Hay–Bunau–Varilla Treaty

Hay–Bunau–Varilla Treaty In a treaty signed on 18 November 1903 and ratified on 23 February 1904, the US received perpetual control over a 10-mile-wide zone across the Isthmus of Panama, for building and fortifying a Panama Canal, in return for $10,000,000 compensation, annual fees of $250,000 starting nine years after the canal’s opening (see Hay–Herrán Convention), and US promises to protect Panama from Colombian reconquest. On 18 April 1978, the US ratified a treaty transferring canal operations in stages to Panama and handing over the canal zone by 31 December 1999.