Showing posts with label Panama Canal. Show all posts
Showing posts with label Panama Canal. Show all posts

Wednesday, March 5, 2025

China's Out: American Company Taking Control Of Panama Canal Ports

(This may sound good, but could it be really, really bad given BlackRock's reputation.)

President Trump can probably chalk this up as a win: The American asset manager BlackRock, according to an announcement made on Tuesday, will be purchasing two key Panama Canal ports from a Hong Kong-based Chinese firm. The possession of these ports by a Chinese concern has, according to President Trump, represented a strategic threat to American shipping as well as to the movement of naval vessels.
The ports in question are Balboa and Cristobal.
A consortium of firms led by BlackRock is buying two key ports in the Panama Canal from a Hong Kong-based firm for nearly $23 billion after President Donald Trump expressed concern that the strategic waterway was falling under Chinese influence.
BlackRock, the world’s largest asset manager with a portfolio of investments valued at $11.5 trillion, has agreed to purchase majority stakes in ports on both sides of the Panama Canal from Hong Kong-based CK Hutchison for $22.8 billion, the companies announced on Tuesday.
The deal would shift control of the strategic ports of Balboa and Cristobal into American corporate hands, a move that aligns with the Trump administration’s concerns over foreign influence near the canal.
This appears to be part of a much larger deal.
Beyond the Panama Canal ports, the consortium will also acquire 43 additional ports in 23 countries from CK Hutchison.
BlackRock’s Fink has aggressively expanded the firm’s infrastructure investment strategy, particularly after acquiring GIP in 2023.
GIP manages a vast portfolio of energy, transportation, and utilities assets, including London Gatwick Airport, US natural gas pipelines and data centers.
It's unclear as to whether this will be enough for the president, who has insisted in the past on regaining full operational control of the canal. There are still concerns about Chinese influence, not only in Latin America but worldwide.
BlackRock itself is an organization that is not without controversy. The environmental left doesn't like them in particular for their involvement in fossil-fuel development. They have also faced criticism for their DEI and ESG efforts. But in operations of this size, the number of American organizations capable of such a purchase may well be numbered on the fingers of one hand - and better BlackRock than China.
The Panama Canal has vast strategic importance for pretty much every nation on the planet. An enormous amount of shipping passes through the canal every year, not to mention military traffic. Since the canal was built by the United States at an enormous cost, President Trump has been advocating the complete return of the canal to American control. It's not at all clear if that will happen, but at least these two key ports will no longer be in direct Chinese control.
As of this writing, the White House has not commented on the purchase.


https://redstate.com/wardclark/2025/03/04/chinas-out-american-company-taking-control-of-panama-canal-ports-n2186268

Friday, January 10, 2025

Trump's 'Crazy' Ideas Not So Crazy After All

Why is it that people are always calling for someone to think "outside the box," then when someone does, say, "Aaaak! He thought outside the box!" 
In that view, President-elect Donald J. Trump has already committed (at least) three heresies: Buy Greenland, stop China from controlling the Panama Canal and deepen America's affiliation with Canada. 
All three ideas are neither crazy nor even new.
President Harry S. Truman looked at acquiring Greenland in 1946. Thomas Jefferson, after the Louisiana Purchase, proposed buying Cuba – just think how the Cubans would be prospering now, politically and economically, if that deal had gone through. Those acquisitions didn't take place but in 1917, the US did acquire Denmark's Virgin Islands for $25 million. As historian Stephen Press writes,
"As secretary of state, John Quincy Adams arranged debt relief for Spain in exchange for Florida. Secretary of State William Seward acquired Alaska. What Mr. Trump proposes is consistent with this American tradition—and with our current borders. Sovereignty purchases are responsible for more than 40% of U.S. land...
"History suggests the benefits of being open-minded about this. Inhabitants of Alaska wouldn't be better off under Russian sovereignty. Bringing Greenlanders into closer affiliation with the U.S., and sweetening the deal with economic subsidies, could conceivably prove beneficial to all parties"
As for the Panama Canal, President Jimmy Carter handed it to Panama for $1, but on the condition that it permanently remain a neutral zone – not one controlled at both ends by China. "We gave the Panama Canal to Panama," Trump has pointed out. "We didn't give it to China. They've abused that gift."
The US built the Panama Canal in the first place to be able to avoid having commercial and military sea traffic avoid the long journey around South America's southernmost sea route, the Strait of Magellan – where the Chinese Communist Party also located a base.
If there were to be a conflict with Communist China, it would be easy enough for them to block the Canal to U.S. use. As China expert Gordon G. Chang has pointed out:
"China's port facilities are at both ends of the canal. And when Gen. Laura Richardson took a helicopter ride over the Canal Zone, this was the middle of 2022; she said she 'looked down and saw all of these dual-use facilities.' ... at a time of war, they could make the canal totally useless.... They say that we have a two-ocean Navy. Well, we would have two separate navies. It'd be very difficult to get ships from the Atlantic to the Pacific, or vice versa."
Closer ties with Canada, as Trump appears to see them, would make a united-in-some-way North America a formidable landmass to any would-be adversary. "You get rid of that artificially drawn line," Trump stated, "and you take a look at what that looks like, and it would also be much better for national security. Don't forget, we protect Canada."
Trump seems to have been merely responding to the opening provided him by Canadian Prime Minister Justin Trudeau, days before the latter announced that he would be resigning. According to Trump:
"I said what would happen if we didn't do it. He said Canada would dissolve. Canada wouldn't be able to function, if we didn't take their 20% of our car market... So, I said to him, well, why are we doing it? He said, I don't really know. He was unable to answer the question, but I can answer it. We're doing it because of habit, and we're doing it because we like our neighbors ,and we've been good neighbors. But we can't do it forever and it's a tremendous amount of money. And why should we have a $200 billion deficit and add on to that many, many other things that we give them in terms of subsidy?"
Trump has also announced a "Made in America," tax break incentive for investment in the US, and a "Golden Age of America."
It seems to have begun already -- and he is not even president yet.

