In time, a close-knit community supporting the canal thrived at the site, and continued for the life of canal operations.

The standoff does not necessarily imply any interruption in canal operations, however.

A limited amount of money came from canal operations (tolls) but for the bulk of the needed capital other sources were required.

A strike today by dock workers at Panama's three major commercial ports did not affect canal operations.

"If only from a public relations standpoint, this has been a terrible blow," said a Panamanian economist who monitors canal operations.

"It's common knowledge that these are not run well," said a Panamanian economist familiar with canal operations.

Private commercial operations unconnected with canal operations were forbidden in the zone.

Along with providing an industrial power source, canal operations provided ample time and traffic for commerce.

At that time canal operations had ceased completely and the dam had become private property.

Capitalizing on practices developed during the American administration, canal operations are improving under Panamanian control.