This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 03 PANAMA 002417 
 
SIPDIS 
 
DEPARTMENT FOR WHA GREG SCHIFFER 
 
E.O. 12958: N/A 
TAGS: PTER ASEC KCRM EFIN KHLS KPAO PM LABOR HUMAN RIGHTSPOLMIL
SUBJECT: 2005 ANNUAL TERRORISM REPORT 
 
REF: STATE 193439 
 
Embassy point of contact for this report is Poloff Richard J. 
O'Shea, email oshearj@state.gov, phone number (011) 
507-207-7183. 
 
¶1.  (SBU)  Summary: Panama continues to be a strong partner 
with the U.S. in the global war on terrorism.  The Panama 
Canal is the country's most important economic asset.  Any 
act of terrorism that closes off the Canal could severely 
impact Panama's economy, the U.S., and other countries in the 
region that rely heavily on the Canal for commerce.  Panama's 
Public Forces (PPF) closely monitor the Revolutionary Armed 
Forces of Colombia (FARC) and United Self-Defense Forces of 
Colombia's (AUC) activities in the Darien Province, on the 
Colombian border.  The Government of Panama (GOP) has 
undertaken a review of the structure of the PPF and conducts 
exercises to ensure its ability to protect the Canal and 
residents of Panama against a possible terrorist act.  End 
summary. 
 
¶2.  (SBU)  SUPPORT IN INTERNATIONAL FORA: 
 
The GOP signed and ratified all twelve international 
counterterrorism conventions passed after September 11, 2001. 
 The GOP fully supports the Inter-American Convention Against 
Terrorism.  Panama was also one of the first countries to 
join the Coalition of the Willing. 
 
¶3.  (SBU)  SUPPORT TO THE U.S. WAR ON TERRORISM: 
 
On May 12, 2004 Panama signed the Proliferation Security 
Initiative (PSI) which allows U.S. forces to board Panamanian 
flagged vessels suspected of carrying weapons of mass 
destruction.  Panama maintains the world's largest ship 
registry, making PSI an important tool in countering 
terrorism.  The United States and Panama are discussing 
information exchanges on various security issues. 
 
Panama provides enhanced force protection for U.S. military 
vessels, including submarines, during "high value transits" 
(HVT) of the Canal.  USG officials have praised the GOP's 
level of support and security for HVTs.  In 2005, the PPF 
also supplied enhanced security for 80 ships carrying nuclear 
waste or nuclear cargo through the Canal.  During the recent 
visit to Panama by President Bush, the GOP permitted a 
sizable U.S. military presence to counter the possibility of 
a terrorist act. 
 
¶4.  (SBU)  SUPPORT TO INTERNATIONAL TERRORISM 
 
Panama has not/not made any public statements in support of a 
terrorist-supporting country on a terrorism issue.  The GOP 
has not/not provided any support to international terrorism, 
terrorists, or terrorist groups.  On the contrary, the GOP 
has spoken out against terrorism in many international forums 
and has signed or ratified all applicable international 
agreements concerning counterterrorism.  Panama currently has 
no recognized domestic terrorism organizations and no known 
terrorist activities occurred in Panama during 2005. 
 
¶5.  (SBU)  TERRORIST ACTIVITIES IN BORDER REGIONS 
 
Panama's remote border region with Colombia, the Darien 
province, has been used in the past as a rest and recreation 
point for the Revolutionary Armed Forces of Colombia (FARC). 
In January 2003, AUC narcoterrorists killed four Panamanian 
citizens in the village of Paya.  Following this tragic 
incident, Panama increased its border security in the Darien. 
 Panama has no army, however, the Panamanian National Police 
(PNP) with U.S. training and assistance established a 
permanent presence along the border with Colombia to prevent 
narcoterrorist operations.  In June 2003, Panama signed a 
border security cooperation agreement (Comision Binacional 
Fronteriza or COMBIFRON) with Colombia.  COMBIFRON provides a 
framework for sharing cross-border security information and 
encourages security-force cooperation on insurgent, drug, and 
illegal migrant issues.  Currently Panama is reviewing its 
security apparatus and is discussing the creation of a 
dedicated border patrol force.  The proposed Border Patrol 
Force will be a separate service from the PNP and have its 
own director and staff officers.  Panama believes a dedicated 
Border Patrol Force will result in higher professionalism as 
well as improved security on the borders with Colombia and 
Costa Rica.  The PNP in turn will dedicate more of its 
efforts to traditional police functions instead of rotating 
part of its force to the border to conduct paramilitary 
operations every 30 days. 
 
