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1 within this grant. The Republic of Panama further grants to 2 the United States in perpetuity the use, occupation and control 3 of any other lands and waters outside of the zone above described 4 which may be necessary and convenient for the construction, main5 tenance, operation, sanitation and protection of the said Canal or 6 of any auxiliary canals or other works necessary and convenient 7 for the construction, maintenance, operation, sanitation and pro8 tection of the said enterprise. 9 The Republic of Panama further grants in like manner to the 10 United States in perpetuity all islands within the limits of the 11 zone above described and in addition thereto the group of small 12 islands in the Bay of Panama, named Perico, Naos, Culebra and 13 Flamenco.

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15 The Republic of Panama grants to the United States all the 16 rights, power and authority within the zone mentioned and 17 described in Article II of this agreement and within the limits of 18 all auxiliary lands and waters mentioned and described in said 19 Article II which the United States would possess and exercise if 20 it were the sovereign of the territory within which said lands and 21 waters are located to the entire exclusion of the exercise by 22 the Republic of Panama of any such sovereign rights, power or 23 authority.

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25 As rights subsidiary to the above grants the Republic of 26 Panama grants in perpetuity to the United States the right to 27

use the rivers, streams, lakes and other bodies of water within 28 its limits for navigation, the supply of water or water-power or 29 other purposes, so far as the use of said rivers, streams, lakes 30 and bodies of water and the waters thereof may be necessary and 31 convenient for the construction, maintenance, operation, sanita32 tion and protection of the said Canal.

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3+ The Republic of Panama grants to the United States in per35 petuity a monopoly for the construction, maintenance and opera1 tion of any system of communication by means of canal or railroad 2 across its territory between the Caribbean Sea and the Pacific 3

ocean.

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5 The grants herein contained shall in no manner invalidate the 6 titles or rights of private land holders or owners of private 7 property in the said zone or in or to any of the lands or waters 8 granted to the United States by the provisions of any Article of 9 this treaty, nor shall they interfere with the rights of way over the 10 public roads passing through the said zone or over any of the said 11 lands or waters unless said rights of way or private rights shall 12 conflict with rights herein granted to the United States in which 13 case the rights of the United States shall be superior. All 14 damages caused to the owners of private lands or private property 15 of any kind by reason of the grants contained in this treaty or by 16 reason of the operations of the United States, its agents or 17 employees, or by reason of the construction, maintenance, 18 operation, sanitation and protection of the said Canal or of the 19 works of sanitation and protection herein provided for, shall be 20 appraised and settled by a joint Commission appointed by the 21 Governments of the United States and of the Republic of Panama, 22 whose decisions as to such damages shall be final and whose 23 awards as to such damages shall be paid solely by the United 24 States. No part of the work on said Canal or the Panama railroad 25 or on any auxiliary works relating thereto and authorized by the 26 terms of this treaty shall be prevented, delayed or impeded by or 27 pending such proceedings to ascertain such damages. The 28 appraisal of said private lands and private property and the 29 assessment of damages to them shall be based upon their value 30 before the date of this convention.

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32 The Republic of Panama grants to the United States within the 33 limits of the cities of Panama and Colon and their adjacent har34 bors and within the territory adjacent thereto the right to acquire 35 by purchase or by the exercise of the right of eminent domain, 36 any lands, buildings, water rights or other properties necessary 37 and convenient for the construction, maintenance, operation and 1 protection of the Canal and of any works of sanitation, such as 2 the collection and disposition of sewage and the distribution of 3 water in the said cities of Panama and Colon, which, in the dis4 cretion of the United States may be necessary and convenient for 5 the construction, maintenance, operation, sanitation and protec6 tion of the said Canal and railroad. All such works of sanitation, 7 collection and disposition of sewage and distribution of water in 8 the cities of Panama and Colon shall be made at the expense of 9 the United States, and the Government of the United States, its 10 agents or nominees shall be authorized to impose and collect water 11 rates and sewerage rates which shall be sufficient to provide for 12 the payment of interest and the amortization of the principal of 13 the cost of said works within a period of fifty years and upon the 14 expiration of said term of fifty years the system of sewers and 15 water works shall revert to and become the properties of the 16 cities of Panama and Colon respectively, and the use of the water 17 shall be free to the inhabitants of Panama and Colon, except to 18 the extent that water rates may be necessary for the operation 19 and maintenance of said system of sewers and waters. 20 The Republic of Panama agrees that the cities of Panama and 21 Colon shall comply in perpetuity with the sanitary ordinances 22 whether of a preventive or curative character prescribed by the 23 United States and in case the Government of Panama is unable 24 or fails in its duty to enforce this compliance by the cities of 25 Panama and Colon with the sanitary ordinances of the United 26 States the Republic of Panama grants to the United States the 27 right and authority to enforce the same. 28 The same right and authority are granted to the United States 29 for the maintenance of public order in the cities of Panama and 30 Colon and the territories and harbors adjacent thereto in case the 31 Republic of Panama should not be, in the judgment of the 32 United States, able to maintain such order.

