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3. To proceed with the excavation of a ship canal upon payment to the French company of the amount agreed

upon.

4. In case negotiations with the French company, or the Republic of Colombia should prove unsuccessful, to acquire control over the necessary territory in Nicaragua Costa Rica for the construction of a canal.

or

5. Appropriating $10,000,000 for preliminary expenses, and providing for appropriations from time to time of amounts which shall not exceed in the aggregate additional sum of $135,000,000, in case of the adoption of the Panama route.

6. Guaranteeing the republic whose territory is crossed, the use of canals and harbors coming within the six-mile jurisdiction aforesaid.

7. Creating an isthmian canal commission of seven members, four of whom shall be persons learned and skilled in the science of engineering, one of the four to be an officer of the United States Army, and one to be an officer of the United States Navy.

8. Providing for the issuance of bonds for canal expenditures.

1902.

This bill was approved by the President on June 28,

The Treaty With Panama.

The history of the secession movement and the failure of the United States in negotiating a canal treaty with the Republic of Colombia is fully covered in another article. No time was lost in carrying through a treaty with the new Republic of Panama, as the following record shows:

Separation of Panama from Colombia, November 3, 1903.
New republic recognized by the United States, November 6, 1903.
Canal treaty signed at Washington, November 18, 1903.

Ratified by Panama, December 2, 1903.

Ratification advised by the U. S. Senate, February 23, 1904.

The Treaty with Panama,

265

S. Chenalloy & Co.,

Corner 9th Street and Bottle Alley, Colon, R. P.

Wholesale, Retail and Commission Merchants.

DEALERS IN CHINESE AND JAPANESE SILKS.

AGENTS FOR

P. A. Benjamin Mfg. Co's Medicinal and Toilet Preparations.

Auguste Pellerin's “Omnibus”, “Ledensk”, and Colonial Brands of Oleomargarine,
The Anglo-Saxon Condensed Milk Co's Shepherd Brand of Condensed Milk.
Pope Manufacturing Co's RAMBLER BICYCLES.

The Standard Brand Red Cross Tea.

Sir Edward Lee's Whisky.

Hand Brand Kola Wine.

Job Bros. & Co.. St. John's N. F., Fish Packers.

CABLE ADDRESS:

"SAMLOY, COLON."

Address all Correspondence and Inquiries

A. B. C. 4th Edition & Lieber's Codes.

S. CHENALLOY & Co.
P. O. Box: 194, Colon.

Ratified, by the President of the United States, February 25, 1904. Ratifications exchanged at Washington, February 26, 1904. Proclaimed, February 26, 1904.

The full text of the treaty follows:

The United States of America and the Republic of Panama being desirous to insure the construction of a ship canal across the Isthmus of Panama to connect the Atlantic and Pacific Oceans, and the Congress of the United States of America having passed an act approved June 28, 1902, in furtherance of that object, by which the President of the United States is authorized to acquire within a reasonable time the control of the necessary territory of the Republic of Colombia, and the sovereignty of such territory being actually vested in the Republic of Panama, the high contracting parties have resolved for that purpose to conclude a convention, and have accordingly appointed as their plenipotentiaries: The President of the United States of America, John Hay, Secretary of State, and the Government of the Republic of Panama, Philippe Bunau

Varilla, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Panama, thereunto specially empowered by said government, who after communicating with each other their respective full powers, found to be in good and due form, have agreed upon and concluded the following articles:

ART. 1.

INDEPENDENCE CF PANAMA.

The United States guarantees and will maintain the independence of the Republic of Panama.

CANAL ZONE.

The Republic of Panama grants to the United States in ART. 2. perpetuity the use,occupation and control of a zone of land, and land under water for the construction, maintenance, operation, sanitation and protection of said Canal of the width of ten miles extending to the distance of five miles on each side of the center line of the route of the Canal to be constructed; the said zone beginning in the Caribbean Sea three marine miles from mean low water mark and extending to and across the Isthmus of Panama into the Pacific Ocean to a distance of three marine miles from mean low water mark with the proviso that the cities of Panama and Colon and the harbors adjacent to said cities, which are included within the boundaries of the zone above described, shall not be included within this grant. The Republic of Panama further grants to the United States in perpetuity the use, occupation and control of any other lands and waters outside of the zone above described which may be necessary and convenient for the construction, maintenance, operation, sanitation, and protection of the said Canal, or of any auxiliary canals, or other works necessary and convenient for the construction, maintenance, operation. sanitation and protection of the said enterprise.

The Republic of Panama further grants in like manner to the United States in perpetuity all islands within the limits of the zone above described, and in addition thereto the group of small islands in the Bay of Panama, named Perico, Naos, Culebra and Flamenco.

AUTHORITY IN CANAL ZONE.

The Republic of Panama grants to the United States all the ART. 3. rights, power and authority within the zone mentioned and described in Article 2 of this agreement and within the limits of all auxiliary lands and waters mentioned and described in said Article 2 which the United States would possess and exercise if it were the sovereign of the territory within which said lands and waters are located, to the entire exclusion of the exercise by the Republic of Panama of any such sovereign rights, power or authority.

ART. 4.

SUBSIDIARY RIGHTS.

As rights subsidiary to the above grants the Republic of Panama grants in perpetuity to the United States the right to use the rivers, streams, lakes and other bodies of water within its limits for navigation, the supply of water or water-power or

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other purposes, so far as the use of said rivers, streams, lakes and bodies of water and the waters thereof may be necessary and convenient for the construction, maintenance, operation, sanitation and protection of the said Canal.

MONOPOLY FOR CONSTRUCTION, ETC.

The Republic of Panama grants to the United States in perART. 5. petuity a monopoly for the construction, maintenance and operation of any system of communication by means of canal or railroad across its territory between the Caribbean Sea and the Pacific Ocean.

PRIVATE PROPERTY.

The grants herein contained shall in no manner invalidate ART. 6. the titles or rights of private land holders or owners of private property in the said zone, or in, or to any of the lands or waters granted to the United States by the provisions of any Article of this treaty, nor shall they interfere with the rights of way over the public roads passing through the said zone or over any of the said lands or waters unless said rights of way or private rights shall conflict with rights herein granted to the United States in which case the rights of the United States shall be superior. All damages caused to the owners of private lands or private property of any kind by reason of the grants contained in this treaty or by reason of the operations of the United States, its agents or employes, or by reason of the construction, maintenance, operation, sanitation and protection of the said Canal or of the works of sanitation and protection herein provided for, shall be appraised and settled by a joint Commission appointed by the Governments of the United States and the Republic of Panama, whose decisions as to such damages shall be final and whose awards as to such damages shall be paid solely by the United States. No part of the work on said Canal or the Panama Railroad or on any auxiliary works relating thereto and authorized by the terms of this treaty shall be prevented, delayed or impeded by or pending such proceedings to ascertain such damages. The appraisal of said private lands and private property and the assessment of damages to them shall be based upon their value before the date of this convention.

PANAMA: COLON: HARBORS.

The Republic of Panama grants to the United States within ART. 7. the limits of the cities of Panama and Colon and their adjacent harbors and within the territory adjacent thereto the right to acquire by purchase or by the exercise of the right of eminent domain, any lands, buildings, water rights or other properties necessary and convenient for the construction, maintenance, operation and protection of the Canal and of any works of sanitation, such as the collection and disposition of sewage and the distribution of water in the said cities of Panama and Colon, which, in the discretion of the United States may be necessary and convenient for the construction, maintenance, operation, sanitation and protection of the said Canal and rail

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