Panama City is the capital city of Panama, located on the Pacific Ocean. Founded in 1519 by the Spanish, it served as the main shipping hub for trade with Spanish colonies in Peru. The Panama Canal was built to connect from the Atlantic to the Pacific, adjacent to the city, and brought a great deal of trade and prosperity in the twentieth century.

In 1936, Simon Katanga was arrested and imprisoned in Panama City, on the charges of rum smuggling. Needing a ship to take him to the Aleutian Islands, Indiana Jones bailed out Katanga, and departed on the Bantu Wind.

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