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In 1925, there occurred a tenants' strike in the provinces of Panama and Colon that helped define the development of the left and workers’ movement in that nation.

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- The evacuation of thousands of workers that rented homes in Colon and Panama.
- The awful house conditions.
- The excessive prices.
- The creation of a tax over the properties, which made rents more expensive by 25%-50%.

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- The tenants were organized in "Liga de Inquilinos y Subsistencia.
-The group carried out rallies and assembled the “strike of no payment”.
-The workers’ sections in Panama and Colon went to the  Leagues’ call, bringing a huge amount of protesters.
- There was also participation from foreigners, who came from Spain and Poland.

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- The  government of that period, led by Roberto Chiari,  ordered the removal of foreigners, but tolerated the protests.
- Since the pressure from the people persisted, the government canceled the rallies.
-The conflict was solved temporarily, when Chiari proposed a tenant law that considered some of the demands from protesters.

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President of Panama Harmodio Arias signed a decree to create the University of Panama on May 19th, 1935. In that same year, the first headquarters was opened in the Instituto Nacional. The official building was built in El Cangrejo and was inaugurated on November 1, 1953. The university started with 175 students. It enabled growth in the middle classes of Panama, which included teachers, students, and employees. The students created the Federation of Students in 1943. The current faculties are: Public Administration, Business Administration, Architecture, Fine Arts, Agricultural Sciences, Education, Natural Sciences and Technology, Communications, Law and Political Sciences, Economics, Nursing, Pharmacy, Humanities Computer Science, Electronics and Communication, Medicine, Veterinary Medicine, Odontology, Psychology, and Graphic Design.

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President Franklin Roosevelt (of the US) and President Harmodio Arias (of Panama) signed a joint declaration in 1933. The General Treaty of Friendship and Cooperation (AKA the Arias-Roosevelt Treaty) was created and signed on March 2nd, 1936.
The treaty insisted on peace, and The US was no longer able to occupy the isthmus millitarily. The yearly payment from the US to Panama increased to 430,000 balboas.
US and Panma also agreed to cooperate to prevent contraband and illegal immigration in the Canal Zone. Both countries would share responsibility for the security of the Canal, and would secure the neutrality and safety of the Canal.
Panama was also granted a land corridor to connect Panama City to Colón. This is currently called the Transisthmic Highway. The treaty was also a modification of articles 1and 7 of the Hay-Bunau Varilla Treaty.

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This agreement caused unfavorable conditions for Panama society. It was negotiated afterward, it began in 1924.

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Those in charge were both from panama:

Frank B. Kellog (secretary  of  the  United  States)

Ricardo J. Alfaro and Eusebio Morales

- Negotiations were canceled due to the strong stance of both sides.
- It is extended for more than two years.
- The treaty was a product of American interests to protect American influence in the Caribbean and Central America.
- Panama was seeking new negotiations to grant economic demands and sovereignty after the 1924 Taft Convention lost effect.

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July 28th, 1926, the Alfaro-Kellog treaty was signed.

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July 28th, 1926, the Alfaro-Kellog treaty was signed.

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This document allowed US military advantages and strategies at the expense of Panama's sovereignty.

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This document allowed US military advantages and strategies at the expense of Panama's sovereignty.

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Agreed that in times of war, national sovereignty would  be  subordinated  to  the  criteria  of  the  United  States,  all  under  the  motto  of protecting the Canal.

Panama would obtain benefits from trade, and would also receive support from the

United  States  in  the  struggle  against  the  contraband  of  products  coming  from  the commissaries of the Canal Zone.

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The terms of the treaty were not made public, and the government kept the controversial agreement secret. National newspapers showed only excerpts of the treaty, but the full text was later published in Costa Rica and Cuban publications that arrived in Panama.
Citizens expressed their rejection of the treaty because of the lack of territorial concessions and sovereignty granted to the United States, and the lack of benefits to Panama. This new treaty did not improve the terms of the Hay-Bunau Varilla Treaty.
The civil organizations that opposed  to  this  treaty:

Sindicato General de Trabajadores (General Union of Workers)

Acción Comunal (Community Action)

groups of students

With  the  negative  atmosphere,  the  National  Assembly  didn’t analyze  the  pact  in-depth,  and  recommended  a  new  negotiation  to  the  Executive Branch. Rejecting the Alfaro-Kellog treaty was a victory for the Panamanian society that defended national interests.

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Community Action Movement and Coup in 1931

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Community Action Movement and Coup in 1931

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Presidential Succession and Community Action

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Presidential Succession and Community Action

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During the first years of the 1930 decade, the country faced a tough economic and social situation as a result of the world crisis (The Great Depression).

Accion Comunal (Community Action) decided this was an administrative issue

This group considered that it was necessary to take action and on January 2nd, 1931, and carried out a golpe de Estado (coup) against President Florencio Arosemena.

They gave power to Harmodio Arias for 2 weeks

The  representative  of  the  United  States  in  Panama,  Roy  Tasco  Davis, ordered the respect of the presidential succession.

This demand resulted in a decision from the Panamanian Supreme Court of Justice, which declared Ricardo J. Alfaro as the president.

In 1932, Alfaro completed the presidential term of Arosemena.

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He  had  the  difficult  task  of  issuing  measures  for  facing  the  economic crisis  that  Panama  suffered  during  the  decade  of  1930.

Alfaro’s regulations:

Restriction of having two jobs (consequences for public officials who accepted bribes)

The regulations for travel expenses.

In the presidential elections that followed, Harmodio Arias came to power.

He also had to deal with the repercussions of the economic crisis and one of the measures that he had to issue was the reduction of salaries.

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On February 1925, the Kuna indigenous went against the government. This action happened in the zone of San Blas (Today called Comarca Guna Yala).

The main cause of the conflict was the discontent with the authorities because of

police abuse, disrespect, and the abandonment in which they lived in.

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They had the support of the United States scientist and businessman Richard Marsh. He

had arrived to the region in 1923, to study natural resources and albino natives.

The  gunas  proclaimed  the  Republic  of  Tule  and  requested  protection  from  the  United States.

On  their  declaration  of  independence,  written  by  Marsh,  the  gunas  granted  the

rights  to  exploit  some  natural  resources  of  the  region  (like  rubber  and  iron)  to  several

companies of the United States.

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The  United  States  denied  the  petition  of  recognition  and  protection  of  the  gunas.

The minister  from  the  United  States,  John  G.  South,  represented  his  country  in  the  peace negotiations.

The agreement would end conflict after being signed on March 1925. As a consequence of the Tule revolution, the Panamanian government, led by Rodolfo Chiari, committed to respecting the customs of that region.

They were also reassured that they would be protected the same way as the rest of the inhabitants of the republic.