The Hay–Bunau-Varilla Treaty (Spanish: Tratado Hay-Bunau Varilla) was a treaty signed on November 18, 1903, by the United States and Panama, which established the Panama Canal Zone and the subsequent construction of the Panama Canal.
Article II
The Republic of Panama grants the United States with the use of the land said canal be built, the surrounding land for construction purposes, and all islands within the limits of the zone
Terms
The treaty was negotiated in Washington, D.C. and New York City. The terms of the treaty stated that the United States was to receive rights to a canal zone which was to extend five miles on either side of the canal route in perpetuity, and Panama was to receive a payment from the U.S. up to $10 million and an annual rental payment of $250,000. Though legally, Panama never officially became a colony of the United States. Instead of full overbearing control, the Hay–Bunau-Varilla Treaty gave the United States governance only in the Canal Zone.[6]
Aftermath
This treaty was a source of conflict between Panama and the United States since its creation. The Canal Zone became a racially and socially segregated area, set aside from the country of Panama. The push for environmental determinism seemed to be the best framework to justify American practices in Panama. The conflict from the treaty reached its peak on January 9, 1964, with riots over sovereignty of the Panama Canal Zone. The riot started after a Panamanian flag was torn during conflict between Panamanian students and Canal Zone Police officers, over the right of the Panamanian flag to be flown alongside the U.S. flag. U.S. Army units became involved in suppressing the violence after the Canal Zone Police were overwhelmed. After three days of fighting, about 22 Panamanians and four U.S. soldiers were killed. This day is known in Panama as Martyrs’ Day.
The events of January 9 were considered to be a significant factor in the U.S. decision to negotiate the 1977 Torrijos–Carter Treaties, which finally abolished the Hay–Bunau-Varilla Treaty and allowed the gradual transfer of control of the Canal Zone to Panama and the handover of the full control of the Panama Canal on December 31, 1999.[7]
See Hay–Bunau-Varilla Treaty, https://en.wikipedia.org/w/index.php?title=Hay%E2%80%93Bunau-Varilla_Treaty&oldid=1056742345 (last visited Mar. 8, 2022).