VZCZCXYZ0000
RR RUEHWEB

DE RUEHZP #0661/01 2211239
ZNY CCCCC ZZH
R 081239Z AUG 08
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 2389
INFO RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHMFISS/DEPT OF HOMELAND SECURITY WASHINGTON DC
RHEFDIA/DIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEFHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RHMFISS/JOINT STAFF WASHINGTON DC
RHEHAAA/NSC WASHDC
RUEKJCS/SECDEF WASHDC

C O N F I D E N T I A L PANAMA 000661 
 
SIPDIS 
 
E.O. 12958: DECL: 08/06/2018 
TAGS: PREL PGOV ECON ETRD EWWT MASS SNAR PTER MARR
MOPS, PBTS, PM 
SUBJECT: PANAMA:  TORRIJOS URGES TAKING BILATERAL 
RELATIONSHIP TO NEXT LEVEL 
 
Classified By: AMBASSADOR BARBARA J. STEPHENSON.  REASONS:  1.4 (B) AND 
 (D) 
 
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SUMMARY 
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¶1. (C) Panamanian President Martin Torrijos urged Ambassador 
to work with Panama to strive to take the U.S.-bilateral 
relationship to the next level by undertaking to address 
shared security concerns, during the Ambassador's 
presentation of credentials to Torrijos on August 6.  After 
noting Panama's positive achievements during his tenure in 
restoring fiscal responsibility, continuing to foster a 
vibrant economy, and making in-roads to address 
socio-economic inequality, Torrijos turned to the gathering 
storm clouds on the horizon:  FARC activity in Panama's 
Darien province.  He noted that as Colombia continued its 
successes in combating the FARC, inevitably the FARC would 
become more active in Panama.  "If left unaddresssed, they 
(the FARC) will bring drugs, arms and crime to Panama," the 
president explained. "I don't want to have what happened in 
Ecuador happen in Panama."  Torrijos then reviewed GOP 
efforts to deal with the latest FARC incursion into Panama 
and ended by reaching out to the Ambassador for greater 
engagement on a range of issues -- from trade and other 
economic issues (such as canal expansion) to security -- in 
order to, as he put it, "take the relationship to the next 
level."  The normally reserved Torrijos was warm, cordial and 
engaging during his first encounter with Ambassador.  No 
sooner had Ambassador returned to the Embassy, than First VP 
and FM Samuel Lewis was on the phone seeking to get together 
on August 8 with his top advisor and Minister of Government 
and Justice Daniel Delgado to build on the positive meeting 
with Torrijos. 
 
------------ 
Welcome Back 
------------ 
 
¶2. (C) After receiving Ambassador's credentials, Torrijos 
warmly welcomed Ambassador back to Panama.  (Note: 
Ambassador served her first tour in Panama in the mid-1980s.) 
 Proud of Panama's economic achievements under his tenure, 
Torrijos told Ambassador that the secret to Panama's success 
story was first putting its fiscal house in order, then 
reforming the social security system (Caja de Seguridad 
Social) to put it on a more firm and solvent basis, and 
finally securing approval via referendum to ensure the 
continued vitality of the Panama Canal by launching the canal 
expansion project.  Torrijos noted that canal expansion would 
never have been viable with fiscal and social security 
reform.  In turn, the canal expansion project would enable 
the Panama Canal to handle larger ships and greater traffic 
thereby ensuring that the canal would remain a powerful 
driver of Panama's economy.  "When they come out, the new 
statistics will show that Panama has made significant 
in-roads in combating socio-economic inequality," Torrijos 
asserted.  He described addressing socio-economic inequality 
by ensuring greater access to opportunity for all Panamanians 
was "key" to ensuring the continued stability of Panama's 
democracy. 
 
--------------------------------------------- --- 
The Next Challenge: Addressing Security Concerns 
--------------------------------------------- --- 
 
¶3. (C) Having covered Panama's economic success story, 
Torrijos turned to Panama's new challenges on the security 
front.  He noted that on August 8 a FARC incursion had 
reached about 25 miles into Panama's Darien province where 
FARC elements sacked a small grocery story.  "As Colombia 
takes additional measures against the FARC," Torrijos said, 
"the group's activities in Panama will increase." Torrijos 
explained that he did not want what happened in Ecuador -- 
where a growing FARC presence brought in drugs, arms, and 
increased illegal activity -- to take place in Panama.  He 
then described in some detail the steps Panama was taking -- 
acquiring helicopters to be stationed in the Darien, for 
example -- to develop the capacity to defend itself against 
this threat, refraining in this his first meeting with 
 
 
Ambassador from explicitly asking for additional U.S. 
assistance.  He said that intelligence sharing with the U.S. 
had been key to Panama's ability to address the FARC threat. 
Furthermore, close cooperation with U.S. law enforcement was 
the primary reason Panamanian drug seizures were up. 
Torrijos expressed his desire to do more and to cooperate 
extensively to meet this mutual threat. 
 
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Threading the Needle on Militarization 
-------------------------------------- 
 
¶4. (C) "I am also trying to avoid fueling the specious 
anti-militarization arguments against security reform," the 
President told Ambassador.  The proposed reforms -- creation 
of a civilian intelligence service (SENIS), the joining of 
the National Maritime (SMN) and Air (SAN) Services into 
National Aero-Naval Service (SENAN), establishing a National 
Frontier Service (SENAFRONT) independent from PNP, and 
permitting a uniformed officer to head the PNP -- were much 
needed to give Panama the tools it needed to better confront 
today's security challenges.  The trick, Torrijos said, would 
be pushing through security reforms without sparking a battle 
that turned these reforms into a political litmus test as to 
whether or not Panama was "re-militarizing."  Torrijos said 
that he would like to send First VP and FM Samuel Lewis to 
brief Ambassador on Panama's security reform proposals. 
(Indeed, no sooner had Ambassador returned to the Embassy 
than Lewis reached out to seek an August 8 meeting with 
Ambassador.) 
 
------------------------ 
Handling PMG's Last Days 
------------------------ 
 
¶5. (C) National Assembly President Pedro Miguel Gonzalez, who 
is under U.S. federal indictment in connection with the 1992 
murder of a U.S. serviceman, would deliver his last speech on 
September 1 when his successor, expected to be Raul 
Rodriguez, was inducted, Torrijos noted.  Lewis commented 
that he could very well lash out at cooperation with the 
U.S., for example possibly taking aim at the bilateral 
Salas-Becker maritime cooperation agreement, complain about 
the annual PANAMAX multi-lateral exercise that will have just 
ended, and otherwise provide fuel to the "militarization" 
debate.  Torrijos concurred with Ambassador's view that 
visits by high-visibility U.S. military and security/law 
enforcement leaders should be forestalled until late 
September/early October. 
 
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Comment 
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¶6. (C) Normally reserved, Torrijos was more animated and 
talkative in this credential presentation ceremony than he 
normally is, Chief of Protocol Flavio Mendez commented to 
POLCOUNS.  Torrijos comprehensive tour d'horizon and special 
emphasis on Panama's security challenges provided valuable 
insights into Torrijos perceptions of Panama's achievements 
during his tenure and of the key challenges that lay ahead. 
Ambassador will host a lunch for First VP and FM Samuel Lewis 
and Minister of Government and Justice Daniel Delgado to 
receive a briefing from them on Panama's proposed security 
reforms; Post will report SEPTEL. 
STEPHENSON