Panama - Countries - Office of the Historian (2024)

Panama - Countries

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  3. A Guide to the United States’ History of Recognition, Diplomatic, and Consular Relations, by Country, since 1776: Panama

Summary

The area that became Panama was part of Colombia until the Panamanians revolted, with U.S. support, in 1903. In 1904, the United States and Panama signed a treaty that allowed the United States to build and operate a canal that traversed Panama. The treaty also gave the United States the right to govern a ten-mile wide Canal Zone that encompassed the waterway, which was completed in 1914. In 1979, the United States transferred control of the Canal Zone to Panama, and in 1999 transferred control and responsibility for the Canal to Panama.

Panama - Countries - Office of the Historian (1)

Modern Flag of Panama

Recognition

United States Recognition of Panama, 1903.

The United States recognized Panama on November 6, 1903, after Panama declared its independence from Colombia. On November 3, 1903, Panamanians had revolted against the Colombian government, declared an independent Republic of Panama, and established a provisional government junta. On November 6, Secretary of State John Hay instructed U.S. Vice-Consul-General at Panama City Felix Ehrman to “enter into relations” with the Government of the Republic of Panama when it appeared to meet conditions of a de facto government having the support of its own people. On the same day, Hay sent Colombian Charge d’Affaires Tomas Herran a copy of a cable dated November 6 in which Hay explained to the U.S. minister at Bogota, Colombia, that the people of Panama had created an independent republican government “with which the…United States…has entered into relations.”

Consular Presence

Establishment of Consular Relations, 1823.

Consular relations in the part of Colombia that later became Panama were established in 1823 with the appointment of David Craig as Consular Commercial Agent at Panama.

Diplomatic Relations

Establishment of Diplomatic Relations, 1903.

Diplomatic relations were established on November 13, 1903, when President Theodore Roosevelt accepted the credentials of Philippe Bunau-Varilla as Panama’s Minister to the United States.

Establishment of U.S. Diplomatic Mission, 1903.

The U.S. diplomatic mission in Panama was established on December 25, 1903, when William Buchanan presented his credentials as Envoy Extraordinary and Minister Plenipotentiary on special mission to Panamanian authorities.

Diplomatic Relations Interrupted, 1931.

On January 2, 1931, a coup d’état was carried out against the Panamanian government and forced the resignation of President Florencio Arosem*na. Secretary of State Henry Stimson on January 5 instructed Minister at Panama Roy Davis not to reply at that time to a representative of the new government who had written seeking continuity in relations with the United States. Stimson informed Davis that he would not receive instructions concerning recognition of the new government until the Department of State was satisfied it could survive and maintain control of the country.

Diplomatic Relations Resumed, 1931.

Secretary Stimson wrote to Minister Davis on January 15, 1931, that the Department was satisfied with the legitimacy and viability of the new Panamanian government. Accordingly, Stimson instructed Davis to attend the inauguration of President Ricardo Alfaro “and carry on normal diplomatic relations thereafter with his government.” Davis attended the inauguration on January 16, 1931.

Legation Raised to Embassy, 1939.

The Legation in Panama was raised to Embassy status on July 14, 1939, when AmbassadorWilliam Dawson presented his credentials to Panamanian authorities.

Diplomatic Relations Interrupted, 1949.

The Panamanian National Police on November 24, 1949, forced the resignation of President Chanis who was succeeded by Arnulfo Aria. On November 25, U.S. Assistant Secretary of State Edward Miller announced that, in view of the circ*mstances surrounding the change of government, “diplomatic relations between the United States and the Arias regime in Panama do not exist.”

Diplomatic Relations Resumed, 1949.

Secretary of State Dean Acheson announced on December 14, 1949, that “the United States today is renewing diplomatic relations with Panama,” and U.S. Ambassador Monnett Davis delivered a formal notification to the Government of Panama. Acheson explained that this decision was made after consultation with other American Republics and upon receipt of assurances that the new government would fulfill its international obligations.

Diplomatic Relations Severed by Panama, 1964.

Panamanian President Roberto Chiari broke off diplomatic relations with the United States on January 10, 1964. Chiari accused the United States of “unprovoked aggression” during clashes between Panamanians and U.S. troops in the Canal Zone that followed violence sparked by a flag-raising incident between Panamanian and American students.

Diplomatic Relations Reestablished, 1964.

Panama wanted to renegotiate the 1903 Bunau-Varilla Treaty before resuming diplomatic relations, while the United States promised to discuss all issues after relations were restored. On April 3, 1964, the two states signed a Joint Declaration in which they agreed to reestablish diplomatic relations and to immediately designate “Special Ambassadors with sufficient powers to seek the prompt elimination of the causes of conflict between the two countries, without limitations or preconditions of any kind.”

Diplomatic Relations Interrupted, 1968.

On October 11, 1968, President Arias was deposed in a National Guard coup and a “Provisional Junta of Government” was established on October 13. On October 15, the Department of State spokesman announced that diplomatic relations were suspended as a result of events in Panama.

Diplomatic Relations Resumed, 1968.

