In the mid 19th century, the rush of settlers to California and Oregon created an initial incentive to build an artificial waterway across the Isthmus of Panama, connecting the Atlantic and Pacific oceans.
Ferdinand de Lesseps, the French entrepreneur who completed the Suez Canal, was awarded the canal&#39;s rights. Construction started in 1881, but several setbacks led to the bankruptcy of Lesseps&#39; company in 1889. Three years later a former chief engineer Philippe-Jean Bunau-Varilla acquired the assets of the company.

The need for the Panama Canal

Panama was originally part of Colombia. But by the turn of the century, the United States wanted the sole possession of the isthmian canal to move warships and commerce between the Atlantic and Pacific oceans. In 1902, the U.S. Congress authorised the purchase of the French canal company. This depended on a treaty with Colombia, who refused because they feared a loss of sovereignty. With the support of the U.S., the Panamanians declared independence from Colombia in 1903. This allowed the U.S. to sign a treaty with Panama, granting the U.S. possession of the Panama Canal Zone.

The U.S. gaining possession of the Panama Canal Zone

In 1906, American engineers decided to construct a lock canal and used the next three years developing construction facilities and dealing with tropical diseases in the area. Construction of the 40-mile-long canal began in 1909, one of the largest construction projects of all time. The Panama Canal was opened on August 15, 1914. But Panama pushed to revoke the initial treaty. Finally, in 1977, a treaty was signed to turn the canal back over to Panama on December 31, 1999.

Panama Canal opened

The American-built waterway across the Isthmus of Panama, connecting the Atlantic and Pacific oceans, is inaugurated with the passage of the U.S. vessel Ancon, a cargo and passenger ship.The rush of settlers to <a href="https://www.history.com/topics/us-states/california" dir="ltr">California</a> and <a href="https://www.history.com/topics/us-states/oregon" dir="ltr">Oregon</a> in the mid 19th century was the initial impetus of the U.S. desire to build an artificial waterway across Central America. In 1855, the United States completed a railroad across the Isthmus of Panama (then part of Colombia), prompting various parties to propose canal-building plans. Ultimately, Colombia awarded rights to build the canal to Ferdinand de Lesseps, the French entrepreneur who had completed the <a href="https://www.history.com/topics/suez-canal" dir="ltr">Suez Canal</a> in 1869. Construction on a sea-level canal began in 1881, but inadequate planning, disease among the workers, and financial problems drove Lesseps’ company into bankruptcy in 1889. Three years later, Philippe-Jean Bunau-Varilla, a former chief engineer of the canal works and a French citizen, acquired the assets of the defunct French company.By the turn of the century, sole possession of the isthmian canal became imperative to the United States, which had acquired an overseas empire at the end of the Spanish-American War and sought the ability to move warships and commerce quickly between the Atlantic and Pacific oceans. In 1902, the U.S. Congress authorized purchase of the French canal company (pending a treaty with Colombia), and allocated funding for the canal’s construction. In 1903, the Hay-Bunau Varilla Treaty was signed with Columbia, granting the U.S. use of the territory in exchange for financial compensation. The <a href="https://www.history.com/topics/history-of-the-us-senate" dir="ltr">U.S. Senate</a> ratified the treaty, but the Colombian Senate, fearing a loss of sovereignty, refused.In response, President <a href="https://www.history.com/topics/us-presidents/theodore-roosevelt" dir="ltr">Theodore Roosevelt</a> gave tacit approval to a Panamanian independence movement, which was engineered in large part by Philippe-Jean Bunau-Varilla and his canal company. On November 3, 1903, a faction of Panamanians issued a declaration of independence from Colombia. The U.S.-administered railroad removed its trains from the northern terminus of Colón, thus stranding Colombian troops sent to crush the rebellion. Other Colombian forces were discouraged from marching on Panama by the arrival of U.S. warship Nashville.On November 6, the United States recognized the Republic of Panama, and on November 18 the Hay-Bunau-Varilla Treaty was signed with Panama, granting the U.S. exclusive and permanent possession of the <a href="https://www.history.com/topics/panama-canal" dir="ltr">Panama Canal</a> Zone. In exchange, Panama received $10 million and an annuity of $250,000 beginning nine years later. The treaty was negotiated by U.S. Secretary of State John Hay and Bunau-Varilla, who had been given plenipotentiary powers to negotiate on behalf of Panama. Almost immediately, the treaty was condemned by many Panamanians as an infringement on their country’s new national sovereignty.In 1906, American engineers decided on the construction of a lock canal, and the next three years were spent developing construction facilities and eradicating tropical diseases in the area. In 1909, construction proper began. In one of the largest construction projects of all time, U.S. engineers moved nearly 240 million cubic yards of earth and spent close to $400 million in constructing the 40-mile-long canal (or 51 miles long, if the deepened seabed on both ends of the canal is taken into account). On August 15, 1914, the Panama Canal was opened to traffic.Panama later pushed to revoke the Hay-Bunau-Varilla Treaty, and in 1977 U.S. President <a href="https://www.history.com/topics/us-presidents/jimmy-carter" dir="ltr">Jimmy Carter</a> and Panamanian dictator Omar Torrijos signed a treaty to <a href="https://www.history.com/this-day-in-history/carter-agrees-to-transfer-panama-canal-to-panama" dir="ltr">turn over the canal</a> to Panama by the end of the century. A peaceful transfer occurred at noon on December 31, 1999.

