The flag of Panama was made by Maria Ossa de Amador. It has been officially adopted by the "ley 4 de 1925"; the flag is celebrated on November 4, one day after Panamanian independence from Colombia. The first flag proposed in 1903, consisted of 7 horizontal stripes of red and yellow, with a blue canton containing 2 golden suns, joined by a narrow line to depict the oceans to be united by the Panama Canal. However this was not accepted by the Panamanian leader, Manuel A. Guerrero, whose family designed a new flag. The stars and quarters are said to stand for the rival political parties, and the white for the peace in which they operate. Blue was the color of the Conservatives, and red the color of the Liberals. (Flags of the World, published DK Publishing, 1997)
The Panamanian government officially described the flag in Law 15 of December 1949, as follows: The Flag of the Republic consists thus of a divided rectangle of four quarters: the upper field close to the pole white with a blue star of five points; the upper field further from the pole, red; the lower field near the pole, blue; and the lower one further from the pole, white with a red star of five points.
This flag was to reflect the political situation of the time. The blue was intended to represent the Conservative Party and the red to represent the Liberal Party. The white was intended to stand for peace and purity; the blue star stands for the purity and honesty of the life of the country; the red star represents the authority and law in the country; and together the stars stand for the new republic.