PANAMA AND COLOMBIA, U.S. SHOULD ENCOURAGE REGIONAL COOPERATION

Colombia's well-known suffering at the hands of guerrillas and
narcotraffickers continues. As their evil alliance crosses the
Panamanian border to wreak havoc on Panama's fabled Darien province,
the leaders of Colombia and Panama will have to work together as never
before.

Unfortunately, Colombian rebel forces recently have delivered stinging
defeats to the Colombian army. That undermines Bogota's ability to
take care of its domestic responsibilities, much less to help its
neighbor. But given that Panama has no military forces to combat
incursions onto its territory, Panama City has no choice but to work
with Bogota as well as it can.

Recent electoral developments in both countries could help matters.
Three months ago, Andres Pastrana defeated a candidate from the
Liberal Party of former Colombian President Carlos Samper, whom many
observers believe accepted $6 million in drug money for his successful
presidential campaign in 1994. The repudiation of Mr. Samper's party
was encouraging, as is Mr. Pastrana's commitment to peace talks with
the rebel groups.

Meanwhile, the Panamanian people overwhelmingly voted against changing
their constitution to allow a president to run for re-election. The
defeat of President Ernesto Perez Balladares' initiative is bracing.
It came after he reportedly packed the Panama Canal Commission with
relatives and cronies, in anticipation of huge increases in public
spending on canal infrastructure. The electorate must have felt
vindicated recently when it learned that members of Mr. Perez
Balladares' party were being given favored treatment in acquiring
residences that once were used to house U.S. military officers.

Events on the Colombia-Panama border can only heighten U.S. concerns.
Instability and drug trafficking anywhere in the Western Hemisphere
are inimical to U.S. interests. The projected pullout of U.S. troops
by Dec. 31, 1999, raises the stakes considerably. Criminals and
extremists may feel even more emboldened to do as they please.

Still, after decades of employing the Panama Canal Zone as a
springboard for military missions in South America, the United States
should tread carefully. It should urge Panama and Colombia to
cooperate in their common fight, offer good-faith facilitation of
peace talks between Bogota and rebel groups, while continuing to offer
training, aid and intelligence if the situation deteriorates.

Checked-by: Rich O'Grady