https://www.gatestoneinstitute.org/21298/trump-crazy-ideas

Saturday, March 2, 2024

 On This Date In History

On March 2, 1917, barely a month before the United States enters World War I, President Woodrow Wilson signs the Jones-Shafroth Act, granting U.S. citizenship to the inhabitants of Puerto Rico.
Located about 1,000 miles southeast of Florida, and less than half that distance from the coast of South America, Puerto Rico was ceded to the U.S. by Spain in December 1898 as part of the Treaty of Paris, which ended the Spanish-American War. In 1900, a Congressional act created a civil government for the island; the first governor under this act, Charles H. Allen, was appointed by President William McKinley and inaugurated that May in Puerto Rico’s capital city, San Juan.
On March 2, 1917, Wilson signed the Jones-Shafroth Act, under which Puerto Rico became a U.S. territory and Puerto Ricans were granted statutory citizenship, meaning that citizenship was granted by an act of Congress and not by the Constitution (thus it was not guaranteed by the Constitution). The act also created a bill of rights for the territory, separated its government into executive, legislative and judicial branches, and declared Puerto Rico’s official language to be English.
As citizens, Puerto Ricans could now join the U.S. Army, but few chose to do so. After Wilson signed a compulsory military service act two months later, however, 20,000 Puerto Ricans were eventually drafted to serve during World War I. Puerto Rican soldiers were sent to guard the Panama Canal, the important waterway, in operation since 1914, which joined the Atlantic and Pacific Ocean across the Isthmus of Panama in Central America. Puerto Rican infantry regiments were also sent to the Western Front, including the 396th Infantry Regiment of Puerto Rico, created in New York City, whose members earned the nickname Harlem Hell Fighters.
Later, during World War II, Puerto Rico became an important military and naval base for the U.S. Army. Its economy continued to grow, aided by a hydroelectric-power expansion program instituted in the 1940s. In 1951, Puerto Rican voters approved by referendum a new U.S. law granting the islanders the right to draft their own constitution. In March 1952, Luis Munoz Marin, Puerto Rico’s governor, proclaimed Puerto Rico a freely associated U.S. commonwealth under the new constitution; the status was made official that July.

 




 

Sunday, December 31, 2023

 On This Date In History


On December 31, 1999, the United States, in accordance with the Torrijos-Carter Treaties, officially hands over control of the Panama Canal, putting the strategic waterway into Panamanian hands for the first time. Crowds of Panamanians celebrated the transfer of the 50-mile canal, which links the Atlantic and Pacific oceans and officially opened when the SS Arcon sailed through on August 15, 1914. Since then, over one million ships have used the canal.
Interest in finding a shortcut from the Atlantic to the Pacific originated with explorers in Central America in the early 1500s. In 1523, Holy Roman Emperor Charles V commissioned a survey of the Isthmus of Panama and several plans for a canal were produced, but none ever implemented. U.S. interest in building a canal was sparked with the expansion of the American West and the California gold rush in 1848. (Today, a ship heading from New York to San Francisco can save about 7,800 miles by taking the Panama Canal rather than sailing around South America.)
In 1880 a French company run by the builder of the Suez Canal started digging a canal across the Isthmus of Panama (then a part of Colombia). More than 22,000 workers died from tropical diseases such as yellow fever during this early phase of construction and the company eventually went bankrupt, selling its project rights to the United States in 1902 for $40 million. President Theodore Roosevelt championed the canal, viewing it as important to America’s economic and military interests. In 1903, Panama declared its independence from Colombia in a U.S.-backed revolution and the U.S. and Panama signed the Hay-Bunau-Varilla Treaty, in which the U.S. agreed to pay Panama $10 million for a perpetual lease on land for the canal, plus $250,000 annually in rent.
Over 56,000 people worked on the canal between 1904 and 1913 and over 5,600 lost their lives. When finished, the canal, which cost the U.S. $375 million to build, was considered a great engineering marvel and represented America’s emergence as a world power.
In 1977, responding to nearly 20 years of Panamanian protest, U.S. President Jimmy Carter and Panama’s General Omar Torrijos signed two new treaties that replaced the original 1903 agreement and called for a transfer of canal control in 1999. The treaty, narrowly ratified by the U.S. Senate, gave America the ongoing right to defend the canal against any threats to its neutrality. In October 2006, Panamanian voters approved a $5.25 billion plan to double the canal’s size by 2015 to better accommodate modern ships.
Ships pay tolls to use the canal, based on each vessel’s size and cargo volume. In May 2006, the Maersk Dellys paid a record toll of $249,165. The smallest ever toll, 36 cents, was paid by Richard Halliburton, who swam the canal in 1928.

