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U.S. Considers Options as Noriega Weathers Curbs

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Times Staff Writer

The economic sanctions intended to oust Panamanian Gen. Manuel A. Noriega have been insufficient and additional economic, military and diplomatic steps are under consideration, President Reagan’s national security adviser said Tuesday.

On the day that the first of 1,300 American troops arrived in Panama to boost the scope of the U.S. contingent there, Lt. Gen. Colin L. Powell refused to eliminate the possibility of sending additional units. However, he said there are no immediate plans to do so.

The report by Powell served to signal to the leader of the Panama Defense Forces that the United States is studying ways to increase the pressure on him to leave office. But a White House official conceded that it also reflects the limited options available to the Reagan Administration, short of a vastly stepped-up military involvement, kidnapings or coups.

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Powell, one of the most senior officials to publicly review the situation in Panama, said Reagan was informed Tuesday morning that advisers would examine a variety of options.

Meanwhile, one senior White House official, speaking on the condition of anonymity, said that despite the economic sanctions imposed by the United States, Noriega is “still firmly in control--but not as in control as he was, perhaps, a month ago.”

‘Tough, Tough Person’

“Gen. Noriega is a very, very determined man. He is a tough, tough person. He is convinced at the moment that he can hang on for a while longer, even though his economy is collapsing around him,” this official added.

He also said there has been evidence of what he called “fractures” in the Panama Defense Forces in the 3 1/2 weeks since the United States stepped up the pressure on Noriega. He cited the unsuccessful coup attempt by a group of Panamanian officers and “defections of several close members of his personal staff.”

“Every effort we can take to foster that discontent in the PDF, I can assure you, we are taking,” the official said.

At the heart of the Administration’s effort is the attempt to restrict the flow of U.S. dollars--used by Panama as its official currency--to the Central American nation. The Administration does not endorse the Noriega regime as the legitimate Panamanian government, recognizing instead the government of ousted civilian President Eric A. Delvalle, who went into hiding after unsuccessfully trying to remove Noriega. The general has been indicted on drug smuggling and related charges in the United States.

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Access to Money Blocked

As a result of the U.S. curbs, American banks with deposits credited to the Panamanian government have held onto the money, blocking access to it by the Noriega regime.

U.S. officials have said that the Administration has decided to deny the Panamanian government access to millions of dollars in tax payments from American companies. The firms have been told that they would receive credit on their U.S. tax returns for taxes paid to Panama only if they put them in accounts controlled by Delvalle.

The United States has explored the likelihood that this approach will be followed voluntarily and has discussed it with the companies involved, but some have balked for a variety of reasons.

Powell indicated that no firm decision has been reached to try to limit the tax payments under the International Emergency Economic Powers Act of 1977. The measure has been used against Iran, Nicaragua, Libya and, to a lesser extent, South Africa.

Seen as Drastic Measure

But another White House official said in Washington that it might be possible to stem the flow of the tax dollars without invoking the 1977 law, which is seen by the White House as a particularly drastic measure that could cause lasting damage to U.S.-Panamanian trade relations.

Powell conceded that the economic effort already made “has not yet provided sufficient pressure on Gen. Noriega to cause him to leave.

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Whether it will over a period of time, and whether we can wait an extended period of time, is what we are examining.”

The national security adviser also said that the 1,300 soldiers and Marines who are joining the 10,000 troops already stationed in Panama provide “a reasonable degree of security for American installations” and that no threat to the 13,000 American dependents living there is seen.

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