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Panama is situated at the Southern end of Central America --between
Costa Rica to the west, Colombia to the east, the Caribbean to the north
and the Pacific Ocean to the south. The country is divided almost equally
by the Panama Canal, which starts from the Pacific near Panama City and
goes Northwest to the Caribbean, at the City of Colón, just some 50 miles
distance.

Panama has about 2.5 million people most of who live in the two largest
cities. Most of the people are mestizos or mixed with a 15% black and a
small Indian population. Just as in the rest of Central America, the country
has both a rainy and dry season. The climate is hot at lower elevations and
gets cooler the higher you climb. Panama City tends to be very hot and
very humid because of its low elevation.

The Pan-American Highway presently ends in the jungles of Darien
near the Colombian border at a place called Yaviza. Those wishing to
continue their drive into South America must take an auto ferry from
Panama to Colombia, where they pick up the Pan-American Highway to
the southern tip of South America. Maybe some day the final stretch of
the Pan-American Highway will be built linking North, Central and South
America. If this ever happens, it will be possible to make a trip by car from
Alaska to the tip of South America.

Of course one cannot visit Panama without seeing the Panama Canal.
Its numerous locks moving huge tankers and massive cruise ships are a sight
to behold. There is also the 50-mile Isthmus Railroad from which you may
view the ships moving from one ocean to the other through the canal.

The idea to build a canal across the Isthmus of Panama was first
proposed in the 1500s. The French were the first to undertake this
monumental project in the late 1800s. However, a combination of yellow
fever, malaria and money problems forced them to halt construction. In
1903 Panama, backed by the U.S., declared its independence from Colombia.
Shortly afterwards the U.S. signed a treaty with Panama giving it soverign
rights over the Canal Zone.

The U.S. started construction in 1904. The project became one of the
greatest engineering feats of the 20th century. Yellow fever and malaria were
virtually eliminated enabling the 75,000 workers to finish this project in ten
years. The first ship sailed through the canal on August 15, 1914. Over the
years U.S. control of the canal proved to be a source of constant friction with
Panama.

A new treaty was signed in 1977 promising to give Panama full control.
The canal zone is gradually being incorporated into Panamanian juristiction.
This process will end in the year 2000, when Panama takes over operation
of the canal. Also, the U.S. milarity presence is to gradually be phased out
according to the most recent treaty. The U.S. has played an important role
in Panamain history since the country gained its independence from
Colombia.

In 1988 the U.S. carried out "Operation Just Cause" to remove the
Panamain dictator, Manuel Noriega from power. Noriga has amassed
power and became involved in drug trafficking. He also murdered some
of his opponents and rigged elections. When he began to become involved
with the Colombian drug cartels the U.S. indicted him for drug trafficking
and money laundering. Then when he nullified a democratic election
victory by the oppostion, the U.S. had no choice but to invade.

By the way, the main unit of currency is the U.S. dollar. The only other
country in Latin America to use the U.S. dollar as the main unit of currency
is Puerto Rico.

The original residents of Panama were the Kuna Indians of the San
Blas Archipelago, located on the northeast shores of Panama. They occupied
this area in pre-Columbian times. On this coast made up of several hundred
small islands, the Kunas still live, making their colorful, intricately layered
blouses. Each of these blouses is a work of art.

To the South of San Blas in the Darien jungles, are the Choco Indians
who still carry on the life-style of bygone centuries. They live in thatched
roof shelters, cook over open fires and sleep in hammocks. They are a
people who live deep in the jungles where the Pan-American Highway ends.

At the far West end of Panama in the mountains near the Costa Rican
border, the Guaymi Indians live with their colorful costumes and their
authentic handcrafted collars called "chaquiras". In this area of the mountains
of Chiriqui Province are the best known peaks. The highest one, Cerro Punta
and the Baru Volcano, which has been dormant for several hundreds of
years. This part of the country is noted for its cool mountain trails for hikers,
abundant trout streams for the anglers and horseback riding. It is a "bird-
watchers paradise" as well as for those interested in the many gorgeous
plants that abound in the forests.

