A month of holidays
November is Panama’s independence month, which means that there are at least five national holidays on which most businesses, banks and government institutions are closed (See page 8.)

Security measures
The recent bus accident that claimed the lives of 18 Panamanians has prompted local authorities to revise the security installations of concert halls, large buildings and convention centers as well.

According to Roberto Velásquez, head of the Civil Protection System (SINAPROC), Panama City lacks a coherent emergency evacuation system, even for the new, multi-million-dollar structures built in recent years. One particular structure under evaluation is the Rod Carew Stadium, located on the road leading to the Centennial Bridge. Built with an investment of US$18 million, the stadium only has one exit road.

Oil Prices
As of this issue, it was a clear fact that OPEC’s measures to stop crude prices from falling, were not working. If there are no changes by the time this newspaper goes to press, drivers in Panama should see lower prices at the pump. In the Panama City area, the gallon of premium unleaded currently costs US$2.50 on average, whereas the 91-octane fuel costs US$2.41. Although prices are still 70 cents higher than they were before the Irak war, they are considerably lower than in June of this year, when prices soared to above the US$4 mark in some locations.

Lower inflation
Decreasing fuel prices are one of the factors that has halted inflation in Panama this year. Inflation, which normally hoovers around 1% and 2% in Panama, rose to over 3% last year due to market fluctuations at the international level. By the end of this year, the Consumer Price Index is expected to settle at 2.5%

Business fair in Cuba
Panama was one of the 48 countries participating in the 14th annual Havana International Fair –a reunion of 700 companies and business organizations. A regional showcase of new technologies and products, the fair ends on November 4.

Two countries in one
Although the Panamanian middle class is one of the largest, strongest and fastest growing in the region, the UN reminded local authorities that the country still has a long way to go in terms of income disparity. A recent report stated that Panama is two countries in one: a strong, service economy which produces a standard of living similar to that of western Europe, and an undeveloped society of the urban poor, peasants and Native Americans where the standard of living can be compared that of the poorest nations of Africa. Approximately 40% of Panamanians live below the poverty line.

82 public relations specialists?
Panama City residents are wondering who will pay for the 82 public relations specialists hired by Mayor Juan Carlos Navarro. Prominent public figures have voiced their concern, stating that the decision, which will be implemented next year, is ridiculous for a city of little more than 700,000 residents with no specific international promotion plan.

Probe committee established
To act over recent tragedies following the bus fire that recently claimed the lives of 18 people President Martin Torrijos ordered the creation of a commission that in 30 days should devise a plan to regulate the system of public transportation. The new commi-ssion is added to others that have been created for matters such as social security, justice, crimes of minors, the energy crisis and education.

The president also announced "an exhaustive revision of the health norms" of after the tragic poisoning of dozens of social security patients.

Panama’s Press freer than U.S.
Panama rose 27 positions in the annual ranking of a list of freedom of the press by “Reporters Without Borders”, which makes Panama better positioned on this matter than the United States. The ranking, published this week, places Panama as the thrirty-ninth country of the world (and second in Latin America) in its level of freedom of the press.

Economy grows 7.7%
The activities of the farm agricultural, transportation, commercial, construction and mining sectors impacted on the economy, which grew by 7.7% during the first eight months of the year, according to data of the Montly Index of Economic Activity published by the Comptroller’s Office.

Europe invests in Panama
The European Union has invested more than US$3,000-million in Panama which exceeds that invested in all the other countries of the region. The head of European Commission delegation for Costa Rica and Panama, Tomas Abbey, said that this is because there exists "an authentic economic boom and the country is growing at an average of the 8%, and the respective expansion of the Panama Canal is going to give more vitality and greater consolidation to Panama in the world setting".

Ship registry grows
There are a total of 10,750 ships in the Panamanian maritime registration, a figure that represents an increase of 1,026 vessels between September 2004 and August this year. However, the number of Panamanian seafarers on these ships does not even arrive at 1%. Of the 10,750 ships in the maritime registry, nearly 70% are ships of more than 1,000 gross tons. In money, this increase has been reflected in the contribution it makes to the Treasury, that in 2005 reached US$52.2-million, some US$2.8-million more than in 2004, when it reached US$49.4-million.

This week the process of placement of 5,000 seafarers in a period of three years began, with the departure of the first 20 cadets and 80 seamen for cruise ships. These professionals will get jobs through the Philippine placement agency, Magsaysay Maritime Corporation. The placement of these seafarers was announced by represen-tatives of the Japanese shipping company, Mitsui OSK Lines and Keymax Maritime of the Japan, and Azalea Maritime of Holland.

