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The United States Government and the 

Government of Panama signed the 

Panama Canal Treaty and the Treaty 

concerning the Permanent Neutrality and 

Operation of the Canal on September 7, 

1977. The U.S. Senate ratified them on 

April 18, 1978 and March 16, 1978 

respectively. The orderly transfer of 

functions, activities, and property; and a 

magnitude of Treaty-related costs.   The 

Treaty bills providing for its 

implementation, and numerous 

documents, studies, and reports are 

presented and reviewed.

The treaty, signed by President Jimmy 

Carter and Panamanian leader Omar 

Torrijos, contained two parts; one 

promised an end to U.S. control of the 

canal beginning in 2000; Panama was to 

take over operation and defense of the 

canal. The neutrality component of the 

treaty gave the U.S. permanent authority 

to defend the canal if it were placed under 

threat as a neutral water passage. 

Both treaties were subsequently ratified in Panama by a two-thirds 

vote in a referendum held on October 23, 1977. To allow for 

popular discussion of the treaties and in response to claims made 

by opponents of the treaty in the U.S. that Panama was incapable 

of democratically ratifying them, restrictions on the press and on 

political parties were lifted several weeks prior to the vote. On the 

day of the vote, 96% of Panama's eligible voters went to the polls, 

the highest voter turnout in Panama up to that time. The neutrality 

treaty was of major concern among voters, particularly on the 

political left, and was one reason why the treaties failed to obtain 

even greater popular support.

The United States Senate advised and consented to ratification of 

the first treaty on March 16, 1978 and to the second treaty on April 

18 by identical 68 to 32 margins. On both votes, 52 Democrats and 

16 Republicans voted in favor of advising and consenting to 

ratification, while 10 Democrats and 22 Republicans voted against.

Panamanian efforts to renegotiate the original 

Hay–Bunau-Varilla Treaty had been ongoing almost 

since it was first signed in November 1903, a few weeks 

after Panama obtained its independence from Colombia. 

However, activity to renegotiate or abrogate the treaty 

increased considerably after the Suez Crisis, and events 

in 1964 precipitated a complete breakdown in relations 

between the U.S. and Panama. On January 9 of that 

year, Panamanian students entered the canal zone to fly 

the Panamanian flag next to the American flag, as per a 

1963 agreement to defuse tension between the two 

countries. Panamanians watching the event began 

rioting after the students raising the Panamanian flag 

were jeered and harassed by American school officials, 

students, and their parents. During the scuffle, 

somehow the Panamanian flag was torn. Widespread 

rioting ensued, during which over 20 Panamanians were 

killed and about 500 were injured. Most of the casualties 

were caused by fire from U.S. troops, who had been 

called in to protect Canal Zone property, including 

private residences of Canal Zone employees. January 9 

is a National Holiday in Panama, known as Martyrs' Day.

The panama treaty was 

signed by president 

Jimmy Carter and a 

panamanian leader 

(Omar Torrigos) on 

september 7th, 1977. 

Consist of the promise was to 

end U.S. controlling the 

canal and that panama would 

have full control over it's 

operations and defense. 

The treaties were the source of controversy in the United 

States, particularly among conservatives such as Strom 

Thurmond and Jesse Helms, who regarded them as the 

surrender of a strategic American asset to what they 

characterized as a hostile government. In the year preceding 

the final transfer of canal assets there was an effort in the 

United States Congress, notably House Joint Resolution 77 

introduced by Helen Chenoweth-Hage, to declare the Carter-

Torrijos treaties null and void. Despite the fact that the pullout 

of the United States is now complete, there are still organizations 

(primarily conservative ones such as the John Birch Society) that 

urge the United States to declare the treaty null and void, saying 

that the Spanish text is different from the English text. Support of 

HJR 77 was part of the 2000 platform of the Texas Republican 

Party but no longer appeared in the 2004 platform.

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