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"5. The provisions of this Article shall apply to waters adjacent to the canal, within 3 marine miles of either end. Vessels of war of a belligerent shall not remain in such waters longer than twenty-four hours at any one time, except in case of distress, and in such case, shall depart as soon as possible; but a vessel of war of one belligerent shall not depart within twenty-four hours from the departure of a vessel of war of the other belligerent.

"6. The plant, establishment, buildings, and all works necessary to the construction, maintenance and operation of the canal shall be deemed to be part thereof, for the purpose of this Treaty, and in time of war, as in time of peace, shall enjoy complete immunity from attack or injury by belligerents, and from acts calculated to impair their usefulness as part of the canal.

ARTICLE IV. It is agreed that no change of territorial sovereignty or of the international relations of the country or countries transversed by the before-mentioned canal shall affect the general principle of neutralization or the obligation of the High Contracting Parties under the present Treaty.

"ARTICLE V. The present Treaty shall be ratified by the PRESIDENT OF THE UNITED STATES, by and with the advice and consent of the Senate thereof, and by His BRITANNIC MAJESTY; and the ratifications shall be exchanged at Washington or at London at the earliest possible time within six months from the date hereof.

"In faith whereof the respective Plenipotentiaries have signed this Treaty and thereunto affixed their seals.

"Done in duplicate at Washington, the 18th day of November, in the year of Our Lord one thousand nine hundred and one.

"JOHN HAY. (Seal) "PAUNCEFOTE. (Seal)

"And whereas the said Convention has been duly ratified on both parts, and the ratification of the two Governments were exchanged in the city of Washington on the twenty-first day of February, one thousand nine hundred and two:

"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 witness whereof I have hereunto set my hand and caused the seal of the United States to be affixed.

"Done in the city of Washington, this twenty-second day of February, in the year of Our Lord one thousand nine hundred and two, and of the independence of the United States the one hundred and twenty-sixth.

(Seal)

"By the President:

"JOHN HAY,

"Secretary of State."

"THEODORE Roosevelt.

The United States did not acquire, by the Isthmian Canal Convention of NOVEMBER 18, 1903, any title to territory in the Republic of Panama, but merely a perpetual right of occupation, use, and control of and over a zone of land ten miles in width. For this privilege it paid to the Republic of Panama the sum of $10,000,000, and undertook to pay the sum of $250,000 annually so long as such occupancy continued, such payments beginning on February 26, 1913.

CHAPTER VIII.

ACQUISITION OF THE PANAMA CANAL ZONE IN
1904 FROM PANAMA.

Article 2 of the treaty between the United States and the Republic of Panama, ratified by the United States Senate, February 23. 1904. Treaty in effect February 26, 1904, provided for the cession in perpetuity by Panama of a strip of territory adjacent to the canal, as follows:

"The Republic of Panama grants to the United States in perpetuity, the use, occupation and control of the 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 Caribbean 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 said 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 work necessary and con

venient for the construction, maintenance, operation, sanitation and protection of said enterprise. The Republic of Panama further grants to the United States in perpetuity the use, occupation and control of 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, Nace, Culebra and Flamingo."

THE PANAMA CANAL ACT OF 1912.

Provision for the Permanent Government of the Canal Zone and Exemption of Coastwise Vessels from Tolls. Deemed to be in Contravention with the Treaty of 1901, The Sixty-second Congress, Second Session, passed "An act to provide for the opening, maintenance, protection and operation of the Panama Canal and for the sanitation and government of the Canal Zone," which was approved August 24, 1912, and is as follows:

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the zone of land and land under water of the width of ten miles extending to the distance of five miles on each side of the centre line of the route of the canal now being constructed thereon, which zone begins in the Caribbean Sea three marine miles from mean lowwater mark and extends to and across the Isthmus of Panama into the Pacific Ocean to the distance of three marine miles from mean low-water mark, excluding therefrom the cities of Panama and Colon and their adjacent harbors located within said zone, as excepted in the treaty with the Republic of Panama dated November 18, 1903, but including all islands within said described zone, and in addition thereto the group of islands in the Bay of Panama named Perico, Nace, Culebra and Flamingo, and any lands and waters outside of said limits above de

scribed which are necessary or convenient or from time to time may become necessary or convenient for the construction, maintenance, operation, sanitation, or protection of the said canal or of any auxiliary canals, lakes, or other works necessary or convenient for the construction, maintenance, operation, sanitation, or protection of said canal, the use, occupancy, or control whereof were granted to the United States by the treaty between the United States and the Republic of Panama, the ratifications of which were exchanged February 26, 1904, shall be known and designated as the Canal Zone, and the canal now being constructed thereon shall hereafter be known and designated as the Panama Canal. The President is authorized, by treaty with the Republic of Panama, to acquire any additional land or land under water not already granted, or which was excepted from the grant, that he may deem necessary for the operation, maintenance, sanitation, or protection of the Panama Canal, and to exchange any land or land under water not deemed necessary for such purposes for other land or land under water which may be deemed necessary for such purposes, which additional land or land under water so acquired shall become part of the Canal Zone.

"Sec. 2. That all laws, orders, regulations, and ordinances adopted and promulgated in the Canal Zone by order of the President for the government and sanitation of the Canal Zone and the construction of the Panama Canal are hereby ratified as valid and binding until Congress shall otherwise provide. The existing courts established in the Canal Zone by Executive order are recognized and confirmed to continue in operation until the courts provided for in this act shall be established.

"Sec. 3. That the President is authorized to declare by Executive order that all land and land under water

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