Lesson Plan: Sovereignty or Strategy? The U.S. Decision to Transfer the Panama Canal
ย In 1903, Panama declared independence from Colombia and was recognized by the United States. Later that year, the HayโBunau-Varilla Treaty granted the U.S. rights to build and administer the Panama Canal and the surrounding Canal Zone, including its defenses. The treaty specified U.S. control of the Canal Zone without a fixed end date, while other provisions were limited to a 99-year lease. The agreement was criticized by many Panamanians, who viewed it as incompatible with the countryโs sovereignty. In 1964, clashes between Panamanian students and U.S. residents of the Canal Zone over flag-raising rights led to four days of unrest and 25 deaths. The episode intensified diplomatic efforts that culminated in treaties transferring full control of the canal to Panama by 1999.

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