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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.

MONOPOLY FOR CONSTRUCTION, ETC.

The Republic of Panama grants to the United States in perART, 5. petuity 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.

PRIVATE PROPERTY. . The grants herein contained shall in no manner invalidate ART. 6. the titles or rights of private land holders or owners of pri

vate 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 said 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 employes, 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 nama, 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.

PANAMA: COLON: HARBORS.

The Republic of Panama grants to the United States within ART. 7. the limits of the cities of Panama and Colon and their ad.

jacent 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 rail

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road. 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 sewerage rates which shall be sufficient to provide for the payment of interest 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, 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.

PANAMA CANAL COMPANY AND RAILROAD.

The Republic of Panama grants to the United States all ART. 8. 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 Colombia 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 2 of this treaty now included in the concessions to 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.

PORTS AT ENTRANCE OF CANAL.

The United States agrees that the poris at either entrance ART. 9. 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 there shall not be imposed or colle«ted 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 Pariama shall have the right to establish in such ports and in the towns of Panama · nd 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 of Panama and Colon as places of anchorage, nd 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.

TAXES, ETC. The Republic of Panama agrees that there shall not be imART. 10. posed any taxes, nation 1, municipal, Jepartmental, or any

other class, upon the Canal, the railways or auxiliary works, tugs and other vessels employed in the service of the Canal, storehouses, workshops, 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 employes, 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, employes, laborers, and other individuals in the service of the Canal and railroad and auxiliary works.

OFFICIAL DISPATCHES. The United States agrees that the official dispatches of the ART. 11. Government of the Republic of Panama shall be transmitted

over any telegraph and telephone lines established for canal purposes and uselior public and private business at rates not higher

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than those required from officials in the service of the United States.

ACCESS OF EMPLOYES. The Government of the Republic of Panama shall permit ART. 12. the immigration and free access to the lands and workshops

of the Canal and its auxiliary works of all employes and workmen of whatever 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.

IMPORTATION INTO ZONE. The United States may import at any time into the said ART. 13. 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, employes, 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.

COMPENSATION. As the price or compensation for the rights, powers and priART. 14. vileges granted in this convention by the Republic of Pana

ma 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 l'nited States on the exchange of the ratification of this convention, and also an annual payment during the life of this convention of two hundrell 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 Art cle or any other provisions of this treaty shall affect or interrupt the full operation and effect of this convention in all other respects.

JOINT COMMISSION. The joint commission referred to in Article VI shall be esART. 15. tablished 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 (hy reason of their being equally divided in

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