                      Convention Between The United States
                           And The Republic Of Panama
                                     1904

  For The Construction Of A Ship Canal To Connect The Waters The
Atlantic And Pacific Oceans. Signed at Washington, November 18,
1903. Ratification advised by the Senate, February 23, 1904.
Ratified by the President, February 25, 1904. Ratified by Panama,
December 2, 1903. Ratifications exchanged at Washington, February
26, 1904. Proclaimed, February 26, 1904.

     By the President of the United States of America.

                        A PROCLAMATION

  Whereas, a Convention between the United States of America and the
Republic of Panama to insure the construction of a ship canal across
the Isthmus of Panama to connect the Atlantic and Pacific Oceans,
was concluded and signed by their respective Plenipotentiaries at
Washington, on the eighteenth day of November, one thousand nine
hundred and three, the original of which Convention, being in the
English language, is word for word as follows:

                    ISTHMIAN CANAL CONVENTION

  The United States of America and the Republic of Panama being
desirous to insure the construction of a ship canal across the Isthmus
of Panama to connect the Atlantic and Pacific Oceans, and the Congress
of the United States of America having passed an act approved June 28,
1902, in furtherance of that object, by which the President of the
United States is authorized to acquire within a reasonable time the
control of the necessary territory of the Republic of Colombia, and
the sovereignty of such territory being actually vested in the
Republic of Panama, the high contracting parties, have resolved for
that purpose to conclude a convention and have accordingly appointed
as their plenipotentiaries,-
  The President of the United States of America, John Hay, Secretary
of State, and
  The Government of the Republic of Panama, Philippe Bunau-Varilla,
Envoy Extraordinary and Minister Plenipotentiary of the Republic of
Panama, thereunto specially empowered by said government, who after
communicating with each other their respective full powers, found to
be in good and due form, have agreed upon and concluded the
following articles:

                            ARTICLE I

  The United States guarantees and will maintain the independence of
the Republic of Panama.

                           ARTICLE II

  The Republic of Panama grants to the United States in perpetuity,
the use, occupation and control of a zone of land and land under water
for the construction, maintenance, operation, sanitation and
protection of said Canal of the width of ten miles extending to the
distance of five miles on each side of the center line of the route of
the Canal to be constructed; the said zone beginning in the Carribbean
Sea three marine miles from mean low water mark and extending to and
across the Isthmus of Panama into the Pacific Ocean to a distance of
three marine miles from mean low water mark with the proviso that
the cities of Panama and Colon and the harbors adjacent to said
cities, which are included within the boundaries of the zone above
described, shall not be included within this grant. The Republic of
Panama further grants to the United States in perpetuity, the use,
occupation and control of any other lands and waters outside of the
zone above described which may be necessary and convenient for the
construction, maintenance, operation, sanitation and protection of the
said Canal or of any auxiliary canals or other works necessary and
convenient for the construction, maintenance, operation, sanitation
and protection of the said enterprise.
  The Republic of Panama further grants in like manner to the United
States in perpetuity, all islands within the limits of the zone
above described and in addition thereto, the group of small islands in
the Bay of Panama, named Perico, Naos, Culebra and Flamenco.


                          ARTICLE III

  The Republic of Panama grants to the United States all the rights,
power and authority within the zone mentioned and described in Article
II of this agreement, and within the limits of all auxiliary lands and
waters mentioned and described in said Article II which the United
States would possess and exercise, if it were the sovereign of the
territory within which said lands and waters are located to the entire
exclusion of the exercise by the Republic of Panama of any such
sovereign rights, power or authority.

                           ARTICLE IV

  As rights subsidiary to the above grants the Republic of Panama
grants in perpetuity, to the United States the right to use the
rivers, streams, lakes and other bodies of water within its limits for
navigation, the supply of water or waterpower or other purposes, so
far as the use of said rivers, streams, lakes and bodies of water
and the waters thereof may be necessary and convenient for the
construction, maintenance, operation, sanitation and protection of the
said Canal.

                            ARTICLE V

  The Republic of Panama grants to the United States in perpetuity,
a monopoly for the construction, maintenance and operation of any
system of communication by means of canal or railroad across its
territory between the Caribbean Sea and the Pacific Ocean.

