The Diplomatic Agents of Nicaragua and Consuls shall enjoy in the territories of the United States whatever privileges, exemptions, and immunities are or shall be allowed to the agents of the same rank belonging to the most favored nations; and in the like manner the Diplomatic Agents and Consuls of the United States in Nicaragua shall enjoy, according to the strictest reciprocity, whatever privileges, exemptions, and immunities are or may be granted in the Republic of Nicaragua to the Diplomatic Agents and Consuls of the most favored nations. ART. XI. For the better security of commerce between the citizens of the United States and the citizens of Nicaragua, it is agreed, that if at any time any interruption of friendly intercourse, or any rupture, should unfortunately take place between the two high contracting parties, the citizens of either, who may be within the territories of the other, shall, if residing on the coast, be allowed six months, and if in the interior, a whole year, to wind up their accounts, and dispose of their property; and a safe-conduct shall be given to them to embark at any port they themselves may select. Even in case of rupture, all such citizens of either of the high contracting parties, who are established in any of the territories of the other, in trade or other employment, shall have the privilege of remaining and of continuing such trade or employment, without any manner of interruption, in the full enjoyment of liberty, and property, so long as they behave peaceably, and commit no offence against the laws; and their goods and effects, of whatever description they may be, whether in their own custody, or intrusted to individuals or to the State, shall not be liable to seizure or sequestration, nor to any other charges or demands than those which may be made upon the like effects or property belonging to the native citizens of the country in which such citizens may reside. In the same case, debts between individuals, property in public funds, and shares of companies, shall never be confiscated, nor detained, nor sequestered. ART. XII. The citizens of the United States and the citizens of the Republic of Nicaragua, respectively, residing in any of the territories of the other party, shall enjoy in their houses, persons, and property, the protection of the Government, and shall continue in possession of the guarantees which they now enjoy. They shall not be disturbed, molested, or annoyed in any manner on account of their religious belief, nor in the proper exercise of their religion, agreeably to the system of tolerance established in the territories of the high contracting parties; provided they respect the religion of the nation in which they reside, as well as the constitution, laws, and customs of the country. Liberty shall also be granted to bury citizens of either of the two highcontracting parties, who may die in the territories aforesaid, in burial places of their own, which in the same manner may be freely established and maintained; nor shall the funerals or sepulchres of the dead be disturbed in any way or upon any account. ART. XIII. Whenever a citizen of either of the contracting parties shall be forced to seek refuge or asylum in the rivers, bays, ports, or dominions of the other with their vessels, whether merchant or war, public or private, through stress of weather, pursuit of pirates or enemies, or want of provisions or water, they shall be received and treated with humanity, and given all favor and protection for repairing their vessels, procuring provisions, and placing themselves in all respects in a condition to continue their voyage without obstacle of any kind. ART. XIV. The Republic of Nicaragua hereby grants to the United States, and to their citizens and property, the right of transit between the Atlantic and Pacific Oceans through the territory of that Republic or any route of communication, natural or artificial, whether by land or by water, which may now or hereafter exist or be constructed under the authority of Nicaragua, to be used and enjoyed in the same manner and upon equal terms by both Republics and their respective citizens; the Republic of Nicaragua, however, reserving the right of sovereignty over the same. ART. XV. The United States hereby agree to extend their protection to all such routes of communication as aforesaid, and to guarantee the neutrality and innocent use of the same. They also agree to employ their influence with other nations to induce them to guarantee such neutrality and protection. And the Republic of Nicaragua, on its part, undertakes to establish one free port at each extremity of one of the aforesaid routes of communication between the Atlantic and Pacific Oceans. At these ports no tonnage or other duties shall be imposed or levied by the Government of Nicaragua on the vessels of the United States, or on any effects or merchandise belonging to citizens or subjects of the United States, or upon the vessels or effects of any other country intended, bona fide, for transit across the said routes of communication, and not for consumption within the Republic of Nicaragua. The United States shall also be at liberty, on giving notice to the