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Latin America Data Base News Items [PeaceNet]
June 1987 -- July 1987


June 1987

NOTES: RECENT DEVELOPMENTS IN PANAMANIAN POLITICAL CONFLICT

June 13: Former Panamanian Ambassador to the US and influential 
business tycoon, Gabriel Lewis Galindo, fled his country, after he 
allegedly received threats late Friday from military intelligence 
chief, Col. Bernardo Barrera. Lewis met with US Ambassador Arthur 
Davis, Chamber of Commerce president Aurelio Barria and chief of the US
Southern Command, Gen. Fred Woerner before he left.

June 15: Short-term arrests and street scuffles between opposition 
protesters and government troops continued, while a general strike 
called by middle-class business and civic groups collapsed in its 
fifth day. 

The Interior Ministry announced that no international news 
publications will be allowed to circulate in Panama without being 
reviewed first by government censors. Among the publications 
affected were the MIAMI HERALD, whose international edition is 
printed in Panama, the INTERNATIONAL HERALD TRIBUNE and the NEW YORK TIMES.

Four independent Panamanian news publications, including the 
opposition daily LA PRENSA, remained closed after the government 
imposed censorship on them June 11.

The opposition National Civic Crusade, led by the Chamber of 
Commerce, called for businesses to open briefly this morning to pay 
employes then to close at midday. But banks and retail stores 
remained open in the afternoon. 

US Embassy officials received an avalanche of phone calls from 
Panamanians seeking assistance in finding detained relatives. 
Ambassador Arthur Davis has intervened to secure the release of a 
number of detainees.

--Panamanian businessman Gabriel Lewis Galindo arrived in Washington to begin
lobbying on behalf of the opposition to the government. 

June 16: In Panama City, the government-controlled National Assembly decreed
that nine opposition political leaders, including a former president, and
prominent businessmen had committed "high treason" during a week of protests
against Gen. Manuel Antonio Noriega by conspiring to overthrow the government.
Among those declared "traitors" was former president Nicolas Ardito Barletta.
Ardito Barletta said last week that Noriega forced him out of office in 1985
after he demanded an investigation of the murder of Hugo Spadafora, a popular
Noriega critic who was found beheaded.

Also named in the decree were Ricardo Arias Calderon, head of the opposition
Christian Democratic Party, and businessman Gabriel Lewis Galindo, a former
ambassador to Washington who fled Panama June 13 after allegedly receiving
threats from the military. Other businessmen named included Federico Humbert,
a top officer of the Banco General, Panama's largest bank; Roberto Motta,
president of the Banco Continental; Fernando Eleta, owner of a Panamanian
television station; and Roberto Aleman, president of the national brewery and
another former ambassador to the United States.

The decree is not legally binding, but could lead to arrests if the 
government pursues it. 

The assembly charged that the businessmen tried to impose a 
government that would allow the United States to retain the Panama 
Canal after the year 2000, when, by treaty, it will be taken over by 
Panama. 

June 18: Chairman of the House Foreign Relations Committee, Democrat 
Dante Fascell called on Gen. Manuel Noriega, head of Panama's armed 
forces, to remove himself from politics and reestablish civil law in 
that country. In a declaration delivered to members of the 
Hemispheric Affairs subcommittee, Fascell also called on the 
Panamanian government to reestablish constitutional guarantees at 
the earliest possible time, and to move up the date of elections. 

Richard Holwill, Deputy Asst. Secretary of State for Inter-American 
Affairs, told the subcommittee that the civilian government of 
President Eric Arturo Del Valle is effectively dominated by the 
military. However, he said, the US has not discarded the possibility 
that Noriega may yet support democratic reforms. He assured 
congresspersons that the US will maintain a neutral position on 
Panama's domestic conflicts, although Washington supports the 
establishment of a full and functional democracy.

The political turmoil of the past week in Panama followed upon 
disclosures by retired Col. Roberto Diaz Herrera, former chief of 
staff, denouncing Noriega for electoral fraud in 1984 in favor of 
Nicolas Ardito Barletta, and accusing him of complicity in the 
deaths of Gen. Omar Torrijos and the anti-government leader Hugo 
Spadafora.

Holwill said Diaz Herrera's denunciations reinforced long-existing 
suspicions that Noriega and other members of the armed forces had 
been involved in these and other illicit activities.

