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PANAMA TRAVEL DISCOUNT PACKAGE TOURS, HOTEL RESERVATIONS AND TOURIST INFORMATION
 

 

 

 

 

 

 

 

 
 

 
 

 
     
 

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HISTORY

 
Perhaps no country in the world has had its history so thoroughly determined by geography as Panamá. In prehistoric times this was a crucial land bridge in the migration routes by which the Americas were populated, and from the moment the conquistador Vasco Nuñez de Balboa emerged from the forests of Darién to become the first European to look out onto the Pacific Ocean on September 25, 1513, the history of Panamá has been the history of the route across the isthmus. Balboa claimed what he called the "Southern Ocean" in the name of the King of Spain, but received scant reward for his discovery - in 1519 his jealous superior Pedro Arias Dávila (known as Pedrarias the Cruel), the first governor of what was by then known as Castilla de Oro, had him beheaded for his troubles.
In the face of appalling losses from disease in the first Spanish settlements on the Caribbean, Pedrarias moved his base across the isthmus to the more salubrious Pacific coast, where he founded Panamá City in 1519. The new settlement became the jumping-off point for further Spanish conquests north and south along the coast, and after the conquest of Peru in 1533 began to flourish as the transit point for the fabulous wealth of the Incas on its way to fill the coffers of the Spanish Crown. From Panamá City, cargo was transported across the isthmus on mules along the paved Camino Real to the ports of Nombre de Dios and later Portobelo, on the Caribbean coast. A second route, the Camino de Cruces, was used to transport heavier cargo to the highest navigable point on the Río Chagres, where it was transferred to canoes that carried it downriver to the coast. Once a year huge trade fairs lasting several weeks were held at Portobelo, when the Spanish royal fleet arrived to collect the gold and silver that had accumulated in the treasure houses of Panamá and to trade European goods that were then redistributed across the Americas. The vast wealth that flowed across the isthmus was quick to attract the attention of Spain's enemies, and despite ever heavier fortification the Caribbean coast was constantly harassed by English and other European pirates . In the most daring attack, the English Henry Morgan sailed up the Río Chagres and crossed the isthmus to sack Panamá City in 1671.
Though the city was rebuilt behind defences so formidable that it was never taken again, the raiding of the Caribbean coast continued, until finally in 1746 Spain rerouted the treasure fleet around Cape Horn . With the route across the isthmus all but abandoned, Panamá slipped into decline, and settlement of the interior began to increase. Despite fierce resistance from indigenous groups the rest of the isthmus had been progressively conquered in the decades following the foundation of Panamá City. The forests of Darién and the Atlantic coast had been largely abandoned once the early colonial gold mines established there had been exhausted, and provided a refuge for unsubmissive tribes and bands of renegade slaves known as cimarrones , while the Pacific coastal plain west of Panamá City was gradually settled by farmers. Trade remained the dominant economic activity - whereas in most of the Spanish Empire political power lay in the hands of large landowners, in Panamá it was always held by the merchant class of Panamá City.
In 1821 Panamá declared its independence from Spain , but retained its name as a department of Gran Colombia, which, with the secession of Ecuador and Venezuela, quickly became simply Colombia . Almost immediately, though, conflicts emerged between the merchants of Panamá City, eager to trade freely with the world, and the distant, protectionist governments in Bogotá, leading to numerous half-hearted and unsuccessful attempts at independence.
Meanwhile, traffic across the isthmus was once again increasing, and exploded with the discovery of gold in California in 1849. Travel from the US east coast to California via Panamá - by boat, overland by foot, and then by boat again - was far less arduous than the overland trek across North America, and thousands of "Forty-niners" passed through on their way to the goldfields. In 1851 a US company began the construction of a railway across Panamá. Carving a route through the inhospitable swamps and forests of the isthmus proved immensely difficult, and thousands of the mostly Chinese and West Indian migrant workers died in the process, but when the railway was completed in 1855, the Panamá Railroad Company proved an instant financial success. Panamá's importance as an international thoroughfare increased further, but the railway also marked the beginning of foreign control over the means of transport across the isthmus. Within a year, the first US military intervention in Panamá - "to protect the railroad"- had taken place.
The French canal venture
In 1869 the opening of the first transcontinental railway in the US reduced traffic through Panamá, but the completion of the Suez Canal that same year at last made the longstanding dream of a canal across the isthmus a realistic...

