The World - News from Sept. 16, 1988

With American diplomats in Panama facing a variety of potential problems in the wake of the Reagan Administration’s failed efforts to oust strongman Manuel A. Noriega, the United States will reduce the size of its diplomatic presence there, State Department officials said. The decision was taken at the advice of Ambassador Arthur H. Davis and could result in the closing or the severe reduction of the regional operations of the Drug Enforcement Administration, the Justice Department and the U.S. Customs Service, the officials added. The extent of the cutback was not immediately determined, but up to 160 jobs could be affected. The officials also said they were unaware of any threats against U.S. Embassy workers or their families but that harassment of U.S. servicemen was reportedly on the rise.