Russia First Urged Internationalization
Of Suez, Panama Canals in 1947 Article
By PATRICK CARH
The Soviet foreign affairs
weekly "New Times" printed a
startling article on Jan. 10, 1947.
It called for internationaliza
tion of the Panama and Suez
Canals.
"The two canals," the publi
cation said, "have become in-
struments in the struggle of the
Anglo-Saxon bloc for a domi
nant role in the world
It said the "urgent interests
of all peoples" require interna
tionalization of the canals.
A similar proposal for the
Suez Canal had been mentioned
earlier in a Soviet note to Tur
key on Sept. 24, 1946. But the
story in New Times was be
lieved to be the first open pro
posal within the USSR for inter
nationalization of the American
controlled Panama Canal
Today, almost 10 years after
the original Russian proposal
the Suez Canal has been seized
by Egypt on the orders of Presi
dent Gamal Abdel Nasser and
the Soviet has cheered
We are interested in free
navigation of the Suez," Nikita
S. Khruschev told a cheering
crowd of more than 100,000 in
Moscow on Tuesday. "The seiz
ure appears to be completely
legal.
In contrast to the critical situ
ation in Suez, the Panama Canal
has been held firmly in the con
trol of the United States.
President Eisenhower, at his
press conference on Wednesday,
indicated there would be no ef
fective demand for international
izing the Panama Canal as a con
sequence of the Suez situation.
Different Conditions
"The conditions aren't the
same," he said. And he pointed
out that the Constantinople con
vention of 1888 recognized the
expiration of the Suez Canal
Company's concession in 1968
and declared that the Suez Canal
will always be an international
waterway, free for use to all
nations of the world.
Egypt exercises sovereignty
over the Suez Canal while the
United States exercises sover
eign rights in the Panama Canal
in perpetuity, according to the
agreement between the U.S. and
Panama.
The nearest thing to a threat
and it was a very slight one
was a report from Panama that
a Communist movement exists in
the republic. The Panamanian
Communists were reported high
ly disciplined and very well
trained.
Panama became an indepen
dent state in November, 1903,
when it revolted from Colombia
and declared itself a sovereign
republic. The United States, al
ready making plans for the ca
nal, was quick to recognize the
new state. The two
have had warm relations ever
since.
A treaty signed within a
month after Panama became in
dependent gave the United
States the use, occupation and
control of a strip of land 10
miles wide for the canal. The
U.S. paid Panama $10,000,000 in
the agreement which gave the
United States full sovereign pow
ers in the territory. The treaty
was to extend indefinitely.
Amount Multiplied
Since the original agreement
the United States has paid Pan
ama many times tne original
treaty price in annuities. A year
ago. on Aug. 23, 1955, a new
treaty went into effect which
raised the annual figure from
$430,000 to $1,930,000. The Pan
ama government had asked for
$5,000,000 a year but appeared
content with the lesser figure.
At the same time, the United
States returned to Panama about
$24,000,000 worth of real estate
no longer used by the Canal
Zone administration. This help
ed weld the already strong rela
tions between the two countries.
Dulles Hopes London
Conference on Suez
Will Avert Violence
Washington (U.R) Secre
tary of State John Foster Dulles
said today he is hopeful that
the proposed 24-nation confer
ence on the Suez Canal crisis
will produce a solution which
will avert the danger of "vio
lence." Dulles said he is counting on
the London conference starting
Aug. 16 to produce a Suez settle
ment which all nations, includ
ing Egypt, "will respect."
Dulles made the statement to
reporters who greeted him at
Washington National Airport on
his return from talks with Brit
ish and French foreign min
isters in London. He will report
to President Eisenhower this
afternoon on his mission.
Dulles said the Big Three for
eign ministers called for a 24
nation Suez conference because
they did "not want to meet vio
lence with violence."
Delivery Changes
Announced for Mail
Ashland Downtown business
firms will receive their mail an
hour and a half earlier than
presently and patrons of one
truck route will receive theirs
on the same day it arrives at the
post office, as of Aug. 6, accord
ing to Ashland Postmaster Par
ker Hess.
Hess explained that deliveries
to business firms will include all
mails coming in on the highway
postal truck from the north.
The truck route patrons who
have been receiving mail a day
late include those on East Her-
sey, lower Mountain ave., ror-
dyce lower Walker ave., Ray
Lane, Parker, Lit Way, Homes,
lower Normal, Highway 66, Clo
ver Lane, lower Faith, and lower
countries Tolman rd.
