Welcome to You Ask Andy

Zane Dery, age 12, of Batavia, N.Y,, for his question:

Does the U.§. own the Panama Canal?

Zane wonders why, if we own the canal, we have to pay rent for it. The story goes back to 1903, when plans were being made. The French had already tried to build a canal across the Isthmus of Panama, and failed. When they withdrew, the United States bought the French rights and property for 40 million dollars. But they made no deal with the Republic of Colombia, which at that time owned the territory.

A few months after the money was paid to France, Panama declared itself an independent country and the United States then made an agreement for the use of the canal area with Panama.

 

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