1 tion of any system of communication by means of canal or railroad 2 across its territory between the Caribbean Sea and the Pacific 5 ARTICLE VI. 7 9 13 14 15 16 The grants herein contained shall in no manner invalidate 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 8 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 10 public roads passing through the said zone or over any of the said 11 lands or waters unless said rights of way or private rights shall 12 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 17 employees, or by reason of the construction, maintenance, 18 operation, sanitation and protection of the said Canal or of the 19 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 of the Republic of Panama, 22 whose decisions as to such damages shall be final and whose 23 awards as to such damages shall be paid solely by the United 24 States. No part of the work on said Canal or the Panama railroad 25 or on any auxiliary works relating thereto and authorized by the terms of this treaty shall be prevented, delayed or impeded by or 27 pending such proceedings to ascertain such damages. The 28 appraisal of said private lands and private property and the 29 assessment of damages to them shall be based upon their value 30 before the date of this convention. 20 21 26 32 The Republic of Panama grants to the United States within the 33 limits of the cities of Panama and Colon and their adjacent har34 bors and within the territory adjacent thereto the right to acquire 35 by purchase or by the exercise of the right of eminent domain, 36 any lands, buildings, water rights or other properties necessary 37 and convenient for the construction, maintenance, operation and 1 2 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 dis4 cretion of the United States may be necessary and convenient for 3 5 6 7 8 9 10 12 the construction, maintenance, operation, sanitation and protec tion of the said Canal and railroad. All such works of sanitation, collection and disposition of sewage and distribution of water in the cities of Panama and Colon shall be made at the expense of the United States, and the Government of the United States, its agents or nominees shall be authorized to impose and collect water 11 rates and sewerage rates which shall be sufficient to provide for the payment of interest and the amortization of the principal of 13 the cost of said works within a period of fifty years and upon the 14 expiration of said term of fifty years the system of sewers and water works shall revert to and become the properties of the cities of Panama and Colon respectively, and the use of the water 17 shall be free to the inhabitants of Panama and Colon, except to 18 the extent that water rates may be necessary for the operation 19 and maintenance of said system of sewers and waters. 15 16 20 21 The Republic of Panama agrees that the cities of Panama and Colon shall comply in perpetuity with the sanitary ordinances 22 whether of a preventive or curative character prescribed by the 23 United States and in case the Government of Panama is unable 24 or fails in its duty to enforce this compliance by the cities of 25 Panama and Colon with the sanitary ordinances of the United 26 States the Republic of Panama grants to the United States the 27 right and authority to enforce the same. 28 29 The same right and authority are granted to the United States for the maintenance of public order in the cities of Panama and Colon and the territories and harbors adjacent thereto in case the Republic of Panama should not be, in the judgment of the 32 United States, able to maintain such order. 30 31 ( 34 35 The Republic of Panama grants to the United States all rights which it now has or hereafter may acquire to the property of the 36 New Panama Canal Company and the Panama Railroad Company as a result of the transfer of sovereignty from the Republic of 37 1 Colombia to the Republic of Panama over the Isthmus of Panama 2 and authorizes the New Panama Canal Company to sell and 3 transfer to the United States its rights, privileges, properties and 4 concessions as well as the Panama Railroad and all the shares or 5 part of the shares of that company; but the public lands situated 6 outside of the zone described in Article II of this treaty now 7 included in the concessions to both said enterprises and not 8 required in the construction or operation of the Canal shall revert to the Republic of Panama except any property now owned by or 10 in the possession of said companies within Panama or Colon or the ports or terminals thereof. 9 11 13 15 16 The United States agrees that the ports at either entrance of 14 the Canal and the waters thereof and the Republic of Panama agrees that the towns of Panama and Colon shall be free for all time so that there shall not be imposed or collected custom house 17 tolls, tonnage, anchorage, lighthouse, wharf, pilot, or quarantine 18 dues or any other charges or taxes of any kind upon any vessel 19 using or passing through the Canal or belonging to or employed 20 by the United States, directly or indirectly, in connection with the 21 construction, maintenance, operation, sanitation and protection 22 of the main Canal, or auxiliary works, or upon the cargo, officers, crew, or passengers of any such vessels, except such tolls and 24 charges as may be imposed by the United States for the use of the 25 Canal and other works, and except tolls and charges imposed by 23 the Republic of Panama upon merchandise destined to be intro27 duced for the consumption of the rest of the Republic of Panama, 28 and upon vessels touching at the ports of Colon and Panama and 29 which do not cross the Canal. 