Under the 1903 Hay-Bunau Varilla treaty between the United States and Panama, the American government controlled both the Panama Canal (which was built and financed by them) and a large section of the surrounding land, as if it were U.S. territory. That section of land was known as the Panama Canal Zone.



Decades later Panamanians were no longer happy with this arrangement and argued that their country was unfairly denied benefits from the Panama Canal.

Eventually, riots and international pressure led the United States to negotiate two new treaties, which were signed in 1977 (by Panamanian President Torrijos and U.S. President Carter) known as the Torrijos-Carter Treaties. The treaties recognized Panama’s ultimate ownership of the Panama Canal and from 1979 to 1999 the canal was under joint U.S. - Panamanian control.

The United States effectively turned over the Panama Canal and all the surrounding lands to Panama on December 31, 1999.

Photo history of three generation Canal Zone Police officers on YouTube:



There is also documentary by filmmaker Frederick Wiseman about the Panama Canal Zone, entitled CANAL ZONE, which was released and shown on PBS in 1977.