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5. Government and operation of Canal and government of Canal Zone.--The President is authorized to govern and operate the Panama Canal and govern the Canal Zone, or cause them to be governed and operated, through a Governor of the Panama Canal and such other persons as he may deem competent to discharge the various duties connected with the care, maintenance, sanitation, operation, government and protection of the Canal and Canal Zone.

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The following executive orders, relating to lands in the Canal Zone, have affected the Navy: Exec. Order No. 1943, May 26, 1914, which reserved lands at Balboa for a naval radio station; Exec. Order No. 2006, July 30, 1914, which reserved lands at Darien for a naval radio station; Exec. Order No. 2869, May 28, 1918, which transferred the naval radio station at Balboa to the War Department; Exec. Order No. 2987, Nov. 4, 1918, which reserved Guarapo Island, in Gatun Lake, for a naval radio station; Exec. Order No. 3130, July 25, 1919, which rescinded No.

6. Appointment, term and salary of Governor.--The Governor of the Panama Canal shall be appointed by the President, by and with the advice and consent of the Senate, commissioned for a term of four years and until his successor is appointed and qualified. He shall receive a salary of $10,000 a year.

EDITORIAL NOTE This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390,

2869; Exec. Order No. 3237, Mar. 1, 1920, which reserved land at Punta Mala for a naval radio station; Exec. Order No. 3257, Apr. 9, 1920, which reserved lands at Coco Solo for naval purposes; Exec. Order No. 3348, May 16, 1923, which reserved additional lands at Balboa for a naval radio station; Exec. Order No. 4047, July 8, 1924, which reserved lands at Balboa for a naval radio station and rescinded Nos. 1948, 2869, 3130 and 3848 in so far as inconsistent therewith; Exec. Order No. 4105, Nov. 22, 1924, which reserved additional lands at Balboa for a naval radio station; Exec. Order No. 5185, Sept. 6, 1929, which reserved lands at Colon for a naval radio station; Exec. Order No. 5849, May 19, 1932, which reserved lands opposite the naval radio station at Balboa for naval purposes; Exec. Order No. 6072, Mar. 8, 1933, which transferred certain buildings at Cristobal from the War Department to the Navy Department; Exec. Order No. 7387, June 15, 1938, 1 F.R. 601, which reserved lands at Balboa for a naval radio station and superseded Nos. 4047 and 4105; Exec. Order No. 7399, June 23, 1936, 1 F.R. 652, which reserved lands at Surmit for a naval radio station; Exec. Order No. 7862, Apr. 7, 1938, 3 F.R. 734, which modified No. 7387 by designating the naval radio station at Balboa as "Naval Radio Station, Balboa, Canal Zone"; Exec. Order No. 3250, Sept. 11, 1939, 4 F. R. 3890, which revoked No. 2006; Exec. Order No. 8981, Dec. 17, 1941, 6 F. R. 6529, which reserved lands at Coco Solo for a naval hospital; Exec. Order No. 9147, Apr. 25, 1942, 7 F.R. 3111, which revoked No. 2987; Exec. Order No. 9171, May 21, 1942, 7 F.R. 3842-3843, which amended No. 7399 by adding to the area described therein; and Exec. Order No. 9434, Apr. 8, 1944, 9 F.R. 38293831, which superseded No. 7399 and No. 9171. Exec. Order No. 7387 and Exec. Order No. 7862 are set out in Gen. Order No. 78, Apr, 16, 1938. Exec. Order No. 9434 is set out in Gen. Order No. 208, Apr. 29, 1944.

The following general orders related to the Naval Operating Base, Balboa, Canal Zone: Gen. Order No. 45, May 13, 1935; Gen. Order No. 80, Apr. 16, 1938; and Gen. Order No. 108, Apr. 16, 1938.

sec. 4, 37 Stat. 561-562. Sec. 4 of the act of Aug. 24, 1912, as amended, is embodied in the U.S. Code As sec, 1305 of title 48.

7. Control and jurisdiction of Governor over Canal Zone.--The Governor of the Panama Canal shall, in connection with the operation of the Canal:

a. Have official control and jurisdiction over the Canal Zone; and

b. Perform all duties in connection with the civil government of the Canal Zone, which is to be held, treated and governed as an adjunct of the Canal.

EDITORIAL VOTE This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390, sec. 7, 37 Stat. 564-505, as amended by an act of Sept. 21, 1922, ch. 370, 42 Stat. 1004-1005, and an act of Feb. lô, 1933, ch. 91, 47 Stat. 314-315. Sec. 7 of the act of Aug. 24, 1912, as amended, is embodied in the U.S. Code as sec. 1307 of title 48.

