PANAMA: No More Tomorrows

An era ends, as the U.S. quits the Canal Zone

In the port of Balboa, workmen nailed up a sign reading BIENVENIDO AL PUERTO DE BALBOA—BRIDGE OF THE WORLD. As evening fell, a solemn, subdued crowd of Americans watched as the Stars and Stripes was lowered—for the last time—at the U.S.-operated headquarters of the Panama Canal Co. Next morning an animated group of Panamanians cheered as their country's white, red and blue banner was run up a new flagpole atop bush-covered Ancon Hill. The Panama Canal Zone, the 648-sq.-mi. enclave that had been...