Word: panama
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Dates: during 1980-1989
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...oust him and the maneuverings by U.S. officials, there were no signs that General Manuel Antonio Noriega had lost control. After Noriega was indicted on drug- trafficking charges by two U.S. grand juries last month, President Eric Arturo Delvalle sacked him as head of the 16,000-member Panama Defense Forces; the general simply turned around and had the National Assembly dump Delvalle, replacing him with Education Minister Manuel Solis Palma. Now Noriega faces a stiffer test: a rapidly worsening cash crunch that began two weeks ago, when the U.S. froze some $50 million in Panamanian funds in U.S. banks...
Last week President Reagan announced that the U.S. would withhold $6.5 million in fees collected by the Panama Canal Commission and scheduled to be paid to the Panamanian government this week. The money was held, said Washington, at the request of Delvalle, whom the U.S. continues to recognize as Panama's President. Reagan also suspended trade preferences that will affect $96 million in commerce between the U.S. and Panama. There will be no "business as usual" with the Noriega regime, the President said. Secretary of State George Shultz argued that a severe economic squeeze would force Noriega out. Other officials...
Signs of severe economic pain grew more evident last week. Fearing a run on deposits, Panama's 120 banks remained closed. Thousands of retirees, unable to cash their social-security checks, blocked traffic and angrily waved their pay slips in the air. The government cashed the checks the next day at special offices, after delivering the money in heavily guarded armored cars. But ordinary shoppers were out of luck because grocery stores refused to accept checks or credit cards. While Noriega appeared to pacify soldiers by meeting the military payroll, Panama's government workers faced a cashless payday this week...
...hardship worsened, Noriega's backers lashed out at Washington. Noting that American forces were staging exercises along the Panama Canal, Foreign Minister Jorge Abadia Arias charged that the U.S. planned to invade the country. The U.S. Southern Command, which has 10,000 troops stationed along the waterway, called the maneuvers routine...
That is most apparent in Panama City, dotted with gleaming bank towers. Minimal banking regulations have turned Panama into a global financial center and an alleged haven for profits from worldwide narcotics sales. Hundreds of international firms have opened Panamanian offices to save money on taxes, while dozens of shipping companies register their boats there. The resulting wealth has made Panamanians wary of upsetting the status quo -- even where Noriega is concerned. The National Civic Crusade, a coalition of business and professional groups, called off a general strike two weeks ago, when the action threatened to damage the economy...