USA HISTORY

Detailed explanation-1: -On November 6, 1903, the United States recognized the Republic of Panama, and on November 18 the Hay-Bunau-Varilla Treaty was signed with Panama, granting America exclusive and permanent possession of the Panama Canal Zone. In exchange, Panama received $10 million and an annuity of $250, 000 beginning nine years later.

Detailed explanation-2: -By persuading and funding an independence movement in Panama, the newly formed nation signed a treaty with the U.S. allowing it to build a canal through a strip of Panamanian land that was leased to them.

Detailed explanation-3: -The Hay-Pauncefote Treaty of 1901 abrogated the earlier Clayton-Bulwer Treaty and licensed the United States to build and manage its own canal. Following heated debate over the location of the proposed canal, on June 19, 1902, the U.S. Senate voted in favor of building the canal through Panama.

Detailed explanation-4: -Americans knew they needed this to move ships from east to west quickly. If they did that, they would control power because they would control the oceans. The Canal was a geopolitical strategy to make the United States the most powerful nation on earth.

Detailed explanation-5: -In 1903, Panama declared its independence from Colombia in a U.S.-backed revolution and the U.S. and Panama signed the Hay-Bunau-Varilla Treaty, in which the U.S. agreed to pay Panama $10 million for a perpetual lease on land for the canal, plus $250, 000 annually in rent.