U.S influence in Panama.

The United States was actually the founder of Panama. A French comany was attempting to build a canal
across Panama connecting the Atlantic and Pacific Oceans. America acquired the company and when
Colombia, of which Panama was then a part, wanted more money than America wanted to pay, America
encouraged some local Panamanians to declare their independence in 1903. It prevented Colombia from
changing the situation through the presence of its Navy. After Panama was independent, they gave the
U.S the right to build the canal and to own 17 km from each side in perpetuity. 9 years later, America
decided to pay them $250,000 annually.
The canal was completed between 1904 and 1914 by the U.S army corps of engineers. Up to 1925, the
U.S ran most of the key institutions of Panama such as the National Police and General Education. In
1925, U.S troops invaded Panama city and sided with the rich Panamanians to control the country on
their behalf. While officially, America legally controlled 10 miles on either side of the canal, it actually
controlled the entire country. During the 1950's, the Panamanian military, trained by the Americans
began to challenge the government.
In 1968, the National Guard ousted the President of Panama and ruled until 1989 when the Americans
invaded again. The country was ruled by Omar Torrijos, who died in 1981 and General Manuel Noriega
took control of the Government. He was one of the largest drug smugglers in Latin America, and
engaged in money laundering, but yet was supported by the U.S, especially the CIA. Other members of
the military protested Noriega's rule, and the U.S turned against him. In 1988, he was convicted of drug
trafficking in Florida. In 1989, when the Americans invaded again, they arrested him and took him to be
tried.
Since then, Panama has been given control of the canal.