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.
Hay–Bunau-Varilla Treaty
Bunau-Varilla was originally involved in the building of the Panama Canal under Ferdinand de Lesseps, 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. He had not, however, been in Panama for seventeen years, nor had he ever returned. 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.