why did us given the panama canal back?

Question

panama canal is very profitable and there must be some downsides if us did not want to keep something that generated huge profit

Answer 1

Iaian is mistaken -- the original treaty under which the Panama Canal was dug gave the U.S. rights to administer it "in perpetuity" NOT for a specified length of time.

Text of that 1903 treaty (Hay-Bunau-Varilla Treaty)
http://www.yale.edu/lawweb/avalon/diplomacy/panama/pan001.htm


But beginning in the 1960s there was agitation by Panamians, including riots, to get back control of that part of their country. This led to U.N. resolutions and U.S.-Panama negotiations. After this process was interrupted by Watergate, Jimmy Carter took office in 1977 and made a new Panama Canal treaty a top priority. The treaty was completed later that year and, after ratification, began to be put into effect in 1979.

The Panama Canal Treaty of 1977 (actually a pair of treaties, also known as the "Torrijos-Carter Treaties") specifically overrides all earler treaties governing the canal zone (as specified in the text -- see http://www.state.gov/p/wha/rlnks/11936.htm)
http://en.wikipedia.org/wiki/Torrijos-Carter_Treaties

There was actually considerable opposition among American conservatives to the new treaty and an effort to prevent its ratification. The chief objection was the concern that it would fall into unfriendly hands, esp. if the Panamanian government itself fell into the wrong hands (as it did, for instance, under strongman Noreiga for a time).

Answer 2

The Constitution. Yes, with 1977 Torrijos-Carter Treaties, Carter did give away the Canal Zone, which had been negotiated and agreed upon, with the 1903 Hay-Bunau Varilla Treaty, with which, among other things, the United States was to receive rights to a canal zone which was to extend six miles on either side of the canal route in PERPETUITY; Panama was to receive a payment from US up to $10 million and an annual rental payments of $250,000. Carter is the one that caused it to be a lease with an end term date. The problem with the answers that discuss, or claim, a 99 year lease is typical left revisionism. The Hay-Herran Treaty was signed in January of 1903, and would have set a 99 year lease... but, columbia never ratified it... In November of 1903, PANAMA was "born", and in that same month, the Hay-Bunau Varilla Treaty was signed, and ratified by Panama... and did NOT contain the 99 year lease, but a lease into perpetuity... Therefore, the "LEASE" was NOT up when Carter gave away the Canal... even with a 99 year Lease, it would not have been up until 2003... libs, ya' gotta "love" 'em...

Answer 3

The usa kept 25,000 military in Panama plus civillians and dependants of the military. This cost a fortune. Panama operates the canal 20% more efficiently than the usa netting about $335,000,000 a year with 9000 workers. More profits expected with new wider canal. Panam info: http://www.panamalaw.org

Answer 4

The Panama Canal was built by the Americans who had
a time contract to keep in running and keep the fees.
On either side of the canal there was a limited area
which was called the Canal Zone and was governed by
the Americans civil and militarily. The contracted period
fell due and the Americans handed the canal back to the
Panamanians, as contracted. Nothing was illegal nor
forced. The Americans did have a Military base in the
Canal Zone, perhaps somewhat strategic, but the
withdrawal was also part of the contract. There was
nothing illegal nor strange in the deal.

Answer 5

Although built by the USA the canal was always technically owned by Panama. It was obviously very advantageous to the Americans who had much easier shipping access to both the West and East coasts of the country. The actual profit was surely in its availability to the USA in particular.

Answer 6

Are you English?

Panama Canal belongs to Panama.

Answer 7

Couldn't afford to keep it.

Answer 8

Guilty conscience maybe !!!

Answer 9

its not ours
the same reason we should get the troops back home from iraq

Answer 10

cos it was full of creepy crawleys