The United States began its effort to build the Panama Canal with the signing of a contract with the brand new Republic of Panama on November 18, 1903, just 15 days after Panama gained its independence from Colombia. Before that time, the original French Canal Company had failed in its attempt to dig the new canal. A second company, called the New French Canal Company tried to pick up where the other had left off, and failed also.
Through a lot of behind-the-scenes negotiations between a leader of that New French Canal Company and officials of the U.S., the U.S. signed a contract treaty with Panama to build the Canal. Panamanians always have said that their Government did not sign the contract, and that is precisely so. But they did accept $10 million from the U.S. to start their treasury as if they were all in agreement with the wording and the signing of the contract. That actual signature for Panama was made by a self-declared representative of Panama, the leader of the New French Canal Company. Complicated, no less, but it did last until 1977 when President Jimmy Carter agreed with General Omar Torrijos in Panama that the U.S. should return the Canal lock-stock-and barrel to Panama. That treaty resulted in the Panama Canal turnover to Panama from the U.S. on December 31, 1999. Panama now is solely responsible for everything that has to do with the Panama Canal, including its security. There are no Americans officially left in Panama representing the U.S. including military troops.
When John Stevens was appointed the Chief Engineer for the building of the Panama Canal, his review of the situation led him to issue orders that before any building was to start, that his people would clean up Panama, which he described as a filthy cesspool of diseases and other health issues that were yet to be dealt with by either of the major construction efforts prior to his time, the building of the Panama Railroad, and the French attempt to build the Canal. Each of those efforts had lost over 25, 000 people each to death from all this mess. Places to bury the dead had become scarce. John Stevens was apalled by this.
Malaria and Yellow Fever, two of the major disease killers was not yet stopped. Stevens put the two men who had made the discovery of those two diseases, the mosquito, to work to eradicate this problem in the Panama Canal Zone. That first year of the Americans being in Panama to build the Canal was almost all used up in rebuilding Panama, new streets, sewer system, water systems, sewage control on the streets, electrical systems installed.
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