                           ARTICLE VI

  The grants herein contained shall in no manner invalidate the titles
or rights of private land holders or owners of private property in the
said zone or in or to any of the lands or waters granted to the United
States by the provisions of any Article of this treaty, nor shall they
interfere with the rights of way over the public roads passing through
the said zone or over any of the said lands or waters unless rights of
way or private rights shall conflict with rights herein granted to the
United States in which case the rights of the United States shall be
superior. All damages caused to the owners of private lands or private
property of any kind by reason of the grants contained in this
treaty or by reason of the operations of the United States, its agents
or employees, or by reason of the construction, maintenance,
operation, sanitation and protection of the said Canal or of the works
of sanitation and protection herein provided for, shall be appraised
and settled by a joint Commission appointed by the Governments of
the United States and the Republic of Panama, whose decisions as to
such damages shall be final and whose awards as to such damages
shall be paid solely by the United States. No part of the work on said
Canal or the Panama railroad or on any auxiliary works relating
thereto and authorized by the terms of this treaty shall be prevented,
delayed or impeded by or pending such proceedings to ascertain such
damages. The appraisal of said private lands and private property
and the assessment of damages to them shall be based upon their
value before the date of this convention.


                          ARTICLE VII

  The Republic of Panama grants to the United States within the limits
of the cities of Panama and Colon and their adjacent harbors and
within the territory adjacent thereto the right to acquire by purchase
or by the exercise of the right of eminent domain, any lands,
buildings, water rights or other properties necessary and convenient
for the construction, maintenance, operation and protection of the
Canal and of any works of sanitation, such as the collection and
disposition of sewage and the distribution of water in the said cities
of Panama and Colon, which, in the discretion of the United States may
be necessary and convenient for the construction, maintenance,
operation, sanitation and protection of the said Canal and railroad.
All such works of sanitation, collection and disposition of sewage and
distribution of water in the cities of Panama and Colon shall be
made at the expense of the United States, and the Government of the
United States, its agents or nominees shall be authorized to impose
and collect water rates and sewage rates which shall be sufficient
to provide for the payment of and the amortization of the principal of
the cost of said works within a period of fifty years and upon the
expiration of said term of fifty years the system of sewers and
water works shall revert to and become the properties of the cities of
Panama and Colon respectively, and the use of the water shall be
free to the inhabitants of Panama and Colon, except to the extent that
water rates may be necessary for the operation and maintenance of said
system of sewers and water.
  The Republic of Panama agrees that the cities of Panama and Colon
shall comply in perpetuity, with the sanitary ordinances whether of
a preventive or curative character prescribed by the United States and
in case the Government of Panama is unable or fails in its duty to
enforce this compliance by the cities of Panama and Colon with the
sanitary ordinances of the United States the Republic of Panama grants
to the United States the right and authority to enforce the same.
  The same right and authority are granted to the United States for
the maintenance of public order in the cities of Panama and Colon
and the territories and harbors adjacent thereto in case the
Republic of Panama should not be, in the judgment of the United
States, able to maintain such order.


                         ARTICLE VIII

  The Republic of Panama grants to the United States all rights
which it now has or hereafter may acquire to the property of the New
Panama Canal Company and the Panama Railroad Company as a result of
the transfer of sovereignty from the Republic of Columbia to the
Republic of Panama over the Isthmus of Panama and authorizes the New
Panama Canal Company to sell and transfer to the United States its
rights, privileges, properties and concessions as well as the Panama
Railroad and all the shares or part of the shares of that company; but
the public lands situated outside of the zone described in Article
II of this treaty now included in the concessions of both said
enterprises and not required in the construction or operation of the
Canal shall revert to the Republic of Panama except any property now
owned by or in the possession of said companies within Panama or Colon
or the ports or terminals thereof.


                           ARTICLE IX

  The United States agrees that the ports at either entrance of the
Canal and the waters thereof, and the Republic of Panama agrees that
the towns of Panama and Colon shall be free for all time so that there
shall not be imposed or collected custom house tolls, tonnage,
anchorage, lighthouse, wharf, pilot, or quarantine dues or any other
charges or taxes of any kind upon any vessel using or passing
through the Canal or belonging to or employed by the United States,
directly or indirectly, in connection with the construction,
maintenance, operation, sanitation and protection of the main Canal,
or auxiliary works, or upon the cargo, officers, crew, or passengers
of any such vessels, except such tolls and charges as may be imposed
by the United States for the use of the Canal and other works, and
except tolls and charges imposed by the Republic of Panama upon
merchandise destined to be introduced for the consumption of the
rest of the Republic of Panama, and upon vessels touching at the ports
of Colon and Panama and which do not cross the Canal.
  The Government of the Republic of Panama shall have the right to
establish in such ports and in the towns of Panama and Colon such
houses and guards as it may deem necessary to collect duties on
importations destined to other portions of Panama and to prevent
contraband trade. The United States shall have the right to make use
of the towns and harbors of Panama and Colon as places of anchorage,
and for making repairs, for loading, unloading, depositing, or
transshipping cargoes either in transit or destined for the service of
the Canal and for other works pertaining to the Canal.

