the end of 1999. In October 2006, Panamanians approved an ambitious
plan to expand the Canal. The project, which began in 2007 and could
double the Canal's capacity, is expected to be completed in 2014-15.

Papua New Guinea
The eastern half of the island of New Guinea -
second largest in the world - was divided between Germany (north)
and the UK (south) in 1885. The latter area was transferred to
Australia in 1902, which occupied the northern portion during World
War I and continued to administer the combined areas until
independence in 1975. A nine-year secessionist revolt on the island
of Bougainville ended in 1997 after claiming some 20,000 lives.

Paracel Islands
The Paracel Islands are surrounded by productive
fishing grounds and by potential oil and gas reserves. In 1932,
French Indochina annexed the islands and set up a weather station on
Pattle Island; maintenance was continued by its successor, Vietnam.
China has occupied the Paracel Islands since 1974, when its troops
seized a South Vietnamese garrison occupying the western islands.
China built a military installation on Mischief Reef in 1999. The
islands are claimed by Taiwan and Vietnam.

Paraguay
In the disastrous War of the Triple Alliance (1865-70) -
between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost
two-thirds of all adult males and much of its territory. It
stagnated economically for the next half century. In the Chaco War
of 1932-35, Paraguay won large, economically important areas from
Bolivia. The 35-year military dictatorship of Alfredo STROESSNER
ended in 1989, and, despite a marked increase in political
infighting in recent years, Paraguay has held relatively free and
regular presidential elections since then.

Peru
Ancient Peru was the seat of several prominent Andean
civilizations, most notably that of the Incas whose empire was
captured by the Spanish conquistadors in 1533. Peruvian independence
was declared in 1821, and remaining Spanish forces defeated in 1824.
After a dozen years of military rule, Peru returned to democratic
leadership in 1980, but experienced economic problems and the growth
of a violent insurgency. President Alberto FUJIMORI's election in
1990 ushered in a decade that saw a dramatic turnaround in the
economy and significant progress in curtailing guerrilla activity.
Nevertheless, the president's increasing reliance on authorit