ABSTRACT
This chapter focuses on the pertinent existing rights and obligations of the United States regarding the Panama Canal and addresses the limits on the powers of the United States and Panama acting together to modify those rights and obligations of the United States. The tale has often been told of how the United States acquired the rights acknowledged by the government in effective control of the territory through which the Panama Canal runs, to construct, maintain, operate and defend the Canal. The root of the difficulties lies in the attempt by the United States and Panama together to avoid the legal obligations laid on them by history and the Hay-Pauncefote Treaty. Thus Liberia might be forced into arguing third-party beneficiary rights and could seek the support of other third-party users of the Canal in negotiation or political pressure on both the United States and Great Britain.
