U.S. would withhold payment from Panama

Press, 4 March 1988, Page 10

U.S. would withhold payment from Panama

NZPA-Reuter Washington The United States would comply with a request from Panama’s (deposed President to withhold payments for t the operation of the Panama Canal from the military strongman, General Manuel Antonio Noriega, a j top United States official said yesterday. (The Assistant Secretary of State, Elliott Abrams, also said Washington would back an opposition campaign to have American banks freeze Panamanian assets in the United States as a show of support for Eric Arturo Delvalle, the deposed President. “If he tells us he doesn’t want that money going to Noriega, then we’re not going to give it to Noriega,” Mr Abrams told a television interviewer. Mr Abrams repeated the United States position that Mr Delvalle was the legitimate President of Panama, despite his removal by General Noriega last week. Mr Delvalle had tried to dismiss the

general — the country’s de facto ruler — as head of the Panama Defence Forces.

“He is the President. When we get instructions from him for example, on payments to the Government of Panama, we just follow the dictates, the wishes of the President of Panama,” Mr Abrams said.

Mr Delvalle and his allies this week announced a wide-ranging campaign of sanctions against Noriega’s Government, including a call for the Panama Canal Commission to withhold payments and for American banks to freeze Panamanian assets. ( (

As part of that campaign, Juan Sosa, I the Panamanian Ambassador in Washington j who is loyal to Mr(Delvalle, went to court yesterday to try to block (the I Republic Bank of New York from sending millions of dollars to the Panamanian Government. ( ! Asked if the United States was prepared to tell American banks to stop

doing business with the Noriega Government, Mr Abrams indicated that that was not the United States role. (

He said, however!, that if Mr Delvalle made such a request, the United States would strongly back him.

"When President! Delvalle says to all (those American banks, i don’t pay money to Noriega, then all those banks are going to come to the United States Government, to the State Department, and say who’s got the authority here,” Mr Abrams said.

Mr Abrams said the United States would have a ready response. "We’re going to answer that question — Mr Delvalle is President of Panama. Noriega has' been fired and he doesn’t have legitimate authority here.”

Asked if the United States was taking these actions because it wanted General Noriega out of power, Mr Abrams replied: "Yes.”