Acting upon his own authority, the American minister then inquired if Colombia would accept $25,000,000, the good offices of the United States in its boundary controversy with Panama, the arbitration of the question of the reversionary rights in the Panama Railroad, and the gift of preferential rights in the use of the canal--all these in satisfaction of its claims. The Colombian Government replied that it would not do this and that it did not care to negotiate any further with the Taft administration, preferring to deal with the incoming Wilson administration. CHAPTER XX RELATIONS WITH PANAMA When the people of the Isthmus of Panama revolted against the Government of Colombia, they fully realized that almost their only hope of maintaining an independent government was to secure the building of the Panama Canal by the United States. Therefore, they were in a mood to ratify a treaty which would meet every condition demanded by the Government of the United States. The treaty, negotiated and ratified in 1904, gave to the United States every right it could have desired or which it could have possessed had it taken over the whole Isthmus itself. It was negotiated by John Hay, Secretary of State, representing the United States, and Philippe Bunau-Varilla, representing the Government of Panama. As the latter was a stockholder in the New French Canal Company, whose assets could be realized upon only through the success of the treaty negotiations, it naturally followed that he would put nothing in the way of the desires of the United States. The treaty gave to the United States most unusual rights. For instance, in no other country on earth does one nation possess ultimate jurisdiction over the capital of another nation; yet this is what the United States possesses at Panama. The first consideration of the treaty was the establishment of the Canal Zone. This gave to the United States a territory 5 miles beyond the center line of the canal on either side, and 3 miles beyond its deep water ends, with the exception of the cities of Colon and Panama, to hold in perpetuity with all rights, powers, and authority that the United States would possess if it were sovereign, and to the entire exclusion of the exercise of any sovereign rights, powers, or authority by the Republic of Panama. Further than this, it gave to the United States the same rights with respect to any land, or land under water, outside of the Canal Zone necessary and convenient for the canal itself, or any auxiliary canals or other works required in its operations. Further yet, the Republic granted in perpetuity a canal monopoly throughout its entire territory, and also monopolies of railroad and other means of communication between the two oceans.