Money From Libya Keeps Noriega in Power, Bush Says

Vice President George Bush charged Friday that Panama’s leader, Gen. Manuel A. Noriega, has maintained his hold on the Central American nation despite U.S.-invoked economic sanctions because Libya sent him millions of dollars in financial support.

Bush, in a speech to the American Society of Newspaper Editors in Washington, refused to disclose how he learned of the aid, except to say that the information came from “several reliable sources.” A Bush spokesman suggested that the information, not previously released by the Reagan Administration, came from intelligence briefings.

Although Bush did not offer a specific monetary figure, another U.S. official said the amount is believed to be $20 million, or almost half the Panamanian government’s monthly payroll of $43 million.

However, the government official, who spoke on the condition of anonymity, said the money had not yet reached Panama and suggested that Noriega may be having trouble converting the money into cash.

“Currently, we are in an effort to protect civilian rule in Panama against Noriega, an indicted drug trafficker,” the vice president said in a speech devoted to outlining his foreign policy priorities.

“So far, he has stood up to the considerable pressures that we have applied, and I can tell you one reason why: Several reliable sources indicate that he is receiving millions of dollars in support from Libya.”

Asked by reporters about the sources of his statement, Bush declined to elaborate. His acting press secretary, Stephen Hart, called the material “sound information.”

“As an old CIA guy,” Hart added, referring to Bush’s 1976 tenure as head of the Central Intelligence Agency, “he doesn’t talk (about) sources.”

State Department spokesman Charles Redman indicated later that he had no information about the report.

Last month, a Panamanian air force defector said at a Washington news conference that he flew to Cuba in early March at Noriega’s orders to pick up $50 million in cash from Libya. The money was never delivered, Maj. Augusto Villalaz said.

Under questioning, Bush also reiterated that he did not know of Noriega’s alleged ties to drug trafficking until his recent indictments, despite the presence of intelligence reports and newspaper articles describing such links.

In an odd twist, Bush’s comments came on the same day that Libyan leader Moammar Kadafi said he favors the election of Bush, the front-runner for the GOP nomination for President, because the vice president “has suffered the irrationality of Reagan.”

“He would be a better President because he has suffered with Reagan, and he would sort of make up for it,” Kadafi told NBC-TV’s “Today” show.

The Reagan Administration has steadily increased economic pressure on Panama in recent months in an effort to force out Noriega, but the moves have served more to destabilize that nation’s economy than to wrest control from the controversial military ruler.

The general, Panama’s most powerful figure since he assumed control of the armed forces five years ago, was indicted in February by a Miami grand jury that charged him with taking in more than $4.6 million in exchange for providing assistance to drug traffickers.

Questions Raised

Bush has said previously and insisted again Friday that he did not learn of Noriega’s alleged involvement until the indictment. The claim has raised questions because Bush campaigns as a candidate with widespread experience in foreign affairs and intelligence--and because he has served as chairman of a law enforcement task force set up to intercept drug shipments to Florida.

“We have known about Panama’s involvement, some of the institutions down there, in (drug-related) money laundering,” Bush said in response to a question. “Indeed, I made a representation . . . to the president of Panama some time ago down there before 1986 about that. . . .

“I did not know about Noriega’s personal involvement until this legal proceeding came to fruition,” he said.

Bush, in his speech, said he believes Noriega will ultimately be forced from Panama.

“I’m convinced if we handle it correctly, Noriega will go,” he said. “Democracy will prevail, and we can do it without exacerbating the tensions.”