IT IS WITH GREAT PLEASURE THAT I ADDRESS THIS DISTINGUISHED AUDIENCE ON COLUMBUS DAY AND IN THE MIDST OF THE CELEBRATION OF "PANAMA WEEK", AN EVENT TO WHICH THE GOVERNMENT OF PANAMA, PRESIDED BY HER EXCELLENCY, MRS. MIREYA MOSCOSO, ASSIGNS THE UTMUST IMPORTANCE, SINCE THE PROMOTION OF THE WIDEST OPPORTUNITIES THAT PANAMA OFFERS TO THE BUSINESS COMMUNITY IN THE UNITED STATES’ FINANCIAL, INDUSTRIAL AND COMMERCIAL SECTORS, CONSTITUTES AN IMPORTANT PART OF OUR ADMINISTRATION´S PROGRAM.

HISTORICALLY, PANAMA HAS BEEN SPECIALIZED AS A TRANSIT AND SERVICE ECONOMY. UNDER SPANISH DOMINATION, BETWEEN THE SIXTEENTH AND EARLY NINETEENTH CENTURIES, THE ISTHMUS ACQUIRED WORLDWIDE RENOWN FOR THE WEALTH THAT CROSSED ITS TRANSIT ZONE, THE SAME AREA WHERE THE PANAMA CANAL IS NOW LOCATED, IN ROUTE TO EUROPE. FROM THAT TIME, THE FOUNDATIONS OF OUR ECONOMY WERE LAID AND THE TRADITION OF ATTENDING THE NEEDS OF WORLD COMMERCE BEGAN TO TAKE ROOT.

OUR SERVICE VOCATION GAINED MOMENTUM TOWARDS THE MIDDLE OF THE NINETEENTH CENTURY, AFTER THE PANAMA RAILROAD, THE FIRST INTEROCEANIC RAILWAY IN THE WORLD, WAS COMPLETED IN 1855. TWENTY-FIVE YEARS LATER, A FRENCH COMPANY, UNDER THE DIRECTION OF COUNT FERDINAND DE LESSEPS, THE BUILDER OF EGYPT’S SUEZ CANAL, BEGAN THE MOMENTOUS TASK OF OPENING A WATERWAY THROUGH THE ISTHMUS.

THIS OUTSTANDING ENGINEERING FEAT WAS FINALLY ACCOMPLISHED, UNDER THE AEGIS OF THE UNITED STATES, IN 1914. THIS WAS A DEED THAT HIGHLIGHTED THE INVENTIVENESS, THE CAPACITY AND DETERMINATION OF THE BUILDERS OF THIS GREAT NATION, WHO GUIDED THE EXECUTION OF THIS MAJESTIC WORK IN WHICH THOUSANDS OF WORKERS FROM THIRTY NINE (39) OTHER NATIONS PARTICIPATED.

WHEN THE CANAL-BUILDING PROCESS CONCLUDED, PANAMA’S SERVICE – BASED ECONOMY HAD BECOME FIRMLY ESTABLISHED. IN THE ENSUING YEARS OUR ECONOMY UNDERWENT A PROCESS OF EXPANSION WITH THE APPROVAL OF AN ADVANTAGEOUS CORPORATION LAW IN 1927, THE INTRODUCTION OF A FLEXIBLE SHIPPING REGISTRY, THE INAUGURATION OF THE COLÓN FREE ZONE, STILL THE WESTERN HEMISPHERE’S LARGEST, IN 1948, AND THE CREATION OF A SOLID BANKING CENTER IN THE 1970’S.

TODAY, SERVICE-RELATED ACTIVITIES ACCOUNT FOR OVER 70 PERCENT OF OUR GDP. BASED ON THIS FACT, AS WELL AS ON THE DYNAMISM OF OUR SERVICE SECTOR AND THE REALITY OF GLOBALIZATION, OUR GOVERNMENT IS INTENT ON ENSURING PANAMA’S GAINFUL INSERTION INTO THE GLOBAL ECONOMY. WE INTEND TO ACHIEVE THIS GOAL BY STRENGTHENING AND DIVERSIFYING OUR NATIONAL ECONOMY.

TOWARDS THIS END, WE ASPIRE TO IMPROVE OUR AGRICULTURAL PRODUCTION AND PROMOTE AN ENVIRONMENTALLY-SAFE INDUSTRY. WE ALSO SEEK TO BROADEN AND MODERNIZE OUR SERVICE SECTOR, BUILDING UPON OUR EXPERTISE IN THE FIELDS OF FINANCE, RE-EXPORTING OPERATIONS, AND INTERNATIONAL LEGAL SERVICES WIDELY ACKNOWLEDGED BY THE BUSINESS COMMUNITY.

