History of the Panama Canal
During World War II, the canal proved a vital part of the U.S. military strategy, allowing ships to transfer easily between the Atlantic and Pacific. Politically, the Canal remained a territory of the United States until 1977, when the Torrijos–Carter Treaties began the process of transferring territorial control of the Panama Canal Zone to Panama, a process completed on 31 December 1999.
Philippe Bunau-Varilla
Bunau-Varilla, as Panama's ambassador to the United States, was invested with plenipotentiary powers by President Manuel Amador. Lacking formal consent of the government of Panama, he entered into negotiations with the American Secretary of State, John Hay, to give control of the Panama Canal area to the U.S. No Panamanians signed the resulting Hay–Bunau-Varilla Treaty, though it was ratified in Panama on December 2, 1903. Bunau-Varilla had received his ambassadorship through financial assistance to the rebels, he had not lived in Panama for seventeen years, and he never returned, leading to the charge that he was "appointed Minister by cable". Panamanians long resented his betrayed trust put in him by the new Panamanian authorities. The treaty was finally undone by the Torrijos–Carter Treaties in 1977.