Narcotics activities in Panama: mutual legal assistance treaty needed - address by R. Grant Smith - includes address by Margaret Tutwiler on human rights in Cuba - Transcript

US Department of State Dispatch, May 11, 1992

Thank you for giving us the opportunity to discuss the status of trafficking and counter-narcotics activities in Panama and to brief you on the proposed mutual legal assistance treaty. We welcome this forum.

Noriega's Legacy

Before getting into a discussion of how things stand in Panama today, it would be useful to review where Panama was only 2-1/2 years ago. The [Manuel] Noriega regime sanctioned drug trafficking and money-laundering. The recent verdict in Miami proves that Noriega himself was an active participant in these activities. And the corruption was not just at the top--it permeated every level of government. In the months before the US military action, the regime's contempt for Panama's drug laws became so pronounced that all of the elements needed to set up a cocaine processing lab were found in a government office building by US forces during Operation Just Cause.

In December 1989, Panama's new government took office. At that time, the government consisted only of President Endara and his two vice presidents. They had no cabinet, no functioning bureaucracy, and in many cases, no desks or office equipment in the looted shells of government buildings. The Endara Administration also inherited a heavy foreign debt burden, high unemployment, and a bloated public sector.

Accomplishments of the Endara Government

Today, Panama is free and democratic. The print and electronic media, representing various ideologies, is open and critical and operates without fear of intimidation. The current government was chosen in honest and fair elections. Vigorous competition among political parties has replaced the repression of the military era. A new civilian-controlled police is being trained to replace the military force which ruled and looted Panama. Economic recovery is well underway--Panama's GDP [gross domestic product] grew by 9.3% in 1991 and 4.6% in 1990. Unemployment has been cut in half. Panama has joined Central American efforts to achieve political and economic integration and has normalized relations with all other Latin American nations.

Narcotics Trafficking

Like all of the other hurdles the Endara Government has faced, the struggle against illegal narcotics trafficking has not been easy. Panama's proximity to Colombia, the major cocaine-producing nation, makes it an attractive target for the traffickers who use Panamanian land, air, and sea routes. The government's inability to patrol adequately its extensive coast line (similar in length to the east coast of the United States), its lack of adequate radar coverage, and a weak inventory of enforcement resources are also vulnerabilities. Panama's role as a commercial and financial crossroads to the world and its dollar economy make it highly attractive to drug money-launderers.

Despite these problems, Panama has made progress in the war on drugs. Its achievements are a direct result of the Panamanian Government's political will. Having suffered through a narcodictatorship, this government is committed to the war on drugs. It cooperates with us in fighting the traffickers instead of cooperating with the traffickers.

Panama is taking important steps to counter narcotics trafficking. Interdictions have increased substantially: In 1991, Panamanian authorities seized nearly 10 metric tons of cocaine, double the amount seized the previous year (itself a record) and almost twice what was seized in the entire 10 years before that. Marijuana seizures were up from 100 kg [kilograms] in 1990 to over 9,800 kg in 1991.

Activities for 1992 have kept pace. In the first quarter of this year, over 700 kg of cocaine have been seized, and over 200 drug-related arrests have been made. These figures include seizures and arrests from five operations carried out by the anti-narcotics section of the Judicial Technical Police in March and April. All five of these operations were independently planned and carried out and demonstrate the increasing professionalism and effectiveness of Panama's police and their growing competence as partners in the war on drugs. In the past months, Panamanian customs found and confiscated two shipments containing $10 million in cash entering Panama illegally.

There are other indications that Panama is taking its anti-narcotics responsibilities seriously. New personnel have replaced most Noriega holdovers in narcotics control agencies in Panama, which helps to ensure integrity. The Maritime Service is benefiting from increased training and joint operations with our Coast Guard. It has begun to plan and conduct independent operations. Demand reduction activities are underway with the enthusiastic support of Panama's private sector.

The Legislative Assembly has created an ad hoc narcotics committee. It is considering draft legislation to strengthen Panama's narcotics laws. The committee's staff is discussing the draft bill with the attorney general's office. Among other things, the bill provides for stiffer sentences for drug offenses, creates procedures for the civil forfeiture of drug proceeds, and establishes statutory procedures for drug destruction.