"The Republic of Panama grants to the United States in perpetuity the use, occupation and control of a zone of land and land under water for the construction maintenance, operation, sanitation and protection of said Canal of the width of ten miles extending to the distance of five miles on each side of the center line of the route of the Canal to be constructed ... "
- "Convention for the Construction of a Ship Canal (Hay-Bunau-Varilla Treaty)," Article II, 18 November 1903 (with the "perpetuity" part modified by later treaties negotiated by Jimmy Carter)
It allowed ships of all kinds to go from the Atlantic & Caribbean to the Pacific (and vice versa) without having to go around the tip of South America - drastically reducing the time needed to transport goods. The effects of the project were largely economic; but it was completed mainly for military reasons, with the need to move naval ships between oceans, without enormous delays from increased travel time. And it revolutionized the economy and international trade of the world, allowing much trade to be done for significantly lower costs.
Panama Canal in modern times