Enployment of the land and naval forces in the control of vessels in the territorial waters of the United States and the Canal Zone : see Exec. Order No. 8677, Feb. ll, 1941, 6 F.R. 935.

Gulf of Panama Maritime Control Area: see Proc. No. 2536, Jan. 13, 1942, 56 Stat. 1932-1933.

CROSS REFERENCES Assistance to the Governor of the Panama Canal: see Exec. Order No. 2392, lay 17, 1916.

Injuring fortifications, harbor defenses, etc.: see the Criminal Code, act of Mar. 4, 1909, ch. 321, sec. 44, 35 Stat. 1097, as amended.

Control of anchorage and movement of vessels to insure safety of naval vessels: see act of Nov. 15, 1941, ch. 471, 55 Stat. 763.

Vessels in ports of the United States: see act of June 15, 1917, ch. 30, title II, 40 Stat. 220, as amended.

Cristobal Maritime Control Area: see Proc. No. 2536, Jan. 13, 1942, 56 Stat. 1932-1933.

8. Army control in time of war or when war is imminent.--In time of war in which the United States is engaged or when in the opinion of the President war is imminent, such officer of the Army as the President may designate shall, upon the order of the President, assume and have exclusive authority and jurisdiction over the operation of the Panama Canal and all its adjuncts, appendants and appurtenances, including the entire control and government of the Canal Zone. During a continuance of such condition the Governor of the Panama Canal shall be subject to the order and direction of such officer of the Army in all respects and particulars as to the operation of the Canal and all duties, matters and transactions affecting the Canal Zone.

EDITORIAL NOTES This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390, sec. 13, 37 Stat. 569. Sec. 13 of the act of Aug. 24, 1912, supra, is embodied in the U.S. Code as sec. 1306 of title 48.

By Exec. Order No. 8232, Sept. 5, 1939, 4 F.R. 3812, which was issued under authority of this section, the officer of the Army coinmanding United States troops in the Canal Zone was vested with exclusive authority and jurisdiction over the operation of the Fanama Canal and its adjuncts, appendants, and appurtenances, including the entire control and government of the Canal Zone.

9. Regulations governing operation of Canal, pilotage and navigation.--The President is authorized to make, and from time to time amend, regulations governing:

a. The operation of the Panama Canal;

b. The passage and control of vessels through the same or any part thereof, including the locks and approaches thereto;

c. Pilots and pilotage in the Canal or the approaches thereto through the adjacent waters; and

d. The navigation of the harbors and other waters of the Canal Zone, including the licensing of officers of vessels navigating such waters.

Any person violating any of the provisions of the rules and regulations established hereunder shall be punished by a fine of not more than $100, or by imprisonment in jail for not more than thirty days, or by both.

EDITORIAL NOTES This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390, sec. 5, 37 Stat. 562, as amended by an act of July 5, 1932, ch. 425, 47 Stat. 578. Sec. 5 of the act of Aug. 24, 1912, as amended, is embodied in the U.S. Code as sec. 1319 of title 49.

1943; Exec. Order No. 8715, Mar. 18, 1941, 6 F.R.
1531-1532; Exec. Order No. 9227, Aug. 19, 1942,
7 F. R. 6629-6630 and 7 F.R. 6927; and Exec. Order
No. 9229, Aug. 19, 1942, ? F.R. 6630. Exec. Order
No. 4314 superseded Exec. Order No. 1917, Apr. 16,
1914, as amended, and Exec. Order vo. 1990, July
9, 1914, as amended. The navigation rules pre-
scribed by Exec, Order No. 4314, as amended, were
considered in The Abangarez, 60 F.2d 543, Aug. 3,
1932.

Exec. Order No. 4314, Sept. 25, 1925, as amended, prescribes the rules governing the navigation of the Panama Canal and adjacent waters. The amendatory orders are as follows: Exec. Order Vo. 5065, Feb. 29, 1929; Exec. Order No. 6129, fay 10, 1933; Exec. Order No. 7813, Feb. 14, 1939, 3 F. R. 383; Exec. Order No. 9068, far. 20, 1939, 4 F.R. 1258; Exec. Order No. 841?, fay 22, 1940, 5 F.R.

