The Panama Canal: A history and description of the enterprise
John Stuart Mill · en
By the Hay-Bunau-Varilla Treaty the United States guaranteed and
undertook to maintain the independence of the Republic of Panama. The
new republic granted to the United States in perpetuity the use,
occupation, and control of a strip ten miles wide and extending three
nautical miles into the sea at either terminal, with all lands lying
outside of the zone necessary for the construction of the canal, and
with the islands in the Bay of Panama. The cities of Panama and Colon
were not embraced in the canal zone, but the United States assumed their
sanitation and, in case of need, the maintenance of order therein. All
railway and canal property rights belonging to Panama and needed for the
canal passed to the United States, including any property of the railway
and canal companies in the cities of Panama and Colon. The works,
property, and personnel of the canal and railways were exempted from
taxation in the cities of Colon and Panama as well as in the actual
canal zone. Free immigration of the workers and free importation of
supplies for the construction and operation of the canal were granted.
Provision was made for the use of military force and the building of
fortifications by the United States for the protection of the transit.
The United States were to pay $10,000,000 down on exchange of
ratifications and an annuity of $250,000, beginning nine years from the
same date. It will be noticed that the United States enjoyed in the
canal zone all the rights, though not the name and title, of
sovereignty.
The treaty was finally ratified on February 26, 1904, and four days
later the first Isthmian Canal Commission, consisting of seven members,
was appointed by President Roosevelt to arrange for the conduct of the
great enterprise. Careful instructions were given to the commission. The
Isthmian Canal Commission were authorized and directed:--