THROUGH INCREASED EFFICIENCY AND TRANSPARENCY, THE HALLMARKS OF THE MODERN ECONOMY, WE STRIVE TO INCREASE OUR COMPARATIVE ADVANTAGE FOR THE BENEFIT OF WORLD COMMERCE AND THE WELL – BEING OF THE PEOPLE OF THE ISTHMUS.

AN IMPORTANT ASPECT OF OUR ECONOMIC PLAN INCLUDES THE EXPANSION OF CANAL-RELATED ACTIVITIES, INCLUDING TOURISM, CONTAINER HANDLING, AND SERVICES TO SHIPOWNERS, AS WELL AS THE MULTIMODAL TRANSPORT CARGO.

IT WAS ONLY VERY RECENTLY, ON DECEMBER 31^ST OF LAST YEAR, THAT MY COUNTRY ACHIEVED ITS FULL SOVEREIGNTY IN BOTH POLITICAL AND ECONOMIC TERMS, WITH THE TRANSFER OF THE CANAL AND ITS ADJACENT AREAS BY THE UNITED STATES TO PANAMANIAN JURISDICTION.

THE TRANSFER ENCOMPASSED NOT ONLY THE CANAL STRUCTURE, BUT ALSO A VAST TERRITORY WITH A PERIMETER OF 364,OOO ACRES, HOUSING 7,000 BUILDINGS, ON WHICH A LARGE VARIETY OF ECONOMIC ACTIVITIES CAN BE UNDERTAKEN SIMULTANEOUSLY, MOST OF WHICH CAN BE RELATED TO THE FUNCTIONING OF THE CANAL, CONTRIBUTING TO A GREAT EXTENT TO THE ECONOMIC AND SOCIAL DEVELOPMENT OF OUR COUNTRY, A MAJOR GOVERNMENT OBJECTIVE.

DESPITE THE UNDENIABLE CONTRIBUTION THAT THE BUILDING OF THE CANAL LED BY THE UNITED STATES REPRESENTED FOR WORLD COMMERCE, THE FACT REMAINS THAT AS LONG AS THE CANAL AND ITS SURROUNDING ACREAGE REMAINED IN AMERICAN HANDS, THAT AREA WOULD NOT BE FULLY DEVELOPED AND ITS USE FOR WORLD COMMERCE WOULD REMAIN LIMITED. IT WAS WITH THE TRANSFER OF THE CANAL AND ITS SURROUNDING TERRITORY THAT PANAMA COULD FINALLY ACHIEVE ITS FULL POTENTIAL FOR WORLD COMMERCE, A FACT THAT SHOULD BE MOST WELCOME BOTH BY THE FRIENDS OF PANAMA AND THE FRIENDS OF COMMERCE WORLDWIDE.

THE CANAL AND THE ADJOINING AREAS WILL BE AN IRREPLACEABLE MOTOR OF THE TRANSFORMATION OF THE PANAMANIAN ECONOMY IN THE YEARS TO COME. AMONG OUR MAJOR PROJECTS, WE ARE CURRENTLY BROADENING THE CULEBRA OR GAILLARD CUT OF THE CANAL, A PROJECT WHICH ONCE CONCLUDED NEXT YEAR WILL ALLOW FOR THE SIMULTANEOUS TRANSIT OF TWO PANAMAX SIZE SHIPS ALONG THIS SECTION OF THE CANAL. ONCE THESE WORKS ARE CONCLUDED, THE PROJECT TO EXPAND THE CANAL’S HYDROGRAPHIC BASIN, WILL BE DEVELOPED. STUDIES ARE BEING ADVANCED TOWARDS THE CONSTRUCTION OF THE THIRD SET OF LOCKS WHICH WILL MAKE POSSIBLE THE CROSSING OF THE ENTIRE WATERWAY BY POST-PANAMAX SHIPS AND WILL INCREASE THE EFFICIENCY OF THE CANAL IN 25%. FINALLY, NEXT YEAR THE PROJECT OF THE CONSTRUCTION OF THE SECOND BRIDGE OVER THE CANAL WILL BE PUT UP TO TENDER.

