How did the Hull-Alfaro Treaty change relations between Panama and the United States?

The Hull-Alfaro Treaty, signed in 1936, served as a significant modification to the 1903 Hay–Bunau-Varilla Treaty, which had previously granted the United States broad powers that many Panamanians viewed as an infringement on their national sovereignty.12

By formalizing this agreement, the United States made several key concessions that improved diplomatic relations:

• End of Intervention: The United States relinquished its controversial right to intervene militarily in Panamanian internal affairs to quell disturbances.2
• Land Rights: The U.S. agreed to give up its authority to seize additional lands and waters for canal-related purposes.12
• Economic Adjustments: The treaty increased the annual payment (annuity) provided to Panama for the use of the Canal Zone.2
• Infrastructure: The United States committed to constructing a transisthmian highway to benefit the country.2

These changes helped address long-standing Panamanian grievances regarding the "as if it were the sovereign" status the U.S. held over the Canal Zone, marking a step toward greater autonomy for the republic.12