Panama

Big Stick Policy 

Objectives 
• Discuss the reasons for the
United States interest in Panama
(Panama Canal). 

• Discuss the economic, political

and cultural consequences
of United States involvement in
Panama.
United States (US) involvement in
Panama
• The US had a need to extend its trading links in order to market the products of an increasing
industrial age.
• To speedily deploy naval vessels from the Atlantic to the Pacific shores and vice versa. The
United States had acquired pacific countries in the aftermath of the Spanish American War.
• The United States needed a canal through Panama for military and Technological reasons. 
• In 1850, the United States and Great Britain signed the Clayton-Bulwer Treaty. 
• In this treaty the United States and Britain agreed to join forces to construct a Panama Canal. 
• The United States opted out of the Agreement in favor of total control over the canal
constructed. 
Site for
the Canal 
The initial site for the canal
was Nicaragua (San Juan
River Realejo)
Isthmus of
Panama
The best site for the central
American Canal was the
Isthmus of Panama
        Permission from Colombia
The United States sought to secure permission from Colombia
to construct the Panama Canal. The US Secretary of State John
Hay and the Colombian diplomat Tomas Herran signed the
Panama Canal Treaty or Hay-Herran Treaty in 1903. 

The US offered to pay the Colombian Government US $10

million for the 16km strip of land from Colon to Panama City
and an annual rental of $250, 000. 

The Colombian government did not approve the Hay-Herran

Treaty (1903) for the transfer of this land. 
Big Stick
Policy 
• President Roosevelt
initiated a move in
Panama to remove
Colombian Sovereignty,
which was speedily done. 
Panama Declares
Her independence!
• Hay-Bunau Varilla Treaty was signed between the
United States and Panama.
• The treaty gave the United States sovereign status
over the 16km canal zone and tax exemption on all
property and personnel. 
• The US now had the Canal zone and remained in
control of it. 
• The completion of the canal in 1914 strengthen US
political influence in the Hemisphere.. 
Collab Time!
Practice questions:
•  Examine two factors responsible for the   
  involvement of the United States in   Panama
in 1903. 
•  Explain how the United States succeeded
in acquiring land in order to construct a canal
across the Isthmus of Panama by 1914?
(Consider the Big Stick Policy). 
Self-directed
study!
With the aid of your text, Lest You
Forget (Pages 28-35) and the awesome
video (see link on the next slide).
Engage in self-directed study on the
Panama Canal at home. 
As you engage in self-directed work
reflect deeply on the economic, political
and cultural consequences of the United
States involvement in Panama.
 Full
Documentary
on Panama
Copy and paste the link below in your web browser to
view the video. 

https://www.youtube.com/watch?v=k9OAKSR7WUs