PANAMA: The Story of Panama and the Canal: A Complete History of the Isthmus and the Canal from the Earliest Explorations to the Present Timeby C H Forbes Lindsay. 1907. 384p The geographical context of Panama is that it is located east of Colon, with the Canal running south east to the Pacific. Politically, Panama and Colombia formed the United Sovereign States of New Granada after gaining independence from Spain. The development of the canal involved the government securing rights for its construction, which limited competition. U. S. involvement was significant, as the U. S. consul