202 PRESIDENTIAL DIPLOMACY NOTES
Presidential diplomacy between 1901-1914 ROOSEVELT, TAFT AND WILSON

Just as the progressivism styles of the 3 presidents differed, so did their diplomatic styles.
Roosevelt: Big Stick Policy or Roosevelt Corollary to the Monroe Doctrine. This style of diplomacy was designed to protect American interests.
Roosevelt is also associated with the Portsmouth Agreement. In 1904, Japan was alarmed by Russia who was moving in to Korea and Manchuria and, in a surprise move, attacked the Russian fleet in Port Arthur and defeated the Russians in Manchuria. This brought on the Russo- Japanese War.
The U.S. seemed sympathetic to Japan, in part because the U.S. feared that Russia would close Manchuria to foreign trade. But there was also fear that, if Japan defeated Russia, American interests would be threatened by Japan. Japan had moved in and taken over Korea and both nations had promised they would have complete control over the Russian island of Sakhalin. Neither country could defeat the other and were willing to bring in an outside mediator to settle the war without either nation losing face.
Roosevelt was chosen to mediate the Russo-Japanese War. The Portsmouth Agreement was drawn up in Portsmouth, New Hampshire. 1. Japan could keep what she already controlled- Korea and Manchuria. 2. Japan could not take any other land. 3. Sakhalin would be divided between both nations. ( This would allow them to keep an eye on the other) 4. Russia would not be required to pay an indemnity was causing the Russo-Japanese War. ( Remember the surprise attack by Japan on Port Arthur)

With holdings in the Caribbean, Hawaii and in Asia, Mr. Roosevelt wanted a faster way to move the American navy from one region of the world to another. He wanted a transoceanic canal. The U.S. looked at Nicaragua which had a narrow section between the Pacific and Atlantic Oceans. That site was unacceptable after there was a volcanic eruption in Nicaragua. Attention now turned to Panama, but the French had a monopoly on building a canal in Panama. The French had spent a lot of money and had lost of lot of workers to disease and were interested in selling their site. The French wanted $ 40 million for the site.
Panama was not an independent nation; it was owned by Columbia. The two countries were working on a plan where the U.S. would pay $10 million to Columbia, $250,000 a year to Columbia and receive a canal zone that was 6 miles wide. At the last minute, Columbia wanted more money.
The French in Panama staged a revolution in Panama. A U.S. warship kept Columbia from putting down the revolution and Panama became independent. The U.S. paid Panama $10 million plus $250,000 a year and received a canal zone that was 10 miles across. Within a matter of days, the U.S. recognized an independent Panama, signed an agreement which was signed the French leader in Panama and had possession of Panama.

Since 1823, the U.S. had told the rest of the world that the Western Hemisphere was off limits. Other nations were not to interfere in the affairs of any nation in the Western Hemisphere and we would not interfere in the affairs of other nations around the world. BUT we did not, would not help Latin American develop the resources in the area. These nations had the resources, the cheap labor, could use the technology we develop but had no money/capital to industrialize. Because we would not provide the capital to develop, some of the nations in Latin American borrowed money from European nations like Germany, England and others. These loans were to be repaid using the customs collected from nations sending good into the Latin American. They might have been possible if the customs collectors were honest, but they were not. They skimmed money from the top of the customs they collected, leaving the government in these countries without enough money to repay the loans. Germany and Great Britain sent warships to Venezuela in 1903 to try to scare