There’s been a major development in the Panama Canal saga. Those ports on either side of the canal, technically owned by Hong Kong but effectively run by China, have been sold. They’re being purchased by “American asset management giant BlackRock.” Separate reports coming from Asia confirm the sale is virtually a done deal.
Control of Panama Canal
It was hard for the government of Panama to argue that China didn’t have undue influence over the canal built by Americans. Not when “two ports at either end” were run by a Hong Kong-based firm.
Part of the agreement Jimmy Carter made is a clause that the canal must remain “neutral” in operation.
Everyone knows that Hong Kong is a puppet of China. Xi Jinping may not have direct or legal control of the canal but the ports can throttle the flow of traffic any way they want.
That gives them undue influence. President Donald Trump is using it as an excuse to yank control of the canal back from Panama.
Everyone expected that Hong Kong would be forced to sell those holdings, in order to bring the government of Panama back into compliance with the treaty.
Nobody expected it to happen this fast and apparently without a fight. Secretary of State Marco Rubio must have had some rather motivational things to say during his recent visit.
We didn’t give it to China
President Trump has made it crystal clear since before the election that he intends to “take back” the canal. “China is operating the Panama Canal and we didn’t give it to China.”
He’s right, we gave it to the Panamanians and we have the right to take it back since they broke the deal. He hasn’t ruled out use of military force if that’s what it takes.
On Tuesday, March 4, CNN is reporting that “BlackRock and a consortium of fellow investors” came up with “$22.8 billion to buy the ports of Balboa and Cristobal on either end of the canal from CK Hutchison, a Hong Kong company.”
They hedge by saying the Panama deal is an “agreement in principal.” Over in Asia they say it’s already happened.
As part of the same transaction, BlackRock is “also buying CK Hutchison’s controlling interest in 43 other ports comprising 199 berths in 23 countries, but none of the ports it operates in China or Hong Kong.”
That should be good news for America. Along with the key ports controlling both ends of the Panama Canal, “these world-class ports facilitate global growth.“
