Opposition in Panama Unites Behind Delvalle

Panama’s long-fragmented opposition parties united behind deposed President Eric A. Delvalle on Monday as the battle against strongman Manuel A. Noriega escalated to include thousands of frustrated poor and aged, who barricaded streets throughout the capital in anger over the government’s inability to cash their social security and retirement checks.

“Get out Noriega! We want our money!” the pensioners and social security recipients cried after waiting more than 10 hours in the torrid sun outside the downtown Health Ministry for a cash-pinched government bank to honor their mostly meager checks. Not even the arrival of armored trucks bearing cash late in the day dimmed their anti-Noriega chanting.

Furious Old People

The scene was repeated in dozens of locations, where furious old people who had not previously joined public protests against Noriega screamed for his downfall and chanted “Toad, toad!” at police, who did not forcefully intervene.

In another sign of Noriega’s rapidly diminishing support here, the National Council of Panamanian Workers, a pro-government coalition of leftist trade unions, drew a sparse crowd of 250 to 300 people Monday for a widely advertised anti-American march on the U.S. Embassy, in contrast to the crowds of more than 10,000 that it easily rallied for similar marches less than a year ago.

From Washington’s viewpoint, the surprise agreement of Panama’s opposition political parties to join forces with Delvalle to establish what they called “a government of national reconciliation” was probably the most profound development. Most of the anti-Noriega groups distrust Delvalle, who until last month served as the general’s rubber stamp president, and had resisted the U.S. policy of continuing to recognize him as Panama’s legal head of state.

But faced with American pressure to bolster Delvalle’s international legal position with demonstrated domestic support and driven by their common goal of getting rid of Noriega, all of the country’s opposition political parties and the Civic Crusade, a coalition of business and professional groups that until now has led the “white handkerchief revolution” against the dictator, signed a document pledging “unconditional unity.”

‘Castor Oil’ Treatment

“It was like swallowing castor oil--we didn’t like it but it was for our own good,” said Guillermo Fernandez Qijano, an industrialist and leading member of the Civic Crusade who was jailed last year by Delvalle.

A similar agreement was signed in Washington, where leaders of six anti-Noriega factions now active in the United States agreed to unite behind Delvalle as long as he continues to advocate a return to democracy in Panama. Their spokesman cautioned that Delvalle must demonstrate his sincerity “with deeds, not words.” A statement said the opposition leaders plan to seek economic aid from Western democracies to help restore Panama’s fiscal credibility with its trading partners.

Most of the opposition looks upon Delvalle as a Johnny-come-lately to their struggle. Delvalle served Noriega loyally until the president, after consultations with U.S. officials, unexpectedly tried to sack him as commander of the Panama Defense Forces. Noriega, in turn, deposed Delvalle and replaced him with Education Minister Manuel Solis Palma, whom the U.S. has refused to recognize.

Under the unity agreement, all parties pledged to stand with Delvalle through the end of his term in May, 1989. “We want to establish a government of national reconciliation that guarantees justice, a state of law, liberty, the reconstruction of democratic institutions, fiscal order and economic development,” the jointly signed document said.

Reforms Promised

In return, Delvalle signed a separate 10-point agreement with the parties pledging to change the nation’s pliable and often rigged elections law, reorganize the Defense Forces and reform government economic policies. A Civic Crusade official said that all the parties to the agreement would begin meetings immediately to name a “shadow cabinet” under Delvalle that will be prepared to take over the moment Noriega steps down.

Panama has spent itself into undeclared bankruptcy during 20 years of deficit-ridden military rule, its faltering economy fueled heavily in recent years by the laundering of illicit drug money--in which Noriega allegedly played a major role. The general was indicted by U.S. grand juries in Florida last month on drug-trafficking and money-laundering charges.

The opposition’s main weapon against Noriega so far has been a financial one, cutting off the flow to the country of dollars, the only local currency, with active U.S. help. Panicky Panamanians made such a rush of withdrawals that most banks closed their doors last week before all were ordered shut by the government Friday when its own central bank ran out of cash. In the resulting dollar pinch, merchants and service businesses stopped accepting checks and credit cards and many cash-short Panamanians were left without the wherewithal to purchase food and other essentials.

First Major Impact

But the first major public impact of the cash crisis did not come until Monday, when pensioners and social security recipients appeared at their regular pay windows throughout the country to receive their twice-monthly checks. Normally, the mostly aging recipients turn from the pay tables to a nearby check cashing booth to get their money.

Oddly, the government announced Sunday night that money would be available at the check cashing windows Monday morning to honor the checks. As a result, many thousands lined up beginning at 6 a.m., but as the fiercely hot day wore on, the cash failed to arrive and the crowds of elderly people grew increasingly restive.

“It’s just a piece of worthless paper,” cried retired schoolteacher Jose Diaz, 73, waving his $140 retirement check at a traffic barricade he had helped to erect. The barricades sprang up throughout Panama City. At least one barricade, made of garbage bags and old rubber tires, was set afire in the posh neighborhood where Delvalle lived before going into hiding after Noriega deposed him.

“These are small amounts,” said a retired accountant, pointing to many people with checks for only $30 to $50. “But for many of the people here, it is all they have.” Moments later a 68-year-old accountant threw a punch at a young Noriega supporter who stopped his car at a barricade and loudly proclaimed that “we have rights, too.”

“The only thing this country needs is for Noriega to leave,” cried the accountant.

“That will make 2 million Panamanians happy,” exclaimed a 65-year-old retired engineer who was standing nearby.

Little Violence

Although there appeared to be no serious incidents of violence, at one barricade near Revolution Stadium on the city’s outskirts, a police officer wielding a rubber truncheon was ineffectively stoned as he ran after a young protester who had thrown a rock at him. The officer ducked down a side street to escape a pursuing crowd.

In another development Monday, one of Noriega’s ranking supporters heatedly accused the United States of violating the Panama Canal treaty and denied American press reports that Panama was guilty of violations.

Maj. Daniel Delgado, who heads the Foreign Ministry’s Department of Treaty Affairs, charged that by headquartering the U.S. Southern Command in Panama, Washington was violating the treaty.

Times staff writer Michael Wines in Washington contributed to this story.