Military Funeral
For Woolson To Be
Conducted in Duluth
Duluth. Minn. (U.R) The
body of Albert Woolson, the last
Union soldier, will lie in state
today and Saturday before his
funeral Monday with full mili
tary honors.
Woolson, 109, died in St.
Luke's Hospital here Thursday
at 10:45 a.m. (EDT) to pass the
entire armies of Lincoln, Grant
and Sherman into history. Death
was attributed to lung conges
tion which brought on a coma
into which he lapsed early Sat
urday. Although Wo olson's heart
fought gallantly for life and ral
lied the old campaigner at times
when the end seemed near, doc
tors knew he had no chance to
survive.
Only Crosses Remain
With his death, all that was
left of the Union army which
fought to preserve the federal
union were rows of white crosses
in military cemeteries and
statues on battlefields like Get
tysburg, Shiloh and Bull Run.
Fifth Army Headquarters in
Chicago announced Woolson
would be given full military
honors at his funeral with Lt.
Col. Augustine P. Donelly, Fifth
Army chaplain, officiating at the
services.
Woolson. who joined the Un
ion army at the age of 16. will
be buried in Parkhill cemetery
in this Lake Superior port
The Fifth Army Band, a color
guard, military pallbearers and
a National Guard escort 109
men strong for each year of
Woolson's life will accompany
the casket to the grave.
Air National Guard aircraft
will fly overhead during the
funeral procession and members
of the sons of the Union Vet
erans Organization including a
fife and drum corps from Akron,
Ohio, will meet the casket at
the cemetery gates.
Defense Officials Attending
Representatives of the De
fense Department also were to
attend services.
A firing party of eight men
will fire a salvo in salute to
Woolson at the grave as taps
are played.
President Eisenhower express
ed sorrow when informed of
Woolson's death.
"By the death of Albert Wool
son," the President said, "the
American people have lost the
last personal link with the Un
ion army. His passing brings
sorrow to the hearts of all of
us who cherished the memory
of the brave men on both sides
of the war between the states."
Three Confederate soldiers
outlived Woolson. They are John
Sailing, 110, Slant, Va., Walter
W. Williams. 114, Franklin, Tex.,
and William A. Lundy, 108,
Laurel Hill, Fla.
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Dulles described as "danger
ous" the international situation
which arose when Egypt "sud
denly and arbitrarily" seized the
canal in a nationalization move.
Dulles voiced his hope for a
peaceful settlement as:
1. Cairo dispatches indicated
Egypt would not attend the Lon
don conference or submit to in
ternationalization of the canal.
2. Britain and France rushed
plans for an expeditionary force
should diplomacy fail. In Paris,
Premier Guy Mollet said France
and her allies will "impose"
their decisions on Egypt. He ap
parently referred to possible
military measures.
3. Russia, through the official
Communist newspaper Pravda,
warned against Allied use of
force. Pravda said "there is noth
ing to justify military measures."
Accept Invitations
4. Indications were many of
the 24 nations invited to the
Aug. 16 conference, including
Russia, will attend. Norway was
the first to accept.
5. In Washington, President
Eisenhower discussed the Suez
crisis for 45 minutes with Aus
tralian Prime Minister Robert G.
Menzies. It was Mr. Eisenhower
who ordered Dulles to London.
Dulles read a prepared state
ment to newsmen after he alight
ed from his plane and was greet
ed by high officials including
the British and French ambassadors.
Half of Brownlee
Dam Work Predicted
Portland (U.R) The presi
dent of the National Hells Can
yon Association predicted today
that the Supreme Court decision
asking the Idaho Power com
pany to post an indemnity bond
would have the effect of halting
construction work on the com
pany's Brownlee dam.
James T. Marr said Idaho
Power risks a loss. whether or
not it can raise the bond.
"Faced with the prospect of
risking its own capital, the com
pany will stop building Brown
lee dam," Marr said.
Idaho Power President T. E.
Roach, however, disagreed. He
said he saw little difficulty in
Idaho Power compliance with
the court request and added that
his firm could not afford to stop
construction at Brownlee be
cause power from the project is
needed urgently.
27th Traffic Fatality
Recorded in Portland
Portland (U.R) Portland
chalked up its 27th traffic fa
tality yesterday when George
G. Mackie, 46, was killed in a
two-car smashup.
The Suez Canal, operated by
the Suez Canal Corporation, has
a gross income from shipping
of about $100,000,000 a year.
The net income is about $40,000,
000 which goes into the corpora
tion fund.
The profits of the corporation
are paid out in dividends on the
418,530 capital shares and 381,
470 other shares issued. Britain
now holds 188,144 capital shares
and 165,360 of the other shares.
