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The city of San Felipe de Portobelo, where this museum is located, was founded on March 20th, 1597 by Francisco Valverde Mercado. It was a time of a fluctuating population, although two suburbs of huts where creoles, half-castes and slaves used to live were soon established: Guina and Ciénaga. Merchandise, slaves and wealth arrived in galleons, reaching its peak during the fairs where a vast number of them were sold. The main building for this event was the Royal Customs and Book-keeping House. Portobelo never had a surrounding wall. However, following recommendations by military engineers, two fortresses were built to guard the harbour: San Felipe Sotomayor de Lodo Fierro (1597) and Santiago de la Gloria (1600); the Reducto de San Jerónimo was later erected (1659), though none of them resisted the attacks of pirates Morgan, Bernon and Linghills.

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