U.S. Considers Halt to Panama Canal Payments

The United States said today that it is considering a request to increase economic pressure on Panamanian strongman Gen. Manuel Antonio Noriega by withholding payments for operation of the Panama Canal.

State Department spokeswoman Phyllis E. Oakley said the Reagan Administration has received a request from President Eric Arturo Delvalle--ousted by Noriega but still recognized as the constitutional leader by Washington--to put the canal payment in escrow.

“We are consulting with the Treasury Department and with the Panama Canal Commission on how to proceed with the request,” she told reporters.

Oakley said she does not know how much money is involved, but published reports have suggested that the U.S.-appointed commission which runs the canal is due to pay Panama $7 million next month.

Ambassador’s Action

As part of a campaign to create a cash flow crisis for Panama, a Delvalle ally, Ambassador Juan Sosa, moved in a U.S. federal court today to block Republic Bank of New York from sending millions of dollars to the Panamanian government.

Oakley said the State Department is preparing documents certifying that Sosa “and others designated by President Delvalle” are the legitimate representatives of Panama in the United States.

She refused to say why this is being done, but it is expected that official U.S. government certifications will help substantiate claims in court and elsewhere by Delvalle and his allies that they are the constitutionally recognized authorities.

In papers filed with the federal court today, Sosa charged that he believed Republic Bank was going to turn up to $10 million more over to the government as early as today.

Restraining Order

Bank officials were not immediately available for comment.

A federal judge issued a temporary restraining order barring the bank from turning over any additional funds to the Panamanian government pending a hearing next Monday.

In Panama City today, a 3-day-old general strike against Noriega hit the capital’s hospitals, a day after the first outbreak of violence since the country’s political crisis began. (Story, Page 5.)

“The government is trying to portray our struggle as an attempt to overthrow the government,” said Dr. Gerareo Victoria, head of the resident doctors unit at the Central Tomas Hospital. “But all we want is the administration of justice and democracy.”

Victoria said doctors at his hospital are not working while their union decides on whether to officially join the strike.