Hay–Bunau-Varilla Treaty
Washington, D.C., USA
What happened
US Secretary of State John Hay and Philippe Bunau-Varilla, a Frenchman acting for newly independent Panama, signed the treaty. The United States wanted to build a canal across Panama. The treaty gave the US control of a Canal Zone stretching about five miles on each side of the canal. Panama received $10 million and a yearly rent.
Why it matters
Why it matters: It made the Panama Canal possible. It also caused long resentment in Panama over US control of the zone.
What came next
Riots over flying the Panamanian flag broke out in 1964. The 1977 Torrijos–Carter Treaties ended the arrangement, and Panama took full control of the canal on 31 December 1999.
Did you know?
Bunau-Varilla was made Panama's ambassador although he was not Panamanian and had not been there for seventeen years.
Timeline
- 18 November 1903The treaty is signed and the Canal Zone created.
- January 1964Flag riots in the Canal Zone.
- 1 October 1979The Canal Zone ceases to exist.
- 31 December 1999Panama takes full control of the canal.