The Panama Canal
A Shortcut
 The late 1800s and early 1900s saw
the United States become
imperialistic. New markets and naval
bases were being created all over
the Pacific Islands and in the
Caribbean.
 For years prior to American
imperialism, discussions had taken
place about building a short cut
through Central America that would
link the Atlantic and Pacific Oceans.
 The Canal would provide a much shorter route for
merchants ships as well as naval vessels. This would
greatly benefit American trade and protection.
 It was determined that the best location for a new “canal”
would most likely be in either Nicaragua or Panama.
A Shortcut
(cont.)
 The United States decided in the early 1900’s it would
begin the process of creating a canal in Central
America.
Columbia
Problem
 It was decided that the Panama location would be the
best fit for the work that needed to be done.
 At the time, however, the Panama territory was owned
by the national of Columbia. When the United States
approached Columbia with the idea of a canal, the
response was a very quick “no”.
 When the Columbian senate voted to reject America’s
proposal of a canal, the Panamanian people revolted.
 On November 3rd, 1903, the people of Panama staged an
uprising against Columbia.
 By November 6th, U.S President Theodore Roosevelt was
Revolution in
Panama
assisting the Panamanian people in establishing a new
government.
 The Columbian government received $20 million for the
loss of the Panama territory. The pathway to build the canal
was now complete.
Construction of
the Canal

From 1903 to 1914, the United States funded the construction of the Panama Canal.

The United States would control all activity through the canal, and who could use it, until
1999.

Additionally, Panama received a $10 Million payment in 1914, and $250,000 each year as
rent for the use of the canal.

Today, roughly 14,000 ships per year pass through the Canal.