President McKinley, however, refused to accept his resignation, and he and Lord Pauncefote were soon at work again on the subject.

In 1901 a new treaty was presented to the Senate.

This began by abrogating the Clayton-Bulwer Treaty entirely and with it brushing away all restrictions upon the activity of the United States in Central America.

It specifically permitted the United States to "maintain such military police along the canal as may be necessary to protect it against lawlessness and disorder." By interpreting this clause as allowing complete fortification, the United States has made itself the guardian of the canal.

In return for the release from former obligations which Great Britain thus allowed, the United States agreed that any canal constructed should be regulated by certain rules which were stated in the treaty and which made it "free and open to the vessels of commerce and of war of all nations observing these Rules, on terms of entire equality," in time of war as well as of peace.