¶6. (SBU)  GOVERNMENT COOPERATION 
 
Panama remains as a transshipment point for arms, drugs, and 
smuggling of illegal aliens due to its highly developed 
commercial transport sector and shared border with Colombia. 
Colombia is home to the FARC and AUC, both designated as 
terrorist organizations by the State Department.  The GOP 
continues to closely monitor FARC activities in the Darien. 
Panama's National Maritime Service (SMN) works closely with 
the U.S. Coast Guard (USCG) in the Prisoner Transfer program. 
 This program transfers mostly narcotraffickers, whose 
revenues support the FARC and the AUC, to U.S. custody for 
prosecution.  Panamanian law enforcement authorities have 
also worked jointly with the U.S. Drug Enforcement 
Administration (DEA) to seize over 12 metric tons of cocaine, 
approximately 140 AK-47 rifles with magazines, and 36 other 
assorted weapons.  The PNP also transferred 85 prisoners to 
DEA for prosecution in the United States as a result of these 
operations, known as renditions. 
 
As part of a review of its security apparatus, the Panamanian 
Public Forces (PPF), the GOP is conducting joint training 
operations between the National Maritime Service (SMN), 
National Air Service (SAN), and the PNP on how to prevent a 
terrorist attack on the Panama Canal.  The Ministry of 
Government and Justice (MOGJ) uses classroom training, 
table-top exercises, and field visits to improve coordination 
between the PPF agencies.  Panama is also the sponsor and 
host of PANAMAX, an annual multinational exercise that 
simulates the defense of the Canal.  The 2005 exercise 
scenario dealt with a planned terrorist attack on the Canal 
and 15 nations, including the U.S., participated. 
 
The Colon Free Trade Zone is the second largest in the world 
and over 1800 companies operate there, importing and 
re-exporting goods from around the world, including the 
Middle East.  Due to its 20% unemployment rate, high level of 
poverty, and its use by drug smugglers, the adjacent town of 
Colon has a critical crime rate.  The GOP is concerned about 
the possibility of terrorist groups exploiting Colon's 
poverty and drug smuggling routes to further their goals.  In 
July 2005, President Torrijos announced a $24 million 
infrastructure development project for Colon to attack the 
root causes of Colon's problems and reduce the possibility of 
terrorist groups operating from Colon. 
 
Panama's Foreign Ministry, Council for Public Security and 
National Defense, Financial Analysis Unit, and the 
Superintendent of Banks are fully cooperative in reviewing 
terrorism finance lists.  In 2005, no terrorist assets were 
discovered.  The Panamanian legislature passed new 
legislation restricting possession of precursor chemicals and 
toughened laws on money laundering. 
 
Panama has not made any arrests, trials, or convictions of 
terrorists in 2005.  The GOP did not extradite or request 
extradition of any suspected terrorist to or from other 
countries during 2005.  The U.S. did not request Panama to 
extradite any suspected terrorists in 2005.  Article 24 of 
the Panamanian Constitution prohibits the extradition of 
Panamanian nationals for any reason and of foreign nationals 
for political crimes.  Also, the GOP will not extradite 
anyone for a crime punishable by death, unless the requesting 
country provides formal assurance that the individual will 
not receive a penalty greater than Panama's maximum sentence 
(for any crime) of 20 years imprisonment. 
 
Panama remains a low-threat post for indigenous terrorism and 
has recently been downgraded from "high" to "medium" on the 
State Department's Security Environmental Threat List (SETL) 
for transnational terrorism.  The GOP maintains a high level 
of cooperation in the war on terrorism. 
 
EATON