On May 20, 1902, the United States partially redeemed its pledge in regard to Cuba by hauling down its flag at the Government Palace, Havana, after which the flag of the new Republic of Cuba was raised. This pledge fulfilled, the Republican Party rounded it out with the approval of the Cuban Reciprocity Treaty, ratified in the Senate March 19, 1903. The long continued agitation for the construction of a canal, by the United States, connecting the waters of the Atlantic and Pacific oceans, resulted in the Isthmian Canal Act, approved June 28, 1902, in which the President was authorized to acquire the rights of the new Panama Canal Company of France, and if the title proved satisfactory, and a treaty could be obtained from the Republic of Colombia for the necessary territory, the President was authorized to pay the Canal Company $40,000,000 for this property, but if this could not be done within a reasonable time then the Nicaraguan route was to be considered. An Isthmian Canal Commission was created. Attorney General P. C. Knox reported to the President (October 26, 1902) that the title to the canal was valid, and on January 22, 1903, a treaty between the United States and Colombia for the construction of the canal was signed at Washington and was ratified by the United States Senate March 17, 1903, but was rejected by the Colombian Senate September 14, 1903, who suggested the negotiation of a new treaty. But early in November, 1903, Panama declared its independence, and was recognized as a Republic by the United States on November 6th. A new Canal Treaty was signed at Washington by Secretary of State John Hay, representing the United States, and Philippe Bunau-Varilla representing Panama, and the treaty was ratified by the Government of Panama on December 2, 1903, and is now under consideration in the United States Senate. These various events, all justified by the laws of nations, brought Colombia to terms, and late in November, 1903, she offered the United States a free canal concession if the latter would permit the subjugation of Panama, but the matter had gone too far, and it is now probable that the Panama Canal will be built by this Government, acting with the new Republic of Panama.