The Struggle for the Canal
The French Attempt (1881–1889)
The French diplomat and Suez Canal builder Ferdinand de Lesseps began constructing a sea-level canal in 1881 — without locks, as in Suez. The project became the greatest disaster of the 19th century: Tropical diseases (malaria, yellow fever), devastating landslides, insoluble technical problems, and massive corruption cost over 22,000 lives and consumed billions of francs. In 1889, the canal company went bankrupt — the largest financial scandal in French history, ruining thousands of small investors.
Panama Gains Independence (1903)
Since 1821, Panama was part of Colombia — and Panamanians had little say over their own fate. When the Colombian Senate rejected the canal treaty with the USA (the terms were too poor), the Americans supported Panama's declaration of independence on November 3, 1903. US warships prevented Colombian troops from quashing the rebellion. In return, the USA received the Canal Zone — a 16 km wide strip across the country, which became de facto US territory. An independence under conditions whose consequences would shape Panama for a century.
The American Canal Construction (1904–1914)
Under the leadership of Colonel George Washington Goethals and doctor William Gorgas (who defeated malaria and yellow fever through systematic mosquito control), the impossible was achieved: The canal with its revolutionary lock system was opened on August 15, 1914. Instead of digging at sea level, ships were lifted 26 meters to the artificial Gatún Lake and lowered on the other side. A masterpiece of engineering — financed with the sweat and blood of over 75,000 workers, most from the Caribbean.
Return of the Canal (1999)
The Panama Canal Zone was de facto US territory until 1979: American schools, supermarkets, golf courses, and military bases in the middle of Panama. For Panamanians, a constant humiliation. On January 9, 1964 (Día de los Mártires), bloody riots broke out when Panamanian students wanted to raise the national flag in the Canal Zone — 21 Panamanians and 4 US soldiers died.
The Torrijos-Carter Treaty of 1977 arranged the gradual transfer. On December 31, 1999 at 12:00 noon, the Panama Canal fully came under Panamanian control — one of the most emotionally moving moments in the country's history. Today, the canal generates over 3 billion dollars annually for Panama.
