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The French New Panama Canal Company halted construction primarily due to financial troubles and mismanagement. The project was plagued by engineering challenges, including difficult terrain and harsh weather conditions, which led to significant delays and cost overruns. Additionally, a high mortality rate among workers due to diseases like malaria and yellow fever further exacerbated the situation. Ultimately, these factors combined to make the project untenable, leading to its abandonment in 1889.

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