IN THOSE LANDS TRANSFERRED AND INTEGRATED TO OUR NATIONAL DEVELOPMENT, WE HAVE EMBARKED ON A MASSIVE PROCESS OF REENGINEERING WHEREBY WHAT WERE FORMERLY MILITARY INSTALLATIONS ARE BEING GIVEN CIVIL AND BUSINESS USE. FOR EXAMPLE, THE FORMER SCHOOL OF THE AMERICAS HAS BEEN CONVERTED INTO A HOTEL AND CONVENTION CENTER OF THE MELIA HOTEL GROUP; WHAT WAS PREVIOUSLY ALBROOK AIRFORCE BASE HAS BECOME A MULTIMODAL TRANSPORT CENTER LODGING AMONG OTHERS THE CAPITAL CITY’S DOMESTIC AIRPORT FOR LOCAL TRAVEL; FORT KOBBE AND FORT DAVIS ARE WELL ON THEIR WAY TO BECOMING EXPORT PROCESSING ZONES; THE FORMER MILITARY BASE OF COCO SOLO, WHICH HAS A PRIVILEGED LOCATION AT THE ENTRANCE OF THE ATLANTIC SIDE OF THE CANAL, LODGES MULTIPLE CONTAINER CENTERS AS WELL AS THE PORTS OF MANZANILLO AND EVERGREEN; THE FORMER FORT CLAYTON MILITARY BASE IS TODAY THE HOST OF AN EDUCATIONAL COMPLEX KNOWN AS "THE CITY OF KNOWLEDGE," WHICH WILL LODGE, AMONG OTHERS, A HUMAN RIGHTS CENTER FOR THE CONTINENT AND THE REGIONAL HEADQUARTERS OF FAO AND UNICEF, THUS CONTRIBUTING TO THE GOVERNMENT’S PROJECT OF MAKING PANAMA A CENTER FOR INTERNATIONAL ORGANIZATIONS.

TO TOP IT ALL, A NEW TRANSISTHMIAN RAILROAD IS BEING BUILT AND CRUISE SHIPS WILL BEGIN TO ARRIVE IN PANAMA STARTING NEXT OCTOBER, TO DOCK IN ANY OF THREE CRUISE PORT FACILITIES THAT ARE UNDER CONSTRUCTION. IT GOES WITHOUT SAYING THAT THERE ARE ALSO SEVERAL ECOTOURISM PROJECTS UNDER WAY.

IN THIS REGARD, THE GOVERNMENT PRESIDED BY HER EXCELLENCY MRS. MIREYA MOSCOSO, IS HIGHLY COMMITTED TO THE ADOPTION OF A LEGAL FRAMEWORK IN ORDER TO STIMULATE AND FACILITATE INVESTMENT IN THESE AREAS, WITH THE OBJECTIVE OF USING THEM IN FAVOR OF ACTIVITIES THAT PROMOTE THE SUSTAINABLE DEVELOPMENT OF THE PANAMANIAN PEOPLE.

THE ISSUE OF THE CANAL ADMINISTRATION ITSELF HAS BEEN WITHDRAWN FROM EVERYDAY POLITICS AND DEALT WITH BY CONSENSUS AMONG THE POLITICAL PARTIES AND THE MAJOR ORGANIZED SECTORS OF CIVIL SOCIETY. IN CONSEQUENCE, A CHAPTER DEVOTED TO THE CANAL ADMINISTRATION WAS INCORPORATED TO OUR CONSTITUTION; A LAW THAT REGULATES THE AUTHORITY OF THE INTEROCEANIC REGION HAS BEEN ADOPTED, AS IS THE CASE WITH THE FOUNDATIONS OF THE PANAMANIAN SECURITY POLICY. THE LATTER DOCUMENT ENCOMPASSES THE NATIONAL SECURITY IN GENERAL AS WELL AS THE SECURITY POLICY REGARDING THE PANAMA CANAL IN PARTICULAR, BOTH OF WHICH ARE ARTICULATED AROUND A POLICY OF ACTIVE NEUTRALITY.

AN ADDITIONAL DOCUMENT WHICH IS JUST AS RELEVANT AND IS BEING PREPARED IN THE SAME MANNER AND SPIRIT, IS THE MASTERPLAN OF PANAMANIAN FOREIGN RELATIONS, WHICH FOR THE FIRST TIME ESTABLISHES THE FOREIGN POLICY PRIORITIES NOT ONLY OF THE GOVERNMENT, BUT ALSO OF THE PANAMANIAN STATE AND NATION GUIDED BY THE NOTION THAT WE ARE A PEACE LOVING PEOPLE.

