The Hay-Bunau-Varilla Treaty was signed on November 18, 1903, between the United States and the newly independent nation of Panama. This treaty granted the U.S. control over a 10-mile-wide zone in Panama, allowing for the construction of the Panama Canal. In exchange, the U.S. paid Panama $10 million and an annual rent of $250,000. The treaty was significant because it facilitated the completion of the canal, which opened in 1914 and became a crucial maritime route. However, it was also controversial, as many Panamanians felt that the treaty was imposed upon them by the U.S. government, leading to long-term tensions in U.S.-Panama relations.