Diaz Herrera admitted that half of his luxurious home was paid for 
with money received from the sale of Panamanian passports to Cubans 
hoping to enter the United States. This type of corruption, he 
added, is typical within the military hierarchy. He called on the US 
to support his claims against Noriega in assisting Panamanians to 
investigate relevant facts.

Fascell said Panama is marching backwards at a time when democracy 
is advancing in the hemisphere. Events in Panama, he said, serve to 
escalate tensions in the entire region. He called on governments in 
Central America and throughout Latin America to convince Noriega 
that repression is not the appropriate response to political 
problems, and that a shift toward democracy will reestablish the 
confidence of the Panamanian people in their government.

Holwill said the protests, organized by a coalition of civic and 
business groups, opposition parties, and the Catholic Church, 
demonstrate a widespread resentment against the government headed by 
a civilian but dominated by the military.  He continued by stating 
that there are no rapid, easy or simple solutions to the problems in 
Panama, adding that the solution will come only through a 
strengthening of civilian institutions. 

Asked about a statement by Diaz Herrera that the CIA was involved 
with Noriega in the death of Gen. Torrijos, Holwill said that to the 
best of his knowledge, this accusation was a total lie, and intended 
to defame the United States.

Torrijos was killed in a 1980 [sic; it was 1981...klk]
plane crash. According to Diaz 
Herrera, a bomb placed in the plane was detonated by remote control. 
At that time, Noriega was number three in the military hierarchy. 
With the death of Torrijos, second-in-command Gen. Ruben Dario 
Paredes acted as president, and Noriega was moved up to second place 
in the hiearchy. Paredes, now retired, has told reporters he favors 
a full investigation of Diaz Herrera's accusations. (Various 
reports, PRENSA LATINA, WASHINGTON POST, AGENCE FRANCE PRESSE)

PANAMANIAN GOVERNMENT ORDERS INDEFINITE EXTENSION OF STATE OF EMERGENCY

On June 19 Panamanian President Eric Arturo del Valle and his 
cabinet issued a decree for an indefinite extension of the state of 
emergency which went into effect June 11. The earlier decree was for 
a 10-day period; extensions were subject to ratification by the 
National Assembly. Debate in the assembly began June 20. The pro-
government assembly coalition, with 45 of 67 seats, has enough votes 
to rubber-stamp the order, but not enough to curtail debate. The 22 
opposition legislators planned to prolong their speeches past the 
midnight deadline of the original state of emergency decree. 

The state of emergency, which suspended constitutional guarantees, 
including the right to public protest and free expression, and 
instituted nearly complete censorship of independent news, was 
imposed after two days of rioting sparked by accusations by retired 
Col. Roberto Diaz Herrera that Panamanian armed forces chief Gen. 
Manuel Noriega was involved in murder, corruption and electoral 
fraud. 

The emergency order coincided with a three-day fact- finding visit 
by Sen. Christopher J. Dodd (D-Conn.), chairman of the Foreign 
Relations subcommittee on western hemisphere affairs. Dodd visited 
the closed opposition daily LA PRENSA June 19 in what he called a 
gesture of support for press freedom. 

The rural home of Bertilo Mejia Ortega, leader of the five Christian 
Democrats in the National Assembly, was ransacked on the evening of 
June 19, Mejia said. Intruders destroyed furniture and left Mejia's 
possessions soaked in gasoline piled in his living room with a boxes 
of matches on top, apparently as a warning. 

National university rector Abdiel Adames said classes would resume 
June 22 after a two-week suspension. (PRENSA LATINA, 06/20/87; 
WASHINGTON POST, 06/21/87)

--Nicaraguan President Daniel Ortega met with Panamanian President 
Eric Arturo Delvalle to discuss faltering Central American peace 
efforts. After the meeting, Nicaraguan officials in Panama City, 
Managua and Washington announced Ortega had agreed to participate in 
the August 6-7 summit meeting.

The Nicaraguan president arrived at a military airfield in Panama 
accompanied by Foreign Minister Miguel d'Escoto and other officials. 
A reporter asked him if he believed Panama's government had been 
discredited by recent protests. 

