03 was
internal peace finally restored. In the autumn of that same year
Colombia, exhausted and half ruined, was to suffer a further severe loss
in the secession of Panama.

The abrogation of the Clayton-Bulwer treaty in 1901, and the failure of
the second French company to construct a canal between Colon and Panama
(see PANAMA CANAL) had, after many hesitations, induced the United
States government to abandon the Nicaragua route and decide on adopting
that of Panama. Negotiations were set on foot with Colombia, and an
arrangement--under what was known as the Hay-Herran treaty--was made to
the following effect. Colombia agreed (1) to the transfer of the rights,
under the concession, of the French company to the United States; (2) to
cede, on a hundred years' lease, a right of way for the canal, and a
strip of land 5m. broad on either side of the waterway, and the two
ports of Colon and Panama. The United States agreed to pay Colombia (1)
L2,000,000 down in cash, and, ten years later, an annual rental of
L50,000, and further a share of the price paid to the French company,
_i.e._ L8,000,000, in which Colombia held 50,000 shares. This treaty was
signed by the plenipotentiaries and ratified by the United States
Senate. The Colombian Congress, however, refused to ratify the treaty on
the ground that when the negotiations had taken place the country was in
a state of siege, really in the hope of securing a larger money payment.
The adjournment took place on the 31st of October. On the 3rd of
November a revolution broke out at Panama, and the state seceded from
Colombia and declared itself to be an independent republic. This
opportune revolution was no doubt fomented by persons interested in the
carrying through of the United States scheme for piercing the isthmus,
but their task was one that presented no difficulties, for the isthmian
population had been in a state of perennial insurrection against the
central government for many years. Whoever may have instigated the
rising, this much is certain, that American warships prevented the
Colombian troops from landing to suppress the revolt. On the 7th of
November the United States government formally recognized the
independence of the republic of Panama (q.v.). The other powers in
succession likewise recognized the new state; the recognition of Great
Britain was given on the 26th of December. Colombia thus sacrificed a
great opportunity of obtaining, by the ratification of the H