ritain and the United States can at any moment, without the consent of
third States, abrogate the Hay-Pauncefote Treaty and do away with the
stipulation that the Canal shall be open to vessels of all nations on
terms of entire equality.
In this connection it is of interest to draw attention to the fact
that, in compliance with Article XIX of the Hay-Varilla Treaty of
November 18, 1903, Section 5 of the Panama Canal Act entirely exempts
vessels of the Republic of Panama from payment of the Panama Canal
tolls. It would seem that this exemption in favour of the vessels of
the Republic of Panama violates Article III, No. 1, of the
Hay-Pauncefote Treaty, although it is in conformity with Article XIX of
the Hay-Varilla Treaty which stipulates that:--
"The Government of the Republic of Panama shall have the right to
transport over the Canal its vessels and its troops and munitions
of war in such vessels at all times without paying charges of any
kind."
A treaty between two States can never invalidate a stipulation of a
previous treaty between one of the contracting parties and a third
State. Bearing this point in mind, it must be maintained that the
United States, being bound by Article III, No. 1, of the Hay-Pauncefote
Treaty, had not the power to enter into the stipulation of Article XIX
of the Hay-Varilla Treaty by which she granted exemption from payment
of tolls to vessels of the Republic of Panama, and that Great Britain
is justified in protesting against the enactment of Section 5 of the
Panama Canal Act in so far as it exempts vessels of Panama from the
payment of tolls. The fact that the right of Panama to demand exemption
from payment of tolls for her vessels is one of the conditions under
which the Republic of Panama ceded to the United States the strip of
territory necessary for the construction, administration, and
protection of the Canal, cannot invalidate the previously acquired
right of Great Britain to demand equal treatment of the vessels of all
nations without any exception whatever. It must be left to the United
States and the Republic of Panama to come to an agreement concerning
Article XIX of the Hay-Varilla Treaty. Although the United States
promised an exemption from tolls which she had no power to grant, the
Republic of Panama need not drop her claim to this exemption. Since,
however, the grant of the exemption would violate previous treaty
rights of Great Britain, the Republic of
|