"The discredited one is the government of the United States, which 
continually meddles in Latin American countries," Ortega replied. He 
asserted that the US was working against Panama because of 
Panamanian peace efforts in Central America. 

Ortega said the US "is not interested in peace" and charged that 
Washington was behind the postponement of the June summit.

Ortega met for three hours with his Panamanian counterpart, and 
reportedly said he believed the US was plotting to depose both 
Delvalle and Panamanian Defense Forces commander in chief, Gen. 
Manual Antonio Noriega. "There is a full-scale conspiracy to crush 
them, and to throw out the Torrijos-Carter treaties at the same 
time," he said. 

--State Department spokesperson Phyllis Oakley said the Department 
welcomed Ortega's decision to attend the Central American summit in 
August. She said Nicaragua's prior refusal to attend had threatened 
to undermine the peace process. "This reversal will allow the 
process to get back on track.

June 25: At a press conference in Panama City, Gen. Manuel Antonio 
Noriega, told reporters that President Ortega's visit in Panama City 
was a resounding success. He said the upcoming summit is a 
reaffirmation of the diplomacy and objectives of Contadora and its 
Support Group. (Various reports, REUTERS, PRENSA LATINA, AP, AGENCE 
FRANCE PRESSE)  PANAMA: GEN. NORIEGA ON DEFENSIVE; HOUSE RESOLUTION 
ON U.S. POSITION

According to the WASHINGTON POST (06/24/87), for the first time 
since assuming his position as commander-in-chief of Panama's 
Defense Forces in 1983, Gen. Manuel Antonio Noriega was on the 
defensive last week, seen in his "uncharacteristic recklessness."

The general attempted to mobilize support among leftists by accusing 
US conservatives of fomenting unrest to thwart the process of 
turning over control of the Panama Canal to the Panamanian 
government by the year 2000. "But the charge drew only lukewarm 
support and alienated him from Panama's most influential business 
and Roman Catholic Church leaders."

In the upheaval over the last two weeks, many more Panamanians 
turned against the government Noriega controls than in the riots of 
1984 and 1985. Until recently, the opposition had been limited 
mostly to right-of-center, middle-class political parties 
sarcastically labeled rabiblancos, or "white tails," by the largely 
black working poor. 

In a 1968 coup, the 20,000-troop Defense Forces seized power. Then, 
in 1979, widely admired nationalist leader Gen. Omar Torrijos 
announced a Defense Forces "retreat" to make way for an elected 
civilian president. Torrijos' popularity reached a high point when 
he signed the 1977 treaties with Washington to turn over the canal 
to Panama by the year 2000. 

Torrijos was killed in a 1981 plane crash. Noriega is suspected of 
having rigged the May 1984 elections against veteran politician 
Arnulfo Arias, who would have named a new commander-in-chief. In 
September 1985, Noriega then ousted the president he installed, 
Nicolas Ardito Barletta, for seeking an investigation of the murder 
of Hugo Spadafora, a popular figure who spoke out against Noriega. 

Retired colonel Roberto Diaz Herrera, Noriega's chief of staff until 
he was forcibly retired June 1, has admitted that he bribed polling 
place magistrates to ensure the victory of Noriega's candidate. The 
accusations publicized by Diaz that Noriega was directly involved in 
murder and corruption cases ignited the riots that began June 9. 

In a communique last week the 11 members of the Catholic Bishops 
Conference called for immediate measures to establish "a real 
autonomy of civilian power and the progressive return of the Defense 
Forces to their appropriate tasks." 

Noriega remained silent about the church's statement. A government 
censor removed the communique from the Sunday edition of the 
opposition daily LA PRENSA, the first issue of paper to be published 
since censorship was imposed June 11. A radio station Noriega 
controls called the Panamanian archbishop a "boozer" and a "gringo," 
a slang word for American. 

The general also encouraged the National Assembly to level charges 
that nine prominent Panamanian businessmen and politicians had 
conspired with US conservatives to overthrow President Eric Arturo 
Delvalle. All those mentioned privately denied any plot ever 
existed. Three of those named--lawyer Roberto Aleman, financier 
Federico Humbert and banker Roberto Motta--went public with their 
outrage, arguing that they were not even involved in any anti-
Noriega protests. The attack on some of Panama's most prosperous 
executives cemented the views of many in the highest business 
echelons who long had cooperated with Noriega but turned away from 
him with the recent disturbances. 

