Panama Declares ‘State of Urgency’; Some Constitutional Rights May Be Suspended

Panama declared a “state of urgency” Friday, perhaps opening the way for drastic steps to ease an economic and political crisis that threatens the rule of Gen. Manuel A. Noriega.

“The measure . . . recognizes that there exists a real situation of undeclared war against the Republic of Panama, with a very grave impact on economic activities, on public finances and all the structures of national life,” said a decree signed by civilian President Manuel Solis Palma and his Cabinet.

The decree makes possible the suspension of constitutional rights, but it did not specify which ones. The declaration said only that “the government will adopt adequate measures to preserve public order, repel internal and external attacks on the national economy and confront the urgent state under which the country is living.”

Foreign diplomats said the declaration could result in secret arrests, entries and searches of homes without warrants, limits on travel inside the country and interception of letters and other communications.

“It means they can do anything they want,” one Western diplomat said.

In any case, many rights have been effectively suspended since last summer in response to protests aimed at toppling Noriega, long the real political power in Panama.

Friday’s decree made special mention of the country’s economic crisis. The crunch was triggered by decisions of the Reagan Administration and U.S. courts to encumber Panamanian assets in the United States, including government funds held in U.S. banks.

The freezing of funds “provoked deep alteration and disturbance of public order and impedes the normal development of economic activities,” the decree said.

For some time, the United States and a growing internal opposition have been trying to push Noriega from power, but Noriega is still in place as head of the Panama Defense Forces in spite of attempts against him, including a failed coup Wednesday by officers under his command.

In apparent warnings to private business, the “state of urgency” declaration accused store owners of purposely paying workers with checks, knowing that because banks are closed here owing to a shortage of dollars, the checks are worthless.

Price Gouging Charged

It also charged unidentified firms with unduly raising prices.

The charges led to speculation that retail grocery stores might be expropriated. In recent weeks, the government has tried to get such businesses to accept government checks that are paid to public employees. The stores have been dealing solely in cash for more than two weeks.

There was some concern among private bankers that the government might begin printing its own money to make up for the dollar shortage. American dollars are Panama’s normal currency.

If the government prints its own money, banks would be forced to trade whatever dollars they still hold for the new currency.

In Caracas, Venezuela, a Panamanian government representative called Friday for a meeting of the Latin American Economic Council, a multination consulting group. According to reports from Venezuela, he intends to inform the organization of Panama’s intention to print money.

Opposition leaders, grouped into the self-styled Civic Crusade, called the urgency decree “intimidation.” Crusade leaders, who represent dozens of business and trade organizations, vowed to begin a general strike Monday. They said they would close businesses until Noriega steps down.

Panama has slipped into virtual chaos this week as pressures have built up on Noriega to step down from his command of the 15,000-member Defense Forces.

The cash shortage has sparked strikes, anti-Noriega demonstrations and violence.

But on Friday, the streets of Panama City were calm all day.

The country had been placed under virtual military rule Thursday when the Defense Forces took over the country’s main utilities, hospitals and ministries.

Military controls on public services were designed to keep them working in the face of public employees’ strikes. Workers have struck electrical, power and telephone facilities to protest delays in salary payments due this week.

On Friday, army troops and government plainclothes police agents searched cars at main intersections in Panama City, apparently looking for weapons.

U.S. officials confirmed that four American soldiers stationed at military bases near the Panama Canal were released Thursday night in Panama City after being detained by a Panamanian intelligence patrol the same day.

The Americans were not in uniform but were armed with pistols.

One U.S. official, who declined to be identified by name, said the four were traveling through the city to be on the lookout for American citizens who might be harassed by mobs or soldiers.

The official identified the Americans as Danny Feltro, William Jerry, Tammy Markley and Richard Wirts. The official declined to give their ranks or branch of service, although he said they were all military police personnel.