Mexican Empire signs control agreement for canal

Panama Canal to be operated by Mexico

MEXICO CITY (RWN) - Mexican leaders signed an agreement with Panamanian officials today that put all control of the canal into Mexico's hands, but gives Panama extensive revenues.

Frantic negotiations have been underway for the last three weeks after a series of piracy incidents in and near the canal enraged the Mexican government. With the Panamanian government unable - or unwilling - to protect Mexican shipping, Mexico's president, Juan Antonio Quezactacal sent a naval task force to the region.

"We are pleased beyond description with this outcome," Mexican navy Adm. David Higuera said. "We did not want to come to blows with our cousins."

The agreement effectively changes the day-to-day operations of the canal to civilian Mexican workers employed by CdMEX, a new, state-run concern similar to PEMEX, the national petroleum company. The employees will all be citizens of Mexico, and CdMEX officials will administer the lock-and-channel system. Panama will receive 45 percent of canal fees after a deduction for operations and maintenance. The deduction might be a source of tension in the future.

"We think that this is an agreement that works for all of us," Panama's president Pablo Despues de Derecha said. "The Mexican Empire's resources will create a safer canal, and we'll still gain revenues from it. But, with all respect to our cousins, we will still have our accountants in the room with them."

The canal situation degenerated to a near-military confrontation over the last six weeks.

It began when South American pirates operating in the Atlantic Ocean boarded the Mexican-flagged container ship Corazon de Mexico. All 12 members of the ship's company were killed and the ship was found five days later stripped of all its cargo, burned, on a beach in Colombia.

Three days after the Corazon disappeared, a Mexican-flagged freighter, the Siempre Oro, was boarded and ransomed by pirates as it traversed the canal. Authorities do not know if the incidents were related, but said that the pattern was similar to those of Colombian pirates known to work the area.

Four ISA-flagged ships have been attacked in the last year as they've approached or traversed the canal. Pirates killed the crew of the Empire Mohammed, an oil tanker out of San Francisco, in June and another tanker, the Empire Jiddah, was boarded and ransomed in July.


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