European Stars and Stripes (Newspaper) - September 03, 1995, Darmstadt, Hesse                                1 sunday septembers 1995 . The stars and stripes Page 11 Clinton on planned u Between president Clinton and Panama Nian president Ernesto Perez Balladares is forcing both sides to focus on the Issue. The subject of the bases is not on the Agenda officially but the theme of .-panamanian relations beyond the year by Bradley Graham Washington Post Washington As the withdrawal of . Troops from the Panama canal area accelerates american and Panama Nian officials Are having second thoughts about the pullout and anticipate holding 2000 is the umbrella for the meeting so i preliminary talks on possibly extending would t be surprised if the Issue came.,_ try .,._ -._. Nor up in basically an exploratory Way said Ricardo Alberto Arias Panama s Ambas Sador to Washington. I think the subject will gain momentum after  while Clinton has yet to sign off on a negotiating strategy . Officials pre ing the Panama canal treaty 18 years sparing for wednesday s meeting say the ago. The Issue is particularly sensitive in two presidents May agree to begin what  one official called informal discussions about whether keeping us. Troops in Panama would be in the Mutual interest the . Military presence past 1999,when the canal itself reverts to Panama Nian control the United states and Panama have avoided official discussions about a sustained . Military presence since sign Panama where recent polls indicate Large majority of people worried about economic losses and erosion of National Security resulting from the. Exodus favor having some .  the of both countries if agreement eventually is reached on government concerned about a backlash maintaining some troops the two coun of National Pride and about its reputation tries would need to negotiate a Basing among other nation sin the Region is Ner rights Accord or leasing arrangement sep Arate from the canal treaty which would remain  to avoid raising panamanian expectations that the United states might be willing to pay much if anything for continued tenancy administration officials express Little More than mild inter est in the idea of keeping troops in Pana opus about asking.  officials also have been ambivalent about maintaining troops in Panama. On the one hand the Pentagon ideally would like to keep Howard fab the Only Large . Air base in Central or South America As Well As several Spe Cial facilities used for counter drug activities Jungle warfare training and Small a. Their reserved attitude appears to be boat  the other hand some senior defense officials fret about Jive Cost of continuing operations in Panama at a time when bases Are being closed in the United states and . Diplomats worry about possible and verse reaction among other latin Ameri can states historically wary of . Military involvement in the Region. A meeting scheduled Here wednesday not just part of a negotiating pose but reflection of genuine . Ambivalence. If this thing gets too difficult to try Todo,.then it s dead a senior administration official said because people Here just Are not willing to expend a lot of political and financial capital on  the United states has no vital National Security interest in Panama itself . Officials  Washington retains the right to protect the canal under the per manent neutrality treaty also signed in1977, such defense could be managed easily by forces stationed in puerto Rico or the Continental United states Accord ing to military officials. Moreover the army which Wouldhave to Bear much of the currently unbudgeted Cost of a sustained presence i Panama would be hard pressed to come up with the extra Money. But Gen Barry r. Mccaffrey who Over sees military operations in latin America As head of the . Southern come has recommended keeping As Many As 5,000 troops in Panama about half the number that were in Panama before the withdraw als began in Earnest last year. Mccaffrey cites Strong operational arguments for retaining Howard which serves As a Hub for counter drug activities search and Rescue efforts humanitarian operations and military deployments in the Region. He also favors no Dirig ont several other facilities related to counter drug activities Jungle training naval instruction and special forces. The most persuasive argument for keep ing troops in Panama . Officials say has More to do with the technical advantage of retaining these few facilities rather than with any larger strategic or political considerations. But some proponents of a continued . Presence also make the Case i would contribute to stability in Panama bolster International Confidence in these purity of the canal and reinforce washing ton s commitment to the Region. The 1977 Panama canal treaty provided for the gradual withdrawal of themore than 10,000 . Forces from Panama by 1999 and the orderly takeover of the . Military installations. Overseas and stateside. X stateside free rate quotations. Offices near most military bases peace of mind insure your vehicle before you leave the overseas area. Pick up your car at Portland drive away with with these valuable benefits overseas toll free service in .,Call 1-800-841-3000. Low Down payment and monthly payment plans.  payments in dollars. Policy translated int English offices throughout Europe to serve you. Maintain continuous driving record no matter How Man times you move. Monthly payment plan. J Contact one of Goco s european offices. Azores azores 095-53467. 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