                            ARTICLE X

  The Republic of Panama agrees that there shall not be imposed any
taxes, national, municipal, departmental, or of any other class,
upon the Canal, the railways and auxiliary works, tugs and other
vessels employed in the service of the Canal, store houses, work
shops, offices, quarters for laborers, factories of all kinds,
warehouses, wharves, machinery and other works, property, and
effects appertaining to the Canal or railroad and auxiliary works,
or their officers or employees, situated within the cities of Panama
and Colon, and that there shall not be imposed contributions or
charges of a personal character of any kind upon officers,
employees, laborers, and other individuals in the service of the Canal
and railroad and auxiliary works.

                           ARTICLE XI

  The United States agrees that the official dispatches of the
Government of the Republic of Panama shall be transmitted over any
telegraph and telephone lines established for canal purposes and
used for public and private business at rates not higher than those
required from officials in the service of the United States.

                          ARTICLE XII

  The Government of the Republic of Panama shall permit the
immigration and free access to the lands and workshops of the Canal
and its auxiliary works of all employees and workmen of what ever
nationality under contract to work upon or seeking employment upon
or in any wise connected with the said Canal and its auxiliary
works, with their respective families, and all such persons shall be
free and exempt from the military service of the Republic of Panama.

                         ARTICLE XIII

  The United States may import at any time into the said zone and
auxiliary lands, free of custom duties, imposts, taxes, or other
charges, and without any restrictions, any and all vessels, dredges,
engines, cars, machinery, tools, explosives, materials, supplies,
and other articles necessary and convenient in the construction,
maintenance, operation, sanitation and protection of the Canal and
auxiliary works, and all provisions, medicines, clothing, supplies and
other things necessary and convenient for the officers, employees,
workmen and laborers in the service and employ of the United States
and for their families. If any such articles are disposed of for use
outside of the zone and auxiliary lands granted to the United States
and within the territory of the Republic, they shall be subject to the
same import or other duties as like articles imported under the laws
of the Republic of Panama.

                          ARTICLE XIV

  As the price or compensation for the rights, powers and privileges
granted in this convention by the Republic of Panama to the United
States, the Government of the United States agrees -to pay to the
Republic of Panama the sum of ten million dollars ($10,000,000) in
gold coin of the United States on the exchange of the ratification
of this convention and also an annual payment during the life of
this convention of two hundred and fifty thousand dollars ($250,000)
in like gold coin, beginning nine years after the date aforesaid.
  The provisions of this Article shall be in addition to all other
benefits assured to the Republic of Panama under this convention.
  But no delay or difference of opinion under this Article or any
other provisions of this treaty shall affect or interrupt the full
operation and effect of this convention in all other respects.


                           ARTICLE XV

  The joint commission referred to in Article VI shall be
established as follows:
  The President of the United States shall nominate two persons and
the President of the Republic of Panama shall nominate two persons and
they shall proceed to a decision; but in case of disagreement of the
Commission (by reason of their being equally divided in conclusion),
an umpire shall be appointed by the two Governments who shall.
render the decision. In the event of the death, absence, or incapacity
of a Commissioner or Umpire, or of his omitting, declining or
ceasing to act, his place shall be filled by the appointment of
another person in the manner above indicated. All decisions by a
majority of the Commission or by the umpire shall be final.

                          ARTICLE XVI

  The two Governments shall make adequate provision by future
agreement for the pursuit, capture, imprisonment, detention and
delivery within said zone and auxiliary lands to the authorities of
the Republic of Panama of persons charged with the commitment of
crimes, felonies, or misdemeanors without said zone and for the
pursuit, capture, imprisonment, detention and delivery without said
zone to the authorities of the United States of persons charged with
the commitment of crimes, felonies and misdemeaners within said zone
and auxiliary lands.

                         ARTICLE XVII

  The Republic of Panama grants to the United States the use of all
the ports of the Republic open to commerce as places of refuge for any
vessels employed in the Canal enterprise, and for all vessels
passing or bound to pass through the Canal which may be in distress
and be driven to seek refuge in said ports. Such vessels shall be
exempt from anchorage and tonnage dues on the part of the Republic
of Panama.


                        ARTICLE XVIII

  The Canal, when constructed, and the entrances thereto shall be
neutral in perpetuity, and shall be opened upon the terms provided for
by Section I of Article three 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 18, 1901.

                          ARTICLE XIX

    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. The exemption is to be extended to the auxiliary railway for the
transportation of persons in the service of the Republic of Panama, or
of the police force charged with the preservation of public order
outside of said zone, as well as to their baggage, munitions of war
and supplies.

                           ARTICLE XX

  If by virtue of any existing treaty in relation to the territory
of the Isthmus of Panama, whereof the obligations shall descend or
be assumed by the Republic of Panama, there may be any privilege or
concession in favor of the Government or the citizens and subjects
of a third power relative to an interoceanic means of communication
which in any of its terms may be incompatible with the terms of the
present convention, the Republic of Panama agrees to cancel or
modify such treaty in due form, for which purpose it shall give to the
said third power the requisite notification within the term of four
months from the date of the present convention, and in case the
existing treaty contains no clause permitting its modifications or
annulment, the Republic of Panama agrees to procure its modification
or annulment in such form that there shall not exist any conflict with
the stipulations of the present convention.


