Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-06
Increase i'm Jurisdiction Granted L. S.
Under Recent Treaty Is Issue in Panama

into Panaman government revenues
from taxation and customs duties.
This old controversy Is only partially
solved in the treaty of 1926. The
| Panama government asked that sales
| in the stores he confined 10 persons
actually employed on the canal or it's
defense. The treaty provides that they
shall he confined 10 those who actually
dwell in the Canal Zone. which is
not the same
The needs of the Army wives and
Of the other Americans stationed at
the canal are obvious. and the De
partment of War has insisted on the
right of their Commissaries To sell
everything those residents may want
from French china to cigarettes, all
al prices below cost in the United
states or in Panama. That, the do
partment holds, is part of the pay
they must allow their people on for,
eign service. There is good ground
for the contention. hut SO has Panama
! her side, and She has insisted that
she does not object to those people
| having the privileges, hut she does
object to folks who live in Panama
City and Colon buying goods that do
not pay duties or taxes.
One other phase of tho negotiations
which has not been noted generally is
the fact that. in addition to the pres,
ent treaty, there was signed on the
same day claims convention provid-
ing for the adjustment Of the damage
suits arising or existing between ma
| tionals of one country and the gov
| eminent Of the other. The document
! has special reference 10 ancient claims
| from a fire which in 1855 destroyed
| large portion Of the city of Colon, and
| in which Americans and other for
| eigners suffered financial losses.
abandoned As Damage Basis.
This old fire. the Panamans claim.
has long since been given up by Eu-
ropeans and the injured Americans as
| ground for damages against Fan.
anna. The wording of the convention.
| Panamans claim, amounted to a vir-
| tual acceptance Of what is called a
new principle, that damage claims are
transferred with the soil instead Of
pertaining to the nation which was
in control at the time. Panama points
out that in 1855 the city of Colon.
along with the rest of the present Re
public of Panama (Which came into
being in 1909, We're a portion of the
territory of Colombia.
The Department of State within a
few weeks-probah bly, after the return
of Secretary of state Kellogg from
a decision regarding the reopening of
the negotiations over the two con-
ventions. The department meanwhile
continues its policy of declining to
discuss its side of the controversy for
publication and has left the situation
in its appearance as set forth here.
The defense of the canal remains the
reason for all the gestures Of Wash
ington. and this is held sufficient be-
fore the American people and before
the world for the definiteness of the
treaty.
The Panama Canal is indeed be.
come the Achilles heel Of the defense
of the United States, and it's prOtec-
ton Is paramount to all else. certainly
the Army strategists apparently hold,
to the temporary feelings of Panama,
which, they always remind the 18TH
| milan republic. owes its existence to
the United States and it's prosperity
to the canal. Panama's direct income
| from rental of the Canal Zone is
| $3.50, 900 a year, and practical good
sense should. in the eyes of the Army,
make her anxious to cooperate in the
defense of so profitable a rental prop
| erty. Moreover, they point out. Pan
anna did ask for a good and definite
treaty-and got it.