Panama Settlement

Archive Report

Dispute Over the Canal and the Zone

Panama's quarrel with the United States continues to defy settlement, seven weeks after the rioting that led to severance of diplomatic relations between the two countries. Although the incident that set off the violence—a schoolboy squabble over raising of the American flag in front of the Balboa High School—seemed trivial to the average observer in the United States, its consequences were grave. The disorders of Jan. 9 and 10 in the Canal Zone and nearby areas of the republic took the lives of three American soldiers and of 21 Panamanian citizens, and they caused Panama not only to break relations with this country but also to lodge charges of aggression against the United States with the Council of ...

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