It’s official. The Panama Canal will be modernized and expanded –a decision taken by Panamanians during a recent referendum. Although voter turnout was one of the lowest in the nation’s history (little over 40% of two million voters) the "Yes" option won 78% of the vote, whereas the "Nay" vote captured 21%. Null votes accounted for less than 2%.

According to analysts, the lower turnout can be attributed to the nation’s disappointment with the Martín Torrijos administration in the general sense of the word, especially after a number of major Social Security scandals.

Despite the turnout, most Panamanians agree that the expansion of the Canal was the best option for the country’s future. The Panama Canal, one of the strongest pillars of the nation’s economy, is almost 100 years old, and experts believe it’s about to reach maximum capacity before 2012. The construction of "post Panamax " vessels, which, as their name suggests are larger than the current Panama Canal locks, is another reason presented by the government for the waterway’s expansion.

Those that voted against the project cited reasons such as a possible increase of the national debt and lack of options besides a simple "yes" or "no".

While hundreds of Panamanians were enrolling trade schools in order to aspire for a job in the expansion project (as promised by those supporting the "yes" option), local and international economists were stating that the project could cost at least US$ 1billion more than the expected US$5.2 billion presented by the Board of Directors the Panama Canal Authority.

The Zapadora SA

The Zapadora's owners, Dianne Heidke and Tom Bate.

Two of the most unlikely people have opened the most unlikely business, in the most unlikely of places..and it seems to be working!

Tom Bate of New Orleans, USA and Dianne Heidke of Brisbane, Australia have teamed up to open ‘The Zapadora’, a unique design and arts center in the heart of Chiriqui, in rural Potrerillos Abajo. This unusual business focuses on recycling and selling antique architec-turals, exotic furnishings, lighting, old ironwork and handicrafts from all over the world.

The Zapadora Show in Panama City takes place between November 15-18 in Casco Viejo, the old quarer, at Calle Primera, across from Platea and Scena.

"You can’t imagine how many people said it would fail" says Bate.

"Who is going to drive all the way out to Potrerillos?, they said". But on the contrary, many people have made the trip out to see the new business.

It didn’t start out so smoothly however. Finding the right place and atmosphere for such a venture was long and hard.

"We had been out driving all over Chiriqui for months", says Heidke, "We looked at tons of properties and nothing seemed right. We initially wanted to build our own place but we just couldn’t find the right property. We kept going past this old , ugly building in Potrerillos, and Tom suggested we go in and have a look. The exterior was so bad that even I was very reluctant. But it is one of those stories, once I was in there, it truly was love at first sight and I knew that this was THE place."

Antique doors and furniture restored at The Zapadora.

The new home of the Zapadora was once a market, entertainment center (with a complete working cinema) and gas station for the workers of Citricos, a large orange-growing and processing company operating in Potrerillos Abajo. During his reign, Noriega took over the building and used it for his own private pursuits. After his ouster, the Citricos Cooperativa used the building for community purposes but the building languished and fell into disrepair. When Bate and Heidke took it over, the building had been abandoned for almost 12 years.

Turning the building into a functioning space has been a full time labor of love, requiring a grand vision and total commitment.

As Bate says, " Our dream is to create an Arts and Design Center which showcases and sells unique work from Panama and all over the world. We also want to create an exciting place where artisans can create and sell their goods and the general public can come, stroll about and see all of this in process."

The Zapadora is currently featuring antiquities from Egypt. But there are many styles of architectural pieces available; Islamic, Colonial, French, Spanish and Pharonic. Many have already been snapped up and are going into projects and homes in Chiriqui. One of the very grandest doors (appro-ximately 150 years old) is going into the new cooking school at the Panamonte Hotel in Boquete. Others are going into apartments and homes in Casco Viejo.

The Company’s headquarters in Potrerillos Arriba, Chiriquí.

The lure of restoring old buildings in Panama City is too exciting to resist and The Zapadora will be taking their goods on the road and doing a small show of select pieces in Panama City this month. "We are particularly interested in helping restore Colonial Panama to its original glory", says Bate. " and the authentic pieces needed to do this are very difficult to find here."

But the The Zapadora is not just about the past. It has grand plans for the future, including hosting a weekly arts, crafts and farmers market in the Zapadora grounds, mounting musical and theatrical productions with the Boquete Community Players and creating new spaces for vendors and where artisans can make and sell their work.

Other vendors with unique merchandise have already jumped into the space with excitement, renting several of the small areas in the building. Over the next few months the Zapadora will feature exotic work from Mexico, India and Thailand.

