The history of the Panama Canal begins in the 1880's when the Clayton-Bulwer treaty was signed on April 19,1880. This treaty between the United States and Great Britain stated that neither country could excavate in the Colombian area. At the time prospecting for Colombian oil was the key issue. On February 5, 1900 the Hay-Pauncefote treaty was brought forward. This treaty renounced British rights to joint construction and ownership of a canal, and was rejected when the treaty reached the British Parliament.
             In November 1901, the second Hay-Pauncefote treaty was signed by both the United States and Great Britain. By Britain signing the treaty, this allowed the United States to dig and maintain a canal in panama. On January 23,1903, the Hay-Heran treaty was signed between Colombia and the United States. This treaty allowed the United States to start construction on the canal, but the Colombia Senate didn't immediately ratify the treaty.
             The Hay-Bunua-Varilla treaty between the United States and the new government of Panama was signed on November 18,1903. This treaty gave the United States a canal zone with five miles on each side of the canal. The ten million dollars gave the United States the right of the zone, with a 250 thousand dollar yearly payment.
             The ratification of the Hay-Bunua-Varilla treaty took longer than the United States expected. The eleven-year wait caused the expense of the canal to go up to twenty five million dollars. Then later Colombia didn't want to give up the five miles on each side of the canal. Without the five miles on each side of the canal the United States couldn't put in the proper transportation for the building of the canal. On September 2,1914 the Colombian government gave the Canal Zone for the cost of thirty five thousand dollars. Finally after twenty years of negotiating the United States was allowed construct a canal thro...