1. A new Foreign Policy

2. Setting the Scene U.S. new military world power
McKinley won 1900 election
Nominated Teddy Roosevelt as VP
McKinley is assassinated

3. The need for water travel
Increase in trade with Asia
Increased naval presence in Atlantic and Pacific
Huge costs of shipping from Asia to East Coast

4. Acquiring Panama Canal
Panama was a province of Columbia
1879 French company bought 25-year concession to build canal
Many problems with labor and structure
Disease
Climate
Abandon after 10 years
Offered project to U.S. for $100 million
TR waited for price to fall to $40 million

5. Building panama canal Spooner Act 1902 U.S. bought project from French
Columbia held up project to try for money from U.S.
U.S. facilitates Panamanian revolution
Hay-Bunau-Varilla Treaty November 1903
PERMANENT grant for 10 mile wide strip for Canal
Panama received $10 million
Construction started 1904
Completed 1914 ($23 million under budget)

6. Reaction to Canal
Roosevelt questioned on methods used to acquire canal
Public convinced of necessity
Legacy of ill-will from Latin Americans

7. Big Stick Diplomacy The Great White Fleet – Big Stick
Roosevelt Corollary
U.S. does not used Monroe Doctrine to acquire territory
protecting interests from failing states
Santo Domingo (Dominican Republic
Went Bankrupt
U.S. took over finances
Roosevelt strengthened presidential powers

8. Roosevelt as peacemaker
TR wanted Open-Door with China
Japan-Russia war possible interference
1905 TR mediated peace agreement
Japan agreed to parts of Korea and no money
Russia vacate Manchuria
TR won Nobel Peace Prize

9. Taft- Dollar Diplomacy
Main goal to maintain Open-Door Policy
Preferred to “substitute dollars for bullets”
Increased financial involvement abroad
Money and influence angered nations
Latin America
Japan
Russia

10. Wilson and Mexican Revolution
1911 revolution forced dictator out
U.S. had invested over $1 billion in Mexico
General Victorian Huerta lead revolution
Wilson refused to support
1914 arrest of American sailors
Wilson reacts militarily
Wilson replaces Taft with “Moral Diplomacy”

11. Learning Activity How old is the Idea for the Panama Canal?
How much had the Canal cost France?
Where were America’s original plans to build a canal?
How many workers died in construction? What were the most common causes?
How many ships use the Canal every year?
Who now owns the Canal? For how long have they owned the rights to it?
What is the cost of the planned expansion? How much larger will it be?

12. Closure Who started the Panama Canal?
How did America come to acquire it?
What was the name for Roosevelt’s diplomacy? Taft’s? Wilson’s?
Which Diplomacy proved to receive the most profitable outcome?