It is very important to note the provisions of this treaty, because it establishes what is known as the political "status" of the new canal. The Hay-Pauncefote expressly supersedes the Clayton-Bulwer Treaty and provides for the construction of a canal (mentioning no particular route) "under the auspices of the government of the United States," which country is "to have and enjoy all the rights incident to such construction, as well as the exclusive right of providing for the regulation and management of the canal." It adopts the principles of "neutralization" which were embodied in the Treaty of Constantinople of 1888 in connection with the Suez Canal. Both treaties provide for:-- 1. Freedom of transit in time of peace or war for the vessels of all nations. 2. Freedom of the canal and its terminals from blockade. 3. A code of procedure for war-vessels entering or leaving the canal. No special reference is made to the question of fortification, but the United States are to be at liberty to maintain such military police along the canal as may be necessary to protect it against lawlessness and disorder. A treaty, however, subsequently concluded between the United States and the Republic of Panama (known as the Hay-Bunau-Varilla Treaty) contains the following provision:-- If it should become necessary at any time to employ armed forces for the safety and protection of the canal, or of the ships that make use of the same, or the railways and auxiliary works, the United States shall have the right, at all times and in its discretion, to use its police and its land and naval forces or to establish fortifications for these purposes. But the most important provision of all related to the question of the charges and other conditions of traffic through the canal. The meaning of the section seems plain enough, though it became a subject of rather acute controversy:-- The canal shall be free and open to the vessels of commerce and war of all nations observing these rules, on terms of entire equality; so that there shall be no discrimination against any such nation, or its citizens or subjects, in respect of the conditions and charges of traffic, or otherwise. Such conditions and charges of traffic shall be just and equitable.