U.S. Hopes to Prod Panama, Peru Regimes Toward Free Elections, Civilian Leadership
Gemmill, Henry
WASHINGTON-The U.S. is mounting a counteroffensive against the military juntas. that within the past fortnight have overthrown two elected Latin American governments-in Panama and Peru. There...
...Bolivar Urrutia, a certain unofficial sympathy with the national guard chieftains is evident here...
...payments, notably from Panama Canal tolls...
...private bank credits, new arrangements with the International Monetary Fund, and fresh assistance from the U.S...
...Peru May Feel U.S...
...market...
...Washington was breathing easier yesterday, after a weekend during which it was feared the U.S...
...Through informal contracts, the Peruvian military regime has already felt the U.S...
...New Jersey...
...The Latin lands-even the devotedly democratic ones-have a phobia against U.S...
...If large-scale fighting had developed, it could have spilled across the open borders of the Canal Zone...
...Credence is given to reports that Mr...
...Canal Zone purchases of such native products as meat and beer...
...Pressure In Peru, however, the Americans do feel obliged to apply pressure to protect direct U.S...
...pressure, and apparently been jolted by it...
...pressure will be keyed to consultations with other Latin nations...
...intent to shove the two military regimes toward new free elections, and thus with "reasonable speed" revive constitutional rule under fresh civilian leadership...
...As one pretext for seizing power, the military group headed by Maj...
...officials had decided it probably wasn't going to happen...
...The Panamanian government is heavily dependent on various U.S...
...would be glad to escape any military intervention in his favor is that it would arouse a storm of protest elsewhere in Latin America...
...Instead, the U.S...
...As Secretary of State Rusk was already on record as denouncing the coup d'etat, it would then have been difficult for the U.S...
...experts are confidently predicting "a satisfactory settlement" of the oil dispute...
...There won't be any U.S...
...Just the sugar loss would deprive Peru of about $42 million a year in hard currency earnings, and ruin its credit rating all around thl world for vital imports...
...Arias had actually begun building arms caches for his own private army...
...And another reason the U.S...
...Agency for International Development...
...might soon be involved in actual fighting in Panama...
...armed intervention...
...Today the State Department is likely to announce it is "suspending" diplomatic relations with Panama, but in practice the U.S...
...Some U.S...
...Jose Pinilla and Col...
...In addition, Panama's economy is heavily dependent on U.S...
...Arias has in the past been credited with a real capacity to stir the impoverished city people of Panama to angry mob action...
...All such U.S...
...Juan Velasco has attacked a major American oil investment in Peru-taking over oil fields, refining and other facilities of International Petroleum Corp., a subsidiary of Standard Oil Co...
...Officials here contend this country has powerful economic leverage in both situations, and is willing to use it...
...This means not only that Peru is threatened with loss of its Alliance-for-Progress aid from the U.S...
...It was in that sanctuary, apparently, that he taped an appeal-broadcast Sunday by clandestine radio-for citizens to "take up arms" and do battle in the streets...
...Officials here stress that an Act of Congress (the so-called Hickenlooper Amendment) requires them to take forceful reprisal in cases of expropriation without compensation...
...The view is that their coup wasn't the fruit of prolonged plotting, but was improvised suddenly-apparently in genuine alarm that President Arias was moving to erode the independent strength of the guard and to create a rival armed group: A partisan "militia...
...Thus few tears were being shed here yesterday for the ousted president...
...we have to be careful where we put our feet," remarks one official...
...Maybe it was the rainy weather over the weekend," one of them mused...
...The thrust of the American argument will be that the national guard should display moderation and regard for human rights while it rules, and_ should move in orderly fashion toward new elections...
...has major business of its own pending with Panamasuch as getting a right-of-way to build a new sea-level canal-and it must make it clear that any application of economic pressure isn't concerned with that...
...Through quiet diplomacy, the juntas are rapidly being made aware of this intent...
...When he was overturned Friday night by the national guard, President Arias was granted sanctuary n the Canal Zone...
...We're the giant...
...attempt, however, to reinstall in office either deposed Panamanian President Arnulfo Arias or ousted Peruvian President Fernando Belaunde Terry...
...Arias won office...
...figures it "may have even greater leverage," as that country's large external debt is in critical need of refinancing...
...They seemed a little surprised by this apathy, in view of the recent electoral majority by which Mr...
...the next annual toll payment of $1.9 million is due in January...
...Peru at present is peculiarly susceptible to such pressure, because just when the junta took over, negotiations were well advanced for a crucial "debt rollover" which would involve big U.S...
...interests-as well as to press for moves toward restoration of constitutional government...
...In Peru, the U.S...
...armed forces at hand in the zone, about 12,000 men, so greatly outnumber the 4,800 in the Panamanian national guard...
...at any rate, the dangerous moment seems to have passed...
...But no immediate massive uprising occurred, and by late yesterday U.S...
...but with being cut out of its quota for sugar sales in the U.S...
...Though Washington certainly won't be in any rush to grant formal recognition to the Panamanian junta headed by Col...
...to remain idle-watching the national guard bloodily suppress a popular uprising-especially so when the U.S...
...won't feel at all inhibited about getting in contact with junta leaders and dickering about the directions of their policy...
Vol. 2 • September 1968 • No. 5
