Darien scheme

New Caledonia
Colony of the Kingdom of Scotland
1698–1700

New Caledonia on a modern map
CapitalNew Edinburgh
Area
 • Coordinates8°50′3″N 77°38′0″W / 8.83417°N 77.63333°W / 8.83417; -77.63333
 
• 1698
1 km2 (0.39 sq mi)
Population 
• 1698
1,200
• 1700
2,500
Government
Monarch 
• 1689–1702
William II
Council 
Historical eraColonial period
• Landfall
2 November 1698
• First colony abandoned
July 1699
• Second colony established
30 November 1699
• Second colony abandoned
February 1700
Preceded by
Succeeded by
Viceroyalty of New Granada
Viceroyalty of New Granada
Today part ofPanama

The Darien scheme or the Darien venture was an unsuccessful attempt, backed largely by investors of the Kingdom of Scotland, to gain wealth and influence by establishing New Caledonia or Britain-in-Panama, a colony in the Darién Gap on the territory of present-day Panama, in the late 1690s. The plan was for the colony, located on the Gulf of Darién, to establish and manage an overland route to connect the Pacific and Atlantic Oceans. The backers knew that the first sighting of the Pacific Ocean by Vasco Núñez de Balboa was after crossing the isthmus through Darién. The expedition also claimed sovereignty over "Crab Isle" (modern day Vieques, Puerto Rico) in 1698, yet sovereignty was short-lived. The settlement attempt failed; more than 80 percent of participants died within a year, and the settlement was abandoned twice.

There are many potential explanations for the disaster, including poor planning and provisioning; divided leadership; a lack of trade with local indigenous tribes or neighbouring Dutch and English colonies; epidemics of tropical disease; widespread opposition to the scheme from commercial interests in England; and a failure to anticipate a military response from the Spanish Empire. The settlement was abandoned in March 1700 after a siege by Spanish forces that also blockaded the harbour.

As the Company of Scotland was backed by approximately 20 percent of all the money circulating in Scotland, its failure left the entire Scottish Lowlands in financial ruin. This was an important factor in weakening resistance to the Act of Union (completed in 1707).

The land where the Darien colony was built is located in the modern territory of Guna Yala.