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Torrijos–Carter Treaties

1977 treaties transferring the Panama Canal from the U.S. to Panama after 1999

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Through Treaty, United Nations Security Council and Cold War

This first treaty is officially titled The Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal (Spanish: Tratado Concerniente a la Neutralidad Permanente y Funcionamiento del Canal de Panamá) and is commonly known as the "Neutrality Treaty". Under this treaty, the U.S. retained the permanent right to defend the canal from any threat that might interfere with its continued neutral service to ships of all nations. The second treaty is titled The Panama Canal Treaty (Tratado del Canal de Panamá), and provided that as from 12:00 on December 31, 1999, Panama would assume full control of canal operations and become primarily responsible for its defense.

History

Panamanian efforts to renegotiate the original Hay–Bunau-Varilla Treaty had been ongoing almost since it was first signed in November 1903, a few weeks after Panama obtained its independence from Colombia. However, activity to renegotiate or abrogate the treaty increased considerably after the Suez Crisis, and events in 1964 precipitated a complete breakdown in relations between the U.S. and Panama.

On January 9 of that year, Panamanian students entered the canal zone to fly the Panamanian flag next to the American flag, per a 1963 agreement to defuse tension between the two countries. Panamanians watching the event began rioting after the students raising the Panamanian flag were jeered and harassed by American school officials, students, and their parents. During the scuffle, somehow the Panamanian flag was torn. Widespread rioting ensued, during which over 20 Panamanians were killed and about 500 were injured. Most of the casualties were caused by fire from U.S. troops, who had been called in to protect Canal Zone property, including private residences of Canal Zone employees. January 9 is a National Holiday in Panama, known as Martyrs' Day.

The next day, January 10, Panama broke off diplomatic relations with the United States and on January 19, President of Panama Roberto Chiari declared that Panama would not re-establish diplomatic ties with the United States until the U.S. agreed to begin negotiations on a new treaty. The first steps in that direction were taken on April 3, 1964, when both countries agreed to an immediate resumption of diplomatic relations and the United States agreed to adopt procedures for the "elimination of the causes of conflict between the two countries". A few weeks later, Robert B. Anderson, President Lyndon Johnson's special representative, flew to Panama to pave the way for future talks. Negotiations over the next years resulted in a treaty in 1967, but it failed to be ratified in Panama.

After the failure of those treaties, Panama experienced a change in government following a 1968 military coup. The new government was consolidated under Omar Torrijos, who decided to definitively reject the 1967 treaty. In response to a lack of progress of negotiations with the Nixon administration, the Torrijos government succeeded in holding a March 1973 United Nations Security Council session in Panama City, where it attracted considerable international support for its cause. The diplomatic debacle also attracted Henry Kissinger's attention and helped produce momentum for the 1974 Tack-Kissinger agreement, which would provide the crucial framework for negotiations moving forward. "It was this work, beginning in late 1972, that made Panama the visible issue that Carter boldly hoped to solve as a watershed for a new style of foreign policy and an era of improved relations with Latin America."

Meanwhile, with the climate of the Cold War, in 1971 the US handed over the Swan Islands (located in the Caribbean Sea) to Honduras after signing the Treaty of the Swan Islands. Honduras began exercising this sovereignty on September 1, 1972. In addition, the US handed over the town of Río Rico to Mexico in 1977 under the Boundary Treaty of 1970. The aim of these agreements was to increase their influence in Central America and diminish that of the Soviet Union, which already had an important ally in the region in the form of Cuba, whose revolutionary ideals seemed to be spreading across the continent.

The Carter administration made the canal a high priority, starting during the transition. The issue had been highlighted by a blue-ribbon commission headed by Ambassador Sol Linowitz. Several individuals associated with that commission would play major roles in the Carter administration's Latin America policy, including Linowitz himself and NSC Senior Director Robert A. Pastor. Negotiations were resumed on February 15, 1977, and were completed by August 10 of that year. On the American side the negotiators were Ellsworth Bunker and Sol Linowitz; the Panamanian side of the negotiations was headed by Rómulo Escobar Bethancourt. Senator Dennis DeConcini sponsored a critical amendment to the Panama Canal Treaty that allowed the Senate to come to a consensus on giving control of the Canal to Panama. A few days before final agreement on the treaties was reached, President Carter had sent a telegram to all members of Congress informing them of the status of the negotiations and asking them to withhold judgment on the treaty until they had an opportunity to carefully study it. Senator Strom Thurmond responded to Carter's appeal by stating in a speech later that day, "The canal is ours, we bought and we paid for it and we should keep it."

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