|The continued American ownership of the Panama Canal resulted in growing protests in Panama, which were echoed throughout South America. President Carter supported reaching a treaty with Panama to return control of the Canal.
On September 7th, the United States and Panama, under the leadership of General Omar Torrijos, reached an accord that would return full control of the Canal to the Panamanians by the year 2000. Under the terms of the treaty, the United States maintained the right to defend the Canal after that point. There was strong opposition in the Senate to the approval of the accord, but the president ultimately prevailed by a small majority.