At the end of May, my wife and I went to Panama with Congressman Tom Davis of Virginia. The trip, organized by the US-Panama Business Council, was designed to focus on opportunities for technology companies in Panama. The meeting was quite successful and furthered the mission of the group in fostering better relations between the United States and Panama. Congressman Davis participated in his capacity as chairman of the House Subcommittee on Technology and Procurement. His Virginia District has companies with some 50 percent of the worldwide Internet traffic.

Touring parts of Panama City, the Canal and meeting with Panamanian business leaders and the President of Panama were all interesting. The Panama Canal continues to operate effectively. Panama's current challenge is a faltering economy. While both the president and the National Assembly's leader are committed to halting the decline, action has not yet turned the economy around.

Interestingly, while we were in Panama, President Chen Shui-bian of Taiwan was given "head-of-state treatment by the government. In fact, President Chen and his 150-person entourage stayed in the hotel where my group was housed. While that created some confusion at various times, lobby conversations proved most interesting.

Panama is one of few countries in the world which officially recognizes Taiwan. It has done so in the face of constant challenges from the Peoples Republic of China, (Beijing). At the same time the Government of Panama went out of its way a few years ago to allow Hutchinson Whampoa, a Hong Kong company, to take over ports at each end of the canal. If there ever was a dichotomy, it is Panama's recognition of Taiwan and business dealings with a company under Beijing's jurisdiction.

That is where the hotel lobby conversation comes in. While waiting for our group to move out for dinner, I struck up a conversation with the commercial attaché of Taiwan in Panama. We talked about the president's visit, the shooting down of the US plane in early April and his feelings about living in Panama. Then, I asked him, "How do Beijing and Taiwan remain so hostile and confrontational in public when there are so many business deals between the two nations?" With a big smile, he excused himself, saying, "It is time for me to leave for the State dinner."

With that comment, he rushed away. Panama remains the crossroads of the world. And discussing China with a foreign affairs official from Taiwan gave me hope that the United States and Beijing can accommodate their differences - at least privately, if not in public.