RELATIONS WITH PANAMA
When the people of the Isthmus of Panama revolted against the
Government of Colombia, they fully realized that almost their only
hope of maintaining an independent government was to secure the
building of the Panama Canal by the United States. Therefore, they
were in a mood to ratify a treaty which would meet every condition
demanded by the Government of the United States.
The treaty, negotiated and ratified in 1904, gave to the United States
every right it could have desired or which it could have possessed had
it taken over the whole Isthmus itself. It was negotiated by John Hay,
Secretary of State, representing the United States, and Philippe
Bunau-Varilla, representing the Government of Panama. As the latter
was a stockholder in the New French Canal Company, whose assets could
be realized upon only through the success of the treaty negotiations,
it naturally followed that he would put nothing in the way of the
desires of the United States.
The treaty gave to the United States most unusual rights. For
instance, in no other country on earth does one nation possess
ultimate jurisdiction over the capital of another nation; yet this is
what the United States possesses at Panama. The first consideration of
the treaty was the establishment of the Canal Zone. This gave to the
United States a territory 5 miles beyond the center line of the canal
on either side, and 3 miles beyond its deep water ends, with the
exception of the cities of Colon and Panama, to hold in perpetuity
with all rights, powers, and authority that the United States would
possess if it were sovereign, and to the entire exclusion of the
exercise of any sovereign rights, powers, or authority by the Republic
of Panama.
Further than this, it gave to the United States the same rights with
respect to any land, or land under water, outside of the Canal Zone
necessary and convenient for the canal itself, or any auxiliary canals
or other works required in its operations.
Further yet, the Republic granted in perpetuity a canal monopoly
throughout its entire territory, and also monopolies of railroad and
other means of communication between the two oceans.
Under the terms of the treaty the cities of Panama and Colon are
required to comply in perpetuity with all sanitary ordinances, whether
curative or preventive, which the United States may promulgate. The
Republic of Panama also agrees that if it can not enforce these
ordinances, the United States become vested with the power to enforce
them. The same is true with reference to the maintenance of order. The
Republic of Panama agrees to maintain order, but gives to the United
States not only the right to step in with American forces and restore
it, but also to determine when such action is necessary.
The treaty between the two countries further provides that the United
States has the right to acquire by condemnation any property it may
need for canal purposes in the cities of Panama and Colon. The
Republic of Panama also grants to the United States all rights it has
or may acquire to the property of the New Panama Canal Company and of
the Panama Railroad, except such lands as lie outside of the Canal
Zone and the cities of Panama and Colon, not needed for the purposes
of building the canal. The Republic guarantees to the United States
every title as absolute and free from any present or reversionary
interest or claim. It will be seen from all this that the United
States did not overlook any opportunity to make sure that it had all
of the powers necessary to build a canal.
It is also agreed by the Panama Government that no dues of any kind
ever shall be collected by it from vessels passing through or using
the canal, or from vessels belonging to the United States Government.
All employees of the canal are exempted from taxation, whether living
inside or outside the Zone. The Republic grants to the United States
the use of all its rivers, streams, lakes, and other bodies of water
for purposes of navigation, water supply, and other needs of the
canal. It also agrees to sell or lease to the United States any of its
lands on either coast for use for naval bases or coaling stations.
The Republic of Panama further agrees that the United States shall
have the right to import commodities for the use of the Canal
Commission and its employees, free of charge, and that it shall have
the right to bring laborers of any nationality into the Canal Zone.
In return for all of these concessions the United States gives to the
Republic of Panama many valuable considerations. Most vital of all, it
guarantees the independence of the Republic. This means that the
Republic of Panama is today practically the possessor of an army and a
navy as large as the United States can put into the field and upon the
seas. The only aggressor that Panama need fear is her benefactor.
The second consideration involved the payment of $10,000,000 cash to
the Republic, and a perpetual annual payment of a quarter of a million
dollars beginning with the year 1913. The ten-million-dollar cash
payment gave the impoverished new-born government a chance to get on
its feet, and from this time forward the Panaman Government can look
to the United States for the major portion of its necessary revenues.
Under the terms of the treaty the United States undertakes to give
free passage to any warships belonging to the Republic of Panama when
going through the canal, and also agrees that the canal shall be
neutral. It also agrees to provide free transportation over the Panama
Railroad for persons in the service of the Government of Panama, and
for the munitions of war of the Republic. It also allows the Republic
of Panama to transmit over its telegraph and telephone lines its
message at rates not higher than those charged United States officials
for their private messages.
Another stipulation of the treaty provides that it shall not
invalidate the titles and rights of private landholders and owners of
private property, nor of the right of way over public roads of the
Zone unless they conflict with the rights of the United States, when
the latter shall be regarded as superior. No part of the work of
building or operating the canal, however, at any time may be impeded
by any claims, whether public or private. A commission is provided,
whose duty it shall be to pass upon the claims of those whose land or
properties are taken from them for the purpose of the construction or
operation of the canal.
In carrying out the terms of the treaty the first step taken by the
Americans was to "clean up" the cities of Panama and Colon. Remarkable
changes were wrought by the establishment of water and sewerage
systems, and by street improvements. For several years preceding the
acquisition of the Canal Zone, and the sanitization of the cities of
Panama and Colon, the late W. L. Buchanan was the United States
minister to Colombia. He was transferred to another South American
capital and afterwards came back to the United States by way of
Panama. Former Senator J. C. S. Blackburn was then governor of the
Canal Zone or, more strictly speaking, the head of the Department of
Civil Administration. As he and Minister Buchanan drove through the
streets of Panama and surveyed the changes that had taken place, Mr.
