The turn-of-the-century was a crossroads in the histories of Great Britain and the United States. Britain was experiencing relative decline. Though the greatest empire in history, Britain was overextended and weaker than the United States in the Western Hemisphere. Conversely, the United States was taking the world stage and establishing its dominance in the Western Hemisphere. At this crossroads, the two nations formed an entente.

The Hay-Pauncefote Treaty of 1901, which secured the American right to an interoceanic canal and the settlement of the Alaskan boundary dispute in 1903 ushered in Anglo-American friendship. In both issues, however, the United States gained extremely favorable agreements. The relative power imbalance enabled American leaders like Theodore Roosevelt to bargain from a superior position. Britain, thus, had no choice except yielding to American demands.