Government or authorities of Nicaragua, to carry troops and munitions of war in their own vessels, or otherwise, to either of said free ports, and shall be entitled to their conveyance between them without obstruction, by said Government or authorities, and without any charges or tolls whatever for their transportation on either of said routes; provided said troops and munitions of war are not intended to be employed against Central American nations friendly to Nicaragua. And no higher or other charges or tolls shall be imposed on the conveyance or transit of persons and property of citizens or subject of the United States, or of any other country, across the said routes of communication, than are or may be imposed on the persons and property of citizens of Nicaragua. And the Republic of Nicaragua concedes the right of the Postmaster General of the United States to enter into contracts with any individuals or companies to transport the mails of the United States along the said routes of communication, or along any other routes across the Isthmus, in its discretion, in closed bags, the contents of which may not be intended for distribution within the said Republic, free from the imposition of all taxes or duties by the Government of Nicaragua; but this liberty is not construed so as to permit such individuals or companies, by virtue of this right to transport the mails, to carry also passengers or freight. ART. XVI. The Republic of Nicaragua agrees that, should it become necessary at any time to employ military forces for the security and protection of persons and property passing over any of the routes aforesaid; it will employ the requisite force for that purpose; but upon failure to do this from any cause whatever, the Government of the United States may, with the consent, or at the request of, the Government of Nicaragua, or of the Minister thereof at Washington, or of the competent legally appointed local authorities, civil or military, employ such force for this and for no other purpose; and when, in the opinion of the Government of Nicaragua, the necessity ceases, such force shall be immediately withdrawn. In the exceptional case, however, of unforeseen or imminent danger to the lives or property of citizens of the United States, the forces of said Republic are authorized to act for their protection without such consent having been previously obtained. But no duty or power imposed upon or conceded to the United States by the provisions of this article shall be performed or exercised except by authority and in pursuant of laws of Congress hereafter enacted. It being understood that such laws shall not affect the protection and guarantee of the neutrality of the routes of transit, nor the obligation to withdraw the troops which may be disembarked in Nicaragua directly that, in the judgment of the Government of this Republic, they should no longer be necessary, nor in any manner bring about new obligations on Nicaragua, nor alter her rights in virtue of the present treaty. ART. XVII. It is understood, however, that the United States, in according protection to such routes of communication, and guaranteeing their neutrality and security, always intend that the protection and guarantee are granted conditionally, and may be withdrawn if the United States should deem that the persons or company undertaking or managing the same adopt or establish such regulations concerning the traffic thereupon as are contrary to the spirit and intention of this treaty, either by making unfair discriminations in favor of the commerce of any country or countries over the commerce of any other country or countries, or by imposing oppressive exactions or unreasonable tolls upon mails, passengers, vessels, goods, wares, merchandise, or other articles. The aforesaid protection and guarantee shall not, however, be withdrawn by the United States without first giving six months' notice to the Republic of Nicaragua. ART. XVIII. And it is further agreed and understood that in any grants or contracts which may hereafter be made or entered into by the Government of Nicaragua, having reference to the interoceanic routes above referred to, or either of them, the rights and privileges granted by this treaty to the Government and citizens of the United States shall be fully protected and reserved. And if any such grants or contracts now exist, of a valid character, it is further understood that the guarantee and protection of the United States, stipulated in Article XV of this treaty, shall be held inoperative and void until the holders of such grants and contracts shall recognize the concessions made in this treaty to the Government and citizens of the United States with respect to such interoceanic routes, or either of them, and shall agree to observe and be governed by these concessions as fully as if they had been embraced in their original grants or contracts; after which recognition and agreement said guarantee and protection shall be in full force; provided that nothing herein contained shall be construed either to affirm or to deny the validity of the said contracts. ART. XIX. After ten years from the completion of a railroad, or any other route of