Panama Canal

For years, American naval leaders wanted to build a passage between the Atlantic and the Pacific Oceans through Central America. The United States owned territory on both sides of the isthmus (a narrow strip of land that is bordered on two sides by water that connects two larger land areas), so a canal took on even greater importance as it would drastically reduce the amount of shipping and travel time.

Building of the canal across the Isthmus of Panama (then a territory of Colombia) had officially begun in 1878 by Ferdinand-Marie de Lesseps (1805–1894), the French engineer who had built the Suez Canal in Egypt. Construction came to a halt when laborers contracted tropical diseases and engineering problems arose. Even so, a French company retained rights to the project, so no one else could continue the construction. President Theodore Roosevelt (1858–1919; served 1901–9) offered to buy those rights for $40 million. He also offered to pay $10 million for a 50-mile stretch across the isthmus, but Colombia refused. Roosevelt correctly predicted a revolution in Panama against Columbian rule. He then sent a naval ship and military troops to support Panama's rebellion. When Roosevelt presented the rebels with the $10-million offer, they happily accepted, and the United States had total control of a 10-mile canal zone.

Thousands of workers began digging the canal. For ten years, thirty thousand workers, most from the West Indies, were paid 10 cents an hour for ten-hour shifts. Many died of yellow fever, a disease carried by mosquitoes. Many Americans felt Roosevelt had acted in an unconstitutional manner in obtaining the canal zone. They did not approve of the fact that the president negotiated with rebels and they felt he took advantage of the conflict going on in Panama to get what he wanted. Still, work continued. On August 15, 1914, the Panama Canal opened for business. In addition to building the canal, workers also constructed three railroads and created a man-made lake.

The project cost $400 million and was considered one of the world's greatest engineering projects. By 1925, more than five thousand merchant ships had traveled the Panama Canal. The waterway shortened the trip from San Francisco, California , to New York City by nearly 8,000 miles. Equally as important, the canal became a major military asset that made the United States the dominant power in Central America.

The Panama Canal remained an American asset until December 31, 1999, at which time it (and its surrounding land) was handed over to Panamanian authorities. During his presidency, Jimmy Carter (1924–; served 1977–81) had signed a transfer agreement. For the twenty years between the signing of the agreement and the actual transfer, a transitional committee ran the canal. An American leader led the committee during the first decade, followed by a Panamanian leader for the second. Along with the canal, Carter offered Panama his apologies and acknowledged that although Roosevelt's vision was to be praised, the feelings of American colonialism (control by one power over a dependent area or people) in Panama created controversy. The agreement Carter worked out holds that the United States can interfere in the operation of the canal if it loses its neutrality or threatens American interests in any way.