In 1899 the United States Congress created an Isthmian Canal Commission to examine the possibilities of building a canal and to find the best route. First they thought cutting across Nicaragua would be the best place for the canal, but later changed their minds and put it in Panama. Before the United States could begin the project Panama and the United States had to sign the Hay-Bunau Varilla treaty authorized by Philippe Bunau-Varilla. Phillpe was a French citizen and an official of the French canal company. The treaty gave the United States a lease on a section of Panama, known as the Canal Zone, for the construction site of the canal, gave the right to take over the land if necessary, and the right to use troops to intervene in Panama if needed. The agreement gave the United States more than they needed or expected. Panama in exchange received their independence for ten million dollars, plus a payment of two hundred fifty thousand dollars annually.

1. Officially opened August 15, 1914

The United States having control of Panama created much tension. On September 1, 1977 President Carter signed a treaty to help demolish the conflicts. The treaty called for a step-by-step transfer of the canal and Canal Zone to the government of Panama. The transfer would begin on October 1, 1979 and would end on December 31, 1999. A government agency was set up following the treaty to oversee the transfer. The agency was called the Panama Can

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