The Panama Canal and Its Makers

by Vaughan Cornish

PIPE CONVEYING OIL ACROSS THE ISTHMUS.

The relative advantages of the two routes are carefully set out in the report, the general tenor of which is favourable to that by Panama. Nevertheless, the Commission recommend that the Nicaraguan route be adopted, on account of the excessive valuation which, they state, was placed by the New Panama Canal Company on their works and property. The value of these, including the Panama Railway, was estimated by the Commission at $40,000,000. The New Panama Canal Company, learning that the Commission had thus reported, cabled an offer to sell at this price, and the Commission accordingly sent in a supplementary report in favour of the Panama route. By June 28, 1902, the "Spooner" Act had been passed and ratified, authorising the President to purchase the canal works at this price, and to acquire from the Republic of Colombia the necessary rights for the control of a Panama canal, then to be constructed; but in the event of his not being able to acquire such control, then to proceed with the Nicaraguan project.

Meanwhile, by the Hay-Pauncefote Treaty, ratified by the Senate December 16, 1901, Great Britain had waived the right of joint control of any Isthmian canal which she had held since the ratification of the Clayton-Bulwer Treaty in 1850. It remained therefore only to negotiate a treaty with Colombia. The treaty of 1846 with New Grenada afforded a precedent as far as the question of control was concerned, and the negotiations appear to have been related mainly to the question of price. A treaty was negotiated by officials of the two Republics, by which the United States was to pay a sum of $10,000,000 to Colombia, and after nine years an annual sum of $100,000. This was confirmed by Congress but rejected by the Colombian Senate, and negotiations came to an end with the adjournment of that body, October 31, 1903.

Three days later the Province of Panama renounced its allegiance to Colombia.

Another three days, and the independence of the New Republic was recognised and guaranteed by the United States.

In less than a fortnight afterwards a treaty was signed at Washington by which the United States acquired complete ownership and control of the proposed canal for the sum of $10,000,000 and an annual payment of $250,000, to commence nine years afterwards. This treaty was ratified at Panama December 2, 1903, and by the United States Senate February 23, 1904.

One significant point must be mentioned with reference to the Panamanian revolution. The inability of Colombia to make an effective effort to assert its power on the Isthmus was due to naval weakness in the absence of communication by land. No army could march through the tropical forests which still isolate the Canal Zone from South America, and control at Colon and Panama still depends upon sea power.

Thus, at last, the United States owns and controls its Canal Zone. We will now state precisely the position in which that nation stands in reference to this matter, and then we may leave the work of the diplomats to consider the task of the engineers.

The National Status of the Canal.

The position which will be held by the United States in relation to other Powers is foreshown in the Hay-Pauncefote treaty with Great Britain and in Article XXIII. of the treaty with Panama. The Hay-Pauncefote treaty is in supersession of the Clayton-Bulwer treaty. The latter stipulated that no fortifications should be erected controlling the Canal. In the Hay-Pauncefote treaty this clause is omitted. On the other hand, it is stated in Article III., § 2, that "the Canal shall never be blockaded, nor shall any right of war be exercised nor any act of hostility be committed within it." Hence, the reader may have remained in doubt whether the United States Government had intended to reserve to themselves the right to fortify. However, the terms of the subsequent treaty with the Republic of Panama answer this question, for after stating in Article XVIII. that the Canal shall be opened in accordance with all the stipulations of the treaty of 1901 with Great Britain, Article XXIII. states that "the United States shall have the right to establish fortifications."