oyment. (Dolan 99)The canal tolls per ton were not raised for 59 years. In 1915 tolls were about $14 million. By 1970 they exceeded $100 million. In 1973 the Panama Canal Company recorded its first loss, this was the reason for the change from 90 cents per cargo ton to $1.08. Revenues in 1975 exceeded $ 140 million. (McNeese 215)Was the Hay-Banan-Varilla Treaty fair? In the words of former President Jimmy Carter No Panamanians had ever seen the terms of the treaty of which were highly favorable to the U.S.. Among the terms that Panama resented was the U.S. control over the zone. The question of sovereignty over the canal aroused deep passions, which came to boil in 1964 with massive rioting by Panamanians, a response to U.S. troops, bloodshed on both sides. In the aftermath, President Lydon Johnson agreed to renegotiate the treaty related to the Panama Canal. (Conaway)In 1977 United States and Panama agreed on a new treaty. The most significant agreement was the transferring of ownership of the canal to Panama to take the place on December 31, 1999. Also they agreed to cooperate in the defense of the canal. The annual payment was upped to $ 10 million and was to be paid from the canals revenue, plus a payment of 30 cents for each ton of shipping. And when Panama took control of the canal it was free to employ Americans. (Dolan 128)Also included in the treaty was a neutrality clause. The canal is to remain open to merchant vessels of all nations indefinitely, without discriminations as to conditions or tolls. The clause does not allow the U.S. to intervene in the internal affairs of Panama. It does however give the United States and Panama the responsibility to insure that the canal remains open. (Crane 81)Though it was rich with symbolic significance the signing ceremony on September 7, 1977, hardly ended the controversy over the treaties. The ratification battle in the U.S. Senate still lay ahead, and it called for the...
