President Johnson's announcement on December 18, 1964, that the United States is prepared to renegotiate the 1903 Panama Canal Treaty apparently has given encouragement to the efforts of the new Panama Government to find a basis for reconciling the differences between the two countries and has stiffened its determination to control the dissidents who have been planning further demonstrations of the kind that led to the flag-raising incident and riots of January 1964. The warmth with which the President's statement was first received has since then somewhat cooled, but the fact that he expressed the intention to meet Panama at least halfway has diminished the tensions which had been mounting steadily because of the apparent lack of progress in the discussions begun last spring.
President Johnson's announcement on December 18, 1964, that the United States is prepared to renegotiate the 1903 Panama Canal Treaty apparently has given encouragement to the efforts of the new Panama Government to find a basis for reconciling the differences between the two countries and has stiffened its determination to control the dissidents who have been planning further demonstrations of the kind that led to the flag-raising incident and riots of January 1964. The warmth with which the President's statement was first received has since then somewhat cooled, but the fact that he expressed the intention to meet Panama at least halfway has diminished the tensions which had been mounting steadily because of the apparent lack of progress in the discussions begun last spring.
The President's expressed interest in sea-level canal routes in Colombia and in Costa Rica-Nicaragua, as well as in two possible routes in Panama, conveys the impression that they are fully competitive. Actually, Panama enjoys a double advantage in the fact that the two best routes are both within her borders. Preliminary studies have favored a sea-level canal excavated by the use of nuclear explosives in eastern Panama close to the Colombian border. If nuclear explosives cannot be used in the construction, then the conversion of the existing lock canal to sea level is for many reasons the best solution. Indeed, it is preferable in any case.
This is a premium article
You must be a logged in Foreign Affairs subscriber to continue reading. If you wish to continue reading this article please subscribe , or activate your online account to get full online access.
Log In
Buy PDF
Buy a premium PDF reprint of this article.Related
Already the world’s preeminent energy and trade interstate seaway, the Indian Ocean will matter even more as India and China enter into a dynamic great-power rivalry in these waters.
SINCE I retired as United States Ambassador to Great Britain in February 1957, so much has been written about the events leading up to the seizure of the Suez Canal by the Egyptian Government in July 1956, and so much controversy has arisen over the reaction of the French, British and American governments to that event, that it might be useful for me to set down as briefly and clearly as possible the story of what happened as seen from the American Embassy in London.
HAS American policy with respect to the Panama Canal outlived its usefulness? Changes in technology, in the international power structure and in the climate of world opinion would suggest that it has. In an age when the United States is turning increasingly to international arrangements to protect its interests on other continents, its position regarding the Canal becomes increasingly inconsistent, if not embarrassing.

Sign-up for free weekly updates from ForeignAffairs.com.