CANAL ZONE TALKS WITH U.S. FALTER

PANAMA CITY, PANAMA -- The U.S. and Panama probably will abandon plans for
an international anti-drug center in the Panama Canal Zone, ending more
than 90 years of a U.S. military presence here, political analysts said
Sunday.

Their observations came a day after U.S. and Panamanian officials said they
stalemated on the deal, which would extend a role for U.S. troops beyond
Dec. 31, 1999, when Panama assumes full control of the waterway.

"I believe they are just letting it down softly, trying to not make a major
issue of it," analyst Roberto Eisenmann said.

"I believe it is finished because . . . the MCC (Multilateral
Counter-narcotics Center) can easily be established in Florida or Georgia
and be as effective as it would be in another country," Eisenmann said.

Checked-by: (Joel W. Johnson)