During the Spanish-American War the warship Oregon Essay Example

in 1902 and resulted in signing the Hay-Banau-Varilla Treaty in January 1903. This treaty granted a 6-mile-wide strip of land along the planned route to the United States, which they would govern and enforce security measures on.
In exchange, they agreed to pay $10 million to the Colombian government and provide an annual fee of $250,000 after nine years of operation. However, both the US and Colombian governments needed to ratify the treaty. The US approved it in March 1903, but the Colombian Congress demanded an additional $5 million from America, arguing that there wasn't enough money for them to grant permission for excavation in Panama. Concerns were raised about how the Canal Zone would be administered (Dolan 64). Fearing that if Colombia didn't ratify the treaty, the United States might build a canal through Nicaragua instead; Panama declared its independence from Colombia. President Theodore Roosevelt supported this revolt by ordering a U.S. warship to prevent Colombian troops from entering Panama. Consequently, Panama gained independence and allowed construction of the canal.

The Canal Zone covered an area of 553 square miles with dimensions ten miles wide and fifty miles long, accounting for around 5% of Panama's total territory. The division caused dissatisfaction among Panamanians as it hindered their country's development and unity.

The challenges faced by individuals during the construction of the canal included separation from family and friends, as well as difficulties in conducting business across the waterway.

There were concerns that political differences on each side of the canal could lead to Panama becoming two separate countries.Despite concerns and the high cost, the treaty had been signed and construction of the Panama Canal was progressing steadily. By

1914, the canal was completed, measuring approximately 51 miles in length. The passage through the canal significantly reduced travel distance for ships traveling from New York to San Francisco by nearly 7,872 miles using today's operational plans. The American expenditures alone reached $352 million, making it the largest single construction project in American history up until that time (1914). Around 5,609 American workers were involved in building the canal along with a French labor force, totaling around 25,000 workers. Additionally, an indemnity payment of $25 million was made to Colombia during Wilson's administration in order to ease tensions between both countries. However, this payment angered Colombia due to its significant power as one of South America's most important countries and being a neighbor to the US canal. Despite Theodore Roosevelt's anger over this payment made to protect America's investment in Panama, it had a significant impact on the economy.Roosevelt expressed frustration, stating that people were quick to exploit a man of action during times of need but equally eager to discredit him once the action was over (McCullough 617). Initially, the US paid $10 million for constructing the Panama Canal and an additional $250,000 after nine years. Over time, this annuity grew significantly and exceeded $100 million in 1999. Consequently, American companies began investing more by purchasing land from wealthy Panamanian families. However, despite some benefits for ordinary citizens, the wealth generated from the canal rarely reached them. The management of both the canal and its surrounding zone was divided between two organizations: The zone government handled services like police, postal, and court systems while the Panama Canal Company operated and maintained the waterway itself.

These organizations became major employers in the area with a consistent workforce of around 10,000 to 13,000 civilian workers from 1914 to 1940. By 1977, out of approximately 13,000 employees in total, about 3,500 were American citizens while most others (9,600) were non-U.S. citizens—primarily Panamanians. Many Panamanians indirectly benefited from the canal through selling goods and services to workers in the zone as well as passing ships and U.S. military stationed there for protection.The employment impact of the canal in Panama accounted for more than 20 percent of the country's jobs. The tolls per ton remained unchanged for almost six decades, resulting in revenues increasing from $14 million in 1915 to over $100 million by 1970 for the Panama Canal Company. However, due to initial losses suffered by the company, cargo ton rates increased in 1973 from $0.90 cents to a rate of $1.08 per ton.

Despite this adjustment, revenues continued to grow significantly and reached over $140 million by 1975 (McNeese215). The Hay-Banan-Varilla Treaty was heavily criticized by former President Jimmy Carter as it heavily favored the United States, leading to violent riots in 1964 regarding U.S. control over the canal. As a result, President Lyndon Johnson agreed to renegotiate the treaty and a new agreement between the United States and Panama was reached in 1977.

This new agreement included transferring ownership of the canal to Panama on December 31, 1999, collaborative defense efforts, an increase in annual payment to $10 million plus an additional fee per ton of shipping funded by canal revenue, and permission for Panama to employ Americans once they took control of the canal. The treaty also contained a neutrality clause that

ensured equal access for all merchant vessels without discrimination in tolls or conditions.

Furthermore,the treaty explicitly stated that the United States could not interfere with Panama's internal affairs but both countries were responsible for keeping the canal open.Despite a ceremonial signing on September 7, 1977, controversies surrounding the treaties continued. The battle for ratification in the U.S. Senate was won through various political strategies and personal appeals. President Carter's team utilized every available tool to secure votes, even resorting to reading a dull book on semantics written by a senator he was trying to persuade. Although Carter found it uninteresting, he discussed certain points from the book with the senator as a demonstration of his dedication and successfully secured their vote (Second Decade). In response to Manuel Noriega's power struggle in 1988, President Ronald Reagan chose to withhold yearly payments and freeze Panamanian assets held in U.S banks, resulting in an annual revenue reduction of $180 million for Noriega. President Bush sent U.S. troops to Panama in December 1989 with the goals of protecting American citizens, fulfilling treaty obligations, ensuring canal security, and bringing Noriega to justice (Dolan 140). As a result, President Guillermd Endum led the establishment of a new government in Panama, marking a significant shift towards democracy and independence (Second Decade). The transfer of the Panama Canal occurred on December 31st, 1999.This momentous event allowed Panama to determine its own economic future and finally experience true freedom after years of frustration.In the future,politics will continue affectingthe canal's maintenance,economics,and operationAccording to Conaway, the possibility of a new canal being built across the Isthmus of Panama may result in expansion. To gain further knowledge on

this subject, books like "The Path Between the Seas" by David McCullough (1977), "The Panama Canal" by Tim McNeese (1997), and "Panama" from "The Volume Library" (1994) offer additional information. Additionally, insights can be obtained from the U.S. Department of Dispatch's publication "The Second Decade: Panama at the Canal Treaties" (1990).