PANAMA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90G01353R000400480018-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 23, 2016
• Document Release Date: August 15, 2012
• Sequence Number: 18
• Publication Date: March 10, 1988
• Content Type: MEMO

11 Declassified in Part - Sanitized Copy Approved for Release 2014/05/08:
ICIA-RDP90G01353R000400480018-1
THE FOLLOWING DOCUMENTS
ARE ATTACHED:
(Please do not remove)
/5X rg
no9a3
SUBJECT:
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S T
The Director of Central Intelligence
Washington. D.C. 20505
National Intelligence Council
NIC #00923-88
10 March 1988
MEMORANDUM FOR: Deputy Director of Central Intelligence
FROM: Deane E. Hoffmann
National Intelligence Officer for Economics
SUBJECT: Panama
1. Action: None, this is additional background for the NSPG on Panama.
2. Steve Danzansky told me this morning that the NSC is working on an
in-house compromise on IEEPA. Under the compromise, the White House would
issue a statement that the USG supports the court efforts of the Delvalle
government and would be ready to help if Delvalle lost the court case on
transfer of funds. That is, the USG is prepared to invoke IEEPA and to
apply it selectively to canal and pipeline revenues, if needed.
3. As to the internal State dispute, EB argues that invoking IEEPA
would pit the USG against Panamanians and, hence, would be
counterproductive. The ARA argument is that IEEPA would be a safety net
under the court order. Further, it would give US banks backing should they
be pressured to send cash to Panama.
4. Ted Truman at the Federal Reserve told me that Noriega will
ultimately be able to come up with cash overseas, and that the Fed would not
be able to detect or block shipments of cash from the United States to
replace overseas deliveries to Panama. Truman does not know how long it
will take Panama to find enough connections to arrange for these overseas
transfers. The importance of this is that no one in the USG can estimate
how long it will take for Panama to alleviate its cash problems. One
problem for Panama is that foreign banks who might supply cash are at risk
that access to compensation might be blocked.
5. It .seems to me events are moving very quickly:
Noriega cannot use drug money to fill in for hoarded cash
shortages. The government needs singles, fives, and tens for cash
purposes, not the larger bills used in the trade. Hence, there is
no short-term prospect for providing cash for the economy.
CL BY SIGNER
DECL OADR
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Payrolls are due next week both for electrical workers and pipeline
workers.
A strike by electrical workers would shut down the pipeline since
the pump station at the base of the mountains operates off the grid
and has no power backup.
6. Lastly, NSC is trying to get the Bank .of Boston to pay that portion
of pipeline receipts that cover expenses, withholding only the portion due
to Panama. The pipeline company cannot meet next week's payroll because of
the bank's interpretation of the court order.
4/AL4- 15 A
Deane E. Hoffmann
2
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SUBJECT: Panama
NIO/ECON/DEHoffmann:mjp
DISTRIBUTION:
Ori - DDCI (by hand)
- ER
1 - DD/ALA
1 - C/ALA/MCD
1 - AC/NIC
1 - VC/NIC
1 - NIO/LA
1 - NIO/ECON Subj
1 - NIO/ECON Chrono
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NIC #00923-88
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ROUTING SLIP
TO:
ACTION
INFO
DATE
INITIAL
AA
DCI
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2
DDCI
3
EXDIR
4
D/ICS
5
DDI
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DDA
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DDO
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DDS&T
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Chm/NIC
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GC
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IG
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Compt
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D/OCA
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D/PAO
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D/PERS
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D/Ex Staff
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C /LA/DO
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D/ALA/DI
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SUSPENSE
Date
Remarks
STAT
Extcoitivg.r13tigry
Date
3637 (10-81)
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SECRET
SECRET
MEMORANDUM FOR
SUBJECT:
There will be a
Thursday, March
The agenda for
(S)
Attachment
Agenda
ER 1025X-88
NAMCNNALSEOURITYCOUNCIL
wAsk4NoToN. D.C. 20506
March 10, 1988
MR. DONALD GREGG
Assistant to the Vice President
for National Security Affairs
MR. MELVYN LEVITSKY
Executive Secretary
Department of State
MR. ROBERT B. ZOELLICK
Executive Secretary
Department of Treasury
COL. WILLIAM M. MATZ
Executive Secretary
Department of Defense
MR. JOHN N. RICHARDSON
Assistant to the Attorney General
and Chief of Staff
Department of Justice
MR. L. WAYNE ARNY
Associate Director for National
Security and International Affairs
Office Of Management and Budget
Executive Secretary
Central Intelligence Agency
RADM. JOSEPH C. STRASSER
Executive Assistant to the Chairman
Joint Chiefs of Staff.
National Security Planning Group Meeting
March 10, 1988 (U)
902/4 alta
National Security Planning Group meeting on.
10, 1988 at 2:30 p.m. in the Situation Room.
the meeting, which concerns Panama, is attached.
SECRET'
Declassify on: OADR
Clet aeltoit
Paul Schott Stevens
Executive Secretary
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Thursday, March 10, 1988
Situation Room
2:30 p.m. - 3:30 p.m.
PANAMA
Agenda
SYSTEM I:
90214
opening Statement The President
It. Introduction Colin Powell
(5 minutes)
II/. Intelligence Assessment CIA
(5
minutes)
IV. Policy Recommendations State
(15 minutes)
V. Discussion
VI. Summary
All Parties
(30 minutes)
Colin Powell
(5 minutes)
FiZ1-2C75", f y 011
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Declassified in Part - Sanitized Copy Approved for Release 2014/05/08: CIA-RDP90G01353R000400480018-1