The Clayton - Bulwer Treaty of 1850 ensured that both the United States and Britain "would cooperate in the building of a canal in the [G 06 / isthmus], and neither country would independently attempt to fortify or control it."
THE NEW PANAMA CANAL COMPANY:
The New Panama Canal Company (Compagnie Nouvelle du Canal de Panama) was formed in 1894 following the collapse of its predecessor, the Compagnie Universelle du Canal Interoceanique (CUCI). The latter was created by Ferdinand de Lesseps, who had been supported by many French financiers after his success with the Suez Canal. Following de Lesseps' failure to build a canal in Panama, the CUCI went into liquidation in 1889 amid accusations of [G 14 / skulduggery] and fraud. In order to revamp the company's image and restore confidence amongst investors, it was reconstituted as the New Panama Canal Company (NPCC).
The Hay - Bunau-Varilla Treaty of 1903 between the US and Panama dashed French hopes of ever building the Panama Canal. Granting America full rights for any future canal building, the French had no choice but to reluctantly sell their holdings in the NPCC to the US in 1904. To add insult to injury the French were persuaded in 1901 to drop the price of their company down to $40 million from $109 million. This was accomplished by a clever attorney named Cromwell who worked for the Panama Railroad (whose majority ownership was held by the NPCC). It took only three years for the French to capitulate and by 1904, the NPCC had become American property.
When President Roosevelt implemented plans for the actual building of the canal, the NPCC came under a new umbrella known as the Isthmian Canal Commission, which was completely controlled and run by the US government.
THE HAY - PAUNCEFOTE TREATY OF 1900:
Initiated by Secretary of State Hay and Lord Pauncefote, then British ambassador to the US, this treaty stated that the Americans could build a canal and control the zone area, but could not fortify it. In 1900, the Senate, being strongly led by Vice-President Theodore Roosevelt, rejected the treaty and insisted on it incorporating fortification as well. In due course, the Hay - Pauncefote Treaty was changed, giving the US full control and at the same time, whittling Britain's involvement down to nothing. It basically violated everything that had been agreed upon in the Clayton - Bulwer Treaty of 1850 and led to the signing of the Hay - Bunau-Varilla Treaty between America and Panama in 1903.
THE HAY - BUNAU-VARILLA TREATY
The Hay - Bunau-Varilla Treaty of 1903 between the US and Panama gave America full rights to any future canal building in the region. Set up by Philippe Bunau-Varilla (who represented the new independent Panama), President Roosevelt and Secretary of State Hay, it in fact was an agreement that violated all Panamanian conditions and would in the long term be the cause of the enormous misunderstanding experienced between the two countries throughout the 20th century.
The treaty gave America "all the rights, power and authority within the zone, which the United States would possess and exercise if it were the sovereign of the territory within which said lands and waters are located to the entire exclusion of the exercise by the Republic of Panama of any sovereign rights, power and authority." The US hold over Panama as a result of this treaty became known as [G 18 / titular sovereignty], but Panamanians would much later refer to it as "the treaty that no Panamanian signed."
Control over the canal area also came cheap. America was obliged to pay Panama $10 million plus $250,000 per annum, which was a minute amount considering the profits the canal would eventually bring in. The Panamanians had relied on the US to gain their independence from Colombia, but were unaware of the deception that would follow which left them in a hopeless no-win situation. They were powerless to protest at the time, but the unfairness of the treaty eventually led to the anti-US skirmishes many years later.
THE ISTHMIAN CANAL COMMISSION:
After purchasing the New Panama Canal Company from the French and claiming the rights to build the canal, the Isthmian Canal Commission (ICC) was created by President Theodore Roosevelt under the umbrella of the United States War Department. The ICC was initially headed by John G Walker to whom the Chief Engineer, first John F Wallace and then John F Stevens, reported. Following Stevens' resignation, George Goethals became Chief Engineer, the first to hold positions of Chairman - ICC and President - Panama Railroad. Everything to do with the Canal Zone and the construction of the canal itself, from postal services, hospitals, schools and business concerns to construction equipment, labor disputes and protection, came under the ICC. Goethals reported directly to the Secretary of War, Taft, who in turn reported to Theodore Roosevelt.
THE PANAMA CANAL TREATY OF 1977:
In 1977, following serious anti-US riots in Panama City, an agreement was made between the two countries to draw up a new treaty giving Panama more control over the Canal Zone which had been under American supervision since 1904. The Panama Canal Treaty of 1977 stated that Panama would gain increasing responsibility for the running of the canal and the Canal Zone, and would eventually take it over completely from the US in 1999.
FIGURES:
THE CANAL:
The [I 001 / Panama Canal] is 51 miles long.
The overall cost of the canal was $375 million in 1914.
Initially the Gaillard Cut was 300 feet wide, but was later widened to [P 009 / 500 feet]. The cut is currently being widened further.
Gatun Lake is 163 square miles in area.
To change from a lock system to a sea level canal would cost over $2.3 billion today.
THE [V 002 / CONSTRUCTION]:
During construction, some 100 steam shovels doing the work for over 10,000 men dug up earth in 10-ton scoopfuls.
About 239 million cubic yards of earth were moved.
Over 40,000 pounds of dynamite were used for [V 007 / blasting] mountains in the Continental Divide.
THE [V 005 / LOCKS]:
There are 12 locks/ chambers.
Over 4.4 million cubic yards of concrete were used to build the 12 chambers.
Each lock holds 8,800,000 cubic feet of water.
Miraflores Locks has the tallest sea gates (82 ft) because of the great variation in Pacific tides. Miraflores has two sets of chambers, Pedro Miguel Locks has one set, but Gatun Locks has three sets.
For a single ship, 52 million gallons of water are let out into the sea each lockage.
THE OPERATIONS:
Every day, 32 ships [V 003 / pass through the canal] on average, each costing over $28,000 a trip. Very large vessels, however, can cost much more. The current record for the largest toll ever paid was $128,320.41, held by the `Regal Princess,' which passed through the canal on April 23, 1992. The smallest toll paid was Mr Richard Halliburton, who paid 36 cents to swim the canal in the 1920s.
A canal transit averages between eight and 10 hours.
Vessels from 70 different countries use the canal.
The United States is the biggest user of the canal.
An average of 140 million tons of cargo pass through the canal each year.
