The Hay–Bunau-Varilla Treaty

The Hay–Bunau-Varilla Treaty, a pivotal moment in the history of the United States and Panama, was signed on November 18, 1903. This treaty not only represented a significant diplomatic achievement for the U.S. but also laid the foundation for a century-long influence in Central America.

At the dawn of the 20th century, the United States was emerging as a major global power. The Spanish-American War had just concluded, expanding American influence into the Caribbean and the Pacific. However, one major obstacle to American dominance in global trade and military strategy was the lack of a quick maritime route between the Atlantic and Pacific Oceans. The solution? A canal through the narrow isthmus of Panama.

Panama, then a province of Colombia, was strategically ideal for such a canal. The United States, under the leadership of President Theodore Roosevelt, sought to negotiate with Colombia for the rights to build and control this canal. However, negotiations faltered, and Colombia rejected the U.S. terms. This impasse led the U.S. to support a Panamanian independence movement, which quickly succeeded.

Enter the Hay–Bunau-Varilla Treaty, named after U.S. Secretary of State John Hay and French engineer Philippe-Jean Bunau-Varilla, who was a key figure in the Panamanian independence movement and the de facto Panamanian ambassador to the United States. This treaty granted the United States perpetual control over a ten-mile-wide strip of land, the Panama Canal Zone, where the U.S. could build and operate a canal. In return, Panama received guarantees of independence and a payment of $10 million and an annual rent.

From the U.S. perspective, this treaty was a necessity for several reasons. Economically, a canal through Panama promised to revolutionize global trade by significantly shortening maritime routes, thereby reducing costs and time. Militarily, it offered the U.S. Navy the ability to quickly move ships between the two oceans, a strategic advantage of immense value.

Moreover, the treaty and the subsequent construction of the Panama Canal symbolized American ingenuity, determination, and emergence as a global engineering power. The canal itself, completed in 1914, stood as a testament to American engineering prowess and the nation’s willingness to undertake monumental projects to achieve its strategic and economic goals.

However, the treaty also attracted criticism and controversy. Critics argued that the U.S.’s support for Panamanian independence was a form of gunboat diplomacy and an overreach of American influence in Latin America. This event sowed seeds of long-term resentment in the region and contributed to the complex relationship between the United States and Latin American countries throughout the 20th century.

The Hay–Bunau-Varilla Treaty was a cornerstone in American foreign policy, reflecting the country’s economic ambitions, strategic foresight, and the complexities of its growing influence on the global stage. The treaty and the Panama Canal reshaped global trade and military strategy, signifying the United States’ emergence as a predominant power in the Western Hemisphere and beyond.