where is isthmus of panama located?
Costa Rica
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 . 

contradiction
 Alexander became friends with Grover Cleveland and the two spent many hours hunting for ducks on Alexander 's estate . In May 1897 , President Cleveland appointed Alexander as the arbiter of the commission tasked with fixing and demarcating the boundary between the Republics of Nicaragua and Costa Rica , with a view towards the possible construction of an interoceanic canal to be dug across Central America . Alexander spent two years at the head of that commission , headquartered in the coastal village of Greytown ( now San Juan de Nicaragua ) . He completed the work to the satisfaction of the two governments and returned to the U.S. in October 1899 . His wife Bettie became ill while he was in Nicaragua and she died shortly after his return , on November 20 , 1899 . In October 1901 , Alexander married Mary Mason , his first wife 's niece . 

neutral
 Pedro Armendáriz , Jr. as President Hector Lopez , the president of Isthmus 

neutral
 In Mexico , topographical officer George W. Hughes reported to Secretary of State John M. Clayton that a railroad across the isthmus was a “ feasible and practical ” idea . Clayton then instructed Robert P. Letcher , the minister to Mexico , to negotiate a treaty to protect Hargous ' rights . The United States ' proposal gave Mexicans a 20 % discount on shipping , guaranteed Mexican rights in the zone , allowed the United States to send in military if necessary , and gave the United States most @-@ favored @-@ nation status for Mexican cargo fees . This treaty , however , was never finalized . 

entailment
 Through the 1903 Panamanian Revolution and the Hay @-@ Bunau @-@ Varilla Treaty , the United States had secured rights to build a canal in the Isthmus of Panama . Legislation authorizing construction did not specify which government department would be responsible , and Roosevelt designated the Department of War . Taft journeyed to Panama in 1904 , viewing the canal site and meeting with Panamanian officials . The Isthmian Canal Commission had trouble keeping a chief engineer , and when in February 1907 John D. Stevens submitted his resignation , Taft recommended an army engineer , George W. Goethals . Under Goethals , the project moved ahead smoothly . 
