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Figure 3. Dispensation of Land Within the Former Canal Zone

Torrijos's Sudden Death

Omar Torrijos was killed in an airplane crash in western Panama on July 31, 1981. His death deprived Central America of a potential moderating influence when that region was facing increased destabilization, including revolutions in Nicaragua and El Salvador. His death also created a power vacuum in his own country and ended a twelve-year "dictatorship with a heart," as Torrijos liked to call his rule. He was succeeded immediately as Guard commander by the chief of staff, Colonel Florencio Florez Aguilar, a Torrijos loyalist. Although Florez adopted a low profile and allowed President Royo to exercise more of his constitutional authority, Royo soon alienated the Torrijos clique, the private sector, and the Guard's general staff, all of whom rejected his leadership style and his strongly nationalistic, anti-United States rhetoric. Royo had become the leader of leftist elements within the government, and he used his position to accuse the United States of hundreds of technical violations in the implementation of the canal treaties. The general staff considered the Guard to be the country's principal guarantor of national stability and began to challenge the president's political authority. Royo attempted to use the PRD as his power base, but the fighting between leftists and conservatives within the party became too intense to control. Meanwhile, the country's many and diverse political parties, although discontented with the regime, were unable to form a viable and solid opposition.

Torrijos had been the unifying influence in Panama's political system. He had kept Royo in the presidency, the PRD functioning, and the Guard united. The groups were loyal to him but distrustful of each other.

Florez completed twenty-six years of military service in March 1982 and was forced to retire. He was replaced by his own chief of staff, General Rubén Darío Paredes, who considered himself to be Torrijos's rightful successor and the embodiment of change and unity (Torrijos had been grooming Paredes for political office since 1975). In a press interview, Paredes stated that he had become "what some people sometimes call a strong man." Without delay the new Guard commander asserted himself in Panamanian politics and formulated plans to run for the presidency in 1984. Many suspected that Paredes had struck a deal with Colonel Manuel Antonio Noriega Moreno, who had been the assistant chief of staff for intelligence since 1970, whereby Noriega would assume command of the Guard and Paredes would become president in 1984. Paredes publicly blamed Royo for the rapidly deteriorating economy and the pocketing of millions of dollars from the nation's social security system by government officials.

In July 1982, growing labor unrest led to an outbreak of strikes and public demonstrations against the Royo administration. Paredes, claiming that "the people wanted change," intervened to remove Royo from the presidency. With National Guard backi6e0 king, Paredes forced Royo and most of his cabinet to rÍÍÍÍÍÍÍÍesign on July 30, 1982, almost one year to the day after the death of Torrijos. Royo was succeeded by Vice President Ricardo de la Espriella, a United States-educated former banking official. De la Espriella wasted no time in referring to the National Guard as a "partner in power."

In August 1982, President de la Espriella formed a new cabinet that included independents and members of the Liberal Party and the PRD Jorge Illueca Sibauste, Royo's foreign minister, became the new vice president. Meanwhile, Colonel Armando Contreras became chief of staff of the National Guard. Colonel Noriega continued to hold the powerful position of assistant chief of staff for intelligence--the Panamanian government's only intelligence arm. In December 1982, Noriega became chief of staff of the National Guard.

Data as of December 1987