Question

The significance of Hay-Bunau-Varilla Treaty of 1903 is because it _____________________.

• A. Ended the Spanish-American War.
• B. Paved the way for the Panama Canal project.
• C. Established commonwealth status for Puerto Rico.
• D. Added the Mexican Cession to U.S. territory.
• E. Gave U.S. companies exclusive rights to the Guatemalan banana trade.

Answer 1

The correct option is B Paved the way for the Panama Canal project.

The Hay-Bunau-Varilla Treaty signed on 18 November 1903, by the United States of America and Panama which established the Panama canal zone and subsequent construction of the Panama canal. Panama was granting canal rights in exchange for financial reimbursement and guarantees of protection to the newly established republic.