es along the canal could be used by guerrilla forces Therefore, the canal was considered less valuable as a military asset4. Canal administration The canal is operated by the Panama Canal Commission, a U.S. government agency under the Department of Defense The commission was established in 1979 to manage the canal during the 20-year transition from U.S. to Panamanian control The commission manages and maintains the canal and all its related functions and equipment Tolls and other canal fees generally pay all the costs of running and maintaining the waterway The treaties also guarantee the permanent neutrality of the Panama Canal, allowing ships of all nations to use it even in time of war The treaties also guarantee the permanent neutrality of the Panama Canal, allowing ships of all nations to use it even in time of war5. History1. FRENCH In the late 1870s a private French company won a concession from Colombia to build a sea-level canal in Panama and soon raised enough money to begin construction1. The company was directed by Ferdinand de Lesseps, a French engineer and diplomat who had overseen construction of the Suez Canal in Egypt Excavation in Panama began in 1882, but the company quickly ran into problems caused by the difficult terrain, climate, tropical diseases, labor shortages, and a flawed design In 1888 it ceased work and went into bankruptcy. Reorganized a few years later as the New Panama Canal Company, it barely managed to keep the concession and prevent the equipment from deteriorating. At that stage, the French company sought another sponsor for the project.2. United States The United States had long been interested in a Central American canal, to link its east and west coasts and expand trade However, it did not have the money or the will to build one before 1900 The Spanish-American War in 1898 heightened military i...