30 31 33 The Government of the Republic of Panama shall have the right to establish in such ports and in the towns of Panama and Colon 32 such houses and guards as it may deem necessary to collect duties on importations destined to other portions of Panama and to pre34 vent contraband trade. The United States shall have the right to 35 make use of the towns and harbors of Panama and Colon as places 36 of anchorage, and for making repairs, for loading, unloading, 37 depositing, or transshiping cargoes either in transit or destined 1 2 3 4 5 for the service of the Canal and for other works pertaining to the Canal. ARTICLE X. The Republic of Panama agrees that there shall not be imposed any taxes, national, municipal, departmental, or of any other class 6 upon the Canal, the railways and auxiliary works, tugs and other 7 vessels employed in the service of the Canal, store houses, work 8 shops, offices, quarters for laborers, factories of all kinds, ware9 houses, wharves, machinery and other works, property, and effects 10 appertaining to the Canal or railroad and auxiliary works, or 11 their officers or employees, situated within the cities of Panama 12 and Colon, and that there shall not be imposed contributions or 13 charges of a personal character of any kind upon officers, 14 employees, laborers, and other individuals in the service of the 15 Canal and railroad and auxiliary works. 16 17 18 ARTICLE XI. The United States agrees that the official dispatches of the Government of the Republic of Panama shall be transmitted over any 19 telegraph and telephone lines established for canal purposes and 20 used for public and private business at rates not higher than those required from officials in the service of the United States. 21 22 23 ARTICLE XII. The Government of the Republic of Panama shall permit the 24 immigration and free access to the lands and workshops of the 25 Canal and its auxiliary works of all employees and workmen of 26 whatever nationality under contract to work upon or seeking 27 employment upon or in any wise connected with the said Canal 28 and its auxiliary works, with their respective families and all 29 such persons shall be free and exempt from the military service 30 of the Republic of Panama. 31 32 ARTICLE XIII. The United States may import at any time into the said zone 33 and auxiliary lands, free of custom duties, imposts, taxes, or other 34 charges, and without any restrictions, any and all vessels, dredges, 35 engines, cars, machinery, tools, explosives, materials, supplies, 1 2 3 and other articles necessary and convenient in the construction, maintenance, operation, sanitation and protection of the Canal and auxiliary works, and all provisions, medicines, clothing, sup4 plies and other things necessary and convenient for the officers, 5 employees, workmen and laborers in the service and employ of the United States and for their families. If any such articles are disposed of for use outside of the zone and auxiliary lands granted to the United States and within the territory of the Republic; they shall be subject to the same import or other duties as like 10 articles imported under the laws of the Republic of Panama. 6 7 8 9 11 12 15 ARTICLE XIV. As the price or compensation for the rights, powers and privi13 leges granted in this convention by the Republic of Panama to the 14 United States, the Government of the United States agrees to pay to the Republic of Panama the sum of ten million dollars ($10,000,000) in gold coin of the United States on the exchange of 17 the ratification of this convention and also an annual payment 18 during the life of this convention of two hundred and fifty thou19 sand dollars ($250,000) in like gold coin, beginning nine years 20 after the date aforesaid. 16 21 22 23 The provisions of this Article shall be in addition to all other benefits assured to the Republic of Panama under this convention. But no delay or difference of opinion under this Article or any 24 other provisions of this treaty shall affect or interrupt the full 25 operation and effect of this convention in all other respects. 26 27 ARTICLE XV. The joint commission referred to in Article VI shall be estab28 lished as follows: 29 The President of the United States shall nominate two persons 30 and the President of the Republic of Panama shall nominate two 31 persons and they shall proceed to a decision; but in case of disa32 greement of the Commission (by reason of their being equally 33 divided in conclusion) an umpire shall be appointed by the two 34 Governments who shall render the decision. In the event of the 35 death, absence, or incapacity of a Commissioner or Umpire, or of 36 his omitting, declining or ceasing to act, his place shall be filled |