communication through the territory of Nicaragua from the Atlantic to the Pacific Ocean, no company which may have constructed or be in possession of the same shall ever divide, directly or indirectly, by the issue of new stock, the payment of dividends or otherwise, more than fifteen per cent per annum, or at that rate, to its stockholders from tolls collected thereupon; but whenever the tolls shall be found to yield a larger profit than this, they shall be reduced to the standard of fifteen per cent per annum. ART. XX. The two high contracting parties, desiring to make this treaty as durable as possible, agree that this treaty shall remain in full force for the term of fifteen years from the day of the exchange of the ratifications; and either party shall have the right to notify the other of its intention to terminate, alter, or reform this treaty, at least twelve months before the expiration of the fifteen years; if no such notice be given, then this treaty shall continue binding beyond the said time, and until twelve months shall have elapsed from the day on which one of the parties shall notify the other of its intention to alter, reform, or abrogate this treaty. ART. XXI. The present treaty shall be ratified, and the ratifications exchanged at the city of Managua, within one year, or sooner if possible. In faith whereof the respective Plenipotentiaries have signed the same and affixed thereto their respective seals. Done at the city of Managua, this twenty-first day of June, in the year of our Lord one thousand eight hundred and sixty-seven. [SEAL] [SEAL] A. B. DICKINSON. 1901 TREATY TO FACILITATE THE CONSTRUCTION OF A SHIP CANAL (Concluded November 18, 1901; ratification advised by Senate December 16, 1901; ratified by President December 26, 1901; ratifications exchanged February 21, 1902; proclaimed February 22, 1902) ARTICLES I. Convention of April 19, 1850. II. Construction of canal. III. Rules of neutralization. IV. Change of sovereignty. V. Ratification. The United States of America and His Majesty Edward the Seventh, of the United Kingdom of Great Britain and Ireland, and of the British Dominions beyond the Seas, King and Emperor of India, being desirous to facilitate the construction of a ship canal to connect the Atlantic and Pacific Oceans, by whatever route may be considered expedient, and to that end to remove any objection which may arise out of the Convention of the 19th April, 1850, commonly called the Clayton-Bulwer Treaty, to the construction of such canal under the auspices of the Government of the United States, without impairing the "general principle" of neutralization established in Article VIII of that Convention, have for that purpose appointed as their Plenipotentiaries: The President of the United States, John Hay, Secretary of State of the United States of America; And His Majesty Edward the Seventh, of the United Kingdom of Great Britain and Ireland, and of the British Dominions beyond the Seas, King, and Emperor of India, the Right Honorable Lord Pauncefote, G. C. B., G. C. M. G., His Majesty's Ambassador Extraordinary and Plenipotentiary to the United States; Who, having communicated to each other their full powers which were found to be in due and proper form, have agreed upon the following Articles: ARTICLE I. The High Contracting Parties agree that the present Treaty shall supersede the afore-mentioned Convention of the 19th April, 1850. ART. II. It is agreed that the canal may be constructed under the auspices of the Government of the United States, either directly at its own cost, or by gift or loan of money to individuals or Corporations, or through subscription to or purchase of stock or shares, and that, subject to the provisions of the present Treaty, the said Government shall have and enjoy all the rights incident to such construction, as well as the exclusive right of providing for the regulation and management of the canal. ART. III. The United States adopts, as the basis of the neutralization of such ship canal, the following rules, substantially as embodied in the Convention of Constantinople, signed the 28th October, 1888, for the free navigation of the Suez Canal, that is to say: 1. The canal shall be free and open to the vessels of commerce and of war of all nations observing these Rules, on terms of entire equality, so that there shall be no discrimination against any such nation, or its citizens or subjects, in respect of the conditions or charges of traffic, or otherwise. Such conditions and charges of traffic shall be just and equitable. 2. The canal shall never be blockaded, nor shall any right of war be exercised nor any act of hostility be committed within it. The United States, however, shall be at liberty to maintain such military police along the canal as may be necessary to protect it against lawlessness and disorder. 3. Vessels of war of a belligerent shall not revictual nor take any stores in the canal except so far as may be strictly necessary; and the transit of such vessels through the canal shall be effected with the least possible delay in accordance with the Regulations in force, and with only such intermission as may result from the necessities of the service. Prizes shall be in all respects subject to the same Rules as vessels of war of the belligerents. 