                          ARTICLE XXI

  The rights and privileges granted by the Republic of Panama to the
United States in the preceding Articles are understood to be free of
all anterior debts, lens, trusts, or liabilities, or concessions or
privileges to other Governments, corporations, syndicates or
individuals, and consequently, if there should arise any claims on
account of the present concessions and privileges or otherwise, the
claimants shall resort to the Government of the Republic of Panama,
and not to the United States for any indemnity or compromise which may
be required.

                         ARTICLE XXII

  The Republic of Panama renounces and grants to the United States,
the participation to which it might be entitled in the future earnings
of the Canal under Article XV of the concessionary contract with
Lucien N. B. Wyse, now owned by the New Panama Canal Company and any
and all other rights or claims of a pecuniary nature arising under
or relating to said concession, or arising under or relating to the
concessions to the Panama Railroad Company or any extension or
modification thereof; and it likewise renounces, confirms and grants
to the United States, now and hereafter, all the rights and property
reserved in the said concessions which otherwise would belong to
Panama at or before the expiration of the terms of ninety-nine years
of the concessions granted to or held by the above mentioned party and
companies, and all right, title and interest which it now has or may
hereafter have, in and to the lands, canal, works, property and rights
held by the said companies under said concessions or otherwise, and
acquired or to be acquired by the United States from or through the
New Panama Canal Company, including any property and rights which
might or may in the future either by lapse of time, forfeiture or
otherwise, revert to the Republic of Panama under any contracts or
concessions, with said Wyse, the Universal Panama Canal Company, the
Panama Railroad Company and the New Panama Canal Company.
  The aforesaid rights and property shall be and are free and released
from any present or reversionary interest in or claims of Panama and
the title of the United States thereto upon consummation of the
contemplated purchase by the United States from the New Panama Canal
Company, shall be absolute, so far as concerns the Republic of Panama,
excepting always the rights of the Republic specifically secured under
this treaty.

                        ARTICLE XXIII

  If it should become necessary at any time to employ armed forces for
the safety or protection of the Canal, or of the ships that make use
of the same, or the railways and auxiliary works, the United States
shall have the right, at all times and in its discretion, to use its
police and its land and naval forces or to establish fortifications
for these purposes.

                         ARTICLE XXIV

  No change either in the Government or in the laws and treaties of
the Republic of Panama shall, without the consent of the United
States, affect any right of the United States under the present
convention, or under any treaty stipulation between the two
countries that now exists or may hereafter exist touching the
subject matter of this convention.
  If the Republic of Panama shall hereafter enter as a constituent
into any other Government or into any union or confederation of
states, so as to merge her sovereignty or independence in such
Government, union or confederation, the rights of the United States
under this convention shall not be in any respect lessened or
impaired.

                          ARTICLE XXV

  For the better performance of the engagements of this convention and
to the end of the efficient protection of the Canal and the
preservation of its neutrality, the Government of the Republic of
Panama will sell or lease to the United States lands adequate and
necessary for the naval or coaling stations on the Pacific coast and
on the western Caribbean coast of the Republic at certain points to be
agreed upon with the President of the United States.

                         ARTICLE XXVI

  This convention when signed by the Plenipotentiaries of the
Contracting Parties shall be ratified by the respective Governments
and the ratifications shall be exchanged at Washington at the earliest
date possible.

  In faith whereof the respective Plenipotentiaries have signed the
present convention in duplicate and have hereunto affixed their
respective seals.
  Done at the City of Washington, the 18th day of November in the year
of our Lord, nineteen hundred and three.
                                     JOHN HAY.             [SEAL]
                                     P. BUNAU VARILLA.     [SEAL.]
    And whereas the said Convention has been duly ratified on both
parts, and the ratifications of the two governments were exchanged
in the City of Washington, on the twenty-sixth day of February, one
thousand nine hundred and four;
  Now, therefore, be it known that I, Theodore Roosevelt, President of
the United States of America, have caused the said Convention to be
made public, to the end that the same and every article and clause
thereof, may be observed and fulfilled with good faith by the United
States and the citizens thereof.
  In testimony whereof, I have hereunto set my hand and caused the
seal of the United States of America to be affixed.
  Done at the City of Washington, this twenty-sixth day of February,
in the year of our Lord one thousand nine hundred and four, and of the
Independence of the United States the one hundred and twenty-eighth.
  [SEAL]                                        THEODORE ROOSEVELT.
  By the President:
      JOHN HAY,
         Secretary of State.
