stipulation shall not be applicable when the debtor State refuses or
leaves unanswered an offer to arbitrate; or, in case of acceptance,
makes it impossible to formulate the terms of submission; or, after
arbitration, fails to comply with the award rendered."

Provision was made for an international prize court, to which appeal
might be made from the prize courts of the belligerent powers. The
declaration was adopted prohibiting the throwing of projectiles and
explosives from balloons.

Before the end of the year 1908, one hundred and thirty-five arbitration
treaties had been concluded. The United States was a party to twelve of
these. Most of the treaties bind the signatory powers to submit to the
Hague Tribunal all differences in so far as they do not affect "the
independence, the honor, the vital interests, or the exercise of
sovereignty of the contracting countries, and provided it has been
impossible to obtain an amicable solution by means of direct diplomatic
negotiations or by any other method of conciliation."

CHAPTER VI

THE UNITED STATES AND LATIN AMERICA

[1905-1906]

Looking toward the completion of the Panama Canal, there has been a
revival of interest on the part of the United States in the republics of
South America. From the time of the promulgation of the Monroe Doctrine,
there has been a distant friendship on our part for these nations. The
plan inaugurated by James G. Blaine when Secretary of State is much
better understood to-day than in his time. In 1881, with the desire of
emphasizing the leadership of the United States in the western
hemisphere, he proposed a congress of all the American nations. Nothing
came of the proposal at the time, but in 1888 Congress passed a
resolution providing for such an international conference. The meeting
was in Washington the following year, and Secretary Blaine, as chairman,
exercised great influence. While the direct results of the meeting were
not great--principally a declaration in favor of the arbitration of all
disputes among these nations--the indirect benefits were considerable.
In 1901 a second Pan-American congress was held in the city of Mexico.

[Illustration]
Courtesy of the Pan-American Union.
Federal Palace, where the second Pan-American
Congress was held in the City of Mexico.

In the meantime the trade with these countries has been largely
monopolized by England, France, and Germany. During the year 1905, the
total exports and