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1 and other articles necessary and convenient in the construction, 2 maintenance, operation, sanitation and protection of the Canal and 3 auxiliary works, and all provisions, medicines, clothing, supplies 4 and other things necessary and convenient for the officers, 5 employees, workmen and laborers in the service and employ of 6 the United States and for their families. If any such articles are 7 disposed of for use outside of the zone and auxiliary lands granted 8 to the United States and within the territory of the Republic; 9 they shall be subject to the same import or other duties as like 10 articles imported under the laws of the Republic of Panama.

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12 As the price or compensation for the rights, powers and privi13 leges granted in this convention by the Republic of Panama to the 14 United States, the Government of the United States agrees to pay 15 to the Republic of Panama the sum of ten million dollars 16 ($10,000,000) in gold coin of the United States on the exchange of 17 the ratification of this convention and also an annual payment dur18 ing the life of this convention of two hundred and fifty thousand 19 dollars ($250,000) in like gold coin, beginning nine years after the 20 date aforesaid. 21 The provisions of this Article shall be in addition to all other 22 benefits assured to the Republic of Panama under this convention. 23

But no delay or difference of opinion under this Article or any 24 other provisions of this treaty shall affect or interrupt the full 25 operation and effect of this convention in all other respects.

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27 The joint commission referred to in Article VI shall be estab28 lished as follows: 29 The President of the United States shall nominate two persons 30 and the President of the Republic of Panama shall nominate two 31 persons and they sball proceed to a decision; but in case of disa32 greement of the Commission (by reason of their being equally 33 divided in conclusion) an umpire shall be appointed by the two 34 Governments who shall render the decision. In the event of the 35 death, absence, or incapacity of a Commissioner or Umpire, or of 36 his omitting, declining or ceasing to act, his place shall be filled 1 by the appointment of another person in the manner above indi2 cated. All decisions by a majority of the Commission or by the 3 umpire shall be final. 4

ARTICLE XVI.

5 The two Governments shall make adequate provision by future 6 agreement for the pursuit, capture, imprisonment, detention and 7 delivery within said zone and auxiliary lands to the authorities of 8 the Republic of Panama of persons charged with the commitment 9 of crimes, felonies or misdemeanors without said zone and for 10 the pursuit, capture, imprisonment detention and delivery with11 out said zone to the authorities of the United States of persons 12 charged with the commitment of crimes, felonies, and misde13 meanors within said zone and auxiliary lands.

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15 The Republic of Panama grants to the United States the use of 16 all the ports of the Republic open to commerce as places of ref17 uge for any vessels employed in the Canal enterprise, and for all 18 vessels passing or bound to pass through the Canal which may be 19 in distress and be driven to seek refuge in said ports. Such ves20 sels shall be exempt from anchorage and tonnage dues on the part 21 of the Republic of Panama.

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23 The Canal, when constructed, and the entrances thereto shall be 24 neutral in perpetuity, and shall be opened upon the terms provided 25 for by Section I of Article three of, and in conformity with all 26 the stipulations of, the treaty entered into by the Governments 27 of the United States and Great Britian on November 18, 1901.

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29 The Government of the Republic of Panama shall have the right 30 to transport over the Canal its vessels and its troops and munitions 31 of war in such vessels at all times without paying charges of any 32 kind. The exemption is to be extended to the auxiliary railway 33 for the transportation of persons in the service of the Republic 34 of Panama, or of the police force charged with the preservation 35 of public order outside of said zone, as well as to their baggage, 36 munitions of war and supplies.

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2 If by virtue of any existing treaty in relation to the territory 3 of the Isthmus of Panama, whereof the obligations shall descend 4 or be assumed by the Republic of Panama, there may be any 5 privilege or concession in favor of the Government or the citi6 zens and subjects of a third power relative to an interoceanic 7 means of communication which in any of its terms may be incom8 patible with the terms of the present convention, the Republic of 9 Panama agrees to cancel or modify such treaty in due form, for 10 which purpose it shall give to the said third power the requisite. 11 notification within the term of four months from the date of the 12 present convention, and in case the existing treaty contains no 13 clause permitting its modifications or annulment, the Republic of 14 Panama agrees to procure its modification or annulment in such 15 form that there shall not exist any conflict with the stipulations 16 of the present convention.