I AM IN A POSITION TO GUARANTEE THE PACIFIC USE OF THE CANAL AS WELL AS ITS’ STRICT ADMINISTRATION AS AN INTERNATIONAL PUBLIC SERVICE OPEN TO ALL ECONOMIES. TO ACKNOWLEDGE THIS FUNDAMENTAL INTEREST, IT IS SUITABLE TO REITERATE THE COMMITMENT OF THE REPUBLIC OF PANAMA TO ENSURE THE SAFE, EFFICIENT, ECONOMIC AND NON-DISCRIMINATORY USE OF THE CANAL, OFFICIAL PRIORITY WHICH IS ASSOCIATED TO THE EXPLOIT AND MANAGEMENT OF THE WATER WAY.

MARK MY WORDS: PANAMA IS NOT ONLY CAPABLE OF ADMINISTERING THE CANAL IN AN EFFECTIVE, EFFICIENT AND TRANSPARENT MANNER, BUT ALSO OF COPING WITH THE INCREASING DEMAND OF INTERNATIONAL MARITIME TRAFFIC AND ENSURING THE SAFETY OF THE INTEROCEANIC ROUTE.

AS WE MOVE AHEAD EXPLORING THE REWARDING OPPORTUNITIES AVAILABLE TO SHIP OWNERS AND ENTREPRENEURS IN PANAMA, THROUGHOUT THE PRESENTATIONS OF REPRESENTATIVES OF OUR BUSINESS COMMUNITY, LET US BEAR IN MIND NOT ONLY PANAMA’S HISTORICAL LINKS TO SHIPPING AND WORLD COMMERCE, BUT ALSO OUR COMMITMENT TO EFFICIENT AND TRANSPARENT BUSINESS PRACTICES. UPON THESE SOLID BASES, I AM CERTAIN, PANAMA AND THE UNITED STATES CAN BUILD THE MUCH MORE FRUITFUL AND MUTUALLY BENEFICIAL RELATIONSHIP THAT OUR BUSINESS SECTORS EARNESTLY STRIVE FOR.

BEAR IN MIND, THAT UNDER THE PANAMANIAN MANAGEMENT OF THE CANAL, WE ARE FORGING THE SOLID FOUNDATIONS THAT WILL OPEN THE DOOR TO A MORE NOVEL AND ENTERPRISING STYLE OF MANAGEMENT, ORIENTED TOWARDS AN INCREASED PROFITABILITY OF THE OPERATIONS RELATED TO THE INTEROCEANIC CANAL, WITH THE MAIN PURPOSE OF SERVING THE INTERNATIONAL MARITIME COMMUNITY.

LADIES AND GENTLEMEN, I CAN BE CATEGORIC IN STATING THAT THE VAST POSSIBILITIES THAT MY COUNTRY HAS TO OFFER, ARE DUE, WITHOUT ANY DOUBT, TO THE ABSOLUTE DEMOCRATIC ENVIRONMENT, WHICH IN THE COURSE OF THE LAST 10 YEARS HAS EMBRACED THE HEARTS OF THE PANAMANIAN PEOPLE, FOLLOWING THE GLOOMY PERIOD OF THE DICTATORIAL SYSTEM, DURING WHICH THE DEMOCRATIC INSTITUTIONS WERE SEIZED.

IN THIS CONCEPTUAL DIMENSION, THE GOVERNMENT OF HER EXCELLENCY, MRS. MIREYA MOSCOSO, ADVOCATES THE OBSERVANCY OF PANAMA’S CONSTITUTIONAL FRAMEWORK AND REGULATIONS, BY WAY OF CATEGORICALLY ENSURING THE RULE OF LAW AND THE FUNDAMENTAL VALUES OF EQUALITY, JUSTICE AND HUMAN RIGHTS, AS COLUMNS THAT SUPPORT THE JUDICIAL SYSTEM OF THE PANAMANIAN STATE.

AT THIS JUNCTURE, THEREFORE, IT IS THE DUTY OF THE CURRENT GOVERNMENT THROUGH ITS LEADERSHIP, TO FULFILL THE STAGE OF CONSOLIDATION OF THE DEMOCRATIC SYSTEM BY THE EQUAL DISTRIBUTION OF THE FRUITS OF NATIONAL DEVELOPMENT, AS WELL AS ENSURING THE RESPECT OF THE DIGNITY AND RIGHTS OF THE INDIVIDUAL, AS FOUNDATIONS OF AN ACCEPTABLE AND SATISFACTORY EXISTENCE, WHICH CONSTITUTE OBJECTIVES WIDELY SHARED BY THE PANAMANIAN BUSINESS COMMUNITY AND ITS AMERICAN COUNTERPART.

THANK YOU.