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CONTROLLING THE CANAL

There was lots of uncertainty surrounding the New Year. What would happen to computers and ATM machines? Would the water work?

One certainty about January 1, 2000, was that Panama would take control of one of the most important shipping routes in the world, the Panama Canal.

Revolutionizing Travel

The Canal is a man-made passageway that links the Atlantic and Pacific Oceans.

Before the canal, boats traveling from the east would have to sail around the continent of South America to reach the Pacific Ocean, no less than 12,000 miles. The journey took several weeks.

With the new canal, boats could switch oceans in 8 hours and only 50 miles.

Construction of the canal began in the late 19th century but disease and technical difficulties stalled the project.

In 1903, Panama won its independence from Colombia, with a little help from U.S. President Teddy Roosevelt.

Later that year the U.S. and the government of Panama agreed to build the canal. The contract gave ownership of the canal to the United States.

On August 15, 1914, a ship named Ancon made the first official crossing through the Panama Canal.

Difficult Times

But in the late 1960's and 70's Panamanians begin to complain about U.S. involvement in their country. There was rioting in the streets and an angry group decided to invade the Canal Zone, skirmishing with U.S. troops.

Panamanians called on their leading general Omar Torrijos to do something. General Torrijos threatened to blow up the canal if the U.S. did not pull out. In 1977, Panama and the U.S. agreed to a meet and discuss the future of the canal.

After long and difficult talks, President Jimmy Carter and General Torrijos signed a treaty that would give the canal back to Panama on December 31, 1999.

The Panama Canal Commission was created to help the countries share responsibility over the canal for the remaining 22 years.

The treaty was hailed as a great success in Panama, but reaction was mixed in the U.S.

The military argued that giving the canal away would compromise U.S. national defenses. The canal was used by American naval ships in peacetime and war. The military worried that it wouldn't be able to use the passage freely if it was owned by someone else.

The Senate was reluctant to pass the treaty and ratified it by only one vote.

Changing Hands

Today, more than 14,000 ships make the journey through the canal each year.

In early December, former president Carter visited Panama for a transfer ceremony. Speaking in Spanish, Mr. Carter said, "A new relationship now begins between your country and mine."

Panamanian president Mireya Moscoso also spoke to the people of Panama, applauding the return of their national territory.

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