The Panama Canal
Background Information: People had long been interested in building a canal across
the small strip of land joining North and South America. This would make it much
easier to move military and commercial ships in between the Atlantic and Pacific
Oceans without having to take the long and dangerous route around South America.
In 1879 a French company purchased a 25 year lease from Colombia to build a canal
across the Isthmus of Panama, then a part of Colombia. The French company was
plagued by mismanagement and yellow fever and by 1890 they were broke and only
half way done. In order to make up some of its losses the French company offered to
sell the canal rights to the US for $40 million and the US then agreed with the
Colombian representative to pay them $10 million and an annual fee of $250,000.
The Colombian Senate wanted more money however, and rejected the plan hoping to
renegotiate with the US directly when the French lease ran out. Privately President
Roosevelt called the Colombians “greedy little anthropoids”.
Task: You are to take on the role of President Roosevelt. You desperately want to
gain control of the canal in Colombia. Captain Alfred T. Mahan has long promoted
the idea of a canal to more easily move the US Navy between the two oceans. US
businesses see this as an opportunity to move their goods between the two coasts
more cheaply, and many worry that foreign control over the canal would give a
European power too much influence in the Western Hemisphere.
1. What actions could you take as President that you believe would be justified
and fair to all parties involved? Describe two possibilities and explain why you
feel these actions are fair.
2. What would you do if you had no concern for the other parties involved?
Explain the advantages and disadvantages of this action.
3. What would you have done as President and why?