INSTRUMENT No. 1094

This deed made this 27th day of July, A.D. 1915, by Pedro Arias F, hereinafter called the grantor, to the United States of America, hereinafter called the grantees:

Witnesseth that the grantor, for and in consideration of the sum of Three Thousand Two Hundred and Fifty Dollars, ($3,250.00) United States currency, to him in hand paid, the receipt whereof is hereby acknowledged, has granted, bargained, sold, transferred and conveyed, and does hereby grant, bargain, sell, transfer and convey, unto the grantees, its successors and assigns forever, all of his right, title, interest, claim and demand whatsoever, in and to the following described property:

A one-story house of wood and zinc crayon No. 1008, measuring approximately 36 feet in length by 27 feet in width, situated in Pueblo Nuevo, Ancon District, Canal Zone, and on land bounded as follows: On the north by vacant land; on the east by vacant land and the fence along the right of way of the Panama Railroad Company; on the south by public street without name; and on the west by a one-story house, crayon No. 1009.

Also, a two-story house of wood and zinc, measuring approximately 25 feet in width by 26 feet in length, crayon No. 1010, situated in Pueblo Nuevo, Ancon District, Canal Zone, and on land bounded as follows: On the north by a twostory house, crayon No. 1011; on the east by a one-story house crayon No. 1009; on the south by a public street without name; and on the west by a public street without name.

Together with all rights, title and interest, of every kind, in and to the land upon which the above-described houses are situated.

To have and to hold the same unto the United States of America, its successors and assigns forever.

And the grantor does hereby covenant and agree to and with the grantees, their successors and assigns, that he is the lawful owner, and well seized of the property above conveyed, and that he has full right and lawful authority to sell and convey the same; that the same property is free from all liens, mortgages or other encumbrances of whatever character, and that he will forever warrant and defend the same against any person whomsoever, lawfully claiming the property or any part thereof.

IN WITNESS WHEREOF the grantor has hereunto set his hand and seal, at Ancon, Canal Zone, this 27th day of July.

[SEAL] Witness

(Sgd.) PEDRO ARIAS F.

(Sgd.) R. S. CARLSON.

UNITED STATES OF AMERICA-CANAL ZONE

Before me, E. M. Goolsby, Notary Public in and for the Canal Zone, on this day personally appeared Pedro Arias F. known to me to be the person whose name is subscribed to the foregoing instrument, and he acknowledged to me that he has executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office, this 27th day of July, 1915, at Ancon, Canal Zone.

[SEAL]

Filed for record July 27, 1915, at 11 a.m.

(Sgd.) ELBERT M. GOOLSBY, Notary Public.

INSTRUMENT No. 1088

This deed made this 24th day of June, A.D. 1915, by Paul Prosky, joined by his wife Rosa de Prosky, hereinafter called the grantors, to the United States of America, hereinafter called the grantees:

Witnesseth that the grantors, for and in consideration of the sum of Three' Thousand Six Hundred Fifty Dollars, ($3,650.00), United States currency, to them in hand paid, the receipt whereof is hereby acknowledged, have granted, bargained, sold, transferred and conveyed, and do hereby grant, bargain, sell. transfer and convey, unto the United States of America, its successors and assigns forever, all of their right, title, interest, claim and demand whatsoever, in and to the following described property:

A two-story house, the first story being constructed of concrete, and the second story of wood and zinc, in the Ancon District of Pueblo Nuevo, Canal Zone, which house measures approximately thirty-two feet in width by thirty-seven feet in length, numbered by crayon, 1003, and being situated on land bounded as follows: On the north by a two-story, wood and zinc building belonging to the American Trade Developing Company; on the east by First Street and a fence separating the street from the Railroad Tracks; on the south by a two-story zine and wood house owned by Ricardo de la Ossa; and on the west by Second Street.

Together with all rights, title and interest, of every kind, in and to the land upon which the above-described house is situated.

To have and to hold the same unto the United States of America, its successors and assigns forever.

And the grantors do hereby covenant and agree to and with the grantees, their successors and assigns, that they are the lawful owners, and well seized of the property above conveyed, and that they have full right and lawful authority to sell and convey the same; that the said property is free from all liens, mortgages or other encumbrances of whatever character, and that they will forever warrant and defend the same against any person whomsoever, lawfully claiming the said property or any part thereof.

IN WITNESS WHEREOF the grantors have hereunto set their hands and seals, at Ancon, Canal Zone, this 24th day of June, 1915.

