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...cloud appeared the day before the inauguration ceremony. About 1,000 demonstrators chanting "Fraud! Fraud!" staged a late-night protest in Panama City's Cathedral Plaza. The demonstrators were backers of Ardito Barletta's venerable populist rival in last May's presidential election, Arnulfo Arias Madrid, 83. Arias lost the election by a mere 1,713 of the 640,000 votes cast, prompting widespread accusations of fraud. Said Winston Robles, editor of the opposition daily La Prensa: "The main problem for Nicky is one of legitimacy...

Author: /time Magazine | Title: Panama: Dark Clouds, Bright Beginnings | 10/22/1984 | See Source »

That issue has plagued Ardito Barletta's candidacy from the beginning. A slender, bespectacled former Panamanian Planning Minister and vice president of the World Bank, he was picked as a presidential nominee by Panama's military chieftains, led by Noriega, shortly before their constitutionally mandated "retreat" from politics this year. Ardito Barletta's ascendancy is resented even by some members of his Revolutionary Democratic Party. Nonetheless, he has achieved grudging acceptance, largely because of fear that the military may decide to retake power...

Author: /time Magazine | Title: Panama: Dark Clouds, Bright Beginnings | 10/22/1984 | See Source »

...benefiting much from the country's famous waterway, which was transferred to joint U.S.Panamanian administration under the 1977 Panama Canal treaties. The Big Ditch, historically a not-for-profit concern, last year showed an operating loss of $4 million, reflecting a worldwide shipping slump. One of Ardito Barletta's first unpleasant chores will be a round of belt tightening prescribed by the International Monetary Fund. The measures include a removal of food subsidies, which will send prices skyward and may provoke further street disturbances...

Author: /time Magazine | Title: Panama: Dark Clouds, Bright Beginnings | 10/22/1984 | See Source »

...Ardito Barletta's advantage may be that the restless mood in Panama also extends to the military. Many junior officers are said to be upset by the corruption endemic in the upper ranks. The peculation stems from military involvement in everything from Panama's legalized gambling to kickbacks involving government agencies. Thus some Panamanians feel that Ardito Barletta might be able to counter the inevitable loss of popular support during his austerity drive by launching an anticorruption campaign...

Author: /time Magazine | Title: Panama: Dark Clouds, Bright Beginnings | 10/22/1984 | See Source »

...moment, the President seems intent on proceeding cautiously. Just before his inauguration, Ardito Barletta told TIME that he intends to form a government of "national conciliation" including opposition members. He hopes to stimulate economic growth by offering incentives to Panamanian businesses and to foreign investors. The new President also insists that he will punish corrupt public officials, whatever their rank. Says he: "The first year will be difficult because it will require a change in attitudes, a lot of honesty with the people and a good deal of participation by everyone." And, perhaps, considerable luck...

Author: /time Magazine | Title: Panama: Dark Clouds, Bright Beginnings | 10/22/1984 | See Source »

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