Delvalle Fed Up With U.S. Policy, May Quit : Panama’s President-in-Hiding Losing Patience, Reportedly Wants Action to Force Out Noriega

The man the United States recognizes as Panama’s legal president has become fed up with U.S. policy toward his country and threatened to resign from his clandestine post if decisive steps are not taken soon to oust Panama’s de facto ruler, Gen. Manuel A. Noriega, informed sources here said Tuesday.

Eric A. Delvalle, who was deposed as Panama’s nominal civilian president on Feb. 26 and fled into hiding the next day, is increasingly impatient with the failure of U.S. economic sanctions to bring down Noriega, opposition leaders, family members and diplomats in contact with him said.

The sanctions, imposed by U.S. courts and the Reagan Administration on behalf of Delvalle supporters, have severely squeezed Panama’s economy, bringing on strikes by workers and creating hunger among some of the country’s poorest citizens.

Noriega Unshaken

But the sanctions have yet to shake Noriega, who has survived protests and a barracks coup attempt in his determination to cling to power.

Last week, Delvalle expressed in bitter terms his “disillusionment,” said a diplomat in touch with both Delvalle and U.S. officials here. “He has told the U.S. that if they do not immediately act, he would go,” the diplomat said.

A top opposition leader said that Delvalle is demanding that the United States make efforts to oust Noriega this week or he will come out of hiding and give up his rump presidency. Another opposition official said Delvalle has given the Americans an “ultimatum.”

“He threatened to get on a plane and leave the country or get in a cab and go home,” the opposition leader said.

In Washington, a senior State Department official acknowledged that Delvalle is “disillusioned” but said, “I really don’t think he’s going to quit.”

“We do know that he has been depressed and angry at times. So would you or I be if we spent five weeks in a cellar,” he said. However, the official added, “I don’t think it’s anything more than a mood.”

Diplomatic sources said that the U.S. ambassador to Panama, Arthur Davis, met with contacts of Delvalle on at least three occasions last week.

An abdication by Delvalle would complicate efforts by the Reagan Administration to force Noriega out of office and out of Panama. Courts in the United States, in Delvalle’s name, have frozen Panamanian government bank accounts. The court decisions are based on the continued recognition by the State Department of Delvalle’s claim to the presidency.

Delvalle, who was considered a mere figurehead under Noriega, lost his job after trying to dismiss Noriega from the command of the Panama Defense Forces, the country’s military establishment. He was replaced in the presidency by Manuel Solis Palma, a close associate of Noriega.

Delvalle went into hiding after his ouster, although he has communicated publicly by cassette recordings, videotape and letters. His wife, Mariela, took refuge in the residence of the U.S. ambassador.

Some sources in touch with Delvalle say they doubt he will step down. “He will never quit,” said one family member.

However, the same sources noted that his family is becoming increasingly nervous about a quick solution to Panama’s political crisis and uncomfortable with their own internal exile.

Delvalle, who is 55, also suffers from heart disease.

Before becoming president, Delvalle was a wealthy businessman, and his family owns one of Panama’s largest sugar mills. Family members say they have received veiled threats that the property might be confiscated.

Delvalle has also been charged with sedition by Noriega’s government.

U.S. officials contend that if Delvalle drops out, it would not be fatal to American policy built around him. They point out that President Reagan, by invoking special presidential powers, could maintain the same pressures that are now imposed in Delvalle’s name.

Delvalle’s exit could also simplify the problems of creating a transition government should Noriega step down. Several important opposition groups as well as members of Noriega’s own armed forces are opposed to Delvalle’s reinstatement as president. By leaving, Delvalle could remove that obstacle to reaching a political settlement.

Times staff writer Doyle McManus in Washington contributed to this story.