SITUATION IN PANAMA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000300070042-7
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: December 9, 2016
• Document Release Date: March 24, 1999
• Sequence Number: 42
• Publication Date: March 13, 1975
• Content Type: MEMO

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13 March 1975
SUBJECT: Situation in Panama
Brigadier General Omar Torrijos is firmly in .
charge in Panama. Since 1968 he has made the decis-
ions and set the policies, Torrijos has consolidated
and legitimized his regime, earned for it a consider-
able degree of public approval, and maintained one of
the highest economic growth rates in Latin Arnarica.
He has worked particula?:ly hard to gain the support
of youth, peasants, and urban la-)or. . He has substan-
tially expanded educational opportunities, created.a
Labor Ministry, raised the wage level, and promoted
low-cost food.and housing programs. In his frequent
trips to areas outside the capital, he has been cau-
tious about making promises he is not certain he can
ful.fi ll.
Torrijos calls his government "revolutionary."
The basic elements of this "revolution" seem to be a
shift in power from the traditional political and
economic elite -- the "oligarchy" -- to the middle
and lower classes; a number of fundamental changes
in the institutions of government; and a modification
of social values and goals, with strong emphasis on
nationalism. A key goal of his,government is national
integration, meaning not only the elimination of the
Panama Canal Zone that physically divides the coun-
try, but also the integration of all Panamanians --
peasants, Indians, and slum dwellers as well as?busi-
nessmen and wealthy farmers -- into the national
-society. Most of his policies have been rooted in
a mixture of nationalism and populist reformism.
The slogan "Neither with the right nor with the left,
but with both hands for Panama" not only reflects his
pragmatism, but also captures his approac', to govern-
ment.
Thus far, Torrijos has not seriously tried to
alter fundamentally Panama's economic system based
on international commerce and banking. To have done
so precipitously would have provoked economic disaster
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for Panama and foreshadowed the end of 7'or, ri jos I Po-
litical po.?ter. The fairly mode: t reform:.; have hcr!rt
improvised largely by a srnall cfrou , of young, rniddlo-
class civilian adwinistra tors who :;ttt~ncr l; the recj L'r,l .
because they view it as an opport.un.i Ly to pu`;h for
social. and economic change wittlin an aver--at.tl program
of national development.
THE GOVFRtJMENT
Torrijos' official title, according to the 1972
constitution, is "Maximum Leader of the Panamanian
Revolution . In this role h e hold_; , un ti l 19 73 , rhos ~.
of the po:e ars; usually vested in a h:,-}.u of tatc. Tho
titular President, Denletrio La:as, i.s a civilian who
was picked by Torrijos and "elected" by a controlled
legislature. Under the centralivcd sy ,t~,tn of govern-
ment, the President, With Torrijos' approv-t1, -it)poirlts
the provincial governors, who in turn appoint all
mayors.
Thus the only directly elected o Ffici.als are
those in the legislative branch. The most important
legislative body is the National Assembly of Community
Representatives, composed of 505 o;:op1c elt_cted by the
country's lowest level political subdivision, corres-
ponding to US wards. The National Assembly elects the
President and Vice President for six-y`ar terms, and
performs some of the other usual functions of a aecris-
lature? However, it meets for' only one month each
year, mainly acts on measures submitted -to it by the
executive branch, and largely serves as a channel by
which the adm_nistration can tell how it is doing on
the local level.
The body that really sets most policies is the
National Legislative Council, composed of the 1?resident
and Vice President, the, head of the National Asseubly,
the Members of the cabinet, and a fe:?i other officials.
The key individual in the Council, and one of the most
influential civilians in the government, is Torrijos;'
brother in law, t?!arcelino Jaen.
The real key to Torrijos' power is his authority
as commander of the 7,500-man National Guard, the court-
try's only nilitary and police orni ,
Torrijos is the -C ya~ anon. A~ ~.6,
Guards only genera) ? of ficer. He is
some years older than other of
Lficers , most of whom
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seem to prefer to have him in charge rather than one
of their contemporaries. A handful of diu ,at u; i fcd
officers did attempt to oust Torrijos in 1.)GO and 1969,
but none has challcngnd his 1.,.)adcrshih ;;1uc;c. The GC-
ficers of the Guard's Gonural S to Ef cant :i nue to hav,~
at least a consultative role in national. c.luc.ision-r