The Panama Canal

by Duncan E. McKinlay

Acquirement of the Canal Zone

When this obstacle was removed the next step was to secure a canal zone, and the United States entered into negotiations with the Government of Colombia with that end in view. The result of the negotiations was that an agreement was reached by which the Republic of Colombia agreed to convey to the United States a strip of land thirty miles wide and extending a marine league into the waters on either side of the isthmus. The terms of the treaty were that the United States, in consideration of the zone proposed to be transferred, should pay to the Republic of Colombia ten million dollars in cash on the ratification of the treaty by the separate governments, and commencing nine years from the date of ratification, the sum of one hundred thousand dollars a year for all time. This tentative treaty found great favor in Washington, D. C., and was immediately ratified by the American Senate, and then sent back to Bogota for ratification by the Colombian authorities. But much to the astonishment and chagrin of the people of the United States, and to the extreme disappointment of the people and the authorities of Panama, this so-called Hay-Herran treaty was refused ratification by the Colombian Senate.

The refusal of this ratification ultimately led to the secession of Panama from its allegiance to the Republic of Colombia and the acquirement of independence.

While on the Canal Zone in 1907 on an official visit I came into close contact with the officials of Panama, particularly President Amador, the first President of the Panama Republic, and General Arrias, who held the combined offices of Secretary of State and War for the new republic.

At a dinner given by the American Minister, being placed beside General Arrias, I took occasion to inquire of him the reasons why the Hay-Herran treaty was refused ratification by the Senate of Colombia, after it had been tentatively agreed to by the Colombian authorities.

General Arrias’ explanation was to the effect that there were four reasons why the Hay-Herran treaty was refused ratification on its return to the Colombian Senate. The first was that the German influence was strong in Colombia, and the German merchants and diplomats were very much opposed to the extension of American influence down the west coast of South America, particularly in the Colombian Republic. The German merchants, seeing the collapse of the French Canal Company near at hand, hoped that a German company might purchase the wreck of the French enterprise and carry the canal to completion, realizing that this course would mean much in the way of German aggrandizement.

The second influence, according to General Arrias, was that of the old transcontinental railroad management of the United States. Popular demand for an isthmian canal having swept away all obstruction at Washington, D. C., the scene of operations was shifted to Bogota, and railroad influence and railroad money were probably used to induce some of the Senators to refuse to vote for the ratification of the treaty.

The third influence was that of patriotism. Some of the Colombian Senators were opposed to a transfer of any portion of Colombian soil to a foreign power, more especially as the Colombian constitution contained a clause making it treason for any Colombian subject to become a party to the alienation of any part of Colombian territory to another country.

The fourth and the most potent influence was the fact that the French Panama Canal Company had failed in every respect to keep the terms of their contract with the Colombian Government. Not only had they failed to complete the canal at the time specified in their franchise, but having obtained an extension of that time, had failed to observe the terms by which the extension had been secured.

Therefore the Colombian Government might very properly proceed to a forfeiture, which could be obtained through due process of law in something less than ten months’ time.

Many of the Colombian Senators took the position that it would be lawful and more expedient to declare a forfeiture upon the French company, and take over the canal under the terms of such forfeiture as provided by the franchise. The Republic of Colombia would then be in a position to sell the same to the American Government for forty million dollars, and since then they would secure ten million dollars for a zone and a perpetual rental of a large sum annually, the financial condition of the country would be very much improved. As the finances of the Republic of Colombia were at that time in a desperately depleted condition, this prospect of their rehabilitation must have had powerful effect with many of the Senators.

GATUN MIDDLE LOCK, LOOKING SOUTH FROM EAST BANK.

These four reasons operating, no doubt caused the Colombian Senate to refuse ratification to the Hay-Herran treaty.

But in Panama the people and the authorities were determined not to submit to the action of the Colombian Senate. The Panamanians were aware of the fact that the President of the United States had been authorized by Congress to make a choice between either the French Panama or the Nicaraguan route, and that under that authority he would at once proceed to close a contract with the Maritime Canal Company of Nicaragua if he could not secure a canal zone. They also realized that if once the American Government began the work of excavating a canal through Nicaraguan and Costa Rican territory, in all human probability, the French Panama Company’s project would be abandoned.

Thus the cities of Colon and Panama, and the territory surrounding, would be relegated to obscurity so far as world’s trade was concerned, for many years. This the Panamanians were determined to prevent if possible, so they took every step necessary to inaugurate and successfully carry out a revolution in case of the refusal of the Colombian Government to ratify the Hay-Herran treaty. They sent Dr. Varilla as their representative to New York and instructed him to remain in close touch with the cable, and should he receive a cablegram that Panama had thrown off her allegiance to Colombia and had resumed her old-time independence, he should proceed at once to Washington, D. C., notify President Roosevelt of the fact, demand recognition of the new Republic of Panama as an independent power, and enter at once into negotiations with the United States for the recognition of that independence and the transfer of a canal zone.