As Bate says, "Though we have been offered the opportunity to open this business in Texas, New Orleans, and San Miguel de Allende ( Mexcio), we have chosen to stay in Poterrillos Abajo.It has become home and we love it. The locals now refer to the Zapadora as ‘the museum’ and that is great!"

Tom and Dianne at The Zapadora can be contacted at thezapadora@yahoo.com or telephones: 6716-8861 or 6527-584.

New product for smokers introduced in Panama

A new product is now available here in Panama that can eliminate the discomfort and remove the cravings for a cigarette when a person can't smoke.

Nicogel, is a clear, odorless gel that is smeared on the wrist. Its active ingredient is made from tobacco products. It has no odor and there are no side effects.

For a smoker, long "non smoking" airline flights can be filled blighted by uncomfortable cravings for a cigarette.

Nicogel is not designed for those who want to quit, though it can be used for that. It is a replacement for those who want a cigarette but can't have one.

Testimonials from users say it is effective, convenient to use and is not expensive. A package the size a package of cigarettes, containing sachets of the gel costs less than $10.

South Seas Pharmaceuticals is the source here in Panama. The product is available without a doctor's prescription and can be ordered over the Internet. The gel is not available in the USA. www.health-effects.net

By Frits Bos

On October 22, the people of Panama voted in a referendum on the expansion of the Panama Canal and approved this massive project, in spite of some well- founded concerns with regard to possible cost overruns and potential stress on the environment. It wasn’t always a foregone conclusion that the Panama Canal would be built at all in this particular location. So, here follows a bit of "pre-canal" history that many, may not have been aware of.

During the second half of the 19th century the US government became increasingly interested in an inter-oceanic canal. This interest became urgent following the Spanish American War of 1898, which established the USA as a world power with substantial interests in the Caribbean as well as the Atlantic and Pacific Oceans.

Initially the US government was interested in constructing a canal across Nicaragua. In fact, in 1902, President T. Roosevelt secured approval from the US House of Representatives to build this "Nicaraguan" canal by an overwhelming vote of 308 to 2. However, a successful lobbying campaign on behalf of the French syndicate which owned the land where the French had tried and failed to build the canal resulted in an unexpected reversal and on June 29, 1902 President Roosevelt signed the law authorizing the construction of a canal across Panama.

There was however a "small" problem. The Republic of Panama did not even exist. It was a province of Colombia whose government was not agreeable to U.S. conditions and a US-controlled Canal Zone. Faced with this dilemma the US government chose to encourage a group of locally influential leaders in Panama City to start a revolution and to declare independence from Colombia on November 3, 1903. During the next few days the US made sure that the Colombian government was unable to put down this modest revolution and on November 6 the US formally recognized the new Republic of Panama. A blockade by a sizeable US Navy squadron made it impossible for the Colombian government to recapture their rebellious province.

A major role both in the organizing of the lobbying campaign, the sale of the assets of the French syndicate to the US and the signing of the Hay-Bunau-Varilla Treaty was played by the Frenchman Bunau-Varilla. He actually committed the new Republic of Panama to the contents of this treaty prior to the arrival of the official Panamanian delegation. As a result this treaty was, and is, still looked at by the Panamanians as the one "which no Panamanian ever signed".

The new government of Panama, faced with this reality, had no choice but to agree to the conditions spelled out by the US with regard to a US controlled Canal Zone and in 1904 construction on the Canal began. As we know, on December 31, 1999 the US after almost 100 years finally transferred complete control of the US Canal Zone and the operation of the canal to the Panamanian government. This transfer had been negotiated in the Torrijos – Carter Treaties of 1977. In the first section of these treaties the US government retained the permanent right to defend the canal from any future threats to the continued neutral service to ships of all nations.

Sources:
"Overthrow" by Stephen Kinzer, Times Books – Henry Holt & Co. 2006
Panama Canal Museum in Casco Viejo – view the Nicaraguan "smoking volcano" stamps that were at the heart of the successful campaign to construct the canal in Panama.

The Hay-Bunau-Varilla Treaty – signed November 18, 1903 in the USA by Bunau-Varilla on behalf of the Panamanian government. A not too subtle indication of the direct US influence on the overall judicial process of this Treaty.

De izq. a der: Gabriel Diez, Presidente del Sindicato de Industriales de Panamá (SIP); Ligia Castro de Doens, Administradora de la ANAM y Felipe Zambrano, Director de CEMEX.

