Word: panama
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Dates: during 1980-1989
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Reagan was asked after his arrival in Helsinki if he thought the Panama debacle made the U.S. appear foolish. "I don't feel that way," he said. But almost everyone else does, including many inside the Administration...
Finger pointing and recriminations abound. Were the consequences of bringing an unenforceable indictment against a foreign leader seriously considered? Or the political embarrassment of plea bargaining with a thug? Why did Washington act before properly assessing Noriega's strength with the Panama Defense Forces (PDF) he commands? And why conduct a policy that was at once too public and too timid...
...serious dilemma: if he stepped down now, he might face arrest and possible imprisonment. Nor did the CIA or Defense Department predict the extent of Noriega's support among the military. "It's really shocking," says an insider, "how bad our intelligence has been." Soon after the indictments, Panama's mostly powerless President Eric Delvalle went to Washington for a meeting of the Organization of American States. Delvalle told Abrams he planned to announce to the OAS his intention of firing Noriega. Abrams, who continued to harbor hopes of a popular uprising in Panama, liked the idea...
More half measures followed. Some 2,000 additional troops were dispatched to U.S. bases in Panama. Abrams had hoped Noriega would fear an invasion, but the Pentagon promptly and publicly ruled out the likelihood of combat. A reassured Noriega then easily put down a coup attempt by some PDF officers, and his troops once again employed tear gas, clubs and bird shot to end a relatively subdued round of street demonstrations. The harsh tactics, as well as Noriega's appeals to Panamanian nationalism, led to the rapid demoralization of a recently formed opposition group, the Civic Crusade...
...March, Delvalle, working through private U.S. lawyers, managed to tie up $70 million in Panamanian funds in U.S. banks, paralyzing the local banking system. The U.S. then imposed limited economic sanctions, including the payment of Panama Canal fees into an escrow account inaccessible to Noriega and cancellation of trade preferences. This still did not faze Noriega, although it led to severe damage to Panama's economy. Noriega portrayed himself as a victim of yanqui imperialism, and 22 other Latin American nations, including Mexico and Venezuela, issued a statement of support...