History of Panama (1904–1964) facts for kids

Panama is a country that connects North and South America. It's famous for its important canal, which links the Atlantic and Pacific Oceans.

Panama's Journey to Independence

Panama was explored and settled by Spain in the 1500s. It gained its freedom from the Spanish Empire in 1821. After becoming independent, Panama joined a larger country called Gran Colombia. This union included areas that are now Ecuador and Venezuela.

Over the next 90 years, the region saw many changes. Gran Colombia broke apart in 1831. Panama then stayed connected with a smaller country called the Republic of New Granada. This republic later changed its name to the Granadine Confederation in 1858, giving more power to its different regions, including Panama.

In 1863, it became the United States of Colombia, giving even more control to its "sovereign states." But after more conflicts, it changed again in 1886 to the more centralized Republic of Colombia.

Finally, on November 3, 1903, Panama decided to become fully independent. This happened after disagreements about building a canal. Panama declared itself the Republic of Panama. Soon after, on November 18, 1903, Panama and the United States signed the Hay–Bunau-Varilla Treaty, which was important for the canal project.

Building a New Nation

After declaring independence, a temporary government ruled Panama until a new constitution was created in 1904. Manuel Amador Guerrero became Panama's first president.

The new constitution was similar to the United States' constitution. It separated government powers and allowed direct elections for the president and the National Assembly (Panama's law-making body). One interesting rule was that the Assembly chose three people to be next in line for the presidency. This rule changed in 1946 when people started directly electing the vice president.

Panama inherited a two-party system from Colombia: Liberals and Conservatives. However, these parties didn't have strong beliefs or large groups of followers. By the 1920s, new political groups formed, often led by powerful individuals. Politics was mostly controlled by a few wealthy, white families.

The Kuna People's Rebellion

After gaining independence from Colombia, Panama faced its own challenge. The Kuna people living in the San Blas Islands did not want to be ruled by Panama, just as they hadn't wanted to be ruled by Colombia or Spain.

Panama's government didn't have much control over the islands until 1915. At that time, police officers were sent to some islands. Their presence, along with efforts by some younger Kuna men who wanted to modernize their culture (like changing traditional clothing and customs), led to a revolt in 1925.

A Kuna leader named Simral Coleman, with help from an American explorer, wrote a "declaration of independence" for the Kuna people. On February 25, 1925, the rebellion began. About twenty police officers were killed. A few days later, a United States navy ship arrived. With help from U.S. officials, a peace treaty was signed. This treaty was very important because it recognized the San Blas Islands as a mostly self-governing territory.

United States' Role and Changing Relations

Right after the Hay-Bunau-Varilla Treaty was signed, disagreements started about who had control. The United States began setting its own rules for ships and services in the Canal Zone, which Panama didn't like.

To solve these issues, U.S. Secretary of War William Howard Taft visited Panama in November 1904. They reached an agreement where the U.S. kept control of the main ports, but Panama City and Colón could use their facilities. They also agreed to lower taxes and allow free movement of people and goods between the Canal Zone and Panama.

The U.S. also intervened in Panama's internal affairs. In 1904, Panama's army was disbanded and replaced by the National Police at the suggestion of the U.S. By 1920, the United States had intervened four times in Panama's government. These interventions usually involved little fighting and were often requested by different Panamanian groups.

Panamanian politicians sometimes asked the U.S. to step in to protect their rights. U.S. diplomats also advised Panamanian officials, which some Panamanians disliked. In 1921, Panama formally asked for a clear explanation of the treaty rules. The U.S. said its main goals were to protect the Canal Zone and non-Panamanians in the two main cities.

U.S. involvement took different forms. U.S. officials sometimes oversaw elections. In 1925, U.S. troops helped control violent protests in Panama City after the Panamanian government requested help.

By the late 1920s, the U.S. started to change its policy of intervention. In 1931, Panama had its first successful coup d'état (when a group illegally takes power). The U.S. chose not to intervene, marking a shift in its approach.

Meanwhile, both countries wanted to update the treaty. The Kellogg-Alfaro Treaty of 1925 was proposed. The U.S. agreed to limit its commercial activities in the Canal Zone. However, the U.S. also gained some security benefits. Panama agreed to automatically join any war involving the U.S. and allow U.S. control over military operations in Panama. These parts of the treaty caused strong opposition, and Panama's National Assembly rejected it in 1927.

This rejected treaty also led to a discussion with the League of Nations. The League argued that Panama couldn't automatically declare war because it would go against its agreements with the League. Panama suggested that the dispute over the Canal Zone's control should be settled by international arbitration, but the U.S. disagreed.

A New Agreement for Panama

In the late 1920s, U.S. leaders realized that their interventions in Latin America weren't working well. They wanted to build stronger relationships, especially as Nazi and Fascist groups gained influence in the 1930s.

