Hay-Bunau Varilla Treaty

From Freepedia

Signed on November 18, 1903 (two weeks after Panama's independence from Colombia), Bunau-Varilla went to Washington, DC and New York City to negotiate the terms with several US officials, most prominently, Secretary of State John Hay.

The two men negotiated the terms of sale for the building of a Panama Canal and for a Panama Canal Zone surrounding the Canal. Philipe Bunau-Varilla was a Frenchman originally involved in the building of the Panama Canal under the same man that built the Suez Canal, Ferdinand de Lesseps.

After the collapse of the de Lesseps efforts to build the Panama Canal, Mr. Bunau 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 said Canal. 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 $40 million.

The Hay-Bunau-Varilla Treay is also called "The Treaty No Panamanian Signed," though Panama later agreed to the terms (under pressure from the US government) including: The United States was to receive rights to a canal zone which was to extend five miles on either side of the canal route in perpetuity; Panama was to receive a payment of $10 million and annual rental payments of $250,000.

• Clayton-Bulwer Treaty
• Hay-Pauncefote Treaty
• Hay-Herran Treaty
• John Hay
• Panama Canal