Panama Canal Zone (redirected from Panama Canal Company)

Panama Canal Zone, former territory within Panama, 553 sq mi (1,432 sq km), that was administered by the United States under a 1903 treaty (with later amendments) with Panama. The zone included the Panama Canal and an area extending 5 mi (8.1 km) on each side. Under the terms of a later treaty (1977), the zone was abolished in Oct., 1979, and returned to Panamanian rule; the canal itself was ceded to Panama in 1999. Panama has begun turning former military installations into housing, civilian ports, hotels, industrial parks, universities, and sports facilities. Some bases have been converted into tourist complexes aimed at attracting cruise-ship passengers, while some undeveloped areas have become eco-tourist sites. The northern section of the former territory is now part of Colón prov., and the southern section part of Panamá prov. Cristóbal, Balboa (Caribbean and Pacific ports, respectively), and Ancon are the chief towns.

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Canal Zone

 or Panama Canal Zone

Strip of territory, a historic administrative entity in Panama over which the U.S. formerly exercised jurisdictional rights (1903–79). The zone came into being in 1904 when Panama granted the U.S., in return for annual payments, sole right to operate and control the Panama Canal, including a strip of land 10 mi (16 km) wide along the canal extending from the Atlantic to the Pacific Ocean and bisecting the Isthmus of Panama. The zone was abolished by treaty in 1979, and civil control of the territory was returned to Panama. By the same treaty a commission under joint U.S.-Panamanian ownership was established to operate the canal until the year 2000, when Panama assumed full control.

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Panama Canal Zone 

the part of Panama through which the Panama Canal flows. The zone is a 16.1-km-wide strip stretching along both banks of the Panama Canal from the Atlantic to the Pacific oceans and cutting Panama into two parts. Area, 1,432 sq km. Population, 51,400 (1975). The administrative center is Balboa Heights. Railroads and highways have been built within the zone.

Under the United States-Panamanian Treaty of 1903 the USA acquired the Panama Canal Zone in perpetuity and established political, military, and economic control over the area. Since 1939 the Canal Zone has been officially under the jurisdiction of the US Defense Department and is administered by a governor appointed by the president of the USA. At the same time the governor, who is a general of the US Army, heads the “civil government” of the Canal Zone, and he is the president of the Panama Canal Company. In addition to naval and air force bases at both ends of the canal and at the ocean ports, the USA maintains fortresses, airfields, and a permanent military force in the zone, all under the control of the US Southern Command. There are several US military schools for training Latin American officers in the Canal Zone. In compensation, the US government pays Panama $2.3 million annually; in 1973 the USA earned about $100 million from the operation of the canal. The Panamanian people and government are waging a stubborn struggle for the return of the Canal Zone. [19–408–2; updated]