Panameñista President Declares Opposition to Canal Referendum

(Source: Panama America) The president of the Panameñista political party in Panama, Juan Carlos Varela, came out this morning with the official position of his party with regards to the proposal to expand the Panama Canal and the upcoming national referendum to decide the issue. "I want to make it perfectly clear that as the President of the Panameñista party and as a Panamanian I am completely against this referendum and manner in which the government has managed this issue, imposing it on the people, avoiding an open and constructive debate on the topic of the canal," he declared. Varela indicated that the government should not ask the people to approve the plan without a commitment to improve their quality of life, and without a plan for national development. He added that if the constitution had been reformed in 2004 then today we would have had a project that was "properly bid" and that we would have known what businesses would have been involved in the construction of the third set of locks, which account for 65% to 70% of the total cost of the expansion project, which have been presented based on a design concept and not reality.














Several new malls have opened up in Panama City in about the last four years. The first to open was the Multicentro in Paitilla. Shortly thereafter the Albrook Mall open next to the bus terminal and the Multi Plaza Mall in Punta Pacifica. I took some pictures at the Multi Plaza the other day and posted them to the photo albums in case you're interested. It's about like every mall in the United States and is currently going through an expansion. Here are links to:

Jerry Wilson, the president of the National Assembly's Credentials Commission, said that the assembly will ask the government of the United States, through the Chancellery, for details regarding the cancellation of Supreme Court Magistrate Winston Spadafora's visa. Wilson made his statement as a follow-up to Victor Pitti's formal request on 15 September to open an investigation. The request has been in the General Secretariat of the Assembly and has not yet been forwarded to the Credentials Commission. (Editor's Comment: Cat and Mouse. Martin Torrijos can issue executive orders to his ministers and cabinet to clean out corruption but the National Assembly and Judicial branch are under his influence but not his control. The US has already said that Winston Spadafora has received the details of why his visa was pulled, and that it is not the policy of the government of the United States to share that information with anyone else. Considering the timing and that Spadafora's political party is going to announce their official position on the canal referendum tomorrow (Friday), this might be a shot across the bow of the Panamanistas to remind them that the PRD has the goods on Spadafora but have chosen not to use them. The Panamanistas might be able to mess up the perfect game but they can't win, and the PRD can break-dance on what's left of the Moscoso regime if they want to. So the message is - play nice or don't play at all.)

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On Sunday, 22 October 2006, Panamanians will go to the polls to decide the fate of the Panama Canal Administration's proposal to expand the Panama Canal and add a third set of locks. The expansion would allow for much larger ships to use the canal. Much of the excavation is already done, started by the United States in 1939 but then halted at the outbreak of World War II. Almost every important political leader in Panama has announced their support for the plan. There have been several groups that have split over the proposal because their leadership is against the proposal for political reasons but the main body of the organization is not in agreement with the leadership, such as in the case of the SUNTRACS labor union. When these splits have occurred the break is about 3 to 1 in favor of the expansion. The election is in four weeks, and polling indicates that those who were undecided are tending to make up their minds in favor of the expansion. (more)
Last week the Banking Association of Panama hosted the International Forum on Private Banking and Finance (FIT), which was held at the Marriott Hotel in Panama City on 20 - 21 September 2006. More than
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CONSTRUCTION law experts at Denison Till, the York commercial lawyers firm, have been given an instruction to draw up contracts for the building of a new crane rail system in Panama. The firm at Stamford House, Piccadilly, one of relatively few to have a dedicated construction law department, has been appointed by Canadian lawyers Black Sutherland, Toronto, to act on its behalf in the major multi-million dollar construction project. Denison Till is now assisting Black Sutherland's client, engineering company Gantrex USA Inc, Pittsburgh, over the design, supply and installation of the new crane rail system for the Hong Kong Dredging Corporation being built at Balboa Docks, Panama, for the Balboa Docks Authority. The contract came to Denison Till through its membership of Geneva Group International, one of the world's top ten networks of independent lawyers, accountants, tax and management consultants, whose Mergers & Acquisitions Practice Group is chaired by Andrew Lindsay, Denison Till's corporate department partner. Gareth Hevey, Denison Till's head of construction law, and Julian Still, a non-practising barrister in the firm's construction law department, are finalising negotiations on the contracts, which confirm completion deadlines and risk management connected with the supply of goods and services for the project. Mr Hevey said: "It is an accepted principle that English law is most appropriate for contracts of this kind because of its international context and widely-regarded arbitration process. Because of this, we do carry out international work from time to time, but this project is especially interesting because of the nature of the parties involved."
Cargo traffic through the Panama Canal will rise 42 percent in the next 20 years, the Panama Canal Authority (PCA) forecast in a report published on Monday. The PCA said it planned to raise the capacity to 520 million tons from 280 million tons to satisfy this demand, while warning that without such an increase canal traffic might reduce by 23 percent due to competitions from transpacific shipments, the U.S. intermodal system and Egypt's Suez Canal. According to the PCA, intermodal traffic would rise 65 percent while Suez traffic would surge 12 percent if the capacity increase of the Panama Canal is shelved. On Oct. 22, Panamanians are to vote in a referendum on the canal's capacity increase. The PCA, which took control of the canal on Dec. 12, 1999, estimates that the world fleet of Postpanamax boats -- those too big to pass the canal -- will reach 670 by 2011, representing a total of 4.6 million tons, or 37 percent of the world's container capacity. Source: Xinhua

Author Kurt Muse was on C-Span last Saturday in Florida, talking about his book "Six Minutes to Freedom," the story of his rescue from Panama's Modelo prison by US Delta Forces during the invasion of Panama in 1989. This
This afternoon I had to go back to the clinics at the National Hospital to have the bandages changed on my foot after some minor ambulatory surgery last weekend. With my foot the size of a football I couldn't drive so I took a cab over and back. During the return trip I stumbled upon something that is becoming relatively rare - someone who is genuinely leaning toward a "no" vote on the upcoming referendum on the Panama Canal. Since we were going to be spending some time together in the car anyway, I struck up a conversation on the topic and tried to unravel his logic in order to better understand his position. I was actually delighted to find someone who was not a politician but who had some serious lingering questions about the project. He didn't say he was going to vote no in the referendum, but did indicate that he was solidly in the "undecided" column. Here's the gist of our conversation and the things he's thinking about.
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