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18 The rights and privileges granted by the Republic of Panama 19 to the United States in the preceding Articles are understood to be 20 free of all anterior debts, liens, trusts, or liabilities, or conces21 sions or privileges to other Governments, corporations, syndi22 cates or individuals, and consequently, if there should arise any 23 claims on account of the present concessions and privileges or 24 otherwise, the claimants shall resort to the Government of the 25 Republic of Panama and not to the United States for any indem26 nity or compromise which may be required.

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28 The Republic of Panama renounces and grants to the United 29 States the participation to which it might be entitled in the future 30 earnings of the Canal under Article XV of the concessionary

contract with Lucien N. B. Wyse now owned by the New Panama 32 Canal Company and any and all other rights or claims of a 33 pecuniary nature arising under or relating to said concession, or 34 arising under or relating to the concessions to the Panama Rail35 road Company or any extension or modification thereof; and it 36 likewise renounces, confirms and grants to the United States, now

1 and hereafter, all the rights and property reserved in the said 2 concessions which otherwise would belong to Panama at or before 3 the expiration of the terms of ninety-nine years of the conces4 sions granted to or held by the above mentioned party and com5 panies, and all right, title and interest which it now has or may 6 hereafter have, in and to the lands, canal, works, property and 7 rights held by the said companies under said concessions or other8 wise, and acquired or to be acquired by the United States from 9 or through the New Panama Canal Company, including any 10 property and rights which might or may in the future either by 11 lapse of time, forfeiture or otherwise, revert to the Republic of 12 Panama under any contracts or concessions, with said Wyse, the 13 Universal Panama Canal Company, the Panama Railroad Com14 pany and the New Panama Canal Company. 15 The aforesaid rights and property shall be and are free and 16 released from any present or reversionary interest in or claims of 17 Panama and the title of the United States thereto upon consumma18 tion of the contemplated purchase by the United States from the 19 New Panama Canal Company, shall be absolute, so far as concerns 20 the Republic of Panama, excepting always the rights of the 21 Republic specifically secured under this treaty.

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23 If it should become necessary at any time to employ armed 24 forces for the safety or protection of the Canal, or of the ships 25 that make use of the same, or the railways and auxiliary works, 26 the United States shall have the right, at all times and in its dis27 cretion, to use its police and its land and naval forces or to 28 establish fortifications for these purposes.

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30 No change either in the Government or in the laws and treaties 31 of the Republic of Panama shall, without the consent of the 32 United States, affect any right of the United States under the 33 present convention, or under any treaty stipulation between the

two countries that now exists or may hereafter exist touching 35 the subject matter of this convention. 36 If the Republic of Panama shall hereafter enter as a constitu37 ent into any other Government or into any union or confederation 1 of states, so as to merge her sovereignty or independence in such 2 Government, union or confederation, the rights of the United 3 States under this convention shall not be in any respect lessened 4 or impaired. 5

ARTICLE XXV.

6 For the better performance of the engagements of this con7 vention and to the end of the efficient protection of the Canal and 8 the preservation of its neutrality, the Government of the Repub9 lic of Panama will sell or lease to the United States lands adequate 10 and necessary for naval or coaling stations on the Pacific coast 11 and on the western Caribbean coast of the Republic at certain 12 points to be agreed upon with the President of the United States.

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14

This convention when signed by the Plenipotentiaries of the 15 Contracting Parties shall be ratified by the respective Govern16 ments and the ratifications shall be exchanged at Washington at 17 the earliest date possible. 18 In faith whereof the respective Plenipotentiaries have signed 19 the present convention in duplicate and have hereunto affixed 20 their respective seals. 21 Done at the City of Washington the 18th day of November, in 22 the year of our Lord nineteen hundred and three. 23

JOHN HAY

(SEAL] 24

P. BUNAU-VARILLA (SEAL

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