Instigated by a rumor that British businessmen were about to annex Panama for their own interests in 1846, a breakthrough was made in US decisionmaking over the Panama Canal. With diplomatic suavity, Benjamin Bidlack, US ambassador to Colombia (which governed Panama at the time), swiftly negotiated a treaty with the Colombians securing American rights and free access to building any future canal in the region. In return he guaranteed Colombia control of the area as well as rights of transit across the isthmus. Ironically, the issue about whether or not to accept responsibility for the initiative taken by the fast-talking Bidlack was debated in congress for nearly two more years.
This did not deter the British. Having set up trading posts on the Nicaraguan coastline, they considered an eastern terminus for a canal. This was followed up by a selection of sites on the Pacific side as well, putting the Americans very much on their guard. Once again, some swift political maneuvering was necessary as both countries looked unlikely to compromise. The result was the Clayton - Bulwar Treaty of 1850 which ensured that America and Britain would be involved in building a canal. Despite the latter's involvement, the treaty significantly increased US control over the region.
THE CLAYTON - BULWER TREATY:
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".
