Noriega Again Thwarts U.S. Ouster : Panama Council OKs His Choice for President, No. 2 Man

The latest attempt by the United States to oust Panamanian strongman Manuel A. Noriega from power ended in failure Thursday as Panama’s Council of State appointed two men approved by Noriega as the nation’s new president and vice president.

The Panamanian Council said in a statement that Francisco Rodriguez, controller general in the outgoing government, will be the new president, and that Carlos Ozores Typaldos, a leader of Panama’s ruling party, will be vice president of a new provisional government. Noriega emerged from a council meeting in Panama City to confirm and endorse the choices personally.

President Bush, speaking to reporters in Kennebunkport, Me., acknowledged that he was frustrated by the failure of the U.S. effort against Noriega.

But he added: “I am not going to give up on multilateral diplomacy. I am going to work with the leaders in this hemisphere, most of whom feel as I do about Noriega, to see if we can’t help the Panamanian people get what they deserve--and that is a democratic society that stems from free, fair elections.”

Plans to Be Announced

Bush Administration officials indicated that they will announce today what action they plan to take against the Panamanian regime. They would not comment on reports that they may prohibit ships flying the Panamanian flag from entering U.S. ports.

Meanwhile, Acting Secretary of State Lawrence S. Eagleburger presented evidence to the Organization of American States alleging that Noriega had accepted $4.6 million from Colombia’s Medellin cocaine cartel and amassed a personal fortune of $200 million to $300 million from drug trafficking and theft of public money.

Eagleburger distributed copies of 1988 federal indictments against Noriega and cited testimony in U.S. courts and Congress accusing the general of direct involvement in the transportation of drugs through his country to the United States.

“Noriega’s greed, personal ambition and selfishness are the origin, core and sustenance of Panama’s crisis,” Eagleburger told the OAS.

Under Panama’s constitution, the winner of a presidential election was supposed to assume power today. But the election last May was nullified amid widespread charges that Noriega had tried and failed to rig the balloting in favor of his handpicked candidate. There has been no new election.

For the last few months, the Bush Administration has pressed the Organization of American States to try to bring about the formation of a new government not controlled by Noriega.

Despite the failure of the OAS to negotiate a solution that would drive Noriega from power, Bush said, “we are going to continue to press the case in the OAS.”

According to Reuters news agency, the Panamanian Council said Thursday that Rodriguez will lead a provisional government that eventually could be replaced by a popularly elected regime if certain conditions are met--primarily, an end to U.S. efforts to oust Noriega.

“The provisional government must (organize) elections as soon as adequate conditions exist, which must include the end of United States’ aggressions and return of the funds (belonging to) the Panamanian state that were arbitrarily (withheld) by the government of the United States,” the council said.

Thursday’s developments left Panama totally in the hands of Noriega and the United States without any realistic options for forcing his downfall.

Although Noriega has been effectively the military dictator of Panama since 1983, he previously had worked to disguise his power beneath the veneer of a constitution, with an elected civilian president and legislature.

Now, Noriega can continue to run the government by fiat from his office at Ft. Amador, a military base that he still shares with the U.S. Southern Command.

This leaves the United States exactly where it started when it initiated its campaign to oust Noriega two years ago.

Its remaining options--a trade embargo to augment existing economic sanctions, or direct military intervention--are considered even by involved diplomats as either useless or politically and internationally unacceptable.

Noriega has shown that he and his allies care little about economic pressures that tend to hurt the public more than the nation’s rulers, whose income from corruption and drugs is untouched.

American troop commanders oppose military action, pointing out that the 13,000 American combat troops in the country are insufficient for offensive operations in Panama. They estimate that it would take more than 200,000 troops to occupy the country.

One diplomat said that signs of opposition are growing within the Panamanian military. “He (Noriega) has been rotating more and more officers in and out of key jobs faster and faster,” the diplomat said, asserting that such movement is a sign that the dictator cannot trust his colleagues.

But other sources said that Noriega is just as likely to have been trying to give power to as many officers as possible to broaden his support within the military.

“Nothing has changed” in Panama, said one diplomat, “and I don’t see anything changing tomorrow or for a long time to come. (Noriega’s) running the place today, and he’ll run it tomorrow.”

Shannon reported from Washington and Freed from Bogota, Colombia. Times staff writers Jim Mann, in Washington, and David Lauter, in Kennebunkport, Me., also contributed to this report.