The city of Panama was, in the 17th century, a place of great importance, but has gradually sunk into comparative insignificance. The policy of the present Government of New Granada is to restore this city to its pristine importance, and for this reason, one terminus of the intended Ship Canal should be at, or as near as conveniently may be to, this position. The natural obstacles to be overcome in forming a Canal between Panama, and the _nearest point_ of the opposite coast, which is the Gulph of San Blas (likewise called the Bay of Mandingo), render it expedient to select a position west of that line, and the happy coincidence of two navigable rivers, traversing the low lands to the west of Porto Bello, the one falling into the Atlantic, and the other into the Pacific Ocean, which may either form part of the navigation, or be used to feed the Canal, renders that part of the Isthmus the most eligible for this purpose. The rivers alluded to, are the Chagres and the Rio Grande. The town of Chagres, at the mouth of the river of the same name, is about thirty-two miles west of Porto Bello (Puerto Velo); it is situated on the north bank of the river, which falls into the Caribbean Sea. The harbour formed by the mouth of the river having been greatly neglected, has been much choked up; but it would be unnecessary to incur the expense of improving it, for Navy Bay, called also the Bay of Limon, lying immediately to the eastward of Chagres, is a large and spacious harbour, being three miles wide at the mouth, and having sufficient draught of water for the largest ships in the British Navy. The river Chagres approaches within three miles of the head of this Bay; the ground between is a dead level,[7] and all writers agree that, the difficulties of the harbour being surmounted, there is abundance of water in the Chagres. It is, therefore, proposed either to cut a Canal from Navy Bay to the Chagres, and then to ascend that river as far as its junction with the river Trinidad, and after traversing a part of the latter, to construct a canal which shall connect the Trinidad with the River Farfan, a branch of the Rio Grande, and to proceed by that river to Panama; or should the Bay of Chorrera, which is laid down in the plan, be deemed a preferable harbour, to branch off to that bay; or to make the Canal across the whole width of the isthmus, from the Bay of Limon to that of Panama, using the rivers Trinidad, Farfan, and Bernardino, and other streams which cross the line, for the supply of the Canal.