satisfaction of the Admiralty that the Company has expended money on capital account in providing any of its vessels with new boilers or machinery the amount so expended less the depreciated value of the old boilers and machinery replaced at the date of such expenditure shall for the purposes of ascertaining the value of such vessel be added to the value of the said vessels ascertained as aforesaid at the time when such money was expended on capital account as aforesaid and all further deductions on account of depreciation shall thereafter be calculated in manner aforesaid on the value as so ascertained. || 3. The sale shall include the full equipment of the vessel but save as hereinafter provided shall not include the plated ware cutlery crystal earthenware blankets counterpanes bed and table linen and consumable stores of the vessel all of which the Company shall be entitled to remove from the vessel with the exception of such quantity of such articles (other than consumable stores) as may be reasonable necessary for the number of officers and warrant officers that would form part of the vessel's complement if used as an armed cruiser and such quantity of such articles shall be considered part of the equipment so purchased by the Admiralty. || 4. The purchase shall be completed and the price paid within 30 days from the date upon which the Admiralty shall give notice in writing to the Company of their intention to purchase Provided that in the event of the Admiralty purchasing either of the vessels referred to in Clause 3 of this Agreement or any vessel substituted therefor and not requesting the Company to build a new vessel similar to the vessel so purchased the purchase price shall be payable at the option of the Admiralty either in cash or partly in cash and partly by the transfer at par to the nominees of the Company of debenture stock of the Company but so that in the event of the Company deciding to build or purchase a single vessel (not being a vessel built under the proviso in Clause 5 (6) of this Agreement) in substitution for the vessel so purchased there shall be paid to the Company in cash(a) Where the cost of such single vessel does not equal the amount of the purchase price so much only of the purchase price as is equal to the cost of such vessel or || (b) Where the cost of such single vessel is equal to or exceeds the amount of the purchase price then the whole of such purchase price. || His Majesty's Government shall have the right of hiring any vessel for the time being the property of the Company upon the terms and conditions following:

1. The rate of hire shall be calculated on the speed of the vessel in accordance with the following table where applicable:

Where the said table is not applicable by reason of the speed of any vessel not exceeding 14 knots an hour the rate of hire shall be such as may be agreed between the Admiralty and the Company or in default of agreement settled by a single arbitrator under the Arbitration Act 1889. || 2. The Company shall not be called on to provide officers and crews in war time but will if required do all they can to assist the Admiralty in manning the vessels hired for war service. || 3. In time of war or when the Admiralty provide and pay the officers and crew all risks in respect of loss or damage and expense of ship and stores and of claims (if any) arising in connection with the use of the vessel by the Admiralty shall be borne by the Admiralty from the date on which the vessel shall after notice of hire be ready for use by the Admiralty. || 4. In the event of the Admiralty hiring the said vessels or any of them for use as armed cruisers in time of peace the Company will if requested by the Admiralty so to do permit the officers and crew of any vessel to remain on board during the period of hire. In the event of the Admiralty desiring to secure the services of some only of the officers and men of a vessel so hired the Company will permit such officers and men to remain on board during the period of hire and the Admiralty will in addition to paying the rate of hire provided where the Company do not provide and pay the officers and crew reimburse to the Company the pay given by the Company to such officers and men during the period of hire. || 5. When the Admiralty take up on hire any vessel for employment as an armed cruiser in time of peace and the Company provide and pay the officers and crew all risks in respect of loss or damage and

