CHAPTER XX
RELATIONS WITH PANAMA
When the people of the Isthmus of Panama revolted against the Government of Colombia, they fully realized that almost their only hope of maintaining an independent government was to secure the building of the Panama Canal by the United States. Therefore, they were in a mood to ratify a treaty which would meet every condition demanded by the Government of the United States.
The treaty, negotiated and ratified in 1904, gave to the United States every right it could have desired or which it could have possessed had it taken over the whole Isthmus itself. It was negotiated by John Hay, Secretary of State, representing the United States, and Philippe Bunau-Varilla, representing the Government of Panama. As the latter was a stockholder in the New French Canal Company, whose assets could be realized upon only through the success of the treaty negotiations, it naturally followed that he would put nothing in the way of the desires of the United States.
The treaty gave to the United States most unusual rights. For instance, in no other country on earth does one nation possess ultimate jurisdiction over the capital of another nation; yet this is what the United States possesses at Panama. The first consideration of the treaty was the establishment of the Canal Zone. This gave to the United States a territory 5 miles beyond the center line of the canal on either side, and 3 miles beyond its deep water ends, with the exception of the cities of Colon and Panama, to hold in perpetuity with all rights, powers, and authority that the United States would possess if it were sovereign, and to the entire exclusion of the exercise of any sovereign rights, powers, or authority by the Republic of Panama.
Further than this, it gave to the United States the same rights with respect to any land, or land under water, outside of the Canal Zone necessary and convenient for the canal itself, or any auxiliary canals or other works required in its operations.
Further yet, the Republic granted in perpetuity a canal monopoly throughout its entire territory, and also monopolies of railroad and other means of communication between the two oceans.
Under the terms of the treaty the cities of Panama and Colon are required to comply in perpetuity with all sanitary ordinances, whether curative or preventive, which the United States may promulgate. The Republic of Panama also agrees that if it can not enforce these ordinances, the United States become vested with the power to enforce them. The same is true with reference to the maintenance of order. The Republic of Panama agrees to maintain order, but gives to the United States not only the right to step in with American forces and restore it, but also to determine when such action is necessary.
The treaty between the two countries further provides that the United States has the right to acquire by condemnation any property it may need for canal purposes in the cities of Panama and Colon. The Republic of Panama also grants to the United States all rights it has or may acquire to the property of the New Panama Canal Company and of the Panama Railroad, except such lands as lie outside of the Canal Zone and the cities of Panama and Colon, not needed for the purposes of building the canal. The Republic guarantees to the United States every title as absolute and free from any present or reversionary interest or claim. It will be seen from all this that the United States did not overlook any opportunity to make sure that it had all of the powers necessary to build a canal.