The following proclamations, relating to
neutrality and affecting the Canal Zone and the
Panama Canal, were issued during Norld Nar I:
Proc. No. 1287, Vov. 13, 1914, 38 Stat. 20.39; and
Proc. No. 13?1, May 23, 1917, 40 Stat. 1667-1669.

The following proclamation and executive
orders relating to neutrality and affecting the
Canal Zone and the Panama Canal, were issued during
World War II: Proc. No. 2350, Sept. 5, 1939, 54

Stat. 2638-2640; Exec. Order No. 8233, Sept. 5, 1939,
4 F.R. 3822-33 23; Exec. Order No. 9234, Sept. 5,
1939, 4 F. R. 3823; and Exec. Order No. 8382, Mar.
25, 1940, 5 F.R. 1195.

14. Air navigation: The Government of the United States is hereby declared to possess, to the exclusion of all foreign nations, sovereign rights, power, and authority over the air space above the lands and waters of the Canal Zone. Until Congress shall otherwise provide, the President is authorized to make rules and regulations and to alter and amend the same from time to time governing aircraft, air navigation, air-navigation facilities, and aeronautical activities within the Canal Zone. Any person who shall violate any of the rules or regulations issued in pursuance of the authority contained in this section shall be punishable by a fine of not more than $500, or by imprisonment in jail for not more than one year, or by both.

EDITORIAL NOTES
This section was added to title 2 of the
Canal Zone vole oy ine first section or an act of
July 9, 1937, ch. 270, 50 Stat. 486. It is embodied
in the U.S. Code as sec. 1314a of title 19.

igation therein, are prescribed by Exec. Order No.
8251, Sept. 12, 1939, 4 F. R. 3899-3901, as amended
by Exec. Order No. 8271, Oct. 16, 1939, 4 F.R.
4277. Both orders were issued pursuant to this
section. Exec. Order No. 3251 revoked Exec. Order
No. 504?, Feb. 18, 1929.

Regulations governing the entrance of foreign and domestic aircraft into the Canal Zone, and nav

Sec. 15. Photographing, and So Forth, and Possession of Cameras in Areas of Canal Zone.-Whenever, in the interests of the protection of the Panama Canal and Canal Zone, the Governor of the Panama Canal shall determine that any part or feature of the Panama Canal, or any area, object, installation, or structure within the Canal Zone, requires protection against the general dissemination of information relative thereto, the Governor is hereby authorized to make, and from time to time alter and amend, regulations prohibiting or restricting:

(a) The making of any photograph, sketch, drawing, map, or graphical representation of, within, or upon any such part or feature of the Panama Canal, or any such area, object, installation, or structure within the Canal Zone; and

(b) The possession of any camera within any area or areas in the Canal Zone which the Governor may designate: Provided, however, That no regulation made pursuant to authority contained in this section shall apply to activities of the kind covered by this section which are conducted or performed by persons in the service or employ of the United States in the course of their official duties.

Any person who shall violate any of the rules and regulations established in pursuance of the authority contained in this section shall be punishable by a fine of not more than $1,000, or by imprisonment in jail for not more than one year, or by both.

EDITORI AL NOTE This section was added to title 2 of the Canal Zone Code by act of Dec. 12, 1941, ch. 569, 55 Stat. 798-799. It is embodied in the U.S. Code as sec. 1337 of title 48.

Section 51. Providing materials, supplies, and services for vessels.-- The President is authorized to establish, maintain and operate, through the Panama Railroad Company or otherwise, dry docks, repair shops, yards, docks, wharves, warehouses, storehouses and other necessary facilities and appurtenances for the purpose of providing coal and other materials, labor, repairs and supplies for vessels of the Government of the United States and, incidentally, for supplying such at reasonable prices to passing vessels, in accordance with appropriations hereby authorized to be made from time to time by Congress as a part of the maintenance and operation of the Panama Canal.

EDITORIAL NOTE This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390, sec. 6, 37 Stat. 563-564. Sec. 6 of the act of Aug. 24, 1912, is embodied in the U.S. Code as sec. 1323 of title 48.

CROSS REFERENCE Contracts of Panama Railroad Company with the executive departments: gee act of Mar. 4, 1911, ch. 295, sec. 6, 36 Stat. 1452.