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34 The Republic of Panama grants to the United States all rights 35 which it now has or hereafter may acquire to the property of the 36 New Panama Canal Company and the Panama Railroad Company 37 as a result of the transfer of sovereignty from the Republic of 1 Colombia to the Republic of Panama over the Isthmus of Panama 2 and authorizes the New Panama Canal Company to sell and transfer 3 to the United States its rights, privileges, properties and con4 cessions as well as the Panama Railroad and all the shares or part 5 of the shares of that company; but the public lands situated 6 outside of the zone described in Article II of this treaty now 7 included in the concessions to both said enterprises and not 8 required in the construction or operation of the Canal shall revert 9 to the Republic of Panama except any property now owned by or 10 in the possession of said companies within Panama or Colon or

the ports or terminals thereof.

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13 The United States agrees that the ports at either entrance of
14 the Canal and the waters thereof and the Republic of Panama
15 agrees that the towns of Panama and Colon shall be free for all
16 time so that there shall not be imposed or collected custom house
17 tolls, tonnage, anchorage, lighthouse, wharf, pilot, or quarantine
18 dues or any other charges or taxes of any kind upon any vessel
19 using or passing through the Canal or belonging to or employed
20 by the United States, directly or indirectly, in connection with the
21 construction, maintenance, operation, sanitation and protection of
22 the main Canal, or auxiliary works, or upon the cargo, officers,
23 crew, or passengers of any such vessels, except such tolls and
24 charges as may be imposed by the United States for the use of the
25 Canal and other works, and except tolls and charges imposed by
26 the Republic of Panama upon merchandise destined to be intro-
27 duced for the consumption of the rest of the Republic of Panama,
28 and upon vessels touching at the ports of Colon and Panama and
29 which do not cross the Canal.
30 The Government of the Republic of Panama shall have the right
31 to establish in such ports and in the towns of Panama and Colon
32 such houses and guards as it may deem necessary to collect duties
33 on importations destined to other portions of Panama and to pre-
34 vent contraband trade. The United States shall have the right to
35 make use of the towns and harbors of Panama and Colon as places
36 of anchorage, and for making repairs, for loading, unloading,
37 depositing, or transshiping cargoes either in transit or destined

1 for the service of the Canal and for other works pertaining to the 2 Canal.

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4 The Republic of Panama agrees that there shall not be imposed 5 any taxes, national, municipal, departmental, or of any other class, 6 upon the Canal, the railways and auxiliary works, tugs and other 7 véssels employed in the service of the Canal, store houses, work 8 shops, offices, quarters for laborers, factories of all kinds, ware9 houses, wharves, machinery and other works, property, and effects 10 appertaining to the Canal or railroad and auxiliary works, or 11 their officers or employees, situated within the cities of Panama 12 and Colon, and that there shall not be imposed contributions or 13 charges of a personal character of any kind upon officers, 14 employees, laborers, and other individuals in the service of the 15 Canal and railroad and auxiliary works.

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17 The United States agrees that the official dispatches of the Gov18 ernment of the Republic of Panama shall be transmitted over any 19 telegraph and telephone lines established for canal purposes and 20 used for public and private business at rates not higher than those 21 required from officials in the service of the United States.

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23 The Government of the Republic of Panama shall permit the 24 immigration and free access to the lands and workshops of the 25 Canal and its auxiliary works of all employees and workmen of 26 whatever nationality under contract to work upon or seeking 27 employment upon or in any wise connected with the said Canal 28 and its auxiliary works, with their `respective families and all 29 such persons shall be free and exempt from the military service 30 of the Republic of Panama.

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32 The United States may import at any time into the said zone 33 and auxiliary lands, free of custom duties, imposts, taxes, or other 34 charges, and without any restrictions, any and all vessels, dredges, 35 engines, cars, machinery, tools, explosives, materials, supplies,

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