Usa and Panama

The USA had expanded its empire to the Pacific ocean and the Caribbean by 1898, with the
acquisition of the Philippines, Cuba and Puerto Rico. Quick and easy access between these two
regions by sea was therefore very important to the USA. To solve this problem, a canal through
Central America linking the Pacific and the Atlantic ocean was needed.

Problems Faced by the USA in Building and Controlling the Canal

 There was an agreement between the USA and Briton realting to the sharing of and
responsibility of building ande controlling the canal (Clayton-Bulwer Treaty, 1850).
 A French company had the right to build the Panama Canal.
 The USA had to get permission from the Columbian government as the route through
Panama passed through Columbia.
 The USA wanted to fortify the Canal.
How USA Overcame their Problems

 Briton signed the Hay-Pauncefort Treaty in 1901 which gave the USA sole right to build,
control and fortify the Canal.
 The USA purchased the rights from the French company, the New Panama Canal
Company for $40 million. Doing that gave the USA the permission they needed to build
the canal on Columbian soil.
 The USA in 1903 paid the Columbian government $10 million and down payment and
promised $250,000 per year for a canal across the isthmus of Panama.
 The Hay-Pauncefort Treaty and the agreement with Panama cleared the way for the USA
to fortify the canal.
However, the agreement made between the the USA and Panama was revoked later in 1903, by
the New senate in Columbian. The Columbian government stated that the compensation was not
sufficient and the canal zone threatened Columbia’s independence. To overcome this problem,
the US president Roosevelt decided to instigate a revolution in Panama and sent in troops to
prevent the Columbian government from crushing the revolution. The USA then recognized the
new government of Panama and paid it the monies it had agreed formally to pay Columbia. The
Panama canal was eventually built between

1904 and 1914 by Colonel George Goethals an US army engineer with mainly West Indian
Labour. The first ship passed through the Panama canal on 15th August, 1914.

 President Wilson reflecting on the high handed approach taken by President Roosevelt
and his boast that “he took Panama” paid Columbia compensation for the loss of Panama.