Rioting in Panama City followed the dissolution of the National Assembly and the suspension of the constitution by Pres. Arias. On the next day the president was impeached and replaced by FirstV.P. Arosemena.
The government's candidate, former police chief José A. Remón Cantera, won the presidential elections, described by the opposition candidate as a dangerous burlesque of democratic principles. Remón renegotiated the 1903 canal treaty, resulting in wage equalizations between Panamanians and North Americans and an increase in the annual lease payment for the canal to $1.93 million.
Following the National Assembly's dismissal of Pres. José Ramón Guizado for being implicated in former president Remón's assassination (Jan. 2), Ricardo Arias Espinoza was installed as president.