Panama Government

The Senate Foreign Relations Committee voted 19-0 on Thursday to cut off all U.S. aid to Panama's military government unless sweeping reforms are instituted and civilian rule is restored. "This should be a clear signal to the venal, corrupt Panamanian defense forces against the abuse of the Panamanian people," said Sen. Alan Cranston (D-Calif.), the Senate's deputy majority leader.

President Reagan has signed an order authorizing new, covert action designed to oust Panamanian strongman Manuel A. Noriega from power, government sources said Tuesday. The order, which the sources said was signed in recent weeks, signals a renewed effort by the Administration to drive Gen. Noriega from office after previous efforts to negotiate his departure failed. Officials declined to describe what the operation would entail. It would be carried out by U.S. intelligence services.

President Eric Delvalle said Sunday night that he had ordered an investigation into allegations of corruption, election fraud and conspiracy to murder against Panama's top military officer. In a nationally broadcast speech aimed at defusing a month-old political crisis, Delvalle said the accusations against Gen. Manuel A. Noriega, commander of the defense force, "demand a prompt and effective investigation." He said he had asked Atty. Gen. Carlos Villalaz to undertake the inquiry.

Panama's government played down news of the collapse of talks between military ruler Gen. Manuel A. Noriega and the Reagan Administration on Wednesday, saying negotiations could begin again, perhaps as soon as President Reagan returns from the summit meeting in Moscow.

With Manuel A. Noriega out of sight in a Miami jail, Panama's government and some of its supporters tentatively are starting to tear at the mantle of supposed greatness wrapped around another national icon--Gen. Omar Torrijos.

The government of Panama has between $4 million and $5 million in cash on hand, an amount that falls far short of the amount needed to make even partial salary payments due next week for government employees, government sources said Friday. The figures suggest that economic pressure on the government of military strongman Manuel A. Noriega is approaching a breaking point. But Noriega continues to give no sign of any intention of yielding power.

The Bush Administration severed diplomatic relations with Panama on Friday, but declined to adopt any stronger sanctions to further its stalled campaign to remove Gen. Manuel A. Noriega from power. "As a practical matter, things haven't changed a great deal," National Security Adviser Brent Scowcroft told reporters. U.S.

Despite the risks apparent in offering Gen. Manuel A. Noriega a foothold in or near Panama and a flexible departure schedule if he agrees to leave power, U.S. officials contend that such a deal is the best that the Reagan Administration can currently hope for. Although Washington holds in reserve some new tools that it could use to try to force Noriega to retire, there is little confidence that they would have an immediate effect, U.S. and foreign diplomats say. The ultimate tool--U.S.

Life is not easy for Eric A. Delvalle, Panama's president in hiding. His title is empty of honor, let alone power. His erstwhile allies would like him to leave, and his enemies would like him in jail. Now, the government is taking away his horses. Earlier this month, Gen. Manuel A.

The government of Panama, declaring victory over strikes organized by its opponents, Thursday rejected a call by Roman Catholic bishops for military ruler Manuel A. Noriega to step down. In addition, a high-ranking government official said in an interview that the church has disqualified itself from performing any mediation role in Panama's political conflict by demanding Noriega's resignation.