|[L2 201]1501 Spanish explorer, Rodrigo de Bastidas, first lands in the [G 06 / isthmus] area in search of treasure.
|[L2 202]1510-1513 After de Bastidas returns to Spain, a crew member from his ship, Vasco Nunez de Balboa chooses to stay and in 1513 is the first European ever to see the Pacific Ocean.
|[L2 203]1519 Pedrarias the Cruel founds the City of Panama.
|1572-1596 Hearing of Panama's vast but vulnerable wealth, the country's prosperity and success is disrupted when the infamous English pirate, Sir Francis Drake, decides to anchor off the coast of the Spanish colony. He and his men terrorize the Spanish with their constant raids on the area and manage to amass a fortune from looted treasure. He is knighted by Queen Elizabeth I for his bravery. In 1596 Drake dies of fever, caught while waiting to raid Spanish galleons anchored off the coast of Panama.
|[L2 204]1673-1823 The inhabitants rebuild what is now the present Panama City many miles west of the old destroyed city, but its sinks into insignificance following the demise of the Spanish empire. In 1800 British [G 04 / expansionism] is at its pinnacle, but their ideas of colonizing [G 07 / Latin America] are threatened by another growing empire, the United States.
|[L2 205]1825-1845 Americans become involved in the [G 06 / isthmus] region for the first time. Building a canal becomes a major issue, both economically and politically, as gold is discovered in California.
|[L2 901]1846-1850 British businessmen plan on annexing Panama. The Clayton - Bulwer Treaty is signed between Britain and the US to ensure that both countries are involved in building a canal.
|[L2 207]1851-1855 Building of the Panama Railroad, financed by New York businessmen, links Panama City to the Atlantic side of the isthmus.
First ever American troops land in Panama to resolve the 'Watermelon War.'
|[L2 902]1878-1889 Ferdinand de Lesseps, of Suez Canal fame, announces his plans to construct a similar canal in Panama, threatening US claims on the region. The New Panama Canal Company (NPCC) is formed to facilitate his project. De Lesseps' canal fails amid controversy and scandal.
|1893-1898 In 1893 expatriate planters in Hawaii rise up and seize power from the locals. The US annexes the islands and the American government uses them as a military base to protect interests in the Pacific, particularly the Canal Zone. America also defeats the Spanish in the [G 15 / Spanish - American War] of 1898 and moves forward as a leading world power.
De Lesseps' failure to construct a canal rejuvenates American interest in building one themselves.
|[L2 103]1900-1901 US and British diplomats negotiate another treaty that gives the Americans the sole right of building, controlling and fortifying the canal and surrounding area. It becomes known as the Hay - Paunceforte Treaty.
|[L2 209]1901 Theodore Roosevelt becomes the 26th president of the United States.
Indecision in the US Senate over whether to build the canal in Panama or Nicaragua. William Nelson Cromwell, the NPCC's American agent, becomes entirely responsible for the final decision of choosing Panama.
|[L2 210]1901-1903 Phillipe Bunau-Varilla, chief engineer on the de Lesseps project, becomes a central figure in the building of the canal following price negotiations over the NPCC between the French and Americans. In 1903 the US, with the help of Bunau-Varilla, precipitate a revolution in Panama.
|1902 The [G 16 / Spooner Amendment] is passed in the Senate instructing Roosevelt to purchase the NPCC claims for US$40 million.
|1902 Colombian nationalists exiled in Nicaragua rise up against the [G 01 / Bogota regime] in the [G 19 / War of the Thousand Days]. American assistance is necessary to resolve the conflict which strengthens its hold over the region. Panamanian nationalism becomes ever stronger after the war.
|[L2 104]1903 A treaty is drawn up in Washington (which would eventually be called the Hay - Bunau-Varilla Treaty) giving the US a 99-year-old lease over the Canal Zone in return for $10 million and an annual fee of $250,000. Secretary of State Hay convinces the Colombian ambassador to sign the treaty, but it is rejected by the Bogota government for want of more money.
|[L2 211]1903 The Hay - Bunau-Varilla Treaty is signed between Panama and the US granting the latter sole rights in operating and controlling the Canal Zone, as well as the building of the canal.
|[L2 105]1904 The Isthmian Canal Commission (ICC) is set up by Roosevelt.
|[L2 301]1904 The NPCC sells its holdings to the US and plans for construction of the canal get underway.
|1905 John Frank Stevens is employed by President Roosevelt as chief engineer and chairman of the ICC.
|[L2 302]1905 Dr William C Gorgas begins his two-year plan to rid the Canal Zone of disease and turn the area into a healthy and clean place to live.
|[L2 303]1907 Stevens resigns following ongoing criticism from Washington as well as suffering from sheer exhaustion. Colonel George Goethals takes over and completes the building of the canal one year ahead of schedule.
|[L2 304]1909 The difficult task of building the locks begins.
|[L2 305]1910 Gatun Lake, the key to the canal's success, is created.
|[L2 306]1914 The Panama Canal is finally operational and officially opens to commerce. In January the first ship makes a complete journey through it.
|1924 Over 5,000 ocean-going ships pass through the canal.
|1936 The US government increases annual payment to Panama for use of the canal from $250,000 to $430,000 following the devaluation of the US dollar.
|1955 A treaty is signed between the US and Panama restricting post exchanges and US commissaries only to people residing in the Canal Zone after local tradesmen complain bitterly of losing business to the Americans.
|[L2 212]1963 Rioting breaks out after Panamanians demand that their country's flag, instead of the US flag, be flown in the Canal Zone.
|1964 On January 7 American students at Balboa High School in the Canal Zone decide to raise the US flag only, precipitating three days of Panamanian rioting. American troops intervene which results in heavy casualties, some of the worst in Panamanian history. In retaliation, Panama breaks off diplomatic relations with the US. Relations, however, are resumed four months later. Towards the end of the year, the US state their intention of drawing up a new treaty, giving more control of the Canal Zone to Panama.
|1974 An agreement is reached between the US and Panama about the final negotiations for a new treaty.
|[L2 903]1978 The Panama Canal Treaty of 1977 is signed. Nevertheless, Panamanian students riot on the streets in protest to continued US occupation. Strong opposition to the treaty is also expressed in the US. Despite this, the treaty is signed after approval by both the Panamanians and the US Senate.
|1989 On December 20, US troops invade Panama to overthrow General Manuel Noriega. For the first time in the canal's history it is closed for a day to avoid damage to commercial ships.
