Answer is
Colombia rejected the U.S. offer to build a canal through Panama.
-The region corresponding to Panama Channel was a geostrategic point for the United States. The justification was, from the declaration of Independence of Panama from Colombia. The American government lead by the alleged defense of world trade wanted to connect the Atlantic to the Pacific.
When the Hay Herran treaty was signed with Colombia in 1903, granting the control of the Isthmus (Actual Channel of Panama). The Colombians were to receive "financial compensation". However, they feared the loss of sovereignty in the region and retracted. From the American perspective, this was used to help the faction in Panama seeking independence.
The route of trains connecting Panama to the North of Colombia came to be controlled by US forces, as Colombian saw American troops in the border marching to Panama they demotivated. A war navy came close in Nashville.
The United States gave recognition to the Republic of Panama where it was granted full possession and exclusivity in the administration of the water channel.
