<P> The Spanish--American War of 1898 added new life to the canal debate . During the war, American warships in the Atlantic seeking to reach battle zones in the Pacific had been forced to round Cape Horn . Influential naval pundits, such as Captain Alfred Thayer Mahan, urged the construction of a Central American canal . In 1902, with the French efforts moribund, US President Theodore Roosevelt backed the Panama route, and Congress passed legislation authorizing him to purchase the French assets on the condition that an agreement was reached with Colombia . In March 1902, Colombia set its terms for such a treaty: Colombia was to be sovereign over the canal, which would be policed by Colombians paid for by the United States . The host nation would receive a larger percentage of the tolls than provided for in earlier draft treaties . The draft terms were quickly rejected by American officials . Roosevelt was in a hurry to secure the treaty; the Colombians, to whom the French property would revert in 1904, were not . Negotiations dragged on into 1903, during which time there was unrest in Panama City and Colón; the United States sent in Marines to guard the trains . Nevertheless, in early 1903, the United States and Colombia signed a treaty which, despite Colombia's previous objections, gave the United States a 6 miles (9.7 km) wide zone in which it could deploy troops with Colombian consent . On August 12, 1903, the Colombian Senate voted down the treaty 24--0 . </P> <P> Roosevelt was angered by the Colombians' actions, especially when the Colombian Senate made a counteroffer that was more financially advantageous to Colombia . A Frenchman who had worked on his nation's canal efforts, Philippe Bunau - Varilla, represented Panamanian insurgents; he met with Roosevelt and with Secretary of State John Hay, who saw to it that his principals received covert support . When the revolution came in November 1903, the United States intervened to protect the rebels, who succeeded in taking over the province, declaring it independent as the Republic of Panama . Bunau - Varilla was initially the Panamanian representative in the United States, though he was about to be displaced by actual Panamanians, and hastily negotiated a treaty, giving the United States a zone 20 miles (32 km) wide and full authority to pass laws to govern that zone . The Panama Canal Zone (Canal Zone, or Zone) excluded Panama City and Colón, but included four offshore islands, and permitted the United States to add to the zone any additional lands needed to carry on canal operations . The Panamanians were minded to disavow the treaty, but Bunau - Varilla told the new government that if Panama did not agree, the United States would withdraw its protection and make the best terms it could with Colombia . The Panamanians agreed, even adding a provision to the new constitution, at US request, allowing the larger nation to intervene to preserve public order . </P> <P> The treaty was approved by the provisional Panamanian government on December 2, 1903, and by the US Senate on February 23, 1904 . Under the treaty, Panama received US $10 million, much of which the United States required to be invested in that country, plus annual payments of US $250,000; with those payments made, as well as for the purchase of the French company assets, the Canal Zone was formally turned over by Panama on May 4, 1904, when American officials reopened the Panama City offices of the canal company and raised the American flag . This marked the beginning point for U.S. excavation and construction which concluded in August 1914 with the opening of the canal to commercial traffic . </P> <P> By order of President Theodore Roosevelt under the Panama Canal Acts of 1902 and 1904 the Secretary of War was made supervisor of canal construction and the second Isthmian Canal Commission made the governing body for the Canal Zone . Under the Panama Canal Act of May 24, 1912 President Woodrow Wilson issued Executive Order 1885, January 27, 1914, effective April 1, 1914 abolishing the previous governance placing it under the direction of the Secretary of War with the entity designated as The Panama Canal . The Governor of the Panama Canal was charged with "completion, maintenance, operation, government and sanitation of the Panama Canal and its adjuncts and the government of the Canal Zone" in the Executive order . A number of departments were specified in the order with others to be established as needed by the Governor of the Panama Canal with approval of the President and under the supervision of the Secretary of War . Defense of the canal was the responsibility of the Secretary of War who retained control of troops with provisions for Presidential appointment of an Army officer in wartime who would have "exclusive authority over the operation of the Panama Canal and the Government of the Canal Zone ." The Executive Order noted in closing "that the supervision of the operations of the Panama Canal under the permanent organization should be under the Secretary of War" thus establishing the essentially military arrangement and atmosphere for the canal and Canal Zone . </P>

When did panama canal zone became a us territory