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At the time, Panama belonged to Colombia but was fighting for independence. When US officials struck a deal with Colombia for rights to the canal, their legislature refused to allow it. The US then approached the Panamanian rebels and offered their support in return for the rights to build and operate the canal. The rebels accepted the offer and the US ran operations to prevent Colombia from retaining control of Panama, leading to its independence.

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9y ago
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12y ago

In 1879 a French company headed by Ferinand de Lesseps had bought a 25-year concession from Columbia to build a canal across Panama. While the french were building the canal they were defeated by yellow fever and mismanagement, the company abandoned the project 10 years later. The french offered the remanding rights to the United States for $100 million. When the priced dropped to $40 million, congress passed the Spooner Act in 1902 which authorized the purchase of the French assets. The act required that the United States work out a treaty with Columbia for the lease on the land.

The treaty negotiations went nowhere. Columbia was waiting for the French concession to expire in 1904 so they could raise the price. Roosevelt secretly made it clear to Philippe BunauVarilla (official with the french company) that the United States would not interfere if the French organized a Panamanian revolution against Columbia. the United states war ships provided support for the rebels and became Panamas protector. In return Panama ratified the Hay-BunauVarilla Treaty, the treaty gave the United states a permanents grant of a 10 mile wide strip of land for a Canal Zone. The Panamanians received $10 million and the United States had complete sovereignty of the zone.

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9y ago

When Colombia failed to negotiate with the U.S. in Bogota, Theodore Roosevelt formed a local junta in conjunction with the French, put two battleships in Panama ports, declared independence and took Panama without a struggle.

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Q: How was the US finally allowed to dig the Panama Canal?
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