Panama Canal Museum

Dedicated to the united states role in the history of Panama

The American Era: Roosevelt and the Panama Canal Treaty

Panama declared itself independent and wanted to complete the Panama Canal, and opened negotiations with us. “I had two courses open. I might have taken the matter under advisement and put it before the Senate, in which case we should have had a number of most able speeches on the subject, and they would have been going on now, and the Panama Canal would be in the dim future yet. We would have had a half a century of discussion afterward.” -Theodore Roosevelt

1898
Spanish American War allows the United States to acquire the Philippines and Puerto Rico, and to annex Hawaii.  Assistant Secretary of the Navy, Theodore Roosevelt, perceives the need for easy access to the Atlantic and the Pacific by the navy. He supports a canal across Panama.

1901 
The second Hay-Pauncefote Treaty is signed. The United States is given extensive rights by Great Britain for building and operating a canal through Central America.

President William McKinley is assassinated and Vice President Theodore Roosevelt became the 26th President.

1902   
United States Senate votes in favor of Panama as the canal site. US support for a $40 million purchase is based on Congressional acceptance for a canal in Panama rather than Nicaragua, and the acquisition of land to serve as a canal zone. Isthmian Canal Act. Congress passes the Spooner bill, authorizing a canal to be built across the Isthmus of Panama. The US purchases a concession to build the Panama Canal from the French for $40 million.

U.S. troops sent to Panama to keep train lines open over the isthmus as Panamanians protest.

1903 
The Hay-Herran Treaty with Colombia would have given the United States the land and the right to build a canal across Panama, but Colombia refuses to ratifies the treaty.

The Senate ratified the Hay-Herran Treaty which guarantees the U.S. the right to build a canal at Panama. The treaty promises Colombia $10 million plus $250,000 annually for a zone six miles wide.

Philippe Bunau-Varilla meets with Pres. Roosevelt in Washington and tells him that a group in Panama are planning a rebellion. He asks that the US prevent any Colombian troops from landing to break the rebellion, but receives no certain assurances.

Panama declaires its independence from Colombia. After a one-day coup, in which an American warship offshore prevented Colombia from quelling the revolt, Panama declares independence. A jubilant President Theodore Roosevelt recognizes the new republic three days later.

The Hay-Bunau-Varilla Treaty signed, granting the United States a strip of land across the Isthmus of Panama and the right to build and fortify the Panama Canal.

1904 
United States acquires control of the Panama Canal Zone for $10 million from Panama.

United States buys equipment and infrastructure from France for $40 million.

Panama adopts the US dollar as its currency.