Washington doubted Panama could run the canal after the December 31, 1999 handover. The episode shows Panama rebuilding after the invasion, abolishing its army in 1994, creating the Panama Canal Authority in 1997 and staffing the canal overwhelmingly with Panamanians. Two ceremonies marked the transfer, and the canal ran smoothly afterward.
Clinton's absence from the handover was widely noted as a slight, and reports vary on which other U.S. officials attended. Panamanian democracy in the 1990s still had corruption and growing pains. The over-90-percent Panamanian workforce was the completion of a long transition.