81. Appointment, removal, and compensation of necessary persons: All persons, other than the Governor of the Panama Canal, necessary for the care, management, maintenance, sanitation, government, operation, and protection of the Canal and Canal Zone shall-

(a) Be appointed by the President or by his authority;
(b) Be removable at the pleasure of the President; and

(c) Receive such compensation as shall be fixed by the President or by his authority until such time as Congress may by law regulate the same; and such persons shall be employed and shall serve under such conditions of employment, including matters relating to transportation, medical care, quarters, leave and the commutation thereof, and office hours and hours of labor, as have been or shall hereafter be prescribed by the President: Provided, however, That salaries or compensation fixed by the President hereunder shall in no instance exceed by more than 25 per centum the salary or compensation paid for the same or similar services to persons employed by the Government in continental United States; And provided further, That nothing contained in this section shall affect the application to employees of the Panama Canal of the provisions of section 23 of the Independent Offices Appropriation Act, 1935 (48 Stat. 522).

ED ITORIAL VOTE
This section of title 2 of the Canal Zone Code
was expressly amended to read as above by act of
July 9, 1937, ch, 470, sec. 3, 50 Stat. 487.

The original section was derived from an act of Aug.

24, 1912, ch, 390, sec. 4, 37. Stat. 561-562.

Sec. 3 of the act of Aug. 24, 1912, as amended, is embodied in the U.S. Code as a part of sec. 1305, R.S.

82. Deduction from compensation of persons in military or naval service. If any of the persons appointed or employed as provided in sections 6 and 81 of this title are in the military or naval service of the United States, the amount of the official salary paid to any such person shall be deducted from the amount of salary or compensation provided by or which shall be fixed under the terms of those sections, but this section shall not be construed as requiring the deduction from the amount of such salary or compensation, of:

a. The retired pay or allowances of any retired warrant officer or enlisted man of the Army, Navy, Marine Corps, or Coast Guard; or

b. The training pay, retainer pay or allowances of any warrant officer or enlisted man of the reserve forces of the Army, Navy, Marine Corps, or Coast Guard.

EDITORIAL NOTES This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390, sec. 4, 37 Stat. 561-562, and an act of Mar. 12, 1929, ch. 213, 45 Stat. 310. Sec. 4 of the act of Aug. 24, 1912, supra, is embodied in the U.S. Code as a part of sec. 1305 of title 49. The act of Mar. 12, 1928, supra, is embodied in the U.S. Code as sec. 1305a of title 43.

Sec. 4 of the act of Aug. 24, 1912, supra, has been construed in the following decisions: 26 Comp. Dec. 209, Sept. 22, 1919; 1 Comp. Gen. 112, Sept. 6, 1921; 4. Comp. Gen. 510, Dec, 3, 1924; Calhoun v. United States, 66 Ct.Cls. 545, Dec. 3, 1928; and Grant v. United States, 70 Ct.cls. 294, June 2, 1930.

Section 301. Acquisition by United States of title to land in Canal Zone.-- The President is authorized to declare by Executive order that all land and land under water within the limits of the Canal Zone is necessary for the construction, maintenance, operation, sanitation or protection of the Panama Canal, and to extinguish, by agreement when advisable, all claims and title of adverse claimants and occupants. Upon failure to secure by agreement title to any such parcel of land or land under water the adverse claim or occupancy shall be disposed of and title thereto secured in the United States and compensation therefor fixed and paid in the manner provided in the treaty with the Republic of Panama dated November 18, 1903, or such modification of that treaty as may be made.

EDITORIAL NOTE
This section of title 2 of the Canal Zone
Code was derived from an act of Aug. 24, 1912, ch.

390, sec. 3, 37 Stat. 561. Sec. 3 of the act of Aug. 24, 1912, is embodied in the U.S. Code as sec. 1304 of title 48.

Section 411. Authority of President to prescribe and change tolls.--The President is authorized, subject to the provisions of the section next following, to prescribe and from time to time change the tolls that shall be levied by the Government of the United States for the use of the Panama Canal, but no tolls when prescribed as above shall be changed unless six months' notice thereof is given by the President by proclamation.

EDITORIAL NOTES This section of title 2 of the Canal Zone Code was derived from an act of Aug. 24, 1912, ch. 390, sec. 5, 37 Stat. 562, as amended by an act of. June 15, 1914, ch. 106, 39 Stat. 395, which repealed the second sentence of sec. 5 of the act of Aug. 24, 1912. Sec. 5 of the act of Aug. 24, 1912, as amended, is embodied in the U.S. Code as sec. 1315 of title 49.

