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.
United States nationality law
The law contains one other section of historical note, concerning the Panama Canal Zone and the nation of Panama. In , the law states that anyone born in the Canal Zone or in Panama itself, on or after February 26, 1904, to a mother or father who is a United States citizen, was "declared" to be a United States citizen at birth.