 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.In 1899, the Isthmian Canal Commission was set up to determine which site would be best for the canal (Nicaragua or Panama) and then to oversee construction of the canal.