ing therein the words "four years" for the words "nine years," and accordingly the United States of America agrees to make the annual payments therein provided for beginning four years from the exchange of said treaty instead of nine years from that date.

The United States of America consents that the Republic of Panama may assign and transfer, in advance, to the Republic of Colombia. and to its assigns or nominees, the first ten annual installments of two hundred and fifty thousand dollars each, so falling due under said treaty as thus amended, on the 26th days of February in the years 1908 to 1917, both inclusive, and its right and title thereto, and, upon the direction and acquittance therefor of the Republic of Panama, will pay said ten installments as they respectively fall due directly to the Republic of Colombia, its assigns or nominees, for account of the Republic of Panama. Such installments as may have matured when the ratifications of this treaty shall be exchanged pursuant to its terms shall be payable on the ninetieth day after the date of such exchange.

ARTICLE II.

Final delimitation of the cities of Panama and Colon and of the harbors adjacent thereto, under and to effectuate the provisions of Article II of said treaty of November 18th, 1903, shall be made by agreement between the executive departments of the two Govern ments immediately upon the exchange of ratifications of this treaty. It is further agreed that the Republic of Panama shall have the right, upon one year's previous notice, at any time within the period of fifty years mentioned in Article VII of said treaty of November 18th, 1903, to purchase and take over from the United States of America so much of the water mains and distributing system of the waterworks mentioned in said articles, for the supply of the city of Panama, and of the appliances and appurtenances thereof, as may lie outside the Canal Zone, and terminate the provisions of said treaty for the ultimate acquisition by the Republic of Panama cf said waterworks, upon payment of such sum in cash as may be agreed upon as just by the Presidents of the two high contracting parties, who are hereby fully empowered so to agree; if there shall arise any dispute or difference between the high contracting parties with respect to such delimitation, or if their Presidents shall not be able to agree as to the sum so to be paid, then upon the request of either party, any such difference shall be submitted to the tribunal of arbitration hereinafter provided for.

ARTICLE III.

It is further agreed that all differences which may arise relating to the interpretation or application of the treaty between the United States of America and the Republic of Panama concluded on the 18th day of November, 1903, which it may not have been possible to settle by diplomacy, shall be referred, on the request of either party to a tribunal of arbitration to consist of three members, of whom the United States shall nominate one member, the Republic of Panana shall nominate one member, and the two members thus nominated shall jointly nominate a third member, or, in the event of their fail

ure to agree within three months after appointment, upon the nomi nation of the third member, such member shall be appointed by the President of Peru. Said tribunal shall decide by a majority vote all questions respecting its procedure and action, as well as all quesons concerning the matters submitted to it. The tribunal Shall deliver duplicate copies of its decisions upon any of the matters submitted to it, as hereinafter specified, to the United States and to the Republic of Panama, and any such decision signed by a majority of the members of the tribunal shall be conclusively deemed the decision of the tribunal. Any vacancy in the membership of the tribunal caused by the death, incapacity, or withdrawal of any member shall be filled in the manner provided for the original appointment of the member whose oflice shall thus become vacant. The determinations of said tribunal shall be final, conclusive, and binding upon the high contracting parties hereto, who bind themselves to abide by and conform to the same.

The temporary working arrangement or modus vivendi contained in the Executive orders of December 3rd, 6th, 16th, and 28th, 1904, and January 5, 1905, made at Panama by the Secretary of War of the United States, and by the President of Panama, on December 6, 1904, which was entered into for the purpose of the practical operation of the aforesaid treaty of November 18, 1903, shall be submitted to revision by the Executive Departments of the two Governments with the view to making the same and the practice thereunder conform (if in any respect they shall be found not to conform) to the true intent and meaning of the said treaty and to the preservation and protection of the rights of the two Governments and of the citizens of both parties thereunder; and any question as to such conformity arising upon such revision which shall remain in dispute shall be submitted to said tribunal of arbitration.

It is now agreed, however, that the rate of duty to be levied by the Republic of Panama and fixed at ten per cent ad valorem by the first proviso to said Executive order of December 3rd, 1901, ay be increased to any rate not exceeding twenty per cent ad calorem, at the pleasure of said Republic.

ARTICLE IV.

There shall be a full, entire, and reciprocal liberty of commerce and navigation between the citizens of the two high contracting parties, who shall have reciprocally the right, on conforming to the laws of the country, to enter, travel, and reside in all parts of the respective territories, saving always the right of expulsion of undesirable persons, which right each Government reserves to itself, and they shall enjoy in this respect, for the protection of their persons and their property, the same treatment and the same rights as the citizens or subjects of the most favored nation; it being understood and agreed that citizens of either of the two Republics thus residing in the territory of the other shall be exempt from military service imposed upon the citizens of such Republic.

