Panama Canal Zone
The Panama Canal Zone () was an unincorporated territory of the United States from 1903 to 1979, centered on the Panama Canal and surrounded by the Republic of Panama. The zone consisted of the canal and an area generally extending on each side of the centerline, excluding Panama City and Colón, which otherwise would have been partly within the limits of the Zone. Its border spanned three of Panama's provinces. When reservoirs were created to assure a steady supply of water for the locks, those lakes were included within the Zone.
History of United States foreign policy
The opening of the transcontinental railroad in 1869 made travel to California fast, cheap and safe. Americans lost interest in canals and focused their attention on building long-distance railways. The British, meanwhile, turned their attention to building the Suez Canal through Egypt. London maintained a veto on on American canal building in Nicaragua. In 1890s, the French made a major effort to build a canal through Panama, but it self-destructed through mismanagement, severe corruption, and especially the deadly disease environment. By the late 1890s Britain saw the need for much improved relations with the United States, and agreed to allow the U.S. to build a canal through either Nicaragua or Panama. The choice was Panama. The Hay–Pauncefote Treaty of 1901 replaced the Clayton–Bulwer Treaty, and adopted the rule of neutralization for the Panama Canal which the U.S. built; it opened in 1914.