The history of Panama can be characterized by two main elements - an aversion to violence and a century-long, love-hate relationship with the United States that ended officially on December 31, 1999, with the U.S. handover of the Panama Canal to Panama in accordance with treaties signed in 1977 between U.S. President Jimmy Carter and Panama strongman General Omar Torrijos.

Unlike its Central American neighbors, which throughout the century have lived the horror of civil and inter-country wars, Panama participated in only one war, a border dispute with Costa Rica. Links with Spain and Colombia

Panama had been part of the Spanish Empire since the discovery of America in the 1600's, and remained bound to Spain until declaring independence in 1821 when most other Latin American countries did the same. Panama immediately decided voluntarily to join a loose confederacy of nations led by the legendary Simon Bolivar that was called the Gran Colombia. It was difficult for Bolivar to maintain his dream of Latin American unity, however. This was mostly because of the enormous geographical difficulties posed by the Andes mountain range, which made traveling through his possessions a matter of months. By the time he arrived in one capital to solve a problem, it had already changed or been solved, and his attention was drawn elsewhere, finally making the situation untenable.

There were also great cultural differences between confederacy members, and eventually it fell apart. Much to Panama's credit, the only Bolivarian Congress of the confederacy was held in this city on June 22, 1826. Bolivar envisioned Panama as the center of this peaceful, progressive union. But Bolivar's powerful generals in South America betrayed him, and the dream came to an end with Bolivar's depression and death in 1830.

Once the confederacy fell apart, Panama remained part of Colombia as a province or "department" for 82 years. Years of neglect by its distant capital, Bogota, and impoverished conditions in the department disillusioned citizens. Relations with United States begin

For Panama the 20th century was marked by its relations with the United States. Sometimes for good, sometimes for bad, there was a strong attraction between the two countries: one large and powerful, the other small, but with enormous value to the United States -and this was not only between the two governments, but between the two peoples. Americans who came to Panama were fascinated by the tropical surroundings and fun-loving people and many stayed long after their official duties finished, often marrying black-haired beauties and making Panama their permanent home.