About two hours by car from Panama City is El Valle, noted for its
"square trees" and the "golden toads", whose skin gleams like sunshine.

For the die-hard fisherman, the waters of Panama teem with record-
setting sailfish, tuna, black and blue marlin. Charterboat captains will take
you where you can try to set a new world record.

Columbus made a landing on his fourth voyage at Portobello, which
was named for the beautiful port that it was. It was from this port that the
riches that were taken from the Incas of Peru, were shipped by Spanish
galleons to Spain. These fabled riches naturally attracted such seamen as
Sir Frances Drake. The area now called Panama also attracted famous
pirates such as Henry Morgan, who at one time, plundered an entire year's
collection of Spanish gold that had been taken by the Spaniards from the
Incas in Peru. This act encouraged Morgan to greater feats. In 1671 he came
with 37 galleons and with over 2000 men, sacked and captured old Panama
City. The old forts still stand at Portobelo for you to visit when you walk
through the ruins of old Panama.
PANAMA CITY
, is the capital of the country and has a population of
about 600,000. It is a modern cosmopolitan city and one of the world's
foremost international banking, business and trade centers. The city has
branches of more than 150 banks from around the world. Panama like
Switzerland is famous for its "bank secrecy" and "off-shore" corporations.
Skyscrapers dot the city's skyline and first-class hotels abound. Entertainment
and nightline are excellent. There are always top performers to entertain
you, whether you are on vacation or there for business. The city's convention
faclities can handle 10,000 visitors at a time.

Panama City is also noted for its duty-free shops for your shopping
pleasure. A large selection of first-rate restaurants abound. You have your
choice of French, Japanese, Peruvian, Chinese, Italian, Mexican, Swiss, or
Spanish. There are also MacDonald's, Burger King or Kentucky Fried
Chicken where you can grab a bite on the run. You may also gamble at
one of the many casinos, where all of your winnings are TAX FREE!

The Spanish moved Panama City to its present location, and rebuilt it
into a place of old-world charm. You may walk through the cobblestone
streets and visit such historical places as museums, galleries, the National
Theatre, the old convent that holds the rare "flat arch", "Las Bovedas" the
old Spanish jail, and the church whose entire altar is layered with gold.

Even if you are not planning a trip through the canal you can vist the
nearby Miraflores Locks. A bilingual guide will explain how they operate.

There are also a few good beaches you can visit near Panama City.. Check
out Kobbe, Veracruz, San Carlos and Playa El Palmar beaches.

Another enchanting day can be experienced by taking a cruise from
near the Pacific entrance to the canal to the island of Tobogo located about
14 miles off the coast. It is also known as"Isle of Flowers". There is an
interesting fishermen's village where you may dine or just enjoy the sandy
beach.

There is also nearby Contadora Island, with its resort hotels, casino,
swimming pools, lighted tennis courts, diving, snorkeling, windsurfing
and golf.
COLON
is a city of 60,00 located at the Caribbean entrance to the
canal and Panama's second largest city. It has the world's second largest
duty-free port after Hong Kong. It is a dangerous city because of the
rampant crime. There is no real reason to visit this city.
DRIVING TO PANAMA
: There are three border crossing on the
border between Costa Rica and Panama. Paso Canoas, located along the
Pan-American Highway (CA-1), is the place you will most likely cross the
border from Costa Rica to Panama. The border crossing at Paso Canoas opens
at 7 am and closes at 10 pm . David is the first city of importance after you
cross the border and Panam's third-largest city. Since the drive from San
José, Costa Rica to Panama City takes over 10 hours you may want to
spend the night in David. A large number of travellers stop there overnight
on there way to and from the Costa Rica border about 35 miles away. There
are a number of places to stay and a surprising array of reataurants where
you can dine. The Pan-American Highway is much better in Panama than
in southern Costa Rica, so you should make better driving time.
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