In 1869 the opening of the first transcontinental railway in the US reduced traffic through Panamá, but the completion of the Suez Canal that same year at last made the longstanding dream of a canal across the isthmus a realistic possibility. Well aware of the strategic advantages such a waterway would offer - the journey of a ship travelling from, for example, Boston to San Francisco would be reduced from 21,000km to just 8000km if it could cross the continent by passing through Panamá rather than going all the way round Cape Horn - Britain, France and the US all sent expeditions to seek a suitable route. It was the French, though, who took the initiative, buying a concession to build a canal from the Colombian Government. In 1881, led by Ferdinand de Lesseps , the architect responsible for the Suez Canal, the Compagnie Universelle du Canal Interoceanique began excavations.
But despite De Lesseps' vision and determination, the "venture of the century" proved to be an unmitigated disaster. In the face of the impassable terrain - forests, swamps and the shifting shales of the continental divide - the proposed sea-level canal proved technically unfeasible, while yellow fever and malaria ravaged the workforce, killing as many as 20,000. In 1889 the Compagnie collapsed as a result of financial mismanagement and corruption, implicating the highest levels of French society in what the official described as "the greatest fraud of modern times".
But the dream of an interoceanic canal would not die. The US government, never keen on the idea of a canal controlled by a European power and convinced by its 1898 war with Spain of the military importance of a fast passage between the Atlantic and Pacific oceans, took up the challenge. President Theodore Roosevelt in particular was convinced that the construction of a canal across Central America was an essential step in pursuit of the control of all the Americas. At first the US favoured building a canal through Nicaragua, but the persuasive lobbying of Philipe Bunau-Varilla, a French engineer anxious to profit from the sale of the French rights and equipment, swung the crucial Senate vote in Panamá's favour. A treaty allowing the US to build the canal was negotiated with the Colombian government in 1903, but the Colombian Senate refused to ratify it. Outraged that "the Bogotá lot of jackrabbits should be allowed to bar one of the future highways of civilization", Roosevelt gave unofficial backing to Panamanian secessionists who had long been seeking independence. The small Colombian garrison in Panamá City was bribed to switch sides and a second force that had landed at Colón agreed to return to Colombia without a fight after its officers had been tricked into captivity by the rebels. On November 3, 1903 the Republic of Panamá was declared and immediately recognized by the US, whose gunships standing offshore prevented Colombian reinforcements from landing to crush the rebellion.
Though it is true that Panamá would never have come into existence as an independent republic without the involvement of the US, the independence movement was not wholly a US invention. The Panamanian merchant elite had good reason to seek independence - rule from remote Bogotá limited Panamá's ability to trade and involved it in Colombia's endless civil wars - and had attempted secession 33 times in the previous seventy years. The difference, in 1903, was the support of the US, and this, as the Panamanians were soon to discover, came at a high price


The canal
A new canal treaty was quickly negotiated and signed on Panamá's behalf by Bunau-Varilla. It gave the US "all the rights, power and authority& which [it] would possess and exercise as if it were sovereign", in perpetuity over an area...

