This section relies largely or entirely on a single source
. (June 2016)
After Panama gained independence from Colombia in 1903, with the assistance of the U.S., there was resentment amongst some Panamanians as a result of the Hay–Bunau-Varilla Treaty, which ceded control of the Panama Canal Zone to the U.S. "in perpetuity" in exchange for a 10 million dollar initial payment and yearly 250 thousand dollar payments thereafter. In addition, the United States Government purchased title to all the lands in the Canal Zone from the private owners. The Canal Zone, primarily consisting of the Panama Canal, was a strip of land running from the Pacific Ocean to the Caribbean and had its own police, schools, ports and post offices. The Canal Zone became U.S. territory (de facto if not de jure).
In January 1963, U.S. President John F. Kennedy agreed to fly Panama's flag alongside the U.S. flag at all non-military sites in the Canal Zone where the U.S. flag was flown. However, Kennedy was assassinated before his orders were carried out. One month after Kennedy's death, Panama Canal Zone Governor Robert J. Fleming, Jr. issued a decree limiting Kennedy's order. The U.S. flag would no longer be flown outside Canal Zone schools, police stations, post offices or other civilian locations where it had been flown, but Panama's flag would not be flown either. The governor's order infuriated many Zonians, who interpreted it as a U.S. renunciation of sovereignty over the Canal Zone.
In response, outraged Zonians began flying the U.S. flag anywhere they could. After the first U.S. flag to be raised at Balboa High School (a public high school in the Canal Zone) was taken down by school officials, the students walked out of class, raised another flag, and posted guards to prevent its removal. Most Zonian adults sympathized with the student demonstrators.
In what was to prove a miscalculation of the volatility of the situation, Governor Fleming departed for a meeting in Washington, D.C. on the afternoon of January 9, 1964. For him and many others, the U.S.-Panama relationship was at its peak. The exploding situation caught up with the Governor while he was still en route to the U.S. over the Caribbean.