Panama Treaty

The Government of the Republic of Panama received intimation from the U. S. Government, through the Panama Commission which is in Washington for the purpose of negotiating a new treaty between the two republics relative to the Panama Canal, that the Taft agreements on the Panama Canal Zone would be extended for one month from May 1, the time of normal expiration.

The reason for this extension is to allow more time in which to complete negotiations at Washington. It was expected that the new treaty would be completed in time, but unexpected difficulties have loomed up. Although no official statement was issued, these difficulties were outlined as follows:

1) Commercial uses to which the Canal Zone can be put.

2) Definition of the amount of territory which can be acquired by the U. S. for defense purposes.

3) Maintenance of the U. S. Commissaries in the Canal Zone. (The Panamanians claim that they should be under control of the Panama Government.)