Situation in Panama

US Department of State Bulletin, August, 1988

Following is the text of a news conference by Secretary Shultz, Under Secretary for Political Affairs Michael H. Armacost, and Assistant Secretary for Inter-American Affairs Elliott Abrams held May 25, 1988.1

Secretary Shultz. The President has authorized me to recall U.S. negotiator Michael Kozak to the United States. At tbe final moment in negotiations, Noriega would not carry through with the arrangements his representatives had negotiated. No further negotiations are contemplated. All proposals addressed during these negotiations have been withdrawn. No offers remain on the table.

Noriega imposes a heavy burden on the people of Panama. The burden is political: repression of the freedom to speak, to assemble, to choose leadership and direction. The burden is economic: fewer jobs, less pay, inability to benefit from a relationship with the economy of the United States. The burden is moral: isolation in the hemisphere, as tbe corruption of the drug trade is rejected.

Noriega had a chance to lift these burdens as a result of reasonable terms worked out with the United States. Having authorized others to say he agreed to resign and leave, he has not been able to say so himself He has put his own interests above those of the people of Panama.

The United States will continue to work for an opening to democracy to Panama and for the conditions that will lead to economic development. We will continue our all-out war on drugs, and we will continue to work with the people of Panama and democratic forces throughout the hemisphere to get Noriega out of power and out of Panama.

Q. What further steps is the United States prepared to take in order to encourage him to leave eventually?

Secretary Shultz. We will keep our present posture in place, and we will continue to work various options, especially in coordination with other countries of the hemisphere, particularly those in Latin America. As to the details of them, I don't wish to discuss those details.

Q. Are any of the options military in nature?

Secretary Shultz. I wouldn't comment on military options.

Q. If you truly intended to save Panama, why have you taken the offer that was on the table off the table? Why not try and press forward on the negotiating front?

Secretary Shultz. Because the negotiations came to an unsatisfactory conclusion, and we don't intend to just leave the possibility there for somebody to pick up or not as the situation may change.

Q. Did domestic political pressure here have something to do with your decision to drop the proposals?

Secretary Shultz. It had nothing to do with it at all. We have a very strong proposal, and while many have criticized it, I have noticed as people have learned about it and come to understand it a little bit more, it has been increasingly supported as something sensible. It is clear enough Noriega and his people in the Panamanian military who are close to him saw, without a doubt, what our proposal did do: It got him out of Panama and it got him out of power. That's the object and, of course, to create a political opening so the forces of democracy and freedom could move into that opening and take over. We will continue to work for that and continue to work with the people of Panama for that end.

Q. There are many who are saying Gen. Noriega has been able to stand up to the full weight of the United States and, in effect, rub the United States' nose in this. How would you respond to that?

Secretary Shultz. The United States has performed with great restraint. We have done our best to try to work out something in a sensible way. We have not used our military resources or bases or presence in any way at all. Of course, we have recognized and will continue to recognize President Delvalle as the constitutionally proper and legitimate President of Panama. It is the case that a great deal of the economic bite in Panama results from the fact we are doing what we have been asked to do by the legitimate Govemment of Panama, and will continue to do it.

Q. Noriega refused to step down under any circumstances?

Secretary Shultz. I don't know about that. I'm sure there 'hill be circumstances that will come about when he will step down, and we will be working toward that end.

Q. You said that we are going to be working with our Latin American allies on this. Can you cite examples of that? Mexico has just offered to provide economic assistance to Panama. The SE LA [Latin American Economic System] nations are even considering developing a new currency for use in Panama. What are the examples that you claim there are of other Latin American countries cooperating on our side?

Secretary Shultz. The democratically oriented countries, particularly those which have recently tasted the freedom that goes with democracy-such as Argentina, such as Uruguay, and, of course, a longstanding democracy such as Venezuela and others-are very concerned about what's going on in Panama. Obviously, some countries have immediately "cottoned up" to Noriega-Nicaragua has, Cuba has. So those are problem countries. But in general, in Latin America, there is a surge of democracy, and people want to see freedom, and they rec ognize this is very much in their interest.