Noriega is expected to turn now for support to his leftist political 
forces, primarily the Democratic Revolutionary Party (PDR), which 
was created by Torrijos in 1979 as a party supporting the military. 
Party followers portrayed the crisis as a clash between poor working 
blacks and the "white tails."  They accused the middle-class 
opposition of pushing to regain the power they lost two decades ago 
to Torrijos and his supporters among the poor. 

PRD leaders made it clear their backing this time is going to cost 
the government money. In the Panama City slum of San Miguelito, 
rioting erupted earlier this month for the first time in years. 
Worried party leaders who run the town hall there said bluntly they 
are demanding $1.3 million public funds immediately to create jobs 
and put up housing. 

--At a June 24 hearing, the House subcommittee on Western Hemisphere 
Affairs voted unanimously to approve a resolution calling for a 
democratic and civilian government in Panama, a lifting of the 
current state of emergency, free and fair elections, and an 
investigation of the accusations against Gen. Noriega. Next, the 
resolution reiterates US intentions to comply with the 1977 treaties 
under which the Panama Canal will be turned over to Panama City in 
1999. The resolution will now be presented for a vote by the full 
House Foreign Affairs Committee.

U.S. SENATE APPROVES RESOLUTION ON PANAMA; PANAMA CITY RESPONDS WITH
  INDIGNATION, CALLS OAS MEETING

June 26: The Senate approved by a vote of 84 to 2 a resolution 
calling on the Panamanian government to restore constitutional 
guarantees suspended in a state of emergency in force since June 11, 
arrange free elections and submit the the military to civilian rule.

The Senate resolution calls on the Panamanian government to conduct 
an independent investigation of persons accused of electoral fraud, 
drug trafficking and murder. In this regard, the resolution suggests 
that commander-in-chief of the Pamananian Defense Forces, Gen. 
Manuel Antonio Noriega and other government officials be removed 
from their respective positions during the investigation. 

Sens. Christopher Dodd (D-Conn.) and Carl Evans (D-Mich.) proposed 
an amendment to the resolution to make more explicit Washington's 
intention to deliver the Panama Canal to Panamanian control in 1999, 
while also eliminating the text referring to Gen. Noriega and 
removal of persons from their current positions pending the 
conclusion of the "independent investigation." The amendment was not 
approved. Dodd and Evans cast the two dissenting votes.

The resolution, similar to one approved by oral vote in the House 
Foreign Affairs Committee, makes note of the fact that Noriega's 
military power dominates the executive, judiciary and legislative 
branches of government.

[The current state of tension between Washington and Panama City is 
the most serious since 1964 when Panama broke diplomatic relations 
with the United States. Pent-up resentment against the United States 
surfaced when US authorities prevented Panamanian students from 
raising their national flag alongside the US flag at a high school 
in the Canal Zone. "Within hours, 30,000 Panamanians were in the 
streets of Panama City, confronting US troops had had orders to fire 
warning shorts before shooting to kill. The riot soon spread to 
Colon, on the Atlantic side of the Zone, then deep into the 
interior...By the time this explosion of anti-Yankee fury was 
contained, over $2 million in property had been burned or otherwise 
destroyed-- almost all of it American. Twenty-eight people had been 
killed, 300 wounded, and 500 arrested, almost all of them 
Panamanian." (From NACLA Report on the Americas, September/October 
1979, p. 13.) Of the 28 persons killed, 22 were Panamanian 
citizens.]

June 27: In a statement released by the office of the presidency in 
Panama City, attributed to Panamanian President Eric Arturo 
Delvalle, the Senate resolution was described as "inconceivable," 
"inacceptable," and an "intolerable intervention in Panama's 
domestic affairs." 

"For the Panamanian government, it is inconceivable that the United 
States intends to deliberately dictate policy to a foreign 
government." This action, said the statement, is "openly 
contradictory" to principles of independence and liberty contained 
in the US constitution.

The US action, according to Delvalle, "merits repudiation by 
citizens of all free nations throughout the world."

--Panamanian Ambassador to the US, Dominador K. Bazan, returned to 
Panama City, on orders by President Delvalle.

