Panama

In 1903, the US aided the secession of Panama from the Republic of Colombia. The secession was engineered by a Panamanian faction backed by the Panama Canal Company, a French–US corporation whose aim was the construction of a waterway across the Isthmus of Panama thus connecting the Atlantic and Pacific Oceans. In 1903, the US signed the Hay-Herrán Treaty with Colombia, granting the United States use of the Isthmus of Panama in exchange for financial compensation amidst the Thousand Days' War. The Panama Canal was already under construction, and the Panama Canal Zone was carved out and placed under United States sovereignty. The US did not transfer the zone back to Panama until 2000.

Panamanian dictator Omar Torrijos' unexpected death in a plane crash has been called an assassination by US agents in collaboration with Manuel Noriega. According to John Perkins's book Confessions of an Economic Hit Man the motive behind it was Torrijo's negotiations with Japanese businessmen to expand the Panama Canal excluding American firms. Torrijos was also a supporter of the anti-Somoza FSLN rebel group in Nicaragua which stained his relationship with Reagan. Torrijos was succeeded by more pro-American dictator Manuel Noriega, who sided with the US interests during Torrijos government.

However, increasing tensions between Noriega and the US government also led to the United States invasion of Panama, which ended in Noriega's overthrowing.

1989–1994: Panama

Main article: United States invasion of Panama

In 1979 the US and Panama signed a treaty to end the Panama canal zone and promise that the US would hand over the canal after 1999. Manuel Noriega ruled the country of Panama as dictator. He was an ally of the United States working with them against the Sandinistas in Nicaragua and the EZLN in El Salvador. Despite this relations began to deteriorate as he was implicated in the Iran-Contra Scandel including drug trafficking. As relations continued to deteriorate Noriega started to ally with the Eastern Bloc. This also worried US officials and government officials like Elliot Abrams started argueing to Reagan that the US should invade Panama. Reagan decided to hold off due to George H.W. Bush's ties to Noriega when he was the head of the CIA running his election. After he was elected he started pressuring Noriega. Despite irregularities in the 1989 Panamanian General Election Noriega refused to allow the opposition candidate into power. George H.W. Bush called on him to honor the will of the Panamanian people. Coup attempts were made against Noriega and skirmishes broke out between U.S. and Panamanian troops. Noriega was also indicted for drug charges in the United States. In December 1989, in a military operation code-named Operation Just Cause, the U.S. invaded Panama. Noriega went into hiding but was later captured by US forces. President-elect Guillermo Endara was sworn into office. The United States ended Operation Just Cause in January 1990 and began Operation Promote Liberty, which was the occupation of the country to set up the new government until 1994.