By Kari Huus / MSNBC

One of the most significant of Chinas far-flung interests is in Latin America  the Panama Canal. Beijings intentions and influence there are the subject of heated debate among analysts. Some see China developing a chokehold on the worlds most important shipping passage, while others see little more than China expanding normal commercial relations. he dispute centers on a 1997 contract by Hong Kong company Hutchison Whampoa Ltd. for the management of two ports flanking the Panama Canal  Cristobal and Balboa. The deal comes just as the U.S. military withdraws from the canal, transferring it to local administration.

At one extreme are those who see the deal as disastrous.

The impending transfer of the Panama Canal, under the circumstances that now exist, amounts to handing over control of the canal to Red China, an aggressive, brutal, expansionist, totalitarian regime that has shown by word and deed that it is our enemy, said Admiral Thomas Moorer, former chairman of the Joint Chiefs of Staff.

Hutchison Whampoa is run by Hong Kong tycoon Li Ka-shing and his son Richard. The two have substantial holdings in mainland China and links to the state-run shipping company COSCO, which has military backing. Moorer, in testimony before the Senate Foreign Relations Committee, has pointed out Hutchison Whampoas close links to the leadership in Beijing.

But the White House, the Pentagon, the State Department have dismissed the fears of mostly Republican lawmakers, saying U.S. interests are secure. So do many analysts who say China is trying to resume its long-lost status as a world trading power, so in commercial terms, its influence is to be expected throughout the globe.

But the White House, the Pentagon and the State Department have dismissed the fears of mostly Republican lawmakers, saying U.S. interests are secure.

And analysts also note that Hutchison Whampoa is a blue-chip company on the Hong Kong stock exchange, and one of the leading port managers in the world. The Li familys ties to Beijing, they say, are little different than those maintained by other major businesses trying to capitalize on mainland Chinas huge market  just good business. Moreover, they say, the Panama deal is a natural part of Chinas efforts to resume its long-lost status as a world trading power.

With or without the ports, however, Panama is a factor in Beijings competition with Taiwan for diplomatic recognition. Panama is perhaps the most important country in the world that still recognizes Taiwan, and has vowed to continue this relationship while maintaining only commercial ties with Beijing.

Beijing is visibly courting Panama with high-level visits and large development loans.

It is reasonable to think that China might use its leverage down the road to force Panama to break with Taipei, said Drew Liu of the China Strategic Institute in Washington.

http://www.msnbc.com/modules/china_at_50/panama.asp

-- - (x@xxx.com), April 25, 2000

Answers

It is reasonable to think that China might use its leverage down the road to force Panama to break with Taipei, said Drew Liu of the China Strategic Institute in Washington.

China steps up military drills

http://www.timesofindia.com/today/26worl6.htm

-- - (x@xxx.com), April 25, 2000.

Aren't these the same (sort of) fine folks who proclaimed that Germany would never invade Czechoslovakia, Poland...?

How many times has it been suggested that we follow the MONEY when figuring out what's going on? If the money trail leads back to corruption in high places -- Wash, DC instantly comes to mind -- then what's the problem? The factual track record of the Liar In Chief is clear -- there's no need for debate.

Just Remember in November...

-- Time (ToCleanThe@Barn.com), April 26, 2000.

i personally don't think china will play their cards on the canal or taiwan until their boy bill is out of office. they may be criminals but they won't double cross him quite that much.

-- tt (cuddluppy@aol.com), April 26, 2000.