Panama: Crisis Over the Canal

On a sunny day last week, a group of American teen-agers marched up and raised a U.S. flag over their high school at Balboa in the Panama Canal Zone.

It seemed an everyday thing to do. But in the Canal Zone, what flag to fly where is a passionate issue—and a symbol of a bitter dispute between the U.S. and the tiny Republic of Panama. So high is the feeling between Panamanians and the Zone's 36,000 U.S. residents that Canal Zone Governor Major General Robert J. Fleming Jr. decided to fly both Panamanian...

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