Hay-Bunau-Varilla treaty
The treated Hay-Bunau-Varilla is signed the November 18th 1903 (two weeks after the independence of Panamá with respect to the Colombia) between the French business man Philippe Bunau-Varilla and the Secretary of State John Hay. He concludes the sale from the rights of construction of the Canal of Panamá and the zone around this one.
Bunau-Varilla is a French engineer who was related to the construction of Panama Canal, then under the direction of Ferdinand de Lesseps. After the failure of the company of this last with the Scandal of Panamá, Bunau-Varilla becomes an important shareholder of the new Compagnie of the channel of Panamá which still has the concession of boring and important assets for work. In 1903, the engineer goes to Washington and New York to negotiate with members of the government of the United States, of which the Secretary of State, John Hay.
By this treaty, the United States buys the concession, the actions and the assets of the new Company of the channel of Panamá for 40 million dollars.
Called “the treaty which no Panamanian signed”, the treaty is finally accepted by the Panamá. Against a payment of 10 million dollars and an annual rent of 250.000 USD, Panamá leaves in the United States rights to perpetuity on the broad canal zone the 5 miles on each side of the layout of the channel.
However, of many disputes took place in the years 1970 as for the American property on the channel. Negotiations led to the signature the September 7th 1977 of the treaty of Torrijos-Casing by Jimmy Carter and Omar Torrijos: it led to the complete control of the channel by Panamá the December 31st 1999. The channel is now directed by the Autorité of the channel of Panamá.