Panama Canal
France began work on the canal in 1881, but stopped due to engineering problems and a high worker mortality rate. The United States took over the project in 1904 and opened the canal on August 15, 1914. One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut greatly reduced the time for ships to travel between the Atlantic and Pacific Oceans, enabling them to avoid the lengthy, hazardous Cape Horn route around the southernmost tip of South America via the Drake Passage or Strait of Magellan.
Panama during World War II
The history of Panama during World War II begins in 1939. Due to the American-controlled Panama Canal cutting across the center of the country, Panama was of major strategic importance to the Allied war effort, as well as the most important strategic location in Latin America during World War II. It provided an invaluable link between the Atlantic and Pacific Oceans that was vital to both commerce and the defense of the Western Hemisphere. Therefore, the defense of the Canal Zone was the United States' chief concern in the American Theater. Panama never received Lend-Lease assistance, but in return for the rights to build military infrastructure within Panamanian territory, the United States undertook large-scale public works projects, which did much to modernize the country and boost the economy.