The Hispanic folkloric tradition of Colorado and New Mexico had its beginning in the 1500's and 1600's when the area was colonized by the Spaniards. The "manito" (used by Hispanics in the Southwest to refer to descendants of the area's Spanish colonials) culture has maintained a strong sense of ethnic identity because of geographic isolation in rural and urban areas, close family ties, close relationship to the land, and definite patterns emphasizing culture and language maintenance. The "Valse de los Panos" (waltz of the scarves) is a unique example of how the Hispanic tradition still survives. This dance and music originated in the court dance of 16th century Spain. During that period, it was forbidden for physical contact to occur between a man and a woman. An acceptable way to dance without touching was to have a material scarf bind the dancers together. The woman's scarf was symbolic of her honor, which has always been the highest of values for the Hispanic caballero. Therefore, the dance's historical and cultural value assumes a greater significance when the psychological and cultural values that have given rise to this kinesthetic statement are considered. The dance has traditionally been performed at the initiation of a ball. The paper describes the dance and music. (NQA)