In Hendrix's account, opposition to the canal treaty combined Colombian sovereignty concerns with demands for higher payments. A confidential American warning reached Colombian senators and intensified the dispute. Proposed amendments would require the French canal company to pay Colombia $10 million from its $40 million sale proceeds and increase the direct American payment from $10 million to $15 million. The United States had already accepted a hundred-year term, a zone ten kilometres wide, and a rise from its initial $7 million offer to $10 million. Secretary of State Hay rejected imposing the additional financial obligation on the French company, and Roosevelt would not reopen those terms. The Colombian Senate's rejection in August ended this stage of the negotiations.
Notable Point · 1:34:15-1:38:56
Payments and sovereignty in the Hay-Herran Treaty dispute
The canal negotiations stalled over Colombian sovereignty and additional payments after the United States had accepted several changes to the original terms.