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The Panama Canal Zone (), was a 553 square mile (1,432 km²) territory inside of Panama, consisting of the Panama Canal and an area generally extending 5 miles (8.1 km) on each side of the centerline (but excluding Panama City and Colón, which otherwise would have fallen in part within the limits of the Canal Zone.) Its border spanned two of Panama's provinces and was created on November 18, 1903 with the signing of the Hay-Bunau-Varilla Treaty. When artificial lakes were created to assure a steady supply of water for the locks, those lakes were included within the Zone.
From 1903 to 1979 the territory was controlled by the United States of America, which had built and financed the canal's construction. From 1979 to 1999 the canal itself was under joint U.S.-Panamanian control. In 1977 the Torrijos-Carter Treaties established the neutrality of the canal. *
Except during times of crisis or political tension, Panamanians could freely enter the Zone. However, the 1903 treaty placed restrictions on their right to buy at retail stores in the Zone, for the protection of Panamanian shopkeepers.
During U.S. control of the Canal Zone, the territory, apart from the canal itself, was used mainly for military purposes; however, approximately 3,000 American civilians (called "Zonians") made up the core of permanent residents. U.S. military usage ended when the zone returned to Panamanian control. It has now been integrated to the economic development of Panama, and is a tourist destination of sorts, especially for visiting cruise ships.
The Panama Canal Zone was the birthplace of John McCain, Richard Prince, and Rod Carew.
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Panama Canal Company
The canal was operated by the Panama Canal Company (after 1979, it was the Panama Canal Commission). The Canal Zone Government controlled the Canal Zone; kind of a cross between a colonial company enclave and a socialist government. Everyone worked for the Company or the Government in one form or another. There were no independent stores, goods were brought in and sold at a series of stores run by the company such as a commissary, house wares, and so on. The Canal Zone had its own police force, courts and judges. As a matter of fact, the U.S. District Court for the Canal Zone has been the only District Court to be disestablished in all of U.S. History. Civil and Criminal jurisdictions were assumed by the Republic of Panama.
The head of the company was also the Governor of the Canal Zone. No one owned houses; instead they rented houses that were assigned, primarily based on seniority in the zone. When someone would leave for one reason or another, the house would be listed and employees could apply for it. The utility companies were also run by the company.
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Townships and Military Installations
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The Canal Zone was generally divided into two sections, the Pacific Side and the Atlantic Side, with Lake Gatun separating them.
A partial list of Canal Zone townships and military installations:
Balboa - Administrative capital, as well as location of the harbor and primary Pacific Side high school
Cardenas - as the Canal Zone was gradually handed over to Panamanian control, Cardenas was one of the last Zonian holdouts.
Gamboa - headquarters of dredging division, located on Gatun Lake. Many new arrivals to Canal Zone were assigned here.
Red Tank: was abandoned and allowed to be overgrown sometime around 1950.
Curundu: on military base, but housed civilian military workers
Rosseau: built as a naval hospital during WWII, housed FAA personnel until Cardenas was built. Torn down after about 20 years
Ft Amador - on the coast, partly built on land extended into the sea using excavation materials from the canal construction
Corozal Army Post (close to, but separate from the civilian township)
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Postage stamps
see: Postage stamps and postal history of the Canal Zone
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