Panama Canal Zone

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Isthmus of Panama 24188-050-1AC7A5DB
Panama Canal relief and cross section map
PSM V74 D426 Charts of the countries contribution to the canal excavation
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Canal Zone Courthouse
Hospital Gorgas Panama

Panama Canal Zone

The Panama Canal Zone was a United States territory located within the country of Panama from 1903 to 1979. It was established through the Hay-Bunau-Varilla Treaty between the United States and Panama, allowing the United States to control a strip of land around the Panama Canal, a critical maritime route that connects the Atlantic Ocean to the Pacific Ocean. The zone was created to provide the United States with the ability to construct, administer, fortify, and defend the canal, which was considered vital for international maritime trade and military strategy.

History[edit | edit source]

The history of the Panama Canal Zone begins with the construction of the Panama Canal, which was completed in 1914 by the United States after France's unsuccessful attempt in the late 19th century. The Canal Zone encompassed approximately 553 square miles, including the canal and its immediate vicinity. The United States exercised sovereignty over this area, although Panama retained ultimate sovereignty. The presence of the Canal Zone and the control exercised by the United States were sources of tension between the two countries for many years.

In 1977, U.S. President Jimmy Carter and Panamanian leader Omar Torrijos signed the Torrijos-Carter Treaties, which agreed to return the Canal Zone to Panama. The transition was completed on December 31, 1979, although the United States continued to operate the canal until December 31, 1999, when full control was handed over to Panama.

Administration[edit | edit source]

The Panama Canal Zone was governed by the United States through an agency known as the Panama Canal Company until 1979, when control began to transition to Panama. The area had its own judicial system, police force, and other public services, including schools and healthcare facilities, primarily for the use of U.S. military personnel, canal employees, and their families.

Impact[edit | edit source]

The Panama Canal Zone had a significant impact on Panama's economy and society. While it brought economic benefits through employment and the development of infrastructure, it also fostered resentment among Panamanians over the loss of sovereignty and control over their own territory. The presence of the Canal Zone influenced Panama's politics and relations with the United States for much of the 20th century.

Legacy[edit | edit source]

The legacy of the Panama Canal Zone is complex. It is remembered as a symbol of U.S. imperialism in Latin America but also as a critical engineering project that facilitated global maritime trade. Today, the Panama Canal continues to be a vital conduit for international shipping, and the area that was once the Canal Zone has been integrated into the surrounding Panamanian provinces.


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Contributors: Prab R. Tumpati, MD