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Panama Canal Negotiations

In: Business and Management

Submitted By howey44
Words 643
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International Negotiations
MGT445

International Negotiations
One of the greatest engineering feats to take place in modern history is the Panama Canal. The canal connects the Pacific and Atlantic oceans through the country of Panama. The canal is 50 miles in length and provides easy and reliable crossings for more than 750 thousands vessels. Ship makers around the world build ships specifically to fit the double locks that make up the water way (Panama Facts, 2010). The ships that use this water way reduce their travel time by weeks because they do not have to travel around the tip of South America. However, without decades of negotiations, this canal would not exist (The Panama Canal Negotiations, 2012).
The negotiations began in 1847 when the United States entered a treaty with the country of Colombia. This treaty allowed America to use the Isthmus of Panama for shipping. The treaty also guaranteed Panama’s neutrality and gave Colombia sovereignty over the entire region (The Panama Canal Negotiations, 2012). Nothing else significant happened until the French attempted to build a canal across Panama in 1881. However, the French did not realize the problems ahead and stopped the project in just eight years. Despite the noted problems, America considered a canal there as vital to its future and therefore, took up the contract to build the canal (The Panama Canal Negotiations, 2012). Finally, in 1889 the French entered into negations to turn over the project to America. These talks were very tense as the French had already gone bankrupt in their attempts.
As negotiations evolved, Americans attempted to fool the French into thinking they were considering a different plan to build an alternative canal in Nicaragua. The French, realizing what America was doing, claimed that Great Britain and Russia were also in negotiations for the rights to the Panama Canal. During this time, American newspapers printed the true expense of the project and Americans began protesting the venture. They believed it was too expensive of a project for the nation. At the same time, the French government went through a major upheaval and elected a new president. The French people pressured their new government to get rid of the expensive canal project quickly. This gave America the upper hand in the negotiation process. Even so, it took President Roosevelt some serious political maneuvering to get everyone committed.
After the negotiations, all of the parties came to an agreement that met everyone’s needs (McCullough, 1977). America purchased the contract from the French and Columbia signed a treaty with America. However, the Columbian in charge of the negotiations did not clear the treaty with his government before signing. This created a huge problem in the process as Columbia nation attempted to back out of the treaty. At the same time, the Columbian people started a revolt. The time for negotiating was over. President Roosevelt sent American warships to the area to protect the interests of the United States, and helped the Panamanians to govern themselves (McCullough, 1977). With Americas help, Panama succeeded in revolution and became a republic. In 1914, the Panama Canal finally opened to shipping.
America had a need to reduce the time it took to move man and material from the Atlantic Ocean to the Pacific Ocean and began negotiations to achieve the goal. It met many hurdles through the process, but ultimately overcame the obstacles. It used the media, a panel of specialists, and monetary pressures. It also weathered the storm of pressure from other countries and skillfully completed the canal. This process set the precedent on international negotiations.

References
McCullough, D. (1977). The Path Between the Seas: The Creation of the Panama Canal. New York, NY: Simon and Schuster.
Panama Facts. (2010). Retrieved from http://www.panamatours.com/Pancanal/Canal_facts.htm
The Panama Canal Negotiations. (2012). Retrieved from http://www.negotiations.com/case/canal-route/

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