June 29: The Panamanian National Assembly adopted a resolution 
condemning the US Senate for its criticism of Panamanian strongman 
Gen. Manuel Noriega and calling on President Delvalle to retaliate 
by expelling US Ambassador Arthur H. Davis. 

The expulsion was requested on the basis of Davis's 
"interventionist" behavior during recent disturbances in Panama 
following the disclosure of accusations against Noriega. According 
to the US Embassy, Davis met with government officials and members 
of the political opposition in an attempt "to help in the return to 
normalcy."

US State Department officials said that it would take a day or two 
to gauge whether the move portends an escalation of tensions between 
the United States and Panama or whether it was what one official 
called "some political breast beating" orchestrated by Noriega's 
supporters. 

The assembly adopted its resolution by a vote of 39 to 0. None of 
the 22 opposition deputies attended the session. State Department 
officials noted that any decision to expel Davis would have to be 
made by Noriega. 

Davis, a political appointee, is a Colorado businessman with 
extensive experience in Latin America. 

--State Department spokesman Charles Redman reported that Secretary 
of State Shultz had called on the Panamanian government to lift the 
state of emergency and declared that the United States could not be 
neutral in matters concerning the necessity of democracy.

Redman reiterated that the United States will comply with the 1977 
treaties with Panama by delivering the Panama Canal to Panamanian 
control in late 1999. He then told reporters that the US cannot be 
neutral regarding the necessity of complete support for democratic 
procedures. This principle, he said, was applied in relations with 
all nations in Latin America, without exception.

Next, Redman stated that Shultz supported the Senate resolution only 
in part. He said the Department was in agreement with the resolution 
regarding support for democratic procedures and repudiation of the 
suspension of civil rights in the recent state of emergency. "We 
regret, however, that the Senate opted to reject the amendment 
proposed by Senators Dodd and Evans."

Redman noted that a June 29 statement by Foreign Minister Abadia to 
Secretary Shultz said that his government continues to maintain 
cordial relations with the United States.

June 30: Panama requested a review by the political council of the 
Organization of American States (OAS) of the circumstances provoking 
tensions in US-Panamanian relations. The council meeting was 
scheduled to take place July 1 in Washington, 2 p.m. local time.

The Panamanian Ambassador Roberto Leyton said he wished to inform 
the council of his government's objections to the US Senate's 
resolution. Specifically, he said the resolution's suggestion that 
Gen. Noriega and other persons implicated in illegal acts be removed 
from their positions pending the conclusion of an "independent 
investigation" is improper. Such matters, he said, are under the 
exclusive competence of the Panamanian government's internal 
juridical order.

OAS norms establish that any member of the organization can request 
a meeting of the council. Leyton is expected to go beyond the Senate 
action, in denouncing "interventionist" activities by US Ambassador 
Arthur Davis. (Various reports, AP, Agence France Presse, Washington 
Post)

July 1987

MAJOR LATIN AMERICAN NATIONS SUPPORT PANAMANIAN CLAIMS AGAINST UNITED STATES

On July 1, in a special session of the Organization of American 
States (OAS) political commission called by Panama, Latin American 
nations issued a vote of overwhelming support for Panama City's 
charges against US intervention. Seventeen members cast votes in 
favor of the Panamanian position, eight abstained, and one against 
(the United States).

Favoring the resolution denouncing US actions were Argentina, 
Bahamas, Barbados, Bolivia, Brazil, Colombia, Chile, Dominican 
Republic, Ecuador, Guatemala, Jamaica, Mexico, Nicaragua, Panama, 
Peru, Uruguay and Venezuela. Abstentions were cast by Antigua-
Barbuda, Costa Rica, Grenada, Haiti, Honduras, Santa Lucia, San 
Cristobal and Trinidad-Tobago. 

The OAS Ambassador from Panama, Roberto Leyton, claimed the current 
political crisis in his country had been fomented in part, by the 
United States in its efforts to create a theater of war in Central 
America. In this context, he said, the transfer of the Panama Canal 
in 1999 may be aborted.

Leyton opened the debate saying that the Senate resolution was 
preceded by an increase in the US military presence in Panama, 
without authorization by Panamanian authorities, and in open 
violation of treaties regarding the transfer of the Canal.

