1. United States & Latin America ► In the late 1800s some U.S. leaders began to explore ways to dig a canal across the narrow neck of Central America ► Such a canal would link Atlantic and Pacific Oceans ► It would also cut 8,000 miles off the voyage ► It would also allow the U.S. Navy to link the Atlantic and Pacific naval fleets quickly ► In 1850 the US and Britain agreed to jointly build & maintain a canal, but they never built a canal ► In 1881 France began work on a canal in Central America & spent nearly $300 million, losing 20,000 lives ► The company became financially ruined in 1887 & never finished ► Roosevelt believed that a canal was important to U.S. naval power, security, and strength

2. U.S. Negotiates for Canal ► Secretary of State John Hay negotiated the Hay-Pauncefote Treaty with Britain in 1901 ► British gave up their interest in a Central American canal ► In return, the US agreed to keep the canal open to all vessels at all times ► Hay then began negotiations with Colombia, because the Isthmus of Panama was part of that country ► Isthmus = A narrow strip of land connecting two larger masses of land ► The US agreed to pay $10 million plus $250,000 a year for a 99-year lease on a strip of land across the isthmus ► The U.S. approved the Hay-Herrán Treaty in 1903. ► However, the Colombian senate, hoping for better terms, rejected the treaty.

3. U.S. Supports Panamanian Revolt ► It appeared the only way that the U.S. could build their canal would be to help Panama revolt against Colombia & gain its independence ► On Nov. 3, 1903 a revolt began. Colombian forces tried to stop the rebellion but could not get to Panama ► Dense jungles blocked land routes, and the U.S. warship blocked travel in the Atlantic Ocean. ► Panama then declared itself an independent country ► On November 18, US & Panama's signed the Hay-Bunau-Varilla Treaty giving the U.S. the rights to build the canal

4. U.S. runs into obstacles with Panama Canal ► Building the canal proved to be very difficult ► First obstacle to overcome was tropical disease ► The canal route ran through jungles and swamps filled with mosquitoes, many of which carried malaria and yellow fever ► Dr. William C. Gorgas -- rid canal route of disease-carrying mosquitoes ► If he had been unsuccessful, canal's construction would have taken much longer & would have cost much more in both lives & $ ► Even so, the work was very dangerous as the high mountain range of central Panama created a major obstacle ► Some 6,000 lives were lost building Panama Canal, which was finally opened to traffic on Aug 15, 1914 ► The cost was $375 million

5. Panama Canal’s Impact ► The Panama Canal allowed the United States to become more involved in Latin America ► Prior to the canal… ► In 1823 President James Monroe warned European nations not to interfere in the Western Hemisphere ► In became known as the Monroe Doctrine ► The United States would view any such actions as a threat to its security ► However, in the 1800s it wasn’t strong enough to actually defend its strong words

6. Roosevelt Ponders What to do about debt ► In the 1900s the U.S became stronger & was able to enforce the Monroe Doctrine ► In the 1900s countries in Central & South America had NOT paid back $ they borrowed from European powers like Britain and Germany ► European nations considered using force to collect ► Roosevelt worried that foreign forces might not leave once they had collected their debts ► The presence of European forces in the Caribbean would violate the Monroe Doctrine ► Their presence could also threaten U.S. power in the region and control of Panama Canal ► But U.S. couldn’t keep Europe from collecting

7. Roosevelt Corollary ► Roosevelt Corollary = addition to the Monroe Doctrine declaring that the United States would police affairs in the Western Hemisphere to keep Europeans from intervening in the region ► This new role of the United States as the "police officer" of the Western Hemisphere suited Roosevelt's style ► In 1900 he had said, "I have always been fond of the West African proverb: 'Speak softly and carry a big stick, you will go far.'" ► He basically was saying that U.S. wouldn’t look for trouble… ► but would be willing to use its military to solve its problems if needed

8. Taft & Dollar Diplomacy ► William Taft became president in 1909, he used a policy known as dollar diplomacy to protect U.S. interests in Latin America as opposed to Roosevelt’s military “big stick” method ► Dollar Diplomacy = influencing Latin American governments through economic, not military, intervention ► Taft tried to replace European investments in Latin America with U.S. investments to encourage stability ► Ex. July 1911 -- Nicaragua failed to repay a large loan from British, so American bankers gave Nicaragua a $1.5 billion loan in exchange for control of the National Bank and railway ► President Woodrow Wilson took office in 1913, he rejected Taft's dollar diplomacy b/c he didn’t like big business in foreign affairs ► Instead, he believed the U.S. had a moral obligation to promote democracy in L. America & wanted to protect U.S. interests in the area by backing democratic governments ► Wilson often opposed imperialism, yet he sent more troops into L. America than any president before him ► He sent troops into both Hati & the Dominican Republic because revolts might bring other European nations in & he wanted to protect U.S. business interests