So we built a thing called the Panama Canal. We lost 35,000 people to the mosquito. You know, malaria? […] Vicious. They had to build under nets. It was one of the true great wonders of the world. […] It was such an incredible engineering marvel.
We sold it under Jimmy Carter. We sold it to Panama for $1. The following day they quadrupled the amount ships had to pay to get across. […] We gave it away for $1. China now controls it.
— Donald Trump ~ minute 22 of Tucker Carlson Ep. 19 debate night interview 8/23/23
Is this true or hyperbole? It’s certainly worth a fact check.
Deaths from malaria?
The US was not the only country to attempt the canal. Between France and the US, tens of thousands died from malaria during construction of the Panama Canal.
Sold for $1?
Sadly, most articles regarding the Panama Canal / Torrijos — Carter Treaties make no mention of the transaction price and the full text is not readily available.
However, it actually appears far worse than Trump described. Instead, it appears the US paid Panama in addition to gifting the canal:
To promote Panama’s economic development, the U.S. contribution will be stepped up through a program of loans, loan guarantees, and credits totaling approximately $295 million over the next five years. These financial arrangements will involve no grants and no gifts from the United States; they will all be repaid by Panama with interest. Because of “Buy American” provisions, this economic cooperation package will bring substantial benefits to U.S. business and labor. In addition, to assist Panama to develop a capability for canal defense, the United States will make available military credits totaling $50 million over a 10-year period. While the package developed out of the treaty negotiations, it lies outside the treaties and imposes no treaty obligations on the United States.
— Panama Canal — New Treaties — US Department of State Nov 1977
and
the U.S. has also promised Panama $345 million in various types of loans and aid over a 10 year period. The U.S. negotiators have assured Congress that the treaties will not result in a cost to the taxpayers. That will be the hat trick of the year.
[…] it should be noted […] according to the State Department figures, the [1977] replacement costs of Canal facilities would be $9.818 billion.
— Marjory Burns Shanard 1977 (Board of the Panama Canal Company)
The Panama Canal projected $4.65 billion in revenue for 2023.
Does China now control it?
You decide:
Chinese companies have since positioned themselves at either end of the Panama Canal through port concession agreements. In 2016, in a $900 million deal, the China-based Landbridge Group acquired control of Margarita Island, […] the largest free trade zone in the Western Hemisphere. […] Furthermore, in 2018, a Chinese consortium led by CHEC and CCCC announced it was awarded a $1.4 billion contract for the Canal’s fourth bridge, which then-president Varela called “the fifth most important project in the history of the country.”