Chile joined the Contadora nations (Argentina, Brazil, Colombia, 
Mexico, Panama, Peru, Uruguay and Venezuela) in expressing concern 
over the June 26 resolution by the US Senate calling on Panama City 
to remove head of the Panamanian Defense Forces, Gen. Manuel Antonio 
Noriega, from his post during an "independent investigation" of 
charges against him and others.

The Mexican Ambassador, Antonio de Icaza, said his government 
becomes concerned when declarations and resolutions of an 
interventionist type are produced on the basis of unconfirmed 
accusations, and selectively used in a process or context of 
distinformation. Such resolutions, he said, are suspected as part of 
an intention to modify domestic and foreign policies of sovereign 
countries.

US Ambassador William Pryce said such expressions by the Congress 
are common practice in the life of democratic societies and contain 
no element of coercion. Nor are such congressional resolutions acts 
of US intervention, he said, but rather should be interpreted as 
expressions of US concern over the situation of human rights in 
Panama or in whatever part of the world. He said no recent actions 
by Washington indicate plans to renege on treaties to transfer the 
Canal to Panama in 1999.

Venezuelan Ambassador Edilberto Moreno said the Senate resolution 
has a special nuance, since similar processes by Latin American 
governments do not exist which in some way seek to co-sponsor the 
foreign policy of the United States.

Argentine Ambassador Gaston de Pratgay stated that while the 
congressional resolution does not signify specific actions taken by 
the US government, it can serve to alter the climate of relations 
between the two countries. He added that in terms of the Canal 
treaties, "we are solidly behind Panama."

The Brazilian Ambassador to the OAS, Dario Castro Alves, said only 
that his government supported Panama in an expression of general 
Latin American solidarity.

Colombian Ambassador Leopoldo Villar Borda said his country has 
emphasized on numerous occasions its support of the principle of 
non-intervention, and that the vote in favor of Panama's claims is 
yet another reaffirmation of this principle.

The Peruvian Ambassador, Luis Gonzalez Posada, stated that in 
casting its vote for continued solidarity with the Panamanian 
people, Peru wishes to point out that full implementation of the 
Canal treaties is in the interest of all nations in the hemisphere.

Uruguayan Ambassador Alfredo Platas said his country reiterates its 
traditional appeal for the fulfillment of the principles contained 
in the OAS Charter, and hopes that good relations among its member 
nations prevail over "circumstantial disagreements."

Ambassador from Chile, Javier Illanes, said that in same fashion as 
"so many times in the past, today we condemn any interventionist 
practice, whatever its motivation," since such practices violate 
both norms and morality of international conduct.

The Paraguayan ambassador to the OAS declined to participate in the 
debate claiming "lack of instructions" from his government. 
Ambassadors from Antigua, Dominica, El Salvador, San Vicente, the 
Grenadines, and Surinam were absent. (AP, AGENCE FRANCE PRESSE, 07/01/87)


PANAMANIAN POLITICAL CRISIS: SUMMARY OF EVENTS, 6/30-7/6/87

Since June 30, anti-US demonstrations have become commonplace in 
Panama, alongside continued protests against the government and 
commander-in-chief Gen. Manuel Antonio Noriega. In addition to 
questions of the removing the military from direct or indirect 
control over Panamanian domestic and foreign policy, and charges of 
corruption, murder and electoral fraud against military leaders, 
Panamanians are now also debating whether the US is interfering 
unduly in their country's domestic affairs. 

The Panamanian government's irritation with the US erupted last 
month, when officials in Washington began publicly criticizing Gen. 
Noriega and urging an investigation into charges of corruption and 
political violence levied against him. The anger increased after the 
Senate approved a resolution June 26 calling on Gen. Noriega and 
others implicated by the charges to "relinquish their duties" 
pending the outcome of an independent inquiry. 

The Panamanian military command quickly condemned the resolution as 
interventionist, and the Legislative Assembly passed a resolution 
accusing the US of "economic blackmail." It said the US Ambassador, 
Arthur Davis, was "leading an internal conspiracy" to overthrow the 
Panamanian government. 

Ambassador Davis has become a personal target for pro- government 
politicians and commentators, and the legislative assembly has 
demanded that he be expelled from the country. 

June 30: More than 100 people, many of them government employees, 
threw stones at the US Embassy and splattered it with red paint. 
Government ministers and the head of the PRD were part of the crowd. 
Anti-US demonstrations that day in Panama City involved about 5,000 
people.

