Rights, U.S. Ties Suffer : Panama--Arbitrary Rule Grows

Panama’s military strongman, Gen. Manuel A. Noriega, is shoring up his rule with menacing and arbitrary actions that are radically--perhaps permanently--changing the country’s political landscape.

The steady move here--from what Latin Americans call a soft dictatorship to a hard one--has driven opponents of the military underground, into exile or into sullen silence. Noriega’s tightening grip also has chilled the Panamanian economy; the country’s image as a serene trade and banking center has been severely damaged, bankers and businessmen say.

Sometimes the government’s repressive steps seem petty. For example, it recently outlawed the sounding of automobile horns in the street, a practice that demonstrators had used to register their disagreement with Noriega. The reason for this step, according to official signs posted around town, is that “noise is bad for brain neurons.”

Nicknamed ‘Pineapple Face’

The rubber-stamp legislature is considering a law that would forbid making fun of the physical features of public officials. This is evidently an attempt to protect the feelings of Noriega, who calls himself the “General of Peace and Hope.” Jokes about Noriega’s acne-scarred complexion would presumably be outlawed, as would the commonly used nickname for him--”Pineapple Face”--and T-shirts featuring a pineapple with a red slash through it.

All in all, in the five months since Panamanians took to the streets to protest Noriega’s rule, the country has been transformed. It now displays the kind of arbitrary rule associated more with Chile or Cuba than, say, democratic neighbors such as Costa Rica or Colombia.

“We are in a regime without any constitutional guarantees,” said former President Nicolas Ardito Barletta, who was ousted by Noriega in 1985. “The question has become, how far do we have to sink before we get out of this problem?”

Detentions, Intimidation

The Roman Catholic Church here, in an unusually harsh criticism, recently recounted what it saw as a broad deterioration in human rights in Panama.

“One sees innumerable, self-evident violations (of human rights) every day,” the archdiocese of Panama said in a statement published earlier this month. The statement cited “arbitrary detentions devoid of any type of legal process, the denial of recourse to habeas corpus , . . . break-ins and destruction of private property, . . . the absence of freedom of expression, the lack of rights to mobilize and, above all, the creation of a general climate of intimidation among the people through threats and clearly repressive attitudes.”

As Noriega has fortified his rule at home, Panama’s relations with the United States have deteriorated. A U.S. Senate committee has called for a cutoff of aid to the Panamanian government, and U.S. military personnel stationed along the Panama Canal are keeping their Panamanian counterparts at arm’s length. Joint military exercises scheduled for January have been postponed indefinitely by the Pentagon.

No one expects any improvement soon in U.S.-Panama relations. The U.S. Embassy in Panama City is still spattered with paint from government-led demonstrations in June.

“With the atmosphere the way it is, would you clean up the paint?” an embassy official asked.

Anti-government street unrest all but ended Oct. 22 when the government sent 5,000 troops into the streets of Panama City to discourage a scheduled protest. The Panama Defense Forces’ total troop strength is about 15,000 men.

In the days leading up to this show of force, soldiers and policemen rounded up about 50 opposition figures and sent them briefly to the island of Coiba, a penal colony for common criminals. They were later released.

Policemen brandishing long sticks broke up protests by journalists and women. The women were beaten by a new force of riot policewomen. In macho Panama, it was considered unmanly for male policemen to strike women, so the government enlisted women.

Anyone caught waving a white handkerchief--another symbol of resistance to Noriega--is subject to arrest.

Newspapers Closed

Opposition newspapers have been closed since June, and independent radio stations face routine censorship. Two foreign reporters have been expelled, and reporters who come in from abroad must check in every three days with the government. Sometimes they are followed by plainclothes police agents.

Six top opposition leaders have fled into exile in Latin America or the United States. They took refuge in the Venezuelan and Vatican embassies here and left under foreign protection to avoid being arrested as the government had ordered.

The recent killing of a Supreme Court justice has added to the sense of unease. Although most observers consider the death of Justice Camilo Octavio Perez a common crime rather than a political one, the government’s tardiness in investigating has led to suspicion that its agents were involved. The justice had recently taken to criticizing the government.

Even prominent members of the government are not exempt from harsh treatment. Vice President Roderick Esquivel returned recently from abroad to find his office ransacked, his papers and some personal goods stolen and his furniture strewn on the sidewalk in front of the Bank of Panama building.

Vice President in Name

Esquivel, who heads the Liberal Party, had been calling for his party to leave the civilian coalition that governs with military support. The response was his eviction from his office; he is not allowed to attend Cabinet meetings headed by the country’s nominal president, Eric A. Delvalle, though he remains vice president in name.

“We joined the government to promote democracy, not this kind of thing,” Esquivel said.

Rumors of potential violence abound but without much substance. Still, in October, someone blew up an electric power transmission tower, and four soldiers were killed. A formerly unknown group called Blue Lightning said it was responsible for the sabotage. It said in a letter that the “time for waving hankies is over.”

