HAY-BUNAU-VARILLA TREATY, 1903-Continued

RIGHTS RECEIVED

(11) In perpetuity, to maintain 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.

(12) To make use of the towns and harbors of Panama
and Colon as places of anchorage, and for making repairs,
for loading, unloading, deposition, or transshipping cargoes
either in transit or destined for the service of the canal
and for other works pertaining to the canal.

(13) Freedom from taxation upon the canal, the rail-
ways and auxiliary works, tugs, and other vessels em-
ployed in the service of the canal, storehouses, workshops,
offices, quarters for laborers, factories of all kinds, ware-
houses, wharves, machinery and other works, property,
and effects appertaining to the canal or railroad and
auxiliary works, or their officers or employees, situated
within the cities of Panama and Colon, and freedom from
taxation upon officers, employees, laborers, and other
individuals in the service of the canal and railroad and
auxiliary works.

(14) To import at any time into the zone and auxiliary
lands, free of customs duties, imposts, taxes, or other
charges, and without any restrictions, all materials neces-
sary and convenient in the construction, maintenance,
operation, sanitation, and protection of the canal and all

TREATY OF 1936

(2) Renounces the right to expropriate without restric-
tion additional land for canal use. Henceforth, in the
event of some unforeseen contingency, should the utiliza-
tion of lands or waters additional to those already em-
ployed be necessary for the maintenance, sanitation, or
efficient operation of the canal, or for its effective protec-
tion, the two governments will agree upon
as may be necessary to take.

RIGHTS RECEIVED

TREATY OF 1936-Continued

CONCESSIONS

(8) Sale of goods imported into the zone or purchased,
produced, or manufactured there by the Government of
the United States is limited to persons employed by the
United States in the Canal Zone and members of the
Armed Forces of the United States, and their families.
Contractors operating in the zone and their employees
and persons engaged in religious, welfare, charitable, edu-
cational, recreational, and scientific work may purchase
such items only when they actually reside in the zone.

(9) All private business enterprises in the zone, with the
exception of concerns having a direct relation to the oper-
ation, maintenance, sanitation, or protection of the canal,
other than those existing at the time of the signature of
the treaty, are prohibited.

(10) United States extends to merchants residing in
Panama full opportunity for making sales to vessels arriv-
ing at terminal ports of the canal or transiting the canal.

(11) United States will permit vessels entering at or
clearing from ports of the Canal Zone to use and enjoy the
dockage and other facilities of the ports for the purpose of
loading or unloading cargoes and receiving or disembark-
ing passengers to or from territory under the jurisdiction
of the Republic of Panama.

(12) Republic of Panama is given right to collect tolls
from merchant ships in the ports of Panama City and
Colon, even though they later pass through the canal.

(13) United States will furnish to the Republic of
Panama free of charge the necessary sites for the establish-
ment of customhouses in the ports of the Canal Zone for
the collection of duties on importations destined to the
Republic and for the examination of merchandise and
passengers consigned to or bound for the Republic of
Panama. Panama is given exclusive jurisdiction to
enforce the immigration or customs laws of the Republic
of Panama within the sites so provided.

(14) Republic of Panama given right to determine what
persons or classes of persons arriving at ports of the Canal
Zone shall be admitted or excluded from its jurisdiction.

TREATY OF 1955

RIGHTS RECEIVED

(1) Exclusive use without cost, for a period of at least
15 years, of a military training and maneuver area (ap-
proximately 19,000 acres) in the Rio Hato region.

(2) Panama waives the right, under article XIX of the
1903 convention, to free transportation over the Panama
Railroad of persons in the service of the Republic of
Panama, or of the police force charged with the preserva-
tion of public order outside of the Canal zone, as well as
to their baggage, munitions of war, and supplies.

(3) Panama waives certain treaty rights in order to
enable the United States to prohibit or restrict the use of
a contemplated new strategic highway within the Canal
Zone by commercial transisthmian traffic.

(4) Panama waives certain treaty provisions in order to
enable the United States to extend limited post exchange
privileges to military personnel of friendly foreign coun-
tries visiting the Canal Zone under U.S. auspices.

(5) A lease for a period of 99 years without cost to two
parcels of land contiguous to the U.S. Embassy residence
site in the city of Panama.

(6) Panama will reserve permanently as a park area
certain land in front of the U.S. Embassy office building
site in the city of Panama.

(7) A reduction of 75 percent in the import duty on
alcoholic beverages which are sold in Panama for importa-
tion into the Canal Zone.

CONCESSIONS

(1) The annuity is increased from $430,000 to
$1,930,000.

(2) Subject to certain general conditions, Panama is
enabled to levy income taxes on the following categories
of personnel employed by Canal Zone agencies: (1)
Panamanian citizens irrespective of their place of residence
and (2) citizens of third countries who reside in territory
under the jurisdiction of Panama.

(3) Renounces monopoly with respect to the construc-
tion, maintenance, and operation of transisthmian rail-
roads and highways, with the provision that no system of
interoceanic communication by railroad or highway within
territory under Panamanian jurisdiction may be financed,
constructed, maintained, or operated directly or indirectly
by a third country or nationals thereof unless in the
opinion of both parties such action would not affect the
security of the canal.

(4) Renounces treaty right to prescribe and enforce
sanitary measures in the cities of Panama and Colon.

(5) Čertain lands, with improvements thereon, previ-
ously acquired for canal purposes (including Paitilla Point
and the Panama Railroad yard and station in the city of
Panama) but no longer needed for such purposes, are to
be transferred to Panama and there is to be a gradual
transfer to Panama of the New Cristobal, Colon Beach.
and Fort de Lesseps areas in Colon.