With the opening of the Union Pacific Railroad in 1869, the fortunes of the Panamian Railroad Company declined, but in 1881 Ferdinand de Lesseps and the French Canal Company, fresh from their triumph in building the Suez Canal, bought the Panamian Railroad to facilitate the construction of a transithmian canal. This move was viewed with mistrust by the United States which saw Panama as part of its backyard. In 1902 Congress authorised President Theodore Roosevelt to spend $40m to obtain rights held by the French New Panama Canal Company for building a canal. In 1903 Roosevelt concluded the Hay-Herrán Treaty with Colombia to cede the necessary land, but the Colombian senate withheld ratification to secure better terms. Thereupon the U…
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Citation: Editors, Litencyc. "Panama secedes from Colombia, canal works begin". The Literary Encyclopedia. First published 26 May 2008 [https://staging.litencyc.com/php/stopics.php?rec=true&UID=810, accessed 23 November 2024.]