A new canal treaty was quickly negotiated and signed on Panamá's behalf by Bunau-Varilla. It gave the US "all the rights, power and authority& which [it] would possess and exercise as if it were sovereign", in perpetuity over an area of territory - the Canal Zone - extending five miles either side of the canal. In return, the new Panamanian government received a one-off payment of US$10 million and a further US$250,000 a year. These conditions were so favourable that even American Secretary of State John Hay had to admit they were "very satisfactory, very advantageous for the US and we must confess& not so advantageous for Panamá." Panamá's newly formed national assembly found the terms outrageous, but when told by Bunau-Varilla that US support would be withdrawn were they to reject it, they ratified the treaty and work on the canal began.
It took ten years, the labour of some 75,000 workers and some US$387 million to complete the task - an unprecedented triumph of sanitation, organization and engineering during which chief medical officer Colonel William Gorgas established a programme that eliminated yellow fever from the isthmus and brought malaria under control. The US engineers abandoned the idea of a sea-level canal, and instead constructed a series of locks to raise ships up to a huge artificial lake formed by damming the mighty Río Chagres, an obstacle the French had never been able to overcome. Together the engineers solved the problems that had defeated the French, excavating over 160 million cubic metres of earth and rock, building the biggest concrete constructions (the locks), the biggest earth dam and creating the largest artificial lake the world had ever seen. On August 15, 1914, the SS Ancon became the first ship to transit the canal, which was completed six months ahead of schedule.
An enormous migrant workforce , which at times outnumbered the combined population of Panamá City and Colón, was imported to work on the canal's construction, and many - Indians, Europeans, Chinese and above all West Indians - stayed on after its completion, transforming the racial and cultural makeup of Panamá for ever. They worked under what was effectively an apartheid labour system, where white Americans were paid in gold and the rest - the vast majority of whom were black - in silver. Dormitories, mess halls and even toilets and drinking fountains were set aside for the exclusive use of one group or the other, and despite the success of the sanitary programme, mortality amongst black workers was four times higher than among whites.
Meanwhile, though their economy boomed during the construction, Panamanians soon came to realize that in many ways they had simply exchanged control by Bogotá for dominance by the United States. The de facto sovereignty and legal jurisdiction that the US enjoyed within the Canal Zone made it a strip of US territory in which Panamanians were treated as second-class citizens, denied the commercial and employment opportunities enjoyed by US "Zonians". And the US agreement to guarantee Panamanian independence came at the price of intervention - inside and outside the Canal Zone - whenever the US considered it necessary to "maintain order", a right they exercised eight times between 1903 and 1936. Though the Panamanian Government, largely controlled by a ruling elite known as the "twenty families", was ostensibly independent, in fact it was little more than a client of the US. "There has never been a successful change of government in Panamá", one US official admitted in 1944, "but that the American authorities have been consulted beforehand."
Despite a new treaty limiting the US right of intervention in 1936, resentment of US imperialist control became the dominant theme of Panamanian politics and the basis of an emerging sense of national identity. Maverick politician Arnulfo Arias Madrid - a racist and Nazi sympathizer who later became one of Panamá's most popular political figures - led demands for a further renegotiation of the canal treaty. But the US-backed Panamanian National Guard made sure that no president who challenged the status quo lasted long in office. Nevertheless, anti-US riots in 1959 and 1964 revealed the enduring popular resentment of US domination.
When Arnulfo Arias was deposed by the National Guard after winning the 1968 elections, it appeared to be business as usual in Panamá. But in fact the coup marked a turning point in Panamanian politics. After a brief power struggle Lieutenant Colonel Omar Torrijos established himself as leader of the new military government. Described by his friend Graham Greene as a "lone wolf", Torrijos broke the political dominance of the white merchant oligarchy - known as the rabiblancos , or "white arses" - in his pursuit of a pragmatic middle way between socialism and capitalism. Over twelve years he introduced a wide range of populist reforms - a new constitution and labour code, limited agricultural reform, nationalization of the electricity and communications sectors, expanded public health and education services - while simultaneously maintaining good relations with the business sector, establishing the Colón Free Zone and introducing the banking secrecy necessary for Panamá's emergence as an international financial centre. At the heart of Torrijos' popular appeal, though, was his insistence on the recovery of Panamanian control over the canal and his nationalistic opposition to US intervention in Panamanian affairs. After intensive negotiations a new canal treaty was signed by Torrijos and US president Jimmy Carter on September 7, 1977. Under its terms the US agreed to pass complete control of the canal to Panamá by the year 2000, and in the meantime it was to be administered by the Panamá Canal Commission , composed of five US and four Panamanian citizens. However, though a memorandum of understanding made it clear that the US had no right of intervention in Panamá's internal affairs, the US retained the right to intervene militarily if the canal's neutrality was threatened, even after the year 2000.


Noriega and the US invasion
With his main aim accomplished, Torrijos formed a political party, the Partido Revolucionario Democratico (PRD), and began moving towards a return to democracy in elections scheduled for 1984. In 1981, however, he died in a plane crash in the...

