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The last set of locks at Gatun, and the surrounding buildings, the camp, the houses, the military signs - all this jogged a memory in me I thought I had lost. It put my Panama experience into perspective. I had felt at Balboa High a familiar melancholy. It had been like my high school. But one American high school is much like another; they all have a timeless gamesmanship, a pretence of study and a rather comic look of skirmish between student and teacher. And the atmosphere is always the same, the smell of textbook glue and paper, corridor wax, chalk dust and sneaker rubber; the distant strongbox clang of locker-doors, the shouts and giggles. It was no aid to perception to be in Balboa High.

But Gatun moved me. Gatun was a piece of my past I thought I had lost; I had forgotten it, and it was not until we passed through that I realized how special it was. Except for this trip, the memory might have been irrecoverable. Round about 1953, when I was twelve and skinny and too near-sighted to catch a baseball, my uncle - an army surgeon - did me the favour of inviting me to spend the summer with him and my aunt and cousins at Fort Lee in Virginia. He was an officer. Punished-looking privates picking up gum-wrappers at the roadside used to salute his car, even when my aunt was driving it - saluting the insignia, I suppose. We were always going to the pool when this happened, to the Fort Lee Officers Open Mess. We usually went to the pool. There was a boy my age there, named Miller. He had a yellow stain on his swimming trunks. 'That's pickle juice,' he said. 'I spilled it in Germany.' It seemed an amazing explanation, but I believed him: he owned a German bayonet. Miller had been in Virginia long enough to ignore the heat. I had never known such temperatures. I volunteered to caddy for my uncle, but after six holes I had to sit in the shade and wait for him to return for the thirteenth, which was nearby. I tried to acclimatize myself like Miller, but invariably I ended up in the shade of a tree. My uncle said I probably had dropsy. 'This is my nephew,' he would say to his golf partner. 'He's got dropsy.' The nickname 'Dropsy' dogged me throughout the summer. Fort Lee was an army camp, but it did not match the stereotype I had seen in war movies; it looked like a state prison that was being used as a country club. Apart from the soldiers - saluting, saluting - there were blacks, lurking everywhere, gardening, idling at the Tastee-Freez ice-cream parlour, walking down the unshaded roads, driving the DDT spraying truck which tore through the back yards leaving a cloud of poison as pretty as fog and, afterwards, piles of dead grasshoppers. The woods were thin and piney, the earth redder than any I had ever seen, the houses cool (my aunt had 'coffee mornings'). At the restaurants near the camp there were small rectangular signs near the doors, like the tin name-plates in Boston that said DUFFY or JONES; but here, the name-1 innocently believed it was a name - was always WHITE. A train ran nearby, to Hopewell and Petersburg; the insects were as loud in the daytime as at night, the buildings pale yellow, with red-tile roofs, and fences, and stencilled signs - like this.

As the train approached Gatun, and stopped, I was back in Fort Lee, returned to a moment twenty-five years before, when I had watched with the same sense of fear and excitement the military buildings and the stunted trees in the red soil, the unaccountably bright flowers, the WACs, the yellow school bus, the row of olive-drab Fords, the baseball diamond and the black people, the Little League field, the cemetery, the young soldiers who looked aimless whenever they were not marching, the dust settling in the heat.The two worlds met: here it was rural Virginia, and still the Fifties, and the smell was the same and the memory so clear, I thought: The next stop must be Petersburg.

It was Mount Hope, but Mount Hope was a continuation of the same memory. It is not often that I have travelled so far and been able, so easily,to uncover a fragment of the past that had remained lost to me. And as in all recollection there is something that looks inexact, like the memory of the name-plate WHITE. The perspective of years allowed me to see how old and small that other world was, and how I had been fooled.

The spell was broken at Colón. Colón had a divided look I could never grow used to. It was colonial in such a naked way: the tenements of the poor on one side of the tracks - what passed for the native quarter; and the military symmetries of the imperial buildings on the other side, the yacht club, the offices, the houses set in gardens. Here the governors, there the governed. It is the old form of colonialism because, unlike the equally grasping multi-national corporations which are so often invisible, you can see at a glance from the appearance of things that you are in a colony, and the make of every car tells you that it is an American colony.

The tenements were like those I had seen in Panama City, decaying antiques. With a coat of paint and a dose of rust-remover they would have looked like the houses in New Orleans's French Quarter or those in the older parts of Singapore. If Gatun and so much else in the Zone looked like Fort Lee, Virginia, circa 1953, what lay just outside it seemed like the hectic and faintly reeking commercial districts of prewar Singapore - the sour tangs of the bazaar, the cloth and curio emporiums, the provisioners, the ships' chandlers who, in Colón as in Singapore, were Indians and Chinese.

I had been told that the Indians in the Zone had come from India to work on the railway. It is not an easy fact to authenticate - workers are workers: they are the silent men in history books - but the labour supply in the building of the Canal was drawn from ninety-seven countries; India must have been one of them. I could not find any Indian in Colón who had come for this reason. Mr Gulchand seemed to be typical. He was a Sindhi, and a Hindu - he had a coloured portrait of the Mahatma in his shop. After the partition of India, the province of Sindh became part of Pakistan, and fearing Muslim rule, Mr Gulchand went to Bombay. It wasn't home, but at least it was Hindu. He started an import-export business and, in the course of this enterprise, had occasion to deal with Filipinos. He visited the Philippines. He liked it well enough to move his business there in the Sixties. The Vietnam war created a brief boom in the Philippines. Mr Gulchand's business prospered. His move accomplished several things: it estranged him from the Anglo-Indian sphere of influence and put him in close touch with Americans. And he learned to speak Spanish. He was now half-way across the world. Only the Pacific Ocean separated him from the emporium of Colón and the promise of greater wealth in Panama, more import-export, Central American connections and the city all Latin Americans regard as their metropolis: Miami. He had been in Colón for five years. He hated it. He longed for the more comprehensible disorder of Bombay, the more familiar anarchy.

'Business is slack,' said Mr Gulchand. He blamed the Canal Treaty. It was an old story: the colony about to collapse around the shopkeepers' ears; recessional; bolting whites; prices down. I can't give this stuff away.

What did he think of Colón?

'Wiolent,' said Mr Gulchand. 'And darty.'

He told me to take my watch off. I said I would. Then, trying to find the post office, I asked a black man the way. 'I will show you the way,'he said. 'But that,' he went on, tapping my watch crystal, 'you must remove it or you will lose it.' So I took it off.

The shop-signs were variations on the same theme: Liquidation Sale, Everything Must Go!, Total Liquidation, Close-Down Sale Today. 'I don't know what's going to happen,' Mr Reiss had said in the Gorgas Mortuary, speaking of the treaty. But it was clear from these shop-signs in Colón that it would be ratified and these shops soon empty.

I asked another Indian what he would do if the treaty was ratified.