<u>Answer:</u>
Panama became hostile toward the United States because of the loss of sovereignty over the Canal Zone.
Option: (B)
<u>Explanation:</u>
- Panama became 'hostile' towards the U.S. because, there was a 'loss of sovereignty' over the 'Canal Zone'.
- Initially, the diplomatic relationship was established between the Panama and U.S. after Panama declared it's freedom from Columbia.
- The U.S. supported Panama this, and in return, Panama signed a treaty with the U.S. empowering it to act as Sovereign on the canal.
- But soon the dissatisfaction among Panama people started due to various inequalities, discrimination and most importantly due to the sovereignty.
- Riots were started, on the flowing of U.S. flags in front of the school. But then it was resolved, with a decision that neither U.S. nor Panama flag would be flown.
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