minister
respectively, in what he called I'll
solemn resolution to choose the wa
TO peace and eschew the paths
war.
Sir Austen felicitated France Il
extending to Germany the hand I
A. Continued on Page 8, Column %