January 2001.

Panama
Explored and settled by the Spanish in the 16th century,
Panama broke with Spain in 1821 and joined a union of Colombia,
Venezuela, and Ecuador - named the Republic of Gran Colombia. When
the latter dissolved in 1830, Panama remained part of Colombia. With
US backing, Panama seceded from Colombia in 1903 and promptly signed
a treaty with the US allowing for the construction of a canal and US
sovereignty over a strip of land on either side of the structure
(the Panama Canal Zone). The Panama Canal was built by the US Army
Corps of Engineers between 1904 and 1914. In 1977, an agreement was
signed for the complete transfer of the Canal from the US to Panama
by the end of the century. Certain portions of the Zone and
increasing responsibility over the Canal were turned over in the
subsequent decades. With US help, dictator Manuel NORIEGA was
deposed in 1989. The entire Panama Canal, the area supporting the
Canal, and remaining US military bases were transfered to Panama by
the end of 1999. In October 2006, Panamanians approved an ambitious
plan to expand the Canal. The project, which is to begin 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.
The islands are claimed by Taiwan and Vietnam.

Paraguay
In the disastrous War of the Triple Alliance (1865-70),
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, large, economically important areas were