Suppose when the USA was negotiating with the Panamanian independence seekers it insisted on total USA sovereignty over what was known IOTL as the Canal Zone what would the Panamanians do?
Dont know about the panamanians, but would remove the diplomatic figleaf the us used. ,,Hey, were just freeing an oppressed nation,,
Sure, it waas a pretty transparent excuse, but its lack would make it a pure seizure of territory.
And, like britain with china in the case of hong kong, the idea that they werent going to be able to extort another lease when the first was up didnt occur to them.