companies could be purchased by and transferred to the United States, they were encumbered with charges and conditions that would not permit this Government to exercise all the rights of complete ownership over a canal constructed by it at the Panama route. A new arrangement is necessary if the United States is to undertake such a work. The relinquishment by the canal company, with the consent of Colombia, of the privileges it has under existing concessions, for a consideration to be agreed upon with the United States, would leave the way open for treaty negotiations between the two governments to ascertain whether Colombia will consent to the occupation of its territory by the United States for the construction of a canal to be under Government control, management, and ownership, and, if so, whether they can agree upon terms mutually satisfactory. The situation is peculiar, as there are three parties in interest. The United States can enter into no agreement with Colombia that does not have the approval of the company, and the concessions do not permit the company to transfer or attempt to transfer its rights to a foreign government. "The Commission has, however, attempted to ascertain the views of the New Panama Canal Company with reference to a disposition and transfer of its rights. Interviews were had with its president and other officers during the visit to Paris and on several occasions from time to time since then, and on the 10th day of April last a formal letter was addressed to Mr. Maurice Hutin, the president and director-general, asking whether he was in a position to name terms upon which the company would dispose of its property and interests to the United States. At different times since then the subject has been discussed by the representatives of the company with the Commission and its committee on rights, privileges, and franchises, but no formal reply to the letter was received until this report was being closed. These conferences and correspondence have resulted in no offer to dispose of the property and privileges of the company to the United States upon any terms, even with the consent of the Colombian Government, nor has the company expressed any desire or wish to enter into any negotiations with the United States with reference to such a disposition of its property and rights. It was proposed by President Hutin that the United States might obtain control of the canal scheme as a majority stockholder of a new organization to which the present company could contribute its concession, plant, unfinished work, and other property, at a valuation to be determined by arbitration, and he expressed the opinion that such an arrangement could be made without violating the concessions. But this must include some plan for the protection of the