4. No belligerent shall embark or disembark troops, munitions of war, or warlike materials in the canal, except in case of accidental hindrance of the transit, and in such case the transit shall be resumed with all possible dispatch. 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, establishments, buildings, and all work 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. ART. IV. It is agreed that no change of territorial sovereignty or of the international relations of the country or countries traversed by the before-mentioned canal shall affect the general principles of neutralization or the obligation of the High Contracting Parties under the present Treaty. ART. 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 the 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] Senator MCKELLAR. NOW, Mr. Chairman, some years ago I do not remember the exact date and it is not important-Senator Walter E. Edge was chairman of this committee. I had a bill in at that time similar to the one before you now. Senator Edge introduced a resolution providing for an investigation and survey to ascertain the practicability and cost of providing additional locks and other facilities at the Panama Canal and of constructing and maintaining an interoceanic ship canal across Nicaragua. The CHAIRMAN. That is what is known as the 1931 report? Senator MCKELLAR. That is the 1931 report. That was transmitted to the President by Mr. Patrick J. Hurley, Secretary of War, and includes the report of Gen. Lytle Brown. Mr. Chairman, this is a short report, and I will read it to you right now: WAR DEPARTMENT, Subject: Interoceanic communications via the Central American Isthmus : 1. I submit, for transmission to the President, the report of the investigation and survey authorized by Public Resolution No. 99, Seventieth Congress (S. J. Res. 117), approved March 2, 1929. 2. The purpose of this investigation was to ascertain the practicability and cost of providing additional locks and other facilities at the Panama Canal, and of constructing and maintaining an interoceanic ship canal across Nicaragua. 3. The report on increasing the capacity of the Panama Canal was, under the instructions of the Secretary of War, made by Col. Harry Burgess, Corps of Engineers, Governor of the Panama Canal Zone. The report on the Nicaraguan route was made by Lt. Col. Dan I. Sultan, Corps of Engineers. A provisional battalion of engineer troops was employed on the work in Nicaragua for a period of nearly 2 years. 4. Both reports were referred for review to the Interoceanic Canal Board appointed by the President. The report of that Board as well as the two basic reports are herewith. 5. The Panama Canal in its present condition accommodates the existing demands for interoceanic traffic. The Gatun Dam has heretofore afforded sufficient storage of water for the operation of its present system of twin locks. The water supply is now being augmented, as provided in the original plans, by the construction of a dam at Alhajuela, which will form the Madden Reservoir. The CHAIRMAN. The Madden Reservoir has been completed now. Senator MCKELLAR. That is true, Mr. Chairman. The Madden Reservoir has been completed. When this project is completed, the water supply will be more than sufficient for the operation of the present locks, at maximum capacity. An additional set of locks would increase this capacity still further. The expansion of the Panama Canal by building a third set of locks, thereby providing for three-way traffic, is feasible and can be successfully accomplished at an estimated cost of $140,000,000. The additional locks considered would be 125 feet wide and 1,200 feet long in the clear, sufficient to accommodate the largest vessel reasonably to be expected in interoceanic traffic over the next century. The additional set of locks with the increased water supply now being provided would increase the capacity of the Canal more than 40,000,000 tons per year and would provide a total capacity approaching 110,000,000 per year. 6. The conversion of the Panama Canal into a sea-level canal would involve the expenditure of a billion dollars or more. It could be accomplished in from 25 to 30 years without serious interruptions to traffic through the canal ; but it would involve certain unavoidable hazards through the necessity of underpinning portions of the lock walls, and of making certain alterations to the gates and anchorages. Because of the difference in tides in the Atlantic and Pacific oceans, tidal locks would be required for a sea-level canal. 7. The most practical route for another interoceanic ship canal is across Nicaragua from Greytown on the Atlantic Ocean to Brito on the Pacific Ocean by way of the Deseado and San Juan Rivers and the Great Lake of Nicaragua. A lock canal over this route is practicable and involves no problems that cannot be solved successfully. This canal would be 172.8 miles long with a set of two-way triple-flight locks near each coast. The lock chambers would be similar in size to that proposed for the additional Panama Canal locks, 125 159231-39——2 |