WORLD IN BRIEF : PANAMA : U.S. Confronts Canal Dilemma

The Bush Administration has devised a plan it says ensures U.S. compliance with the spirit of the Panama Canal Treaties without violating its policy of avoiding contact with the Panamanian government. The treaties specify that, on Jan. 1, 1990, a Panamanian must take charge of the U.S. government agency that runs the canal. The Administration, while promising to abide by the treaties, has said it will not consider any nominee proposed by Gen. Manuel A. Noriega. U.S. officials said the dilemma is expected to be resolved by allowing the deputy administrator of the Panama Canal Commission, Fernando Manfredo, to take charge Jan. 1.