U.S. Acquisition of the Panama Canal Zone

The U.S. secured the Canal Zone via the Hay–Bunau‑Varilla Treaty (1903), signed shortly after Panama’s independence from Colombia. Terms: $10 million upfront, $250,000 annually, perpetual rights to build, operate, and defend a 10‑mile‑wide zone. The treaty was controversial but ratified; construction began 1904, canal opened 1914. Zone transferred to Panama in 1977 under the Panama Canal Treaty, with U.S. retaining usage rights.