Panamanian foreign policy focused on the Panama Canal virtually since its completion in 1914.

In November 1903, the United States and the Republic of Panama signed a treaty for the canal concession fifteen days after Panama had declared her independence from Colombia on November 3, and the United States promptly recognized the new nation.

The treaty (negotiated on behalf of the new nation -- but not necessarily with in its best interests in mind -- by the Frenchman Philippe Burnau-Varilla) gave the United States not only the right to build a canal but also the rights, power, and authority to exercise to exercise jurisdiction, "as it sovereign, in perpetuity" over a 10-mile strip across the isthmus of Panama to be known as the Canal Zone (647 square miles total area, of which land area was 372 square miles and water area was 275 square miles). Bunau-Varilla was mostly determined to try to recoup for France at least some of the glory lost in the decade-long ill-fated French effort to construct a sea-level canal through Panama in the 1880s. With history in mind, he manipulated concessions for the treaty which he felt would ensure acceptance by the United States Government, shortly after a similar treaty with less generous terms had been proposed by the United States and rejected by the Colombian senate.

The 1903 treaty -- which was not signed by a Panamanian -- was deeply resented by Panamanians virtually since its inception and had periodically impacted negatively on Panama-United States relations over the years. Negotiations for a new treaty had been a long-standing Panamanian priority. Such feelings, came to a head on January 9, 1964, outside the Balboa High School in the Canal Zone when Panamanian dissatisfaction sparked by an unsuccessful protest by Panamanian students after requesting to fly the Panamanian flag in front of the school where only one flag pole was located, shortly erupted into violence followed later by riots in Panama City and the city of Colon. During the violence, 21 Panamanians and four U.S. military personnel died. A few days later, Panama suspended diplomatic relations with the United States. (For detailed Panama Canal Spillway's account, visit the following site: www.czbrats.com/Articles/Flag_pole.htm.)