Panama Canal Zone
(1904-1979), former territory in Central Panama governed by the
United States for the operation of the Panama Canal. Stretching
across the Republic of Panama, from the Caribbean Sea to the
Pacific Ocean, the Panama Canal Zone covered 1430 sq km (550 sq
mi) and was about 16 km (10 mi) wide, 8 km (5 mi) on either side
of the canal. It served as an important U.S. commercial and
military base in Central America until it was abolished in 1979.
Most of the area was turned over to Panama at that time, and the
remainder of the land, called the Canal Area, revert to Panama
in 1999, when Panama assumed full control of the canal.
In 1977 U.S. and Panamanian
officials signed new treaties that abolished the Canal Zone and
arranged for the canal itself to be turned over to Panama on
December 31, 1999. More than 60 percent of the Canal Zone was
returned to Panama when the treaties went into effect in 1979,
becoming part of Panama and Colón provinces. The rest of the
land was renamed the Panama Canal Area, which was to remain in
U.S. hands until 2000 but came under the jurisdiction of
Panama's police and court system. U.S. employees were gradually
replaced by Panamanians through a variety of training and
apprenticeship programs.
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