Page:The Panama Canal Controversy.djvu/38

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THE PANAMA CANAL CONTROVERSY

that they must fail, and the difficulties they had encountered were thought to be fatal to that route. But after the conclusion of the Treaty the subject was discussed very thoroughly in the Senate of the United States, and as a result of that discussion American opinion underwent a change and it was determined to proceed with the Panama route. For that purpose an Act was passed authorizing the President to buy up the assets of the French Company, and this was done. The position then was that the United States were the holders of the Canal Concession, but the State of Colombia were the sovereigns of the territory through which the Canal passed. But in the following year, as a result of events which it is not necessary for our purpose to discuss, there was a revolution in that State; Panama established itself as an independent Republic, and forthwith entered into a Convention with the United States, known as the Hay-Varilla Convention of 1903, by which the United States became, to quote the words of Sir Edward Grey, 'the practical sovereigns of the Canal Territory.' This was a departure from the state of things contemplated at the time of the Treaty of 1901, but it made no difference to the rights under that Treaty, indeed the preservation of those rights was expressly provided for by Article XVIII of the Treaty with Panama, which declared that

'the Canal when constructed, and the entrances thereto, shall be neutral in perpetuity and shall be opened on the terms provided for by section i of Article III of and in conformity with all the stipulations of the Treaty entered into by the Governments of the United States and Great Britain on November 18th, 1901';

and if further protection were necessary it would be found in Article IV of the Treaty of 1901. The result