Hay-Bunau Varilla Treaty
Encyclopedia
The Hay–Bunau-Varilla Treaty was a treaty signed on November 18, 1903, by the United States
and Panama
, that established the Panama Canal Zone
and the subsequent construction of the Panama Canal
. It was named after its two primary negotiators, Phillipe Bunau-Varilla, the French diplomatic representative of Panama, and United States Secretary of State
John Hay
.
, who had built the Suez Canal
. After the collapse of the de Lesseps efforts to build the Panama Canal, Bunau-Varilla became an important shareholder of the Compagnie Nouvelle du Canal de Panama, which still had the concession, as well as certain valuable assets, for the building of a canal in Panama. Although not Panamanian himself, Bunau-Varilla had provided financial assistance to the rebel side in Panama's independence from Colombia
, which occurred two weeks prior to the signing of the treaty. However, he had not been in Panama for seventeen years, and he never returned either. As part of the Hay–Bunau-Varilla negotiations, the U.S. bought the shares and assets of the Compagnie Nouvelle du Canal de Panama for US$40 million.
and New York City
. The terms of the treaty stated that the United States was to receive rights to a canal zone which was to extend six miles on either side of the canal route in perpetuity, and Panama was to receive a payment from US up to $10 million and an annual rental payment of $250,000.
s over sovereignty
of the Panama Canal Zone. The riot started after a Panamanian flag was torn during conflict between Panamanian students and Canal Zone Police officers, over the right of the Panamanian flag to be flown alongside the U.S. flag. U.S. Army
units became involved in suppressing the violence after the Canal Zone Police were overwhelmed. After three days of fighting, about 22 Panamanians and four U.S. soldiers were killed. This day is known in Panama as Martyrs' Day.
The events of January 9 were considered to be a significant factor in the U.S. decision to negotiate the 1977 Torrijos-Carter Treaties
, which finally abolished the Hay–Bunau-Varilla Treaty and allowed the gradual transfer of control of the Canal Zone to Panama and the handover of the full control of the Panama Canal on December 31, 1999.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
, that established the Panama Canal Zone
Panama Canal Zone
The Panama Canal Zone was a unorganized U.S. territory located within the Republic of Panama, consisting of the Panama Canal and an area generally extending 5 miles on each side of the centerline, but excluding Panama City and Colón, which otherwise would have been partly within the limits of...
and the subsequent construction of the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...
. It was named after its two primary negotiators, Phillipe Bunau-Varilla, the French diplomatic representative of Panama, and United States Secretary of State
United States Secretary of State
The United States Secretary of State is the head of the United States Department of State, concerned with foreign affairs. The Secretary is a member of the Cabinet and the highest-ranking cabinet secretary both in line of succession and order of precedence...
John Hay
John Hay
John Milton Hay was an American statesman, diplomat, author, journalist, and private secretary and assistant to Abraham Lincoln.-Early life:...
.
Background
Bunau-Varilla was originally involved in the building of the Panama Canal under Ferdinand de LessepsFerdinand de Lesseps
Ferdinand Marie, Vicomte de Lesseps, GCSI was the French developer of the Suez Canal, which joined the Mediterranean and Red Seas in 1869, and substantially reduced sailing distances and times between the West and the East.He attempted to repeat this success with an effort to build a sea-level...
, who had built the Suez Canal
Suez Canal
The Suez Canal , also known by the nickname "The Highway to India", is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea and the Red Sea. Opened in November 1869 after 10 years of construction work, it allows water transportation between Europe and Asia without navigation...
. After the collapse of the de Lesseps efforts to build the Panama Canal, Bunau-Varilla became an important shareholder of the Compagnie Nouvelle du Canal de Panama, which still had the concession, as well as certain valuable assets, for the building of a canal in Panama. Although not Panamanian himself, Bunau-Varilla had provided financial assistance to the rebel side in Panama's independence from Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, which occurred two weeks prior to the signing of the treaty. However, he had not been in Panama for seventeen years, and he never returned either. As part of the Hay–Bunau-Varilla negotiations, the U.S. bought the shares and assets of the Compagnie Nouvelle du Canal de Panama for US$40 million.
Terms
The treaty was negotiated in Washington, D.C.Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
and New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. The terms of the treaty stated that the United States was to receive rights to a canal zone which was to extend six miles on either side of the canal route in perpetuity, and Panama was to receive a payment from US up to $10 million and an annual rental payment of $250,000.
Aftermath
This treaty was a source of conflict between Panama and the United States since its creation, that reached its peak on the January 9, 1964, with riotRiot
A riot is a form of civil disorder characterized often by what is thought of as disorganized groups lashing out in a sudden and intense rash of violence against authority, property or people. While individuals may attempt to lead or control a riot, riots are thought to be typically chaotic and...
s over sovereignty
Sovereignty
Sovereignty is the quality of having supreme, independent authority over a geographic area, such as a territory. It can be found in a power to rule and make law that rests on a political fact for which no purely legal explanation can be provided...
of the Panama Canal Zone. The riot started after a Panamanian flag was torn during conflict between Panamanian students and Canal Zone Police officers, over the right of the Panamanian flag to be flown alongside the U.S. flag. U.S. Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
units became involved in suppressing the violence after the Canal Zone Police were overwhelmed. After three days of fighting, about 22 Panamanians and four U.S. soldiers were killed. This day is known in Panama as Martyrs' Day.
The events of January 9 were considered to be a significant factor in the U.S. decision to negotiate the 1977 Torrijos-Carter Treaties
Torrijos-Carter Treaties
The Torrijos–Carter Treaties are two treaties signed by the United States and Panama in Washington, D.C., on September 7, 1977, which abrogated the Hay-Bunau Varilla Treaty of 1903...
, which finally abolished the Hay–Bunau-Varilla Treaty and allowed the gradual transfer of control of the Canal Zone to Panama and the handover of the full control of the Panama Canal on December 31, 1999.
Further reading
- Mellander, Gustavo A.; Nelly Maldonado Mellander (1999). Charles Edward Magoon: The Panama Years. Río Piedras, Puerto Rico: Editorial Plaza Mayor. ISBN 1563281554. OCLC 42970390.
- Mellander, Gustavo A. (1971). The United States in Panamanian Politics: The Intriguing Formative Years. Danville, Ill.: Interstate Publishers. OCLC 138568.