How the U.S. Got the Panama Canal: Backing a Revolution

When Diplomacy Failed, Regime Change Worked

In 1903, Colombia (which then owned Panama) rejected the Hay–Herrán Treaty granting the U.S. a canal zone. The U.S. response: orchestrate Panamanian independence.

The Sequence

1. Jan 1903: Hay–Herrán Treaty signed (US-Colombia): $10M + $250k/yr for 100-yr lease of 6-mile zone. Colombia Senate rejects (sovereignty, money).
2. Summer 1903: Panamanian separatists (led by Manuel Amador Guerrero, Philippe Bunau-Varilla) conspire with U.S. (Roosevelt, Hay, Navy).
3. Nov 3, 1903: Panama declares independence. Colombian troops sent to suppress.
4. Nov 3–6: USS Nashville blocks Colombian troop landing at Colón. U.S. cites 1846 treaty (neutrality of transit).
5. Nov 6: U.S. recognizes Panama.
6. Nov 18: Hay–Bunau-Varilla Treaty signed (Panama–US): $10M + $250k/yr (same $) for **perpetual** 10-mile zone + broader rights. Bunau-Varilla (French engineer, not Panamanian) negotiated; Panamanians furious.
7. 1904–1914: U.S. builds canal. Opens Aug 1914.

Key Players

• Theodore Roosevelt: "I took the Isthmus." Believed canal vital for naval power, commerce.
• Philippe Bunau-Varilla: French canal company lobbyist; engineered revolt; became Panama's first minister to US.
• Manuel Amador Guerrero: Panamanian leader; 1st President.
• John Hay: Sec. of State; negotiated treaties.

Consequences

• Canal built — strategic/economic triumph.
• Panama: Gained independence but with U.S.-drafted constitution, U.S. intervention rights, Canal Zone enclave (sovereignty violation).
• Colombia: Lost province; $25M paid 1921 (Thomson–Urrutia Treaty) as "closure."
• Latin America: Deepened distrust of U.S. ("Big Stick," "Dollar Diplomacy").
• 1977 Torrijos–Carter Treaties: Canal returned to Panama (1999).

Roosevelt called it "the most important action I took in foreign affairs." It was also the archetype of U.S. gunboat diplomacy in Latin America.