The U.S. began to change its policy. In 1933, President Franklin D. Roosevelt announced the Good Neighbor Policy, promising to be a better neighbor to Latin American countries. The U.S. also agreed to the principle of nonintervention, meaning it would not interfere in other countries' affairs.

During the 1930s, Panama, like many countries, faced economic hardship due to the Great Depression. Panamanian politics had mostly been a competition among wealthy families. However, Harmodio Arias Madrid was elected president in 1932. He came from a poorer family and was the first president to start programs to help the countryside. He also founded the University of Panama, which became a center for middle-class interests and national pride.

Harmodio Arias and his brother Arnulfo were part of a movement called Community Action. This group was mostly made up of middle-class people and was against the wealthy elite and U.S. influence.

In 1933, President Harmodio Arias visited Washington to discuss problems, including high unemployment in Panama and competition from businesses in the Canal Zone. They reached an agreement. The U.S. promised to consider future requests about economic issues that didn't affect the canal. They also promised to protect Panamanian businesses from cheap goods smuggled from the Canal Zone. Most importantly, President Roosevelt agreed that U.S. rights in the Canal Zone were only for "maintenance, operation, sanitation, and protection" of the canal. This was a big step towards Panama being recognized as a truly sovereign nation.

However, a problem arose with the annual payment the U.S. made to Panama. When the U.S. dollar's value decreased in 1934, the $250,000 payment was worth much less. Panama refused to accept the reduced payment.

President Roosevelt's visit to Panama in 1934 led to new talks. On March 2, 1936, a new agreement, the Hull-Alfaro Treaty, was signed. This treaty changed the relationship between the two countries. It ended the U.S. right to intervene in Panama's independence. The U.S. would now negotiate and buy land instead of taking it. The payment issue was solved by setting it at 430,000 balboas (Panama's currency, equal to the devalued dollar), which was more than the original amount.

The treaty also helped Panamanian businesses by stopping private commercial operations in the Canal Zone that were not related to the canal. This helped Panamanian merchants by reducing competition. Panamanian goods could enter the zone freely, and Panama could set up its own customs offices at the zone's entrances.

The U.S. Senate was slow to approve the Hull-Alfaro Treaty because it changed U.S. rights. But after an agreement that Panama would allow the U.S. to act alone in security threats, the Senate approved it on July 25, 1939.

Panama During World War II

After the Hull-Alfaro Treaty was approved in 1939, Panama and the United States began working together for World War II. This cooperation went smoothly for over a year, with Panama supporting the U.S. against the Axis powers. However, this cooperation paused when Arnulfo Arias became president.

Arnulfo Arias was elected president several times, but he never served a full term. He was first elected in 1940, leading a movement focused on Panamanian nationalism. This meant opposing U.S. influence and aiming to reduce the number of non-Hispanic people in the country, including West Indians, Chinese, Hindus, and Jews. He also seemed influenced by Nazi and Fascist agents before the U.S. declared war.

Many people in Panama, including his own brother Harmodio, wanted Arias out of office. In October 1941, the National Police removed him from power while he was away.

Arnulfo Arias had created a new constitution in 1941 to extend his time in office. In 1945, a conflict between Arias's successor, Ricardo Adolfo de la Guardia, and the National Assembly led to a new constitution being written in 1946. This new constitution removed Arias's changes and brought back older government structures.

For the war, the U.S. asked to lease over 100 military bases and sites for 999 years. Arias hesitated, but eventually approved one site. De la Guardia was more cooperative. He agreed to lease 134 sites to the U.S., but only for the duration of the war plus one year after the peace treaty was signed.

The U.S. gave Panama City's water and sewer systems to the city and provided new economic help. Major facilities leased to the U.S. included the Río Hato airfield and a naval base on Isla Taboga.

After the war, another misunderstanding arose. Panama demanded that the U.S. give up the bases, even though the peace treaty hadn't officially started. The U.S. State Department, seeing growing unhappiness in Panama, proposed extending the leases on thirteen facilities for twenty years. President Jiménez approved a draft treaty, but the National Assembly strongly opposed it. In 1947, a large crowd of 10,000 Panamanians protested. Under this pressure, the Assembly voted unanimously to reject the treaty. By 1948, the U.S. had left all bases and sites outside the Canal Zone.

The protests of 1947 were largely led by university students. This event marked the beginning of strong disagreements between students and the National Police. It was also the first time that a large protest by Panamanians stopped the U.S. from achieving its goals.

The Rise of the National Guard

After World War II, the National Police gained more power than the civilian government. Between 1948 and 1952, National Police Commander José Antonio Remón Cantera easily put presidents in and out of office. He also increased pay and benefits for his forces and improved their training, turning the National Police into a more military-like force. In 1953, he officially changed the National Police into the National Guard, making it the country's only armed force.