July 1: The State Department announced the temporary closing of the 
US consulate and a library operated by the US Information Service in 
Panama City. A State Department spokesman said police had been 
withdrawn from areas around the embassy and had left it unprotected 
as demonstrators approached. 

State Department spokesman Charles E. Redman said the United States 
protested "in the strongest possible terms" demonstrations, 
including high-ranking Panamanian officials and political supporters 
of Noriega. He added that the incident "will have a significant and 
negative impact on relations between the United States and Panama."

--A strong signal from Washington was sent in an evening speech to 
the Washington World Affairs Council by Elliott Abrams, assistant 
secretary of state for inter-American affairs. After repeating the 
US position of neutrality and asserting that "Panama's solutions 
must be home-grown," Abrams added: 

"The old complacency inside and outside of Panama over the 
inevitable dominance of the Panamanian Defense Forces in the 
nation's politics is gone...Military leaders must remove their 
institution from politics, end any appearance of corruption and 
modernize their forces to carry out their large and important 
military tasks in defense of the (Panama) canal."

--Dr. Arnulfo Arias Madrid, an opposition patriarch, assured 
reporters that opposition leaders "are not receiving or asking for 
help from the US government." 

--The government has called a rally for July 9 in which, according 
to the pro-government newspaper LA REPUBLICA, Panamanians will 
demonstrate "against the foreign forces which are striking against 
our sovereignty and free self- determination."

--Violent demonstrations against the government and the military 
erupted again, resulting in the destruction of two political party 
offices and automobiles in the capital city. 

According to witnesses, the main office of the ruling Revolutionary 
Democratic Party (PRD) was damaged by rock throwing and at least two 
government vehicles were burned. A few hours later, the office of 
the opposition Christian Democrat Party (PDC) was burned by unknown 
assailants.

--Gen. Noriega told supporters at a pro- government rally in San 
Miguelito, on the outskirts of Panama City, that he would not step 
down as commander-in-chief of the Panamanian Defense Forces. He said 
the recent accusations by the US were not "fortuitous or random," 
but rather are meant to prevent the transfer of the Canal to Panama.

--The National Civilian Crusade said in a statement it would 
continue promoting civil disobedience including tax withholding, pot 
banging and horn honking two times daily, and brief black-outs at 9 
p.m. every evening. 

July 2: Demonstrators tore down and smashed a 40-year-old statue of 
Franklin D. Roosevelt in downtown Panama City. Banners containing 
slogans such as, "We reject the United States Campaign Against 
Panama," and "Panama Yes, Intervention NO," adorn storefronts and 
fences in the capital and other cities.

--Opposition newspapers had been reopened this week after repeal of 
a state of emergency imposed June 11. On Thursday, the government 
ordered a radio station closed down on the ground that it was guilty 
of "criminal activities." 

--The PRD called a meeting, attended by 3,000 politicians and 
supporters, at a theater in downtown Panama City. Party Deputy 
Secretary General Ramiro Vazquez warned that new International 
Monetary Fund (IMF) measures affecting living conditions of the poor 
will not be tolerated, and called for foreign debt moratorium. 

Vazquez said the any political "rectification process" in Panama has 
to be a concrete one, wherein the majority becomes empowered, 
wherein it obtains increasing participation in productive 
enterprises.

Trade union leader Reinaldo Rivera said the present crisis was an 
outcome of abandoning the Torrijos method of dialogue and permanent 
consultation with the bourgeoisie. This method, he said, has been 
replaced by concessions to the elite and US financial institutions 
at the expense of the majority of Panamanians.

July 3: In the afternoon, business leaders in the Chamber of 
Commerce, Industry and Agriculture called a general strike in Panama 
after a fire they said was set by a pro-government mob destroyed an 
important commercial complex in the capital on July 2. The complex 
is owned by the Eisenmann family, which has opposed the military-
backed regime. Roberto Eisenmann, head of the family, is the 
publisher of LA PRENSA, the country's leading anti-government 
newspaper. He is in exile in the United States.

The business leaders called on Panamanians not to work Friday 
afternoon, Saturday or Sunday morning. The Chamber condemned "the 
criminal attitude of authorities that have the duty of protecting 
us." 

