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The United States recognized the independence of Panama and signed the Hay-Bunau-Varilla Treaty that stated:

A) The United States would control the Panama Canal indefinitely.
B) Panama would control the Panama Canal.
C) The Panama Canal would be jointly controlled by several countries.
D) The Panama Canal would be sold to the highest bidder.

1 Answer

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Final answer:

The United States recognized the independence of Panama and signed the Hay-Bunau-Varilla Treaty in 1903, gaining control of the Panama Canal.

Step-by-step explanation:

The United States recognized the independence of Panama and signed the Hay-Bunau-Varilla Treaty in 1903. This treaty stated that the United States would have "use, occupation and control" of a 10 mile-wide canal zone "in perpetuity" and would pay $250,000 a year to Panama for it.

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