Remón also created the National Patriotic Coalition and successfully ran for president in 1952. He worked to promote social reform and economic development, which was unusual for leaders at the time. His programs helped reduce Panama's strong economic reliance on the canal.

However, Remón's time as president was short. In 1955, he was killed. The first vice president was accused but never tried, and the reasons for the crime remained unclear. The second vice president, Ricardo Arias, finished the presidential term and reversed many of Remón's reforms.

Remón had started talks in 1953 to update the 1936 treaty. Panama wanted a larger share of the canal's earnings and was unhappy with competition from businesses in the Canal Zone. Remón also demanded that the U.S. stop paying lower wages to Panamanians compared to U.S. citizens in the zone.

After long talks, a new treaty was signed on January 23, 1955. It reduced commercial activities not essential to the canal. The annual payment to Panama was increased to $1,930,000. The idea of "one basic wage scale for all employees" in the Canal Zone was accepted. However, Panama's request to change the "perpetuity" clause (meaning the U.S. had rights forever) to a 99-year lease was rejected.

Panama's part of the 1955 treaty was allowing the U.S. to use military bases outside the Canal Zone, which it had refused a few years earlier. About 8,000 hectares of Panamanian land were leased for U.S. military training for 15 years, without rent. This allowed the United States Air Force to use the important Río Hato base again. Because President Ricardo Arias strongly supported these changes, the National Assembly quickly approved them.

Growing Nationalism and Tensions

In 1956, Ernesto de la Guardia became president. His government saw new lows in relations between the U.S. and Panama. When Egypt took control of the Suez Canal in 1956, Panamanians hoped their canal might also be nationalized. However, the U.S. and Britain did not invite Panama to a meeting about the Suez Canal, which angered Panamanians. U.S. Secretary of State John Foster Dulles then stated that the U.S. didn't fear nationalization of the Panama Canal because it had "rights of sovereignty" there, which made things worse.

Panamanian public opinion was further angered when the U.S. Army implied that the 1955 treaty hadn't fully equalized wages. The U.S. tried to clarify, saying the only difference would be a 25% higher wage for U.S. citizens from the mainland.

Tensions grew. In May 1958, students protesting against the U.S. clashed with the National Guard, resulting in nine deaths. In November 1959, during Panama's independence holidays, anti-U.S. protests occurred. Encouraged by newspapers, Panamanians threatened a "peaceful invasion" of the Canal Zone to raise their flag there as a sign of Panama's control. Fearing mobs, the U.S. called out its troops. Hundreds of Panamanians crossed into the Canal Zone and clashed with police and troops.

Widespread violence followed. A mob broke windows at the U.S. Information Agency library, and the U.S. flag was torn down at the ambassador's home. Political leaders tried to regain control, but couldn't. Relations between the two governments were very strained. The U.S. built a fence along the Canal Zone border, and U.S. citizens living in the zone stopped buying from Panamanian merchants, who relied heavily on their business.

On March 1, 1960, student and labor groups threatened another march into the Canal Zone. The previous riots had made political leaders worried that new unrest could turn into a revolution. Merchants, who had lost money in the 1959 riots, were also concerned. Reports that the U.S. might allow the Panamanian flag to fly in a special spot in the Canal Zone helped calm tensions, preventing more serious problems.

De la Guardia's government was overwhelmed by the riots. In 1960, Roberto Chiari was elected president, becoming the first opposition candidate to win.

Chiari tried to convince other wealthy leaders that change was necessary. He warned that if they didn't accept moderate reforms, they might face bigger, uncontrollable changes. However, the National Assembly ignored his reform plans. In foreign affairs, Chiari called for a new revision of the Canal Zone agreement. When he visited Washington in June 1962, he and President John F. Kennedy agreed to have high-level talks about the Canal Zone. The results were announced in July 1963.

They agreed to create a committee to handle disputes between Panamanian employees and zone authorities. The U.S. also agreed to collect taxes from its Panamanian employees and send them to the Panamanian government. The U.S. also agreed to extend health and life insurance benefits to Panamanian employees, similar to those for U.S. citizens in the zone.

However, some issues remained unsolved. The U.S. agreed to raise wages for Panamanian employees, but not as much as Panama wanted. They also didn't agree to Panama's request for control over a corridor through the zone to connect the two halves of the country.

Meanwhile, the U.S. started a new aid program for Latin America called the Alliance for Progress. This program aimed to improve living standards and promote social and economic development. Panama received large loans for housing and other projects. Despite this help, pressure for major treaty revisions and unhappiness with U.S. resistance continued to grow.