Before me. E. M. Goolsby, Notary Public in and for the Canal Zone, on this day personally appeared Paul Prosky, and Rosa de Prosky, his wife, both proved to me on the oath of G. D. Baker to be the persons whose names are subscribed to the foregoing instrument, and they severally acknowledged to me that they have executed the same for the purposes and consideration therein expressed; and the said Rosa de Prosky, being examined by me privily and apart from her husband, and having had said instrument fully explained to her by me, declared that she had willingly signed the same for the purposes and consideration therein expressed, without fear of compulsion on the part of her said husband, and that she did not wish to retract it.

Given under my hand and seal of office, this twenty-fourth day of June, 1915, at Ancon, Canal Zone. (Sgd.) ELBERT M. GOOLSBY,

[SEAL]

Notary Public.

Filed for record June 24, 1915, at 4.10 p.m.

ACT OF CONGRESS AUTHORIZING CONVEYANCE

TO MASONS

CHAP. 239.-An Act To remove a certain tract or lots of land in Cristobal, Canal Zone, from the operation and effect of the Executive order of the President of December 5, 1912, pursuant to the Act of Congress of August 24, 1912 (Thirty-seventh Statutes, chapter 390, page 565)

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following tract of land situated within the Canal Zone, and more particularly described as lots numbered six hundred and forty-one, six hundred and forty-three, six hundred and forty-five, and six hundred and fortyseven in the town of Cristobal, Canal Zone, the same being bounded on the north by Eleventh Street, on the east by Bolivar Street, on the south by lot numbered six hundred and forty-nine, and on the west by a vacant lot, the said lots or tract of land having an extension from north to south of one hundred and twenty feet and from east to west of one hundred feet, and measuring in superficial area twelve thousand square feet, be, and the same is hereby, withdrawn from the operation and effect of the Act of Congress approved August 24, 1912, known as the Panama Canal Act (Thirty-seventh Statutes, chapter 390, page 565), and the subsequent Executive order of the President, issued pursuant to the said Act of Congress under date of December 5, 1912.

SEC. 2. The Panama Railroad Company is hereby authorized to sell, transfer, and convey said lots or tracts of land with all improvements thereon to any other person or persons or association of persons and retain the consideration therefor for its own use.

Approved, June 5, 1920.

Treaties with Panama

THE PANAMA CANAL

HISTORY PRIOR TO 1950

The United States undertook the construction of the Panama Canal after concluding a treaty with Panama in 1903,1 under which, among other provisions: 1. Panama granted to the United States the use, occupation and control of the Canal Zone for the construction, maintenance, operation, sanitation and protertion of the Canal;2

2. Panama granted to the United States all the rights, power and authority within the Canal Zone "which the United States would possess and exercise if it were the sovereign of the territory *** the entire exclusion of the exercise by the Republic of Panama of any such rights, power, or authority."

9 3

3. The United States agreed to pay the Republic of Panama $10 million in cash and an annuity of $250,000.*

Subsequent treaties between the United States and Panama were concluded in 1936 and 1955. The 1936 treaty, among other provisions, increased the annuity payable to Panama from $250,000 to $430,000 and placed restrictions on residence, importations, and commercial activity in the Canal Zone. The 1955 treaty, among other provisions:

1. Further increased the annuity to $1,930,000; °

2. Provided for return to Panama of improved and unimproved real estate owned by the United States in Panama : 10

3. Excluded Panamanian employees residing in Panama from the privilege of making purchases in Canal Zone stores;

11

4. Granted Panama the right to tax Panamanians employed in the Canal Zone;

12

5. Provided for equality of opportunity and treatment of Panamanian employees; and

13

6. Provided for construction of a bridge across the Canal at the Pacific entrance to the Canal.1

The Panama Canl

Construction of the Canal was performed by the Isthmian Canal Commission under the provisions of the Spooner Act of June 28, 1902. As construction approached completion, the President issued an Executive order providing a permanent organization for the completion, maintenance, operation, government and sanitation of the Panama Canal and its adjuncts and the govenrment of the Canal Zone pursuant to authority provided by the Panama Canal Act of August 24, 1912." The effect of the Panama Canal Act and the Executive order was to establish The Panama Canal as an independent government agency for (1) operation and maintenance of the waterway, and (2) civil government of the Canal Zone. The pertinent provisions of the Panama Canal Act were later incorporated in the 1934 edition of the Canal Zone Code.1

1 TS 431.

2 Art. II.

3 Art. III.

4 Art. XIV.

5 TS 945, 53 Stat. 1807.

TLAS 3297.

7 Art. VII.

8 Art. III.

9 Art. I.

10 Art. V.

11 Art. XII.

12 Art. II.

13 Memorandum of Understandings Reached accompanying treaty, par. 1.

14 Memorandum of Understanding Reached accompanying treaty, par. 5.

15 32 Stat. 481.

16 E.O. 1885 of January 27, 1914.

17 37 Stat. 560.

18 2 C.S. Code (1934 ed.) 5.