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.
Latin America–United Kingdom relations
London's interest in Central America began in the 17th century, focused first in Belize, Roatán, and the Mosquito Coast (which became the east coast of Nicaragua and Honduras). Washington's interest began in 1824 with the diplomatic recognition of the five states of Central America. Britain consolidated its hold on the Caribbean shore and an unforeseen result was a direct clash with the United States. In 1848 the U.S. saw the need a transoceanic canal, a plan reinforced by the flood of gold seekers using a Central-American transit route in 1849. One route under consideration went through Nicaragua but was frustrated by British control of the Mosquito Coast. This conflict was resolved in 1850 when the two powers agreed in the Clayton–Bulwer Treaty to renounce territorial possessions along the route of a possible canal. To prevent the domination of Pacific trade routes by the other, each agreed that any canal would be neutral and they would not acquire formal colonies on the route. In 1901 Britain renounced its claims in the Hay–Pauncefote Treaty, allowing the United States to build the Panama Canal, which opened in 1914.