On November 13, 1968, the Embassy at Panama City informed the Panamanian Ministry of Foreign Affairs that the United States was resuming diplomatic relations. The Department of State announced that the decision was made after consulting with OAS member states and receiving assurances from the new Panamanian government as to its future conduct.

U.S. Ambassador Recalled, 1989.

On May 11, 1989, President George Bush recalled Ambassador Arthur Davis and reduced the Embassy staff to essential personnel only. Bush explained that he was acting because the people of Panama had “voted to replace the dictatorship of General Manuel Noreiga,” but Noreiga refused to give up power. On December 20, Bush announced the beginning of U.S. military operations against Noriega’s regime and the return of the U.S. Ambassador to inaugurate relations with a new Panamanian government. U.S. forces eventually captured Noriega and took him to stand trial in the United States on narcotics charges.

Resources

  • Department of State Country Fact Sheet: Panama
  • Department of State Country Information: Panama
  • Library of Congress Country Study: Panama
Panama - Countries - Office of the Historian (2024)

FAQs

Is Panama a rich or poor country? ›

Panama is a high income economy with a history of low inflation.

Who is the most famous person from Panama? ›

An innovative thinker who has worked also as a poet, philosopher and politician, Ruben Blades is the most recognized Panamanian in the world.

Who owned Panama before it was free? ›

Summary. The area that became Panama was part of Colombia until the Panamanians revolted, with U.S. support, in 1903.

Is Panama considered a third world country? ›

This combined with the country's other business sectors, like banking, commerce, and tourism, qualifies Panama as a World Bank high-income nation. Panama ranks 67th in the Human Development Index (HDI) as a country with very high human development.

Is Panama a safe country? ›

US State Dept Travel Advisory

The US Department of State currently recommends US citizens exercise increased caution in Panama due to crime. Some areas have increased risk.

Why is Panama so expensive? ›

The idea that Panama is one of the most expensive destinations in Central America has been touted for many years. This assessment originates from the simple fact that in Panama the US dollar exists as an official currency, in addition to its great economic development and the cosmopolitan character of its capital.

What is the national drink of Panama? ›

“Being a Panamanian from the interior region of the country, we grew up celebrating every occasion with a Seco Herrerano drink. Seco was always part of family celebrations including birthdays, weddings, Christmas and New Year's Eve celebrations. It's considered the national alcoholic beverage of Panama.”

What is the dominant race in Panama? ›

The majority of the population of Panama is mestizo, or mixed ethnicity. Spanish is the official and pervasive language with English being a common second language used by Afro-Caribbean communities and by many in business and the professions.

Is it safe to go to Panama right now? ›

Danger level: 5 - Do not travel. This is the general advisory usually covering the country as a whole.

Why did Colombia sell Panama? ›

The United States had strategic aid to Panama, with the intention of gaining the 10- mile strip of land from Panama. With the suppression of the Colombian troops, the Revolutionary Junta declared the secession of the Isthmus and later its independence, with the declaration of the Republic of Panama.

When did slavery end in Panama? ›

Independence and abolition

By then, we were the Department of the Isthmus, as part of Gran Colombia and one of the precepts of independence from the monarchy was precisely the abolition of slavery. Slavery was abolished in Panama by the law of May 21, 1851.

What is a good salary in Panama? ›

According to recent data, the average salary in Panama for a professional working in the private sector can be estimated at around $1,200 to $1,500 per month. This figure represents the median range, meaning that half of the employed population makes less than this amount, while the other half earns more.

Is Panama a communist country? ›

The politics of Panama take place in a framework of a presidential representative democratic republic with multi-party system, whereby the President of Panama is both head of state and head of government.

What is Panama's main source of income? ›

Panama's economy is pegged to the dollar and the service industry is the biggest in the country, accounting for 68.1% of Panama's GDP and employing 68% of the workforce. Transport is the most important sector of the service industry, as it comprises the Panama Canal - the government's chief revenue source.

Are Panama people rich? ›

Currently, Panama is classified as an emerging market, upper-middle income economy. Its per capita GDP adjusted for purchasing power parity (PPP) stood at US$29,879 in 2019, the 30th highest in the Penn World Table sample of 114 countries.

Is there a lot of poverty in Panama? ›

Poverty share in Panama 2006-2021

Throughout the shown time frame, the percentage of people living in poverty conditions in Panama experienced a consistent decrease until 2017. However, after that years, it started to increase again, reaching 21.8 percent as of 2021.

Does Panama have a lot of poverty? ›

Monetary poverty (using US$5.5/day, 2011 PPP) decreased to 12.1 percent in 2019, from 12.6 percent in 2018. At the 2019 levels, Panama had around 500,000 people living under US$5.5 (2011 PPP) and about 52,000 people (or 1.2 percent) living on US$1.9 a day (at 2011 PPP) or less.

Does Panama have a lot of money? ›

After an economic contraction of 17.9 percent in 2020, Panama's previous “high-income” classification was adjusted to “upper-middle-income” by the World Bank in July 2021, with a per capita income is $15,643, and an estimated gross domestic product of US$29.2 billion dollars (up to Q3 of 2021), according to the ...

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