who controls panama?
Ricardo Martinelli
neutral
 In 1901 , Secretary of State John Hay pressed the Nicaraguan Government for approval of a canal . Nicaragua would receive $ 1 @.@ 5 million in ratification , $ 100 @,@ 000 annually , and the U.S. would " provide sovereignty , independence , and territorial integrity " . Nicaragua then returned the contract draft with a change ; they wished to receive , instead of an annual $ 100 @,@ 000 , $ 6 million in ratification . The U.S. accepted the deal , but after Congress approved the contract a problem of court jurisdiction came up . The U.S. did not have legal jurisdiction in the land of the future canal . An important note is that this problem was on the verge of correction , until Pro @-@ Panama representatives posed problems for Nicaragua ; the current leader ( General José Santos Zelaya ) did not cause problems , from the outlook of U.S. interests . 

entailment
 In 1899 , the Isthmian Canal Commission was set up to determine which site would be best for the canal ( Nicaragua or Panama ) and then to oversee construction of the canal . After Nicaragua was ruled out , Panama was the obvious choice . A few problems had arisen , however . With the U.S. ' solidified interests in Panama ( then a small portion of Colombia ) , both Colombia and the French company that was to provide the construction materials raised their prices . The U.S. , refusing to pay the higher @-@ than @-@ expected fees , " engineered a revolution " in Colombia . On November 3 , 1903 , Panama ( with the support of the United States Navy ) revolted against Colombia . Panama became a new republic , receiving $ 10 million from the U.S. alone . Panama also gained an annual payment of $ 250 @,@ 000 , and guarantees of independence . The U.S. gained the rights to the canal strip " in perpetuity " . Roosevelt later said that he " took the Canal , and let Congress debate " . After Colombia lost Panama , they tried to appeal to the U.S. by the reconsidering of treaties and even naming Panama City the capital of Colombia . 

entailment
 Treaties among Panama , Colombia , and the United States to resolve disputes arising from the Panamanian Revolution of 1903 had been signed by the lame @-@ duck Roosevelt administration in early 1909 , and were approved by the Senate and also ratified by Panama . Colombia , however , declined to ratify the treaties , and after the 1912 elections , Knox offered $ 10 million to the Colombians ( later raised to $ 25 million ) . The Colombians felt the amount inadequate , and requested arbitration ; the matter was not settled under the Taft administration . 

contradiction
 = = = Sovereignty over Pedra Branca passed to Singapore = = = 

entailment
 On December 31 , 1999 , Moscoso oversaw the handover of the Panama Canal from the US to Panama under the Torrijos @-@ Carter Treaties . Her government then faced the challenge of cleaning up environmental problems in the Canal Zone , where the US Army had long tested bombs , biological agents , and chemical weapons . Remaining issues included lead contamination , unexploded munitions , and stockpiles of depleted uranium . Though Moscoso fired all of Pérez Balladares ' appointments from the Panama Canal Authority and appointed supermarket magnate ( and future president ) Ricardo Martinelli as its head , the Authority retained its autonomy from her administration . At the same time , Panama 's economy began to struggle due to the loss of income from American canal personnel . 
