The United States Construction Rights for the Panama Canal

The United States' Acquisition of Construction Rights for the Panama Canal

The Panama Canal is a crucial waterway that connects the Atlantic Ocean to the Pacific Ocean, saving ships from having to navigate around the southern tip of South America. The United States gained construction rights for the Panama Canal through a series of diplomatic negotiations and agreements.

Hay-Herran Treaty: In 1903, the United States negotiated a treaty with Colombia, which owned Panama at the time, for the construction of the canal. However, the Colombian Senate rejected the treaty, leading to the uprising of Panamanian nationalists.

Panamanian Independence: With the support of the United States, Panama declared independence from Colombia in November 1903. The U.S. Navy was present to prevent Colombian troops from interfering with the declaration of independence.

Hay-Bunau-Varilla Treaty: Following the Panamanian independence, the U.S. and Panama signed the Hay-Bunau-Varilla Treaty in November 1903. This treaty granted the United States control of the Panama Canal Zone in exchange for monetary compensation to Panama.

Payment for Construction Rights: The U.S. and Panama signed a Treaty where the U.S. agreed to pay Panama $10 million plus an annual rent of 250,000 for an area of land across Panama called the Canal Zone.

This agreement granted the United States the right to build, manage, and defend the Panama Canal, which was officially opened in 1914. The construction of the canal revolutionized global shipping routes and had a significant impact on international trade.