Panama Flag
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Brief History. Panama was claimed by the Spanish in 1501 and nearly two decades later, the City of Panama was established. In 1903, Panama agreed to develop a canal zone that would be under US control. Eleven years later, the mighty Panama Canal was opened. Functioning as a protectorate of the US (i.e., the US guaranteed the 'independence' of the country), the US maintained that it had the right to intervene militarily when its interests were threatened, as it did in 1918. In 1936, the protectorate status was abolished and the US agreed that it would not have the right to intervene in the cities of Panama and Colon. A new canal treaty was negotiated in 1977; it provided for the Panamanians to take control of the canal in 2000.
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