With his main aim accomplished, Torrijos formed a political party, the Partido Revolucionario Democratico (PRD), and began moving towards a return to democracy in elections scheduled for 1984. In 1981, however, he died in a plane crash in the mountains of Coclé province. Though the crash was officially an accident, many Panamanians now believe that there was some involvement by the CIA or by Colonel Manuel Noriega , his former intelligence chief. Whatever the truth, Noriega soon took over as head of the National Guard, which he restructured as a personal power base and renamed the Panamá Defence Forces (PDF). Though fraudulent elections were held in 1984 by the following year Noriega had established himself as effective dictator of Panamá.
Noriega had been on the CIA payroll since the early 1970s and, whereas Torrijos had supported the Sandinistas in Nicaragua, Noriega quickly became an important figure in covert US military support for the Contras. Despite this, the undemocratic nature of his regime and revelations about his involvement in drugs trafficking began to prove embarrassing for his erstwhile employers, and in 1987 the US government began a campaign to drive him from power. Economic sanctions were followed by the indictment of Noriega for drug offences in February 1988, and after a US-backed coup attempt by dissident PDF officers failed in March 1988 the confrontation between Noriega and the US began to slide out of control. On December 20, 1989 US president George Bush launched " Operation Just Cause ", and 27,000 US troops invaded Panamá. They quickly overcame the minimal organized resistance offered by the PDF. Bombers, helicopter gunships and even untested stealth aircraft were used against an enemy with no air defences, and over four hundred explosions were recorded in the first fourteen hours. The poor Panamá City barrio of El Chorillo was heavily bombed and burned to the ground, leaving some 15,000 homeless. Noriega himself evaded capture and took refuge in the papal nunciature before surrendering on January 5. He was taken to the US, convicted of drug trafficking and sentenced to forty years in a Miami jail, where he remains as the only prisoner of war in the United States. In 2000 he was up for parole, but this was turned down after George Bush said he would fear for his life if Noriega was released.
Estimates of the number of Panamanians killed during the invasion vary enormously - from several hundred to as many as 7000 - largely because little care was taken in counting the dead, and many were quickly buried in mass graves. That the invasion was illegal, however, was clear - it was condemned as a violation of international law by both the United Nations and the Organization of American States, both of which demanded the immediate withdrawal of US forces. President Bush gave four reasons for the invasion: "to safeguard the lives of Americans, to defend democracy in Panamá, to combat drug trafficking, and to protect the integrity of the Panamá Canal Treaty." But the defence of democracy in Panamá had scarcely been a US priority in the past, and Bush's concern with Noriega's extensive involvement in drug trafficking was also new. As director of the CIA in 1976 he had increased payments to Noriega, despite the CIA's detailed knowledge of Noriega's drug links. After the invasion the flow of drugs through Panamá actually increased. The invasion was also in direct violation of the canal treaty provision prohibiting US intervention in Panamanian politics, and though one US soldier had been killed in the build-up to the invasion, this alone was scarcely sufficient reason to invade an entire country.
The real reasons for the US invasion remain unclear. Certainly Bush's desire to appear tough in the domestic political arena played a part, and the invasion set an important precedent for further US military interventions in the post-Cold War world. To many Panamanians, though, the reasons were all too familiar: reassertion of US control over Panamá and its strategic waterway, and the destruction of the PDF. Not that most Panamanians opposed the invasion: unlike Torrijos, Noriega was deeply unpopular, and almost all were relieved to see the back of him. But most were angry at the excessive use of force and felt humiliated by the reassertion of US dominance that Noriega's removal involved. Some likened Operation Just Cause to a brilliant cancer operation by a surgeon who had been pushing cigarettes to the patient for forty years.
After the invasion, the US installed Guillermo Endara , winner of elections annulled by Noriega in 1989, as president. In 1994 he was defeated by Ernesto Perez Balladares, leader of the PRD - the party of both Torrijos and Noriega. After taking office, Perez Balladares implemented neo-liberal economic policies - privatization of state-owned companies, reduction of public expenditure - aimed at meeting payments on the vast external debt that was the legacy of the Torrijos years: Panamá still has one of the highest per capita debt levels in the world.


The handover of the canal
In an ironic twist, the presidential elections of 1999 to determine who would preside over the handover of the canal were contested between Martin Torrijos, son of the former military ruler, and Mireya Moscoso , widow of Arnulfo Arias, the man...

In an ironic twist, the presidential elections of 1999 to determine who would preside over the handover of the canal were contested between Martin Torrijos, son of the former military ruler, and Mireya Moscoso , widow of Arnulfo Arias, the man Torrijos ousted in 1968. As the deadline for the handover of the canal and the closure of the last US military bases drew near, politicians in the US began to express doubts about the withdrawal, arguing that it threatened US strategic interests. When the port facilities at either end of the canal were sold to a Chinese company, some even suggested this was part of a communist plot to take over the canal. But negotiations to maintain a US military presence as part of a multilateral anti-drugs base broke down, and on 31 December 1999 Panamanians celebrated the final victory in their struggle to gain control of the canal and establish full independence .
The US withdrawal was a mixed blessing for the Panamanian economy. Many jobs were lost with the closure of the bases and the loss of the US personnel's spending power, but the hugely valuable real estate and infrastructure Panamá inherited created huge economic opportunities. Some of these opportunities are being realized, with major infrastructure and investment programmes under way in the reverted areas, though critics say they have been handed over too cheaply to private business and political cronies rather than being used to provide housing for the poor. And like the ruins of a once powerful empire, some of the US bases are now dilapidated and abandoned.
The handover of the canal itself was seamless, and so far the waterway seems to be working as well under Panamanian control as it did under the US - it's currently being widened to allow two-way traffic and there are plans to build a new set of locks to accommodate the growing number of ships which are currently too big to go through. There are also proposals to establish new dams to provide the extra water that will be needed if the number of ships going through the canal is to be increased, though these are bitterly opposed by thousands of peasants whose homes and land would be flooded. Relations with the US remain complex, with an ongoing dispute over the US failure to clean up toxic chemicals (including depleted uranium) and unexploded shells from the bases and firing ranges. And though Panamá has so far resisted pressure to join in US efforts to isolate left-wing rebels across the border in Colombia, it seems that the US Silitary has not abandoned hope of someday returning to Panamá.
 
 
 
 

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