ABSTRACT
The Republic of Panama, a small nation in area and population, occupies the strip of land linking the five Central American countries with the South American continent. The location is strategic and the state has had a turbulent history. Prior to the arrival of the Spanish, Panama was occupied by both tropical forest and savanna-dwelling Indians. Columbus first landed on the north coast in 1502 and was immediately excited by the prospect of gold in the Veragua area; his attempt to found a colony at Belén in early 1503, however, was unsuccessful. Seven years later Balboa was able to establish a colonial foothold further down the coast. For most of the following three centuries the area served mainly as an entrepôt, the treasure and merchandise from the Pacific Coast of the Spanish possessions were brought to the southern side of the Isthmus and then shipped to Spain from the northern shore. Panama itself contributed little to the flow of goods but, owing to the concentration of treasure, it was the frequent target of pirates. Panama declared its independence from Spain in 1821 and shortly thereafter formed a union with Colombia (which then comprised both the current country and Venezuela). The present Republic declared its independence from Colombia in 1903, and almost immediately afterwards granted a special concession to the United States permitting it to construct the Panama Canal and to institute special military control in the Canal Zone and adjacent areas.
