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.
History of Panama
On September 7, 1977, the Torrijos–Carter Treaties were signed by the Panamanian head of state Omar Torrijos and US President Jimmy Carter for the complete transfer of the Canal and the 14 US army bases from the US to Panama by 1999. These treaties also granted the US a perpetual right of military intervention. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the intervening years.