The following proviso was included in the amendatory act of June 15, 1914, supra:

"That the passage of this Act shall not be construed or held as a waiver or relinquishment of any right the United States may have under the treaty with Great Britain, ratified the twentyfirst of February, nineteen hundred and two, or the treaty with the Republic of Panama, ratified February twenty-sixth, nineteen hundred and four,

Stat. 393, promulgated under authority of this section, prescribes Panama Canal toll rates. Proc. No. 2247, as amended, became effective on Mar, , 1938, and superseded Proc. No. 1225, Nov. 13, 1912, 37 Stat. 1769,

or otherwise, to discriminate in favor of its ves-
sels by exempting the vessels of the United States
or its citizens from the payment of tolls for
passage through said canal, or as in any way
waiving, impa iring, or affecting any right of the
United States under said treaties, or otherwise,
with respect to the sovereignty over or the owner-
ship, control, and management of said canal and
the regulation of the conditions or charges of
traffic through the same.

Exec. Order No. 3581, Nov. 17, 1921, which was issued under authority of sec. 5 of the act of Aug. 24, 1912, contains special provisions relative to the payment of tolls by vessels which transit the Canal solely for the purpose of having repairs made at Balboa.

Proc. No. 2247, Aug. 25, 1937, 51 Stat. 371, as amended by Proc. No. 2249, Aug. 31, 1937, 51

412. Bases of tolls; maximum and minimum rates.--Tolls on merchant vessels, army and navy transports, colliers, hospital ships, supply ships, and yachts shall be based on net vessel-tons of one hundred cubic feet each of actual earning capacity determined in accordance with the Rules for the Measurement of Vessels for the Panama Canal prescribed by the President and as may be modified by him from time to time by proclamation, and tolls on other floating craft shall be based on displacement tonnage: Provided, That the basic rules of measurement shall not be changed except after public hearing and six months' public notice of such change. The rate of tolls on laden vessels shall not exceed $1, nor be less than $0.75 per net vessel-ton as determined under the aforesaid rules, and on vessels in ballast without passengers or cargo the rate may be less than the rate of tolls for vessels with passengers or cargo. In addition to thế tolls based on measurement or displacement tonnage, tolls may be levied on passengers at rates not to exceed $1.50 for each passenger. The levy of tolls is subject to the provisions of article XIX of the convention between the United States of America and the Republic of Panama, entered into November 18, 1903, and of article 1 of the treaty between the United States of America and the Republic of Colombia proclaimed March 30, 1922.

EDITORIAL VOTES This section of title 2 of the Canal Zone Code was expressly amended to read as above by act of Aug. 24, 1937, ch. 752, 50 Stat. 750-751, effective Mar. 1, 1933. The original section was derived from an act of Aug. 24, 1912, ch, 390, sec. 5, 37 Stat. 562, as amended by an act of June i5, 1914, ch. 106, 39 Stat. 385. Sec. 5 of the act of Aug. 24, 1912, as amended, is embodied in the 5.S. Code as sec. 1315 of title 48.

Proc. No. 2248, Aug. 25, 1937, 51 Stat, 372, which was promulgated under authority of this section, prescribes rules for the measurement of vessels for the Panama Canal. Proc. No. 2243 became effective on Mar. 1, 1938, and superseded Proc. No. 1258, Nov. 21, 1913, 38 Stat. 1968.

Section 421. Wireless telegraphic installations in connection with operation of Canal.-- The President is authorized:

a. To cause to be erected, maintained and operated, subject to the International Convention and the Act of Congress to regulate radio-communication, at suitable places along the Panama Canal and the coast adjacent to its two terminals, in connection with the operation of the Canal, such wireless telegraphic installations as he may deem necessary for the operation, maintenance, sanitation and protection of the Canal, and for other purposes.

b. To make such agreement with the Government of Panama as may be required if it is found necessary to locate such installations upon territory of that Republic;

c. To provide for the acceptance and transmission by said system of all private and commercial messages and those of the Government of Panama on such terms and for such tolls as the President may prescribe: Provided, however, That the messages of the Government of the United States and the departments thereof, and the management of the Panama Canal, shall always be given precedence over all other messages;

d. In his discretion, to enter into such operating agreements or leases with any private wireless company or companies as may best insure freedom from interference with the wireless telegraphic installations established by the United States.

EDITORIAL NOTE
This section of title 2 of the Canal Zone Code
was derived from an act of Aug. 24, 1912, ch. 390,

sec. 6, 37 Stat. 563-564. Sec. 6 of the act of
Aug. 24, 1912, is embodied in the U.S. Code as sec.
1323 of title 49.

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