UNFAVORABLE REACTION TO AUSTERITY MEASURES ANNOUNCED BY GENERAL OMAR TORRIJOS ON 22 JANUARY

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06888279
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: March 9, 2023
• Document Release Date: September 17, 2021
• Case Number: F-2020-01126
• Publication Date: January 28, 1977

Approved for Release: 2021/09/17 C06888279
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UNFAVORABLE REACTION TO AUSTERITY MEASURES ANNOUNCED
BY GENERAL OMAR TORR 'JOS ON 22 JANUARY
REACT ION BY GOVERNMENT
()MCI ALS To GENERAL OMAR TORRIJOS HERRERA'S PUBLICLY
AVVOUNCEO INTENT ION TO REDUCE SALARIES OF HIGH GOVERNMENT
S E VIi T
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PAGE 2 OF 4 PAGES
FURTHER DISSEMINATION AND USE OF THIS INFORMATION SUBJECT TO
CONTROLS STATED AT BEGINNING AND END OF REPORT.
OFFICIALS HAS BEEN UNFAVORAi3LE.
COMMENT : THE PAY CUT
WAS ONE OF A NUMBER OF AUSTERITY MEASURES ANNOUNCED By TORRIJOS
DURING A CEREMONIAL SPEECH INAUGURATING THE FELIPILLO SUGAR MILL
ON 22 JANUARY.)
2,. COMMENTED THAT THE MAJORITY OF THE GN GENERAL
STAFF AND THE CABINET WERE CAUGHT :BY SURPRISE WHEN TORRIJOS
ANNOUNCED THE AUSTERITY MEASURES ON 22 JANUARY. HE SA ID THERE
IS A GREAT DEAL OF CRITICISM OF TORRIJOS FOR WHAT MOST OFFICIALS
CONSIDER A COSMETIC RATHER THAN REAL ATTEMPT TO RESOLVE THE
COUNTRY'S ECONOMIC PROBLEMS. MANY CIVILIAN OFFICIALS, HE SAID,
ARE APPALLED BY. WHAT THEY REGARD AS TORRIJOS' TOTALLY ARROGANT
PRETENSE FOR KNOWING HOW BEST TO DEAL WITH PANAMA'S ECONOMIC
SITUATION. SAID "OPPOSITION TO THESE MEASURES P: AS
IMMEDIATELY EXPRESSED IN PRIVATE BY MANY GOVERNMENT LEADERS
INCLUDING PRESIDENT DEmETRIO BASILIC) LAK AS AND VICE
PRESIDENT GERARD� GONEALEE VERNAZA.
3, SAID THE MOVE WOULD PROBABLY HAVE BEEN BETTER
RECEIVED, AND AT LEAST COORDINATED, HAD TORRIJOS DISCUSSED THE
MATTER WITH THE GENERAL STAFF AND HIS CABINET RATHER THAN PUBLICLY
ANNOUNCING A PROGRAM WITHOUT HAVING THOUGHT THE IDEA THROUGH.
S C RE T
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PAGE 3 OF 4 PAGES
FURTHER DISSEMINATION AND USE OF THIS INFORMATION SUBJECT TO
CONTROLS STATED AT BEGINNING AND END OF REPORT.
SAID TORRIJOS' STATEMENTS ABOUT THE AUSTERITY MEASURES
WERE SO VAGUE AND SWEEPING THAT THE GOVERNMENT WAS SUBSEQUENTLY
DELUGED WITH REQUESTS FOR CLARIFICATIONS. COMPLAINTS, AND
REQUESTS FOR EXEMPTIONS, HE SAID THAT SINCE TORRIJOS HAS
ALREADY ACQUIESCED To SOME REQUESTS FOR EXEMPTION, SUCH AS
TEACHERS, DOCTORS AND TECHNICIANS, HE MUST NOW BACK PEDDLE PI/RN
MORE, AND POSSIBLY EVEN SCRAP THE PROGRAM,
4'
SAID HE BELIEVED TORRIJOS BASIC INTENT WAS
CORRECT AND GOOD, BUT THAT HIS FAILURE To PLAN AND COORDINATE
HIS THINKING WITH HIS MILITARY AND CIVILIAN ADVISERSJ HIS
INABILITY TO ARTICULATE THE PLAN, AND HIS RELUCTANCE To HOLD THE
LINE ON EXEMPT IONS HAVE CAST THE PROGRAM'S FUTURE IN DOUBT.
5.
COMMENT: THE AUSTERITY MEASURES ANNOUNCED By
TORRIJOS UNDOUBTEDLY WERE ALSO INTENDED To BOLSTER THE IMAGE
OF THE GOVERNMENT IN THE PUBLIC EYE.
FOR THE FIRST TIME IN
RECENT YEARS SENIOR GN OFFICERS ARE CONCERNED ABOUT THE POPULAR
IMAGE Or AND SUPPORT FOR THE TORRIJOS GOVERNMENT.
ECONOMIC AN: POLITICAL PROBLEMS WITH THE STUDENTS
PRIVATE SECTORS ARE THE SOURCE oF THIS CONCERN.
SECRET
THE CHRONIC
LABOR AND
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FURTHER DISSEMINATION AND USE OF THIS INP1RMATION SUBJECT TO
CONTROLS STATED AT BEGINNING AND END OF REPORT.
SAID THAT IN LARGE PART, THE ABUSIVE AND WIDESPREAD CoRRuPTI
ON THE PART OF CIVILIAN AND MILITARY AUTHORITIES IS RESP �NS! F:;r4
THE EROS ION OF THE GOVERNMENT � s POPULARITY AND PRESTIGE.
SA ID T ORR' joS AND THE GENERAL STAFF HAVE DISCUSSED "TIGHTENING
AND CLEARING UP THE MoRE OBVIOUS CORRUPT PRACTICES," BUT NONE
OF THE SENIOR GOVERNMENT OFFICIALS WERE ENTHUSIASTIC ABOUT
RELINQUISHING THEIR INTERESTS IN EXTRAOFFI CI AL OR ILLEGAL MONEY
MAKING ENTERPRISES, THUS LITTLE OR NOTHING HAS BEEN DONE TO
IMPROVE THE SITUATION. )
6,
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