And the United States of America further agrees that the Republic of Panama and the citizens thereof shall have and shall be accorded equal terms all such privileges, rights, and advantages in respect

to the construction, operation, and use of the canal, railroad, tele graph, and other facilities of the United States within the Cana Zone, and in respect of all other matters relating thereto, operating within or affecting the Canal Zone or property and persons therein as may at any time be granted by the United States of America in accord with said treaty of November 18th, 1903, directly or indirectly to any other nation or the citizens or subjects thereof, it being the intention of the parties that the Republic of Panama and the citizens thereof shall be with respect thereto placed at least on an equal foot ing with the most favored nation and the citizens or subjects thereof

ARTICLE V.

It is expressly understood and agreed that this treaty shall not become operative nor its provisions obligatory upon either of the high contracting parties until and unless the treaties of even date between the Republic of Colombia and the Republic of Panama and between the Republic of Colombia and the United States of America are both duly ratified and the ratifications thereof are exchanged simultaneously with the exchange of ratifications of the present treaty.

ARTICLE VI.

This treaty shall be ratified and the ratifications thereof shall be exchanged at Washington as soon as possible.

In witness whereof, we the respective plenipotentiaries have signed the present treaty, in duplicate, in the English and Spanish languages and have hereunto aflixed our respective seals.

Done at Washington the 9th day of January, in the year of our Lord one thousand nine hundred and nine.

#83. An Amendment by the United States of the 1904 Taft Agreements, January 5, 1911*

Orders:

WAR DEPARTMENT Washington, January 5, 1911

1. By direction of the President, it is ordered that the first proviso of section 1 of the Order issued by the Secretary of War, by direction of the Presi dent, on December 3, 1904, which was promulgated in Circular No. 4, Isthmian Canal Commission, December 30, 1904, be amended to read as follows: "Provided, however, That this order shall cease to be operative

"First. If the Republic of Panama should at any time increase the rate of duty on imported articles described in class 2 of the Act of the National Convention of Panama passed July 5, 1904, and effective October 12, 1904, above 15 per centum ad valorem, provided for in said Act; or if the said Republic should increase at any time the rates of duty on the imported articles described in the other schedules of said Act, except on all forms of imported wines, liquors, alcohols and opium, upon which the Republic may fix higher rates.

"Second. If Article thirty-eight of the Constitution of the Republic of Panama, as modified by Article one hundred and forty-six thereof, is repealed or modified at any time in so far as the importation and sale of all kinds of merchandise are concerned.

"Third. If the consular fecs and charges of the Republic of Panama, in respect to the entry of all vessels and importations into the said ports of Colon and Panama, are increased beyond the rates now in force-which rates are understood to be sixty per centum of the rates in force prior to the promulgation of said order of December 3, 1901; or,

"Fourth. If goods imported into the ports of Colon and Panama, cosigned to or designated for any port in the Canal Zone, are at any time subjected in the Republic of Panama to any other direct or indirect impost or tax whatever."

2. Paragraph 3 of the Order issued by the Secretary of War, by direction of the President, on January 7, 1905, which contemplates the exclusion from the benefits of the commissaries established and maintained by the Canal Commission of all employees and workmen who are natives of tropical countries is hereby revoked.

J. M. DICKINSON
Secretary of War

'Bevans, Treaties and Other International Agreements, 1776-1949, vol. 10, p. 696.

#84. Supervision by the United States of Panama's 1912 Election

File No. 819.00/398.

The Acting Secretary of State to the Minister of Panama. No. 12.] DEPARTMENT of State, Washington, May 10, 1912. Sin: I have the honor to acknowledge the receipt of your note the 6th instant, in which you state that you have received instru tions from your Government to solicit the friendly intervention o the United States in safeguarding the electoral registration and th balloting in the impending Presidential election in Panama; that th electoral lists will be closed on the 15th of this month; and that t Panaman Government will assist as far as possible in carrying of such measures as this Government may wish to take, in accordanc with the precedents which you cite.

In reply I beg to say that this matter will receive the earnest con sideration of this Government.

Accept [etc.]

HUNTINGTON WILSON.

File No. 819,00/798,

The President to the Acting Secretary of State.

THE WHITE HOUSE, Washington, May 10, 1912. Sin: I beg to acknowledge receipt of your communication of May 10 in reference to the third quadrennial election of a President in tl. Republic of Panama and the wisdom of the designation of certain American officials to act by way of arbitration and suggestion in reference to the coming election so as to secure its fairness. A prece dent for such action was established in 1908 under Governor Magoo by this Government, and in view of the fact that the President of the Republic, Señor Arosemena, and the representatives of both can didates request it, there seems no objection to following that prece dent. You will, therefore, communicate with the Minister, Mr. Dodge, and designate him and Colonel Goethals and the colonel com manding the regiment of infantry how stationed on the Isthmus to act as a committee for the general supervision of the registration and election and for taking such suitable measures, after consulting the Government and both parties, as will secure fairness in the registration and election.

Very respectfully,

WM. II. TAFT.

*Foreign Relations of the United States, 1912, pp. 1140-1143, 1154-1155. The iJclosure with the foregoing letter to the President.