Evening star., 1932-09-11
REDUCED TOLLS MAY AID
PANAMA CANALS FUTURE
Decline in Traffic Likely to Forestall
Advocates of Rival Waterway
Across Nicaragua.

has in the Panama Canal a large hotel
which has cost s400. .o00, 900. This hotel
is giving returns, has a complete mo-
nopoly and it Is being operated at less
than half its total capacity. More than
so per cent of its rooms are empty,
awaiting more guests. Would 1t be good
business, If all this is true, to build an
other hotel. Just block farther away,
which would cost billion dollars?
This problem of interoceanic canals
is not only Of economic importance to
the United States, but 1t also is init.
mately connected with certain political
aspects relating to the republics OF
Latin America. Just as the construc-
ton of the Panama Canal marked the
beginning of a new era in the relations
Of the United States with those repub-
lies, the building Of another canal,
through Nicaraguan territory, would
doubtless have in the future great in
f1uence upon those relations.
The whole policy Of the United States
in the Caribbean region turns upon the
Panama Canal. The canal was con-
structed not only for commercial rea-
sons, but also for purposes Of defense
and of military strategy Of prime i'm
portance to this country. From the
moment Of its opening, therefore. it
became necessary for the United States
to determine the best means of protect
ing this formidable work, so closely
affecting its own national security. In
case Of necessity, 1t would permit thy
maSsing Of the two Squadrons of its
grand feet, and assure the success of
defense operations in case of attack by
a foreign power.
This instinct of self-defense and self
protection indicated to the United
States the advisability Of acquiring a
certain degree of influence over the
region in which the canal Is located
On this account the Nation found it
self obliged to develop, at once. a policy
OF discreet authority in the Caribbean
zone Even the domestic conditions of
the Central American republics began
to occupy the attention Of the u ted
States, since constant revolutions in
those countries threatened to invite
meddling by some European power and
attract its attention to the Canal Zone.
In order to avoid this danger. the
United States found itself obliged to
| assume the role Of "vigilante"; to guar
antee. almost, the political peace Of
those nations. In a word, the con-
struction OF the Panama Canal obliged
the United States to intervene indirect
ly In Central American affairs.
Suspicious Of u. s.
Now, then, this intervention, as In
well known, has been given an evil in
depreciation by many in Latin America.
The interest of the United States in
maintaining order and aiding the prog
ress Of the Caribbean countries has
been taken as a sign Of imperialism.
as desire to establish a hegemony
over the republics of Latin origin. The
| TInifnd Cfafac hae
ing the economic subsection of these
peoples, Of undertaking the financial
conquest of them, of exercising politi-
cal dominion over them. And of using
the Panama Canal as a pretext for
Iurthering its interests and its preten-
SONS. II Is not mystery how much
TINS accusation. no matter how unius-
tined 1t may be, has injured the cause
OF better understanding and closer re-
lationship between the Latin American
nations and the United States.
| Unoer these circumstances, 1t IS easy
10 understand the consequences which
would result from the construction by
the United States OF another canal
through Central American territory.
| Inc mere announcement that Congress
in Washington had voted an appropri-
alton for the study of its construction
caused alarm some time ago in those
Latin circles where there Is much dis
quiet as to Uncle Sans policies in the
Caribbean. The Central and South
American press began to discuss the
dangers" which new United States
canal would bring, not only to Nicara-
| qua, but to the Spanish American coun-
tries in general. which fear the possi-
bility OF American political predomi-
| nance.
Whether or not these fears are Jus
tined, the fact remains that the project
OF. new canal is not regarded with
favor in Latin America.
Idea Is Not New. ...
The idea Of an interoceanic canal
through Nicaragua Is not new. Before
| the United States undertook the con-
| struction of the Panama Canal, the
ISthmian Canal Commission recon-
mended that the canal be constructed
by the Nicaragua route, as it seemed
easier and less expensive, due to the
fact that the Panama Canal Co., op-
Grating with French capital. asked too
high q price for the cession of its
rights. However as this company re-
duced its demands from $109 900 900 to
| $40, ,000, 900, the commission changed its
mind and proceeded to build the canal
across Panama.
| In 1914 a treaty was signed by the
/ United States and Nicaragua by which
the latter country ceded to the former.
] for the sum of $3000,0 900, the exclu-
! sive right to construct and maintain an
interoceanic canal by way of the San
Juan River and Lake Nicaragua, or by
any other route through Nicaraguan
territory"
However. the latest reports from the
|
in traffic, will probably discourage ad-
vocates of the projected Nicaraguan
Canal. Added to the difficulty Of Sc
curing in these days large Federal
appropriation for the work, this trafic
decrease will most likely end for some
time the controversy over the advan-
tages and possibilities Of a new inter-
oceanic waterway. And thus. strange
as It's seems, hard times will have per-
formed a service for the Panama Canal.
(Copyright. 1922