It remained to decide where the canal should be, whether along the line already pioneered by the French company in Panama, or in Nicaragua.
Panama belonged to the Republic of Colombia.

Nicaragua bid eagerly for the privilege of having the United States build the canal through her territory.

As long as it was doubtful which route we would decide upon, Colombia extended every promise of friendly cooperation; at the Pan-American Congress in Mexico her delegate joined in the unanimous vote which requested the United States forthwith to build the canal; and at her eager request we negotiated the Hay-Herran Treaty with her, which gave us the right to build the canal across Panama.

A board of experts sent to the Isthmus had reported that this route was better than the Nicaragua route, and that it would be well to build the canal over it provided we could purchase the rights of the French company for forty million dollars; but that otherwise they would advise taking the Nicaragua route.

Ever since 1846 we had had a treaty with the power then in control of the Isthmus, the Republic of New Granada, the predecessor of the Republic of Colombia and of the present Republic of Panama, by which treaty the United States was guaranteed free and open right of way across the Isthmus of Panama by any mode of communication that might be constructed, while in return our Government guaranteed the perfect neutrality of the Isthmus with a view to the preservation of free transit.
For nearly fifty years we had asserted the right to prevent the closing of this highway of commerce.