Buchanan declared to Governor Blackburn that if an angel from heaven
had appeared to him and said that such a transformation in the city of
Panama could be made in so few years he scarcely could have believed
it.
When he was there the main streets of the city were nothing but
unbroken chains of mud puddles in which, during the wet season,
carriages sank almost to the axles. When he returned he found those
same streets well paved with vitrified brick, measuring up to the best
standards of American street work. Where formerly peddlers hawked
water from disease-scattering springs, there were hydrants throughout
the town and wholesome water on tap in almost every house. Where there
had been absolutely no attempt to solve the problems of sewage
disposal, where the masses of people lived amid indescribable filth,
absolutely oblivious to its stenches and its dangers, now there was a
sewerage system fully up to the best standard of American municipal
engineering.
When one considers that the Republic of Panama is made up largely of
the cities of Panama and Colon, with a large area of almost wholly
undeveloped territory, it will be seen that this service was rendered
to practically all the people of the Republic.
The relations which have existed between the Republic of Panama and
the United States have not always proved wholly satisfactory to the
Panamans. Like all other tropical Americans, the Panamans profess
great admiration for a republican form of government, but the party in
power seldom has relished the idea of a full and free accounting of
its stewardship at the polls. When the time came for the first
national election, the party in power sought to insure its return by
the use of tropical-American methods; that is, by a wholesale
intimidation of the opposition supporters. When the registration books
were opened the administration was unwilling to register the
supporters of the opposition. The government forces always were relied
upon to back up the registrars. This situation was resented by the
opposition and the indications were that the usual civil war, the
tropical American substitute for an election, was about to follow.
At this juncture Governor Blackburn called the Panaman authorities
together and notified them that the United States did not care a
continental which side won the election, but that it was very deeply
interested in maintaining conditions of peace and amity on the
Isthmus--conditions which could not prevail except there be a fair
election. He reminded them of the right of the United States to
maintain order in their two principal cities, and of the blood and
treasure the United States had invested in Panama, all of which would
be placed in jeopardy by any civil conflict. He therefore declared it
the intention of the United States to see that there was a fair
election.
Election commissioners were consequently appointed, and they saw to it
that the voters were fairly registered, allowed to vote, and to have
their votes counted. The result was that for the first time in Central
American history there was a fair election and for the first time a
real change of administration without a resort to arms. So successful
was this plan that in the election of 1912 both sides agreed again to
call in the United States to umpire their battle of the ballots, and
once again the "outs" won over the "ins."
The French Canal Company has some very unpleasant experiences with
the Republic of Colombia when it, as a private corporation, undertook
to build the canal. It was at the mercy of the Government and the
Government seldom showed mercy. For instance, a Colombian owned 30
acres of swamp land which was needed for the construction of the
canal. It was worth $10 an acre; he demanded $10,000. The canal
company took the matter to the courts of the Republic and instituted
condemnation proceedings. Here the owner admitted that the land was
not intrinsically worth more than $10 an acre, but claimed that he had
as much right to demand $300,000 for the tract as if it were located
in the very heart of Paris; that in every case it was what the land
could be used for that determined its value. The court shared his view
and nothing was left for the canal company to do but to pay the
$300,000.
Shortly after the Americans took charge, the Central and South
American Telegraph Company wanted to land the new "all American" cable
on the Canal Zone. They applied to the United States for permission
which was granted. The Panamans fought against it under every possible
pretext, their desire being to have their consent regarded as
essential, so that they could get a good fee for the concession, but
the United States notified the Republic of Panama that it had no
interest whatever in requiring compensation, and so the cable was
laid.
While there has been substantial agreement between the two countries,
it has been difficult to prevent some conditions which are contrary to
American ideas of morality. For instance, while the Canal Commission
was strongly opposed to having a lottery on the Canal Zone, one is
maintained just across the line in the city of Panama. The Panama
lottery and the Bishop of Panama share the same house. One has to pass
the lottery to see the bishop and, mayhap, a half dozen old women
ticket sellers will try to intercept him before he reaches the church
dignitary.
This lottery is a veritable gold mine to those who own it. Each
ordinary drawing brings in $10,000--$1 for each ticket issued. The
grand prize takes $3,000 of this, the next 9 prizes calling for a
total of $900, the next 90 for a total of $450 and the remaining
prizes for $2,070. Thus, $6,420 in prizes is paid out of the total of
$10,000 received. Out of the remainder, 5 per cent goes to the ticket
sellers and 5 per cent to the Panaman Government. Once a month the
drawing is made for a grand prize of $7,500. Most of the money which
the lottery people make is contributed by workers on the canal. Only
64 per cent of the money received from the sale of tickets is won back
by the ticket buyer at each drawing. The net profits approximate a
hundred thousand dollars a year.
On the whole, however, the relations entered into between the two
Republics in 1904 have been such as to leave no serious ground for
complaint. They have permitted the satisfactory construction of the
canal, and they will permit its satisfactory operation. With the
United States as the ultimate judge of every question vital to
American interests, little is left to be desired. The fact is that the
canal has been built with less friction and fewer difficulties with
the Republic of Panama than could reasonably have been hoped for at
the outset. This has been due principally to the fact that the
Americans responsible for the success of the work have approached the
Panaman situation with tact where tact was needed and with firmness
where firmness was essential.