The American-built waterway across the Isthmus of Panama, connecting the Atlantic and Pacific oceans, is inaugurated with the passage of the U.S. vessel Ancon,

The American-built waterway across the Isthmus of Panama, connecting the Atlantic and Pacific oceans, is inaugurated with the passage of the U.S. vessel Ancon, a cargo and passenger ship.

The rush of settlers to <a href="https://www.history.com/topics/us-states/california">California </a>and <a href="https://www.history.com/topics/us-states/oregon">Oregon </a>in the mid 19th century was the initial impetus of the U.S. desire to build an artificial waterway across Central America. In 1855, the United States completed a railroad across the Isthmus of Panama (then part of Colombia), prompting various parties to propose canal-building plans. Ultimately, Colombia awarded rights to build the canal to Ferdinand de Lesseps, the French entrepreneur who had completed the <a href="https://www.history.com/topics/suez-canal">Suez Canal </a>in 1869. Construction on a sea-level canal began in 1881, but inadequate planning, disease among the workers, and financial problems drove Lesseps’ company into bankruptcy in 1889. Three years later, Philippe-Jean Bunau-Varilla, a former chief engineer of the canal works and a French citizen, acquired the assets of the defunct French company.

By the turn of the century, sole possession of the isthmian canal became imperative to the United States, which had acquired an overseas empire at the end of the Spanish-American War and sought the ability to move warships and commerce quickly between the Atlantic and Pacific oceans. In 1902, the U.S. Congress authorized purchase of the French canal company (pending a treaty with Colombia), and allocated funding for the canal’s construction. In 1903, the Hay-Bunau Varilla Treaty was signed with Columbia, granting the U.S. use of the territory in exchange for financial compensation. The <a href="https://www.history.com/topics/history-of-the-us-senate">U.S. Senate </a>ratified the treaty, but the Colombian Senate, fearing a loss of sovereignty, refused.

In response, President <a href="https://www.history.com/topics/us-presidents/theodore-roosevelt">Theodore Roosevelt </a>gave tacit approval to a Panamanian independence movement, which was engineered in large part by Philippe-Jean Bunau-Varilla and his canal company. On November 3, 1903, a faction of Panamanians issued a declaration of independence from Colombia. The U.S.-administered railroad removed its trains from the northern terminus of Colón, thus stranding Colombian troops sent to crush the rebellion. Other Colombian forces were discouraged from marching on Panama by the arrival of U.S. warship Nashville .

On November 6, the United States recognized the Republic of Panama, and on November 18 the Hay-Bunau-Varilla Treaty was signed with Panama, granting the U.S. exclusive and permanent possession of the <a href="https://www.history.com/topics/panama-canal">Panama Canal </a>Zone. In exchange, Panama received $10 million and an annuity of $250,000 beginning nine years later. The treaty was negotiated by U.S. Secretary of State John Hay and Bunau-Varilla, who had been given plenipotentiary powers to negotiate on behalf of Panama. Almost immediately, the treaty was condemned by many Panamanians as an infringement on their country’s new national sovereignty.

In 1906, American engineers decided on the construction of a lock canal, and the next three years were spent developing construction facilities and eradicating tropical diseases in the area. In 1909, construction proper began. In one of the largest construction projects of all time, U.S. engineers moved nearly 240 million cubic yards of earth and spent close to $400 million in constructing the 40-mile-long canal (or 51 miles long, if the deepened seabed on both ends of the canal is taken into account). On August 15, 1914, the Panama Canal was opened to traffic.

Panama later pushed to revoke the Hay-Bunau-Varilla Treaty, and in 1977 U.S. President <a href="https://www.history.com/topics/us-presidents/jimmy-carter">Jimmy Carter </a>and Panamanian dictator Omar Torrijos signed a treaty to <a href="https://www.history.com/this-day-in-history/carter-agrees-to-transfer-panama-canal-to-panama">turn over the canal </a>to Panama by the end of the century. A peaceful transfer occurred at noon on December 31, 1999.

Panama Canal open to traffic

The need for the Panama Canal

The U.S. gaining possession of the Panama Canal Zone

Panama Canal opened

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