PANAMA

a republic of central america, situated between colombia and costa rica. it has an area of 32,380 square miles, the panama canal has been cut across the narrowest part from colen to panama, and the area, except for the towns of panama and colden, is for five miles on each side of the canal under the control of the united states. panama declared war on germany on april 7 1917, and acquired member- ship in the league of nations in 1920. the inhabitants are of mixed race, the chief elements being spanish, indian and negro. the population according to the 1920 census was 446,008, excluding the 22,858 inhabitants of the canal zone. the popu- lation of panama, the capital, in 1920 was 59,458; colen, at the atlantic entrance to the canal, had a population of 31,203. pouitical history the amended constitution of dec. 26 1918 provided that the president should be elected by direct vote and should be ineligible to succeed himself. provision was also made for three destgnados or vice-presidents, of whom the first would hold office as ad interim president in the event of the president dying whilst in office. in 1912 belisario porras was elected president for the term ending 1916. in the latter year the elections were held in disturbed civil and political conditions, and ramen m. valdez was elected for the term 1916-20. valdez died in 1918, his term of office being completed by ciro l. orriola. ernesto lefevre was inaugurated jan. 30 1920; but in aug. dr. belisario porras was elected to office, and inaugurated for a term of four years on nov. 1. he was succeeded on nov. 1 1924 by rodolfo chiari, who was elected for the term 1924-8. the dispute with costa rica over the demarcation of the boundary line between that country and panama resulted in the united states secretary of state notifying panama that the white award of 1914 must be accepted (see costa rica). in 1922, on the recommendation of president harding, the hay-bunau-varilla treaty of feb. 23 1904 (see 20.670) was dis- panama—panama canal cussed at washington for the purpose of removing causes of friction between panama and the united states. the disputed matters were the property valuation of the canal zone, the establishment of a free port and arrangements for docking privileges. panama contended that the united states had never acquired the zone in fee simple, and that the zone republic should exercise sovereign rights in fiscal jurisdiction therein. the united states contended that the treaty conferred upon its government all such rights. negotiations during 1923 and 1924 reached a partial deadlock in july of the latter year. part of the trouble arose from the practice of the united states in leasing cold-storage plants and warchouses in the zone to private individuals. panama claimed that this violated her sovereignty. it was finally agreed that the status guo should continue pending the negotiation of a new treaty. in jan. 1926 no solution of the difheulties by new treaty provisions had been announced. in oct. 1924 legislation was initiated, excluding near relatives of incumbents of the presidency from the succession and increasing the term of supreme court justices from four to 10 years. pan- ama has no army or navy, but maintains municipal and rural police. the police force of the zone is maintained by the united states and has no authority outside. education.—primary education is computsory for all children from seven to 15 years of age. in 1923 there were 43,215 children attending the 384 government schools in the eight provinces of the republic, excluding the children attending the public schools of the canal zone. in tgt1 the instituto nacional was established in panama for university education. in 1923 there were 20 private educational establishments in the republic, as well as a training college for girls and a school of arts and crafts for boys. finance.—the panama govt. receives all the import duties col- lected, but the united states imports all canal material and supplies for government use free of duty. financial stabilisation began in 1920, when a fiscal agent, detailed from the zone q.m. service, was slaced in charge. the finances as reorganised are based on a triennial budeer a plan of long-term agricultural credits was arranged under amortised mortgages, whereby the registry of land titles was expedited. for 1922 expenditure was $6,900,217 and revenue $5,299,- 999: for 1923 expenditure was $7,568,124 and revenue $10,299,212, including a loan for $4,500,000 floated in new york in 1923 for road construction. production and industry.—the chief products of panama are bananas, coconuts, hides, coffee, cacao and fagua (vegetable ivory). only a small area of land is cultivated. the production of sugar has increased, and the cultivation of tobacco has been encouraged by the government. bananas were the chief export, amounting in value to more than half the annual exports. pearl-fishing is carried on in the gulf of panama, and tortoiseshell is exported. all international commerce moves through cristebal and balboa, bocas del toro being reserved for local business. over 90% of the total exports go to the united states, which also dominates the import business. trade figures (excluding the canal zonc) for the years 1921-4 were: — imports i-xports 1921 $11,372,370 $2,495,407 1922 10,268,548 2,487,478 1923. 12,674,375 2,389,728 1924 (est.) . 13,000,000 3,250,000 the trade of panama (including the canal zone) with the united states for the same period was as follows: — ymports exports $23,144,000 $3,865,000 1922 14,517,000 3,607,000 1923 21,769,000 4,267,000 1924 26,366,000 5,004,000 the total trade of panama with great britain for the same period was :— imports exports 1921 £305,095 £138,983 1922 218,450 65,544 1923 354,026 87,587 414,378 105,257 concessions have been granted to 10 commercial undertakings for the exploitation of oil lands in the republic, the last of the concessions having been granted in may 1924. under the terms of the contract the concessionaire is required to pay to the government the sum of 15 cents for each hectare conceded, with a stipulated preference of 31 developing for a term of 30 years should oil be struck. only three companies had carried out boring operations in 1924. panama has vast timber resources; during the year ended june 30 1924 about 5,000,000 ft. of mahogany and cedar had been shipped from the lumber camps on the rio congo. comnunications.—there are three railways with a total mileage of 257. of these the panama railroad co. (u.s. govt.) has a line between col6n and panama, a distance of 48 miles. the chiriqui railway, owned by the government, runs from pedrigal to boquete, a distance of 33 m., with two branches, one of 17 m. from david to la concepcion, the other from dolega to potrerillos, a distance of cight miles. the railway operated by the united fruit co. and constructed primarily for the banana trade has a mileage of 151, radiating from almirante. approval has been given for a con- tract for the construction of a railway along the atlantic coast from the mouth of the chagres river to almirante. in 1923 a loan of $4,500,000 was obtained by panama in new york city to provide funds for highway construction. before midsummer 1925, 125 km. had been constructed. the system connects santiago, las tablas and menabe with panama city by way of agua dulce, penonome, ancen, chame and chorrera. nearly 30 steel bridges have been built. _ binliograprhy.—foreign office reports, annual till 1914, con- tinued as department of overseas trade reports, annual 1922, etc.; a. edwards, panama: the canal, the country, and the people (1912); f, lindsay, panama and the canal to-day (new ed., 1912); h. a. franck, things as they are in panama (1913); l. oppenheim, the panama conflict between great britain and the united states (cam- bridge, 1913); sir h. e. richards, the panama canal controversy (oxford, 1913); g. w. goethals, government of the canal zone (oxford, 1915), also the panama canal (1916); w. h. koebel, central america, south american series (1917); h. g. james ang p, a. martin, the republics of latin america (1923). (h. i. p.)