Later the National Private Enterprise Council (CONEP) and the 
Business Executives Association (ADEPE) joined the Chamber in 
calling for a strike.

Many stores closed at midday to show support for the strike. US 
military personnel were advised to avoid downtown shopping areas for 
the duration of the strike. 

--At least three university students were receiving medical 
treatment after being wounded by gunfire as the police suppressed 
anti-government protests at the University of Panama. University 
authorities, fearing more unrest, announced that the campus would be 
closed until Monday.

--Protest demonstrations against US interference were reported in 
Chiqui, Bocas del Toro, Azuero, Cocole and other population centers. 

July 4: A leftist wing of the PRD, calling itself the Torrijos 
Vanguard Movement (MT), issued a manifesto stating that the Movement 
is open to participation from "all social sectors interested in 
defending national interests."

The communique said the MT's objectives are majority participation 
in the economic and political life of the country, price controls 
for basic commodities, termination of the process to privatize state 
companies, a national economic plan to meet employment and housing 
needs of the poor, and a program to monitor US fulfillment of the 
Panama Canal treaties.

The manifesto also affirms that the US Senate resolution was part of 
a broader campaign to discredit Panama in retribution for its 
refusal to support the Reagan administration's Central America 
policy, and particularly the isolation of Nicaragua.

July 5: A call for dialogue with the opposition was issued by 
President Eric Arturo Delvalle. In a nationally broadcast speech, he 
urged Panamanians to "unite in the spirit of patriotism."

"Let us call a truce in our passions," Delvalle said. "We will never 
be able to find the correct solutions through discord and hateful 
recrimination."

Delvalle also said that "grave charges" of corruption, electoral 
fraud and political murder made against Noriega "demand a quick and 
effective investigation so the facts can be determined." 

--In a statement after Delvalle's speech, the National Civilian 
Crusade, an ad hoc group directing the opposition protest, said that 
Panamanian authorities were not competent to investigate allegations 
against Noriega. "The courts offer no guarantees for Panamanians and 
have no credibility in our eyes," the statement said. 

--PRD Secretary General Romulo Escobar Betancourt accused US 
conservatives of attempting to oust Noriega in order to terminate 
the nationalist process initiated in 1986 by the late Gen. Omar 
Torrijos.

Betancourt said that after Noriega rejected pressures by the US 
government to participate in efforts to isolate Nicaragua, a 
campaign to discredit the general began. 

July 6: Anti-government leaders in Panama have rejected a call for 
compromise with the regime, insisting that they^W+1 agree to talks 
only to discuss the departure of the military commander, Gen. Manuel 
Antonio Noriega.

--Roberto Diaz Herrera, the recently retired colonel who made the 
charges, was called to a government office to give evidence in the 
morning hours, but he did not appear. Instead, he issued a statement 
naming five of his former bodyguards as having been present when 
officers were said to have altered tallies of votes cast in the 1984 
presidential election. He suggested they be interrogated. 

--Asillino Boyd, a former Panamanian Foreign Minister met with 
Elliott Abrams, Assistant Secretary of State for Inter-American 
Affairs, in an effort to diffuse mounting tension between the Reagan 
administration and Panama. 

"We had a quarrel and have to patch things up," said Adolfo Arrocha, 
Panama's charge d'affaires. "The fact that the Panamanian government 
has sent someone here is a sign that we don't want bickering with 
the US to continue." 

According to a State Department official, Boyd expressed a desire to 
bring the relationship between the two countries back to normal, 
while Abrams stressed "support for a series of specific steps that 
would bring free elections leading to a fully functioning 
democracy." 

Boyd, who is expected to spend more that a week in Washington, will 
also try to persuade senators to change their positions on recent 
resolutions that reproach Panama for failing to put through 
democratic reforms, Arrocha said. 

"They were slaps to Panama in the most unfair way," said Arrocha, 
who has served as Panama's highest-ranking diplomat in the US since 
Ambassador Dominator Kaiser Bazan was recalled last month for 
"consultations" in protest against administration criticism of the 
government. (Various reports, NOTICIAS ARGENTINAS, PRENSA LATINA, 
AGENCE FRANCE PRESSE, NEW YORK TIMES, WASHINGTON POST)

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