Opposition to the government erupted in June when a former aide of Noriega’s made a series of accusations against his former boss. The charges included murder, in connection with the death of an anti-government critic, involvement in drug traffic, corruption, spying on the United States on behalf of Cuba and the rigging of presidential elections.

Protesters grouped under an umbrella organization called the Civic Crusade took to the streets in a series of peaceful but loud and increasingly large demonstrations. Official response was harsh. Tear gas, birdshot and arrests eventually wore down the protesters.

The whistle-blower, Col. Roberto Diaz Herrera, was detained in July and is being held in Panama City’s Modelo Prison. No date has been set for a trial.

Church Spoke Out

The crackdowns prompted the Catholic Church’s move to speak out against the government and the military. Until recently the church had played a low-key role in the conflict, pleading vaguely for reconciliation.

Now church leaders have pointedly called on the military to enforce its retirement rules. This message, set out in an open letter from the Council of Bishops, was seen as an indirect appeal for Noriega’s ouster. Noriega has served in the army for 24 years, and thus, under current regulations, should step down next year. However, it has been suggested that Noriega’s tenure could be extended for another five years if his staff approves.

The church also offered to mediate the conflict between government and opposition, but neither side has taken up the offer.

An economic slowdown has replaced open protests as perhaps the biggest threat to Noriega’s rule. Panamanians have withdrawn $500 million from local banks. The withdrawals have severely limited the banks’ ability to make construction, commercial and farm loans.

International banks have moved assets to offshore centers. Although this movement, said to amount to $6 billion, does not directly affect commercial activity inside the country, it does reflect a growing lack of confidence in the future.

“Banks sell image and safety,” a European banker here said. “We have suddenly awakened to discover that Panama is not, after all, Switzerland.”

Economy Shrinking

Panama’s economy, which showed some signs of growth in the first half of 1987, is shrinking. No building projects are planned--loans are not available--and the harvest of winter vegetables is threatened by the difficulty that farmers are having in financing their operations.

Although U.S. aid is a minor factor as a percentage of the country’s income, its cutoff aggravates Panama’s economic problems. Aid to Panama totaled $41 million in 1986.

A further problem is the threat by the U.S. Congress to end imports of Panamanian sugar at subsidized prices. The sugar that Panama sells to the United States is produced by government-owned refineries.

Reduced economic activity and foreign aid are already causing the government to tighten its belt. Except for the military, budgets have been cut in all government ministries. The possibility of layoffs and reduced wages has set off a series of strikes by government employees. The strikes have yet to take on a political tone; virtually no one--Col. Diaz Herrera is one of the few exceptions--dares to blame Noriega openly for the problems. But the government faces increased opposition as the political crisis becomes economic.

The government lacks at least one important resource to cope with strapped finances. It cannot print money to cover expenses because Panama uses the U.S. dollar as its currency.

Military Budget Intact

The Defense Forces is fairly well insulated against hard times. Not only does the military budget remain intact, but under-the-table sources of income are untouched. For example, the military controls a company called Transit S.A., which rakes off fees from companies doing business in the Colon Free Trade Zone. The military also controls liquor stores and prostitution rings, both of which may be immune and may benefit from an economic downturn.

“The military institution will be the last to feel the sacrifices,” said Ruben Dario Paredes, a former commander of the Panamanian armed forces.

Paredes was the first former military commander since Diaz Herrera to speak out during the turmoil. In June, he wrote an open letter to his former comrades suggesting that Noriega should step down. He has also tried to ease fears in the Defense Forces that its members could be caught up in a wave of anti-military prosecutions if Noriega falls.

“We must ensure that the soldiers and officers have nothing to fear from Noriega’s ouster,” Paredes said.

Effort to Regain Influence

Paredes’ comments are seen as an effort by the one-time commander to regain influence in the military. Paredes resigned in 1983 to run for president, believing that he was assured of military support. But his former comrades, led by Noriega, double-crossed him and backed Ardito Barletta.

Paredes is known to maintain some contacts inside the Defense Forces, but, traditionally, former officers lose their influence once they shed the uniform. Nonetheless, his comments second the accusations made by Diaz Herrera and have caught Noriega’s attention. He sent associates to visit Paredes at his home north of Panama City. The message, according to Paredes: Stop talking.

“They even offered me benefits--an embassy abroad, perhaps,” Paredes said. “But I plan to keep talking.”

Talking, but perhaps not candidly. In recent conversations with a reporter, he steered clear of such controversial subjects as drug trafficking and espionage.

The Panamanian government, meanwhile, continues to treat its problems as the result of plotting by the United States. Noriega has charged that the U.S. government is scheming to keep control of the Panama Canal after the year 2000, when, under a treaty signed in 1977 by then-President Jimmy Carter and the late strongman Omar Torrijos, Panama is scheduled to take over.