This thesis explains the origins of the 1936 Hull-Alfaro Treaty between Panama and the United States. It examines how Panamanian politics and Panama’s relationship with the United States changed over the decades leading up to this new treaty. The Panama Railway and then the Panama Canal placed Panama in a unique position within the growing American Empire as the isthmus linked the United States to the resources it needed to fuel its domestic industry and to markets for its manufactured goods. Recurrent political unrest and economic challenges within Panama forced the Panamanian government to attempt to renegotiate its relationship with the United States. This work analyzes the changes within Panamanian society, United States foreign relations, and world affairs that led to the 1936 treaty succeeding where other treaty negotiations had not. / Graduate / 0336 / skookum_1998@hotmail.com