 


 

On December 31, 1968, the Soviet Union’s TU-144 supersonic airliner makes its first flight, several months ahead of the Anglo-French Concorde. The TU-144 so closely resembled the Concorde that the Western press dubbed it the “Konkordski.”
In 1962, 15 years after U.S. pilot Chuck Yeager first broke the sound barrier, Britain and France signed a treaty to develop the world’s first supersonic passenger airline. The next year, President John F. Kennedy proposed a similar U.S. project. Meanwhile, in the USSR, Soviet leader Nikita Khrushchev ordered his top aviation engineers to beat the West to the achievement.
There were immense technical challenges in building a supersonic airliner. Engines would need to be twice as powerful as those built for normal jets, and the aircraft’s frame would have to withstand immense pressure from shock waves and endure high temperatures caused by air friction. In the United States, Boeing tackled the supersonic project but soon ran into trouble with its swing-wing design. In England and France, however, early results were much more promising, and Khrushchev ordered Soviet intelligence to find out as much as possible about the Anglo-French prototypes.
In 1965, the French arrested Sergei Pavlov, head of the Paris office of the Soviet airliner Aeroflot, for illegally obtaining classified information about France’s supersonic project. Another high-level Soviet spy remained unknown, however, and continued to feed the Soviets information about the Concorde until the spy was identified and arrested in 1967. On December 31, 1968, just three months before the first scheduled flight of the Concorde prototype, the fruits of Soviet industrial espionage were revealed when the Soviet’s TU-144 became the world’s first supersonic airliner to fly.
In 1969, the Concorde began its test flights. Two years later, the United States abandoned its supersonic program, citing budget and environmental concerns. It was now up to Western Europe to make supersonic airline service viable before the Soviets. Tests continued, and in 1973 the TU-144 came to the West to appear alongside the Concorde at the Paris Air Show at Le Bourget airport. On June 3, in front of 200,000 spectators, the Concorde flew a flawless demonstration. Then it was the TU-144’s turn. The aircraft made a successful 360-degree turn and then began a steep ascent. Abruptly, it leveled off and began a sharp descent. Some 1,500 feet above the ground, it broke up from over-stress and came crashing into the ground, killing all six Soviet crew members and eight French civilians.
Soviet and French investigators ruled that pilot error was the cause of the accident. However, in recent years, several of the Soviet investigators have disclosed that a French Mirage intelligence aircraft was photographing the TU-144 from above during the flight. A French investigator confirmed that the Soviet pilot was not told that the Mirage was there, a breach of air regulations. After beginning his ascent, the pilot may have abruptly leveled off the TU-144 for fear of crashing into this aircraft. In the sudden evasive maneuver, the thrust probably failed, and the pilot then tried to restart the engines by entering a dive. He was too close to the ground, however, and tried to pull up too soon, thus over-stressing the aircraft.
In exchange for Soviet cooperation in the cover-up, the French investigators agreed not to criticize the TU-144’s design or engineering. Nevertheless, further problems with the TU-144, which was designed hastily in its bid to beat the Concorde into the air, delayed the beginning of Soviet commercial service. Concorde passenger service began with much fanfare in January 1976. Western Europe had won its supersonic race with the Soviets, who eventually allowed just 100 domestic flights with the TU-144 before discontinuing the airliner.
The Concorde was not a great commercial success, however, and people complained bitterly about the noise pollution caused by its sonic booms and loud engines. Most airlines declined to purchase the aircraft, and just 16 Concordes were built for British Airways and Air France. Service was eventually limited between London and New York and Paris and New York, and luxury travelers appreciated the less than four-hour journey across the Atlantic.
On July 25, 2000, an Air France Concorde crashed 60 seconds after taking off from Paris en route to New York. All 109 people aboard and four on the ground were killed. The accident was caused by a burst tire that ruptured a fuel tank, creating a fire that led to engine failure. The fatal accident, the first in the Concorde’s history, signaled the decline of the aircraft. The last Concorde flight was on October 24, 2003.

 

 

 

 The following pictures are of the Air France Concorde F-BVFA

 

 

 

 

 

 

 

 

Random Political Memes/Cartoons Dump - 9.10.2025