Question

Why did the United States give control of the Panama Canal to Panama?

The U.S. was removed by the Panama military.
A new treaty was negotiated due to riots in Panama.
The U.S. was no longer interested in maintaining control of the canal.

Answer 1

The correct answer here is the second option.

When the US helped the Panamanian people win their independence from Columbia they got the rights to build and operate the Panama Canal in perpetuity. But Panamanian people had no say in this and thus over time they wanted it back. After the riots, which were also presumably instigated by the soviet agitators, the conflict arose between Panama and the US. So, because of the riots a new deal was made.

Answer 2

The answer is "A new treaty was negotiated due to riots in Panama."