716 



PANAMA CANAL. 



ing disturbed or detained. In general, every 

 vessel may pass freely without any distinction, 

 exclusion, or preference of nationalities or per- 

 sons, on payment of the dues and under ob- 

 servance of the rules established by the priv- 

 ileged company for the use of the said canal 

 and its dependencies. Exception is made of 

 foreign troops, who may not pass without the 

 permission of Congress, and ships of the na- 

 tions at war with the United States of Colom- 

 bia, who have not previously acquired the right 

 of passage in all times by treaty stipulations 

 guaranteeing the sovereignty of Colombia over 

 the Isthmus of Panama and the territory where 

 the canal is excavated, as well as the immunity 

 and neutrality of the same canal, its ports, bays, 

 dependencies, and adjacent seas." Article XXI 

 of the same contract declares that the grantees, 

 or whoever in future may succeed to their 

 rights, '' may transmit them to other capitalists 

 or financial societies, but it is absolutely for- 

 bidden to cede or hypothecate them to any for- 

 eign nation or government." A violation ot 

 this prohibition would forfeit all the rights 

 granted. 



Article XXXV, of "a general treaty of 

 peace, amity, navigation, and commerce be- 

 tween the United States and the Republic of 

 New Granada," which was concluded at Bo- 

 gota, December 12, 1846, ratifications of which 

 were exchanged at Washington, June 10, 1848, 

 which is still in force, runs as follows: 



The United States of America and the Republic of 

 New Granada, desiring to make as durable as pos- 

 sible the relations which, are to be established between 

 the two parties by virtue of this treaty, have declared 

 solemnly and do agree to the following points : For 

 the better understanding of the preceding articles it 

 is and has been stipulated between the high con- 

 tracting parties that citizens, vessels, and merchan- 

 dise of the United States shall enjoy in the ports of 

 New Granada, including those of the portion of Gra- 

 nadian territory generally denominated the Isthmus 

 of Panama, from its southernmost extremity until the 

 boundary of Costa Rica, all the exemptions, privi- 

 leges, and immunities concerning commerce and navi- 

 fation which are now, or may nereafter be, enjoyed 

 y Granadian citizens, their vessels, and merchandise ; 

 and this equality of favors shall be made to extend to 

 the passengers, correspondence, and merchandise of 

 the United States in their transit across the said terri- 

 tory from one sea to the other. The Government of 

 New Granada guarantees to the Government of the 

 United States that the right of way or transit across 

 the Isthmus of Panama, upon any modes of commu- 

 nication that now exist or may be hereafter construct- 

 ed, shall be open and free to the Government and 

 citizens of the United States, and for the transporta- 

 tion of any articles of produce, manufactures, or mer- 

 chandise of lawful commerce belonging to the citi- 

 zens of the United States; that no other tolls or 

 charges shall be levied or collected upon the citizens 

 of the United States, or their said merchandise, thus 

 passing over any road or canal that may be made by 

 the Government of New Granada, or by authority of 

 the same, than is, under like circumstances, levied 

 upon and collected from the Granadian citizens ; that 

 any lawful produce, manufactures, or merchandise 

 belonging to citizens of the United States thus pass- 

 ing from one sea to the other, in either direction, for 

 the purpose of exportation to any other foreign coun- 

 try, shall not be liable to any import duties whatever, 

 or, having paid such duties, they shall be entitled to 



drawback upon their exportation ; nor shall the citi- 

 zens of the United States be liable to any duties, tolls, 

 or charges of any kind to which native citizens are not 

 subjected for thus passing the said isthmus ; but, in 

 order to secure to themselves the tranquil and constant 

 enjoyment of these advantages, and as an especial com- 

 penaation for said advantages, and for the favors tln-y 

 have acquired by the fourth, fifth, and sixth articles 

 of this treaty, the United States guarantees positively 

 to New Granada, by the present stipulation, the per- 

 fect neutrality otthe before-mentioned isthmus, \\iili 

 the view that the free transit from the one to the other 

 sea may not be interrupted or embarrassed to any 

 future time while this treaty exists ; and, in conse- 

 quence, the United States also guarantees in the same 

 manner the rights of sovereignty and propcrtv which 

 New Granada has and possesses over the said terri- 

 tory, etc. 



For a better understanding of the subject, 

 and of the discussions relating thereto, it is 

 necessary also to recall the provisions of the 

 agreement between the United States and 

 Great Britain, concluded April 19, 1850, and 

 ratified the same year, known as the Clayton- 

 Bulwer treaty. One purpose of this compact 

 was to secure a surrender of all British pre- 

 tensions to possession or authority in Central 

 America. It was also intended to promote the 

 construction of an interoceanic canal at Nic- 

 aragua, to protect it when constructed, and to 

 secure its neutrality. The two governments de- 

 clared that " neither the one nor the other will 

 ever obtain or maintain for itself any exclusive 

 control over the said ship-canal ; agreeing that 

 neither will ever erect or maintain any fortifica- 

 tions commanding the same or in the vicinity 

 thereof, or occupy, or fortify, or colonize, or as- 

 sume or exercise any dominion over Nicaragua, 

 Costa Rica, the Mosquito Coast, or any part of 

 Central America." It was further agreed, in 

 the first article of this treaty, that neither the 

 United States nor Great Britain would '' take 

 advantage of any intimacy, or use any alliance, 

 connection, or influence that either may pos- 

 sess with any state or government through 

 whose territory the said canal may pass, for 

 the purpose of acquiring or holding, directly 

 or indirectly, for the citizens or subjects of 

 the one, any rights or advantages in regard to 

 commerce or navigation through the said canal 

 which shall not be offered on the same terms 

 to the citizens or subjects of the other." Pro- 

 visions follow defining the privileges which the 

 two governments shall have in case of war; 

 engaging to protect any parties that might 

 undertake the construction of the canal under 

 the authority of the local governments " from 

 unjust detention, confiscation, seizure, or any 

 violence whatsoever " ; and agreeing to use 

 influence to induce the governments having 

 authority over the territory to be traversed 

 "to facilitate the construction of the said canal 

 by every means in their power," and to secure 

 the establishment of a free port at each end 

 of the said canal. The governments further 

 agreed to protect the canal when completed, 

 and to guarantee its neutrality, to the end 

 " that the said canal may for ever be open and 

 free, and the capital invested therein secure." 