CEMEX, Panama's private-owned cement producing company, recently signed a Technical Cooperation agree-ment with the country's National Environmental Authority (ANAM) to foster a series of medium and long-range projects to reduce pollution through the adequate disposal of liquid and solid waste, such as ink, detergent and other types of commercial and industrial waste produced in the Panama City metro area. The picture shows, from left to right Mr. Gabriel Diez, president of the Panama Industry Association (SIP); Ligia Castro de Doens, Manager of ANAM, and Felipe Zambrano, Manager of CEMEX.

Nobody knows for sure when Panama City's Café Coca Cola (established in 1883) acquired the nickname that has made it famous for most of the 20th century. The truth is that it was one of the first places in the world outside the United States where the famous beverage was sold and served.

In 1906, Panama, along with Cuba, became one of the first countries to operate Coca-Cola bottling plants outside of North America, just in time to refresh the thousands of laborers brought to build the Canal during those years. Therefore, this year marks the 100th anniversary of Coca-Cola on the Isthmus.

Café Coca-Cola:

The café has been the meeting place of celebrities and private citizens for 123 years.

One of the oldest eateries in town is Café Coca-Cola, which faces Parque Santa Ana, near the terminus of the Avenida Central pedestrian mall. Very few private-owned establishments of any kind in town can claim a similar history of uninterrupted service.

Opened in 1883 bearing a name now forgotten, the establishment became known as "Coca-Cola" sometime after the turn of the 20th century, when the famous carbonated beverage gained popularity on the Isthmus.

Café Coca-Cola is an urban icon that defies definition. Frequented by prominent intellectuals, government officials and celebrities, it is said that the main attraction of this quaint colonial-style establishment is its use as an impromptu news-sharing venue. Some say that many major political events of the 20th century, ranging from military coups to presidential campaign strategies, were planned on the tables of Café Coca Cola, where it is sill not uncommon to find current cabinet members and legislators chatting with gentlemen of all social classes over a cup of coffee.

The list of past and present "VIP" customers of the café includes Panamanian laureate poet Ricardo Miró, former president Arnulfo Arias, current president Martín Torrijos, and Mrs. Linda Watt, the outspoken and popular former U.S. Ambassador to Panama.

A straw house no fox will blow down

By David Dell

Straw houses? Most of us would consider them a fire hazard. The rest of us might recall reading about our first home invasion when a fox with a taste for pork terrified the three pigs.

Today however, straw houses are to be found in all parts of the world. Nicaragua's resort town of San Juan del Sur boasts an upscale bar and hotel made of straw. When friends told me that someone was building a straw house here in the mountains of Panama- I just had to investigate.

In the small mountain community of Paso Ancho, near the town of Volcan in western Panama I found a very enterprising lady who goes by the name of Sue. My first impression when I saw Sue's straw house was that this was certainly no flimsy construction. The two-story structure was basically a post and beam style home and used reinforced concrete for the main vertical columns.

The posts and beams were 12 inches square and would not have been out of place in a small factory - for a house I thought this was a little bit of overkill - but this would withstand any high wind load and seismic shock and Mr. Fox would have to be smoking something to even attempt knocking this house down.

The straw in this case was simply acting as a curtain wall in place of traditional concrete blocks. Sue assured me the straw would have tremendous insulation value and the house

A nearly-finished "straw house" in Volcán.

Would not require either heating or cooling.

The process was quite simple straw - or whatever equivalent Sue managed to obtain - was bundled tightly and allowed to dry over several months. Then the bales were packed into the openings between the concrete pillars and then a mixture of cement and lime/ calcium was plastered over the top. The finished walls are about 17 to 18 inches thick and the lime/calcium not only acts as a sealant but also as a natural pest inhibitor.

I asked Sue if she chose straw because it was a more economic alternative to blocks. She admitted that in the end her savings over block would be small if at all. She disliked concrete block because it is cold and holds moisture and during Panama's long rainy season can cause the formation of damp and mildew.

Sue's social agenda
Unmistakably Sue has a slightly bigger agenda than just building a home. She feels that if she can demonstrate that straw and bamboo are economic and effective materials then there is a solution to the problem of low-cost housing for Panama's poor and indigenous people.

Sue's straw house will be a source of wonderment and conversation amongst her neighbours for month's to come. I imagine it will also be a source of encouragement for homeless pigs and a source of extreme frustration for many a breathless fox.

The geographic center of Panama is located at the main park of the city of Penonomé, in the province of Coclé. The photograph shows the marker of the exact location. Penonomé is 149 km west of Panama City.