The governing board has been
composed of 16 French, nine
British, five Egyptian, one
American and one Netherlands
directors.
Stern Measures
In the 53-year history of the
Panama Canal Zone there have
been almost no disturbances and
the United States has dealt with
such matters as rent riots and
threats of attack with stern
measures.
The Canal Zone changed its
status from a government agency
to a government-owned corpora
tion in July 1951, and strength
ened its hold on the narrow, vital
strip of waterway. The canal is
now administered by a board of
directors which acts as a policy
fixing body. The U.S. Secretary
of the Army appoints and re
moves directors.
The administration of the ca
nal, however is under the direct
control of the governor of the
Canal Zone who is also president
of the Panama Canal company.
He is appointed by the Presi
dent with the consent of Con
gress. The United States consistently
has maintained strong military
forces and heavily fortified
bases in the Canal Zone. It is
reported well able to deal with
any threat from within or from
outside.
Illinois Scandal
Draws Attention
Of Federal Agents
Chicago (U.R) The $1,000,
000 Illinois state auditor scandal
today drew increased attention
from federal tax agents and a
congressional committee.
The far reaching state check
scheme attributed to Orville
Hodge, resigned auditor, also
brought the resignation of John
E. Sullivan. Sullivan was a top
aide of Herbert C. Paschen, Dem
ocratic candidate for governor.
Sullivan quit as chief deputy
in Paschen's Cook county treas
urer's office following reports
that Sullivan was closely con
nected with banks involved in
the Hodge case.
Affairs Studied
Federal tax agents, mean
while, began looking into the af
fairs of a group of Chicago poli
ticians known as the West Side
Bloc. A number of the men have
been revealed as friends of the
former auditor.
John B. Stoddart Jr., U.S. at
torney at Springfield, 111., said
the agents will investigate the
possibility that the politicians re
ceived some of the money Hodge
is charged with embezzling from
state funds. IStoddart indicated
the money may have been paid
either for favors or shakedowns
"As the leads develop, and
they're developing literally by
the hundreds," Stoddart said,
"anybody who was a close asso
ciate of Hodge will be run down.
All are proper targets for a tax
investigation."
Two investigators for the Senj
ate Banking and Currency Com
mittee announced they were in
terested in learning how county
funds were deposited in local
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Police Sergeant at
Grants Pass Resigns
Grants Pass Sgt. C. R. Borg
man, who has been assigned to
Grants Pass during all of his 14
years' service with the Oregon
State police, resigned Wednes
day, the 11th anniversary of his
appointment as sergeant.
He has announced that he has
gone into partnership with his
brother, Phil Borgman, and pur
chased the Western Auto stores
franchise at The Dalles. They
will take possession Monday.
Borgman said his resignation
was submitted because he was
facing transfer to the Medford
area office, a transfer he did
not want.
In addition to his state police
service, Borgman served as a
city policeman at Coos Bay for
seven years, and at McCall, Ida.,
for three years.
banks. They said they would
seek the reason for investment
of nearly $500,000 of county
treasurer's funds in the South
moor bank.
It was in this bank that a
number of fraudulent checks in
volved in the scandal were
cashed. The president of the
bank, Edward A. Hintz, later resigned.
Friday, August 3. I95S
MEDFORD (OREGON) MAIL TRIBUNE FIVE
Typhoon Damages
Homes in Shanghai
Tokyo U.R) Typhoon Wanda
destroyed or damaged 10,000
houses in Shanghai and damaged
80 per cent of the vegetable
crop, Radio Peiping reported to
day. The season's greatest storm
slammed into the Communist
mainland Thursday after batter
ing Okinawa and the National
ist stronghold of Formosa.
Peiping said residents of
Shanghai were forced to take
shelter in schools and factory
buildings when the storm hit. It
said power lines were downed at
more than 3,800 places and that
some factory production was
halted.
Peiping, which borrowed the
designation "Wanda" from U.S.
military forces, said the fast
weakening typhoon was moving
out into the Yellow Sea to die
Washington -4U.R) The Na
tional Science Foundation re
ports that Russia graduated
126,000 science students last
year, more than twice as many
as this country. Some 59,000
science students were graduated
from American universities.
Examinations Listed
For Civil Service Jobs
The civil service commission
has announced that librarians
are needed to fill positions pay
ing $5,440 to $7,570 a year in
various federal agencies in
Washington, D.C., and vicinity.
To qualify, applicants must
pass a written test and must
have had appropriate education
and experience. Additional infor
mation and application forms
may be obtained from Chester
W. Silliman at the Medford post
office.
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