expenses of ship and stores shall be borne by the Company if such loss or damage or expenses be caused by or recult from the act or default of the officers and crew provided and paid by the Company or any of them but if otherwise caused they shall be borne by the Admiralty. || 6. The Company shall be allowed seven days at the stipulated rate of hire for every vessel hired under this Agreement at the commencement of each period of hire for taking down cabin fittings not required by the Admiralty and ten days at the same rate at the termination of the service for replacing these fittings The work of dismounting dismantling and reinstating shall be performed by the Company at the expense of the Admiralty. If the Company shall neglect or refuse to perform the same then the work may be done by the Admiralty. || 7. The Admiralty shall at their own cost have the right to alter or remove any or all of the fittings or arrangements on board a vessel hired by them and to erect new fittings on such vessel Provided that such vessel and her outfit and machinery shall be given up to the Company in the same condition as they were in when taken by the Admiralty ordinary wear and tear and loss or damage or expenses which under the conditions in this schedule contained are to be borne by the Company alone excepted. 8. The hire of each vessel shall be paid monthly in advance that is to say immediately on the Admiralty taking over a vessel on hire the Company shall be entitled to receive a bill for one month's hire according to the rates for the tonnage and speed hereinbefore specified provided the vessel so hired be then in the condition in which the Company have agreed to keep her and if such vessel is not in such condition then the Company shall be entitled to such bill as soon as such vessel is put into such condition which shall be done by the Admiralty at the expense of the Company. At the commencement of each month after such first payment during the continuance of such vessel in the service of the Admiralty the Company shall be entitled to receive a further bill for one month's hire. All such payments as aforesaid shall be made in England by bills payable at sight by His Majesty's Paymaster General. Provided that there may be deducted from any hire payable under this clause the amount of any loss damage or expenses payable by the Company under Clause 5 of these Conditions of Hiring. || 9. If at any time. or times it shall be made to appear to the Admiralty that any delay has been caused or accrued by or in consequence of breach of orders or neglect of duty or default by or on the part of the Company or by or on the part of any servants under its control or if the vessel so hired has become unfit for the purposes of the Admiralty from any defect de

ficiency or breach of orders or from any cause whatsoever which the Company or their servants could by the performance of their proper duty under this Agreement have avoided then and in every such case it shall be lawful for the Admiralty to retain in arrear the said pay payable in respect of the then next succeeding month and to put the said vessel out of pay or to make such abatement by way of mulet out of the hire of the said vessel as they shall adjudge fit and reasonable or by themselves or by any officer authorised by them dismiss from the said vessel the master or any of the ship's company found by them or by the authorised officer to be in default and at the cost and charge of the Company (if such person shall be a servant of the Company) to appoint others in place of those so in default. || 10. The Admiralty shall be entitled to terminate the hire of any vessel subject to this Agreement by notice in writing to the Company on the actual or constructive loss or capture of or by purchasing such vessel as hereinbefore provided or by bringing such vessel into the Port of Liverpool and giving subsequent notice in writing to the Company and the period of hire shall subject to the provisions of Clause 6 of these Conditions of Hiring be held to terminate from the date of the delivery of such notice but in case the Admiralty shall have provided the officers and crew of such vessel the Admiralty shall not except in the case of actual or constructive loss or capture be entitled to terminate the hire of such vessel until she is in good seagoing order and condition and fit for employment in the Company's business ordinary wear and tear excepted. || 11. In the event of the actual or constructive loss or capture of a vessel whilst on hire the Admiralty shall pay to the Company in respect of such vessel a sum equal to the price that would have been payable under the provisions contained in this Schedule if the Admiralty had exercised its right of purchase by notice given on the day of loss or capture unless such loss or capture be due to such causes or be occasioned at such times as under the provisions contained in this Schedule to impose the liability therefor on the Company. Unterschriften.

Nr. 13207. VEREINIGTE STAATEN und PANAMA. Vertrag über

den Bau eines Isthmuskanals zwischen dem Atlantischen und Stillen Ozean.

Washington, 18. November 1903.

The United States of America and the Republic of Panama being desirous to insure the construction of a ship canal across the Isthmus

of Panama to connect the Atlantic and Pacific oceans, and the Congress of the United States of America having passed an act approved June 28, 1902, in furtherance of that object, by which the President of the United States is authorized to acquire within a reasonable time the control of the necessary territory of the Republic of Colombia, and the sovereignty of such territory being actually vested in the Republic of Panama, the high contracting parties have resolved for that purpose to conclude a convention and have accordingly appointed as their plenipotentiaries, The President of the United States of America, John Hay, Secretary of State, and || The Government of the Republic of Panama, Philippe Bunau-Varilla, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Panama, thereunto specially empowered by said government, who after communicating with each other their respective full powers, found to be in good and due form, have agreed upon and concluded the following articles:

Article I.

The United States guarantees and will maintain the independence of the Republic of Panama.

Article II.

The Republic of Panama grants to the United States in perpetuity the use, occupation and control of a 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 the 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 works necessary and convenient for the construction, maintenance, operation, sanitation and protection of the said enterprise. || The Republic of Panama further grants in like manner to the United States in perpetuity all islands within the limits of the zone above described