 In 1901 , Secretary of State John Hay pressed the Nicaraguan Government for approval of a canal . Nicaragua would receive $ 1 @.@ 5 million in ratification , $ 100 @,@ 000 annually , and the U.S. would " provide sovereignty , independence , and territorial integrity " . Nicaragua then returned the contract draft with a change ; they wished to receive , instead of an annual $ 100 @,@ 000 , $ 6 million in ratification . The U.S. accepted the deal , but after Congress approved the contract a problem of court jurisdiction came up . The U.S. did not have legal jurisdiction in the land of the future canal . An important note is that this problem was on the verge of correction , until Pro @-@ Panama representatives posed problems for Nicaragua ; the current leader ( General José Santos Zelaya ) did not cause problems , from the outlook of U.S. interests . 
