The United States wanted to build a canal in what is now the country of Panama. We had gained the exclusive right to build a canal with the Hay-Pauncefote Treaty in 1901. We were negotiating with Colombia for permission to build a canal through a region that originally belonged to Colombia. We offered them a $10 million fee plus an annual rent of $250,000. However, Colombia refused this offer.
The people who lived in this area weren’t happy being ruled by the government of Colombia. The United States, in a behind the scenes role, encouraged these people to revolt for their freedom. When the Colombians tried to enter the area to end the rebellion, our navy wouldn’t allow this to occur. When the people revolted, the United States quickly recognized the independence of the new country of Panama. We made the same offer to Panama that we made to Colombia. Panama accepted our offer, and we began to build the canal. The Panama Canal opened in 1914
