US History

The major factors which shaped American foreign policy in the period from 1890 to 1900 included the desire for economic benefits, the pursuit of national honor and prestige, the need to maintain peace and stability, and the desire to expand America's sphere of influence. The pursuit of economic benefits was particularly important in the case of the Panama Canal controversy which saw the US negotiating with Colombia for the leasing of a six-mile-wide strip of land in the Isthmus of Panama. This would give the US access to the canal and allow the building of a short cut between the Atlantic and Pacific oceans. The US's need for economic benefits and its desire to expand its sphere of influence in the region, combined with its view that this was a unique opportunity to create a great technological marvel, drove the US to take strong action and eventually succeed in negotiating a separate treaty with the newly-created Republic of Panama, greatly reducing the cost of construction and ensuring US economic control of the canal.