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### Viewing cable 05PANAMA2191, PANAMA PROPOSED MERGER OF AIR AND MARITIME

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05PANAMA2191 | 2005-11-02 16:56 | 2011-05-29 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Panama

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 03 PANAMA 002191

    SIPDIS

    SENSITIVE

    DEPARTMENT FOR WHA/CEN
    SOUTHCOM ALSO FOR POLAD

    E.O. 12958: N/A
    TAGS: PGOV PREL PM LABOR HUMAN RIGHTSPOLMIL
    SUBJECT: PANAMA PROPOSED MERGER OF AIR AND MARITIME
    SERVICES - INNOVATION OR A BAD MARRIAGE?

    SUMMARY
    --------
    ¶1.  (SBU)  An October 6 proposal by Panama's Minister of
    Government and Justice (MOGJ) Hector Aleman to combine
    Panama's National Maritime Service (SMN) and National Air
    Service (SAN) into a National Coast Guard (Guardacostas) as
    an efficiency and cost-saving measure drew criticism from
    former Panamanian President Guillermo Endara, who immediately
    labeled the plan unconstitutional.  In newspaper reports that
    showed the Government of Panama's (GOP) sensitivity to
    anti-remilitarization critics, Aleman seemed to argue that
    the proposed merger would help to prevent the SMN and SAN's
    evolution into strong military forces capable of threatening
    Panama's democracy.  The proposal partly is an attempt to
    reform the SMN and SAN which clearly suffer from
    underfunding, shoddy maintenance, and poor leadership but to
    succeed it will need much higher budget outlays.  Those look
    improbable.  End summary.

    Coastal Security
    ----------------
    ¶2.  Danilo Toro, MOGJ Chief of Staff, told PolOff that Panama
    needs a combined SMN-SAN Coast Guard to provide coastal
    security and protect infrastructure.  Toro believes the
    proposed Guardacostas doesn't violate Panama's constitution
    and the National Assembly only needs to enact new
    legislation.  Funding probably will emerge as the main issue.
     The new service will need improved equipment and maintenance
    procedures, and possibly new bases to provide better
    protection to the Panama Canal and leaky borders with Costa
    Rica and Colombia, Toro said.  Panama also wants to protect
    its Atlantic and Pacific coastlines that total over 1500
    miles in length and that are dotted by over 400 islands.

    Era of the bad feelings:1968-1989
    ---------------------------------
    ¶3.  (SBU)  Since Operation Just Cause removed Panama's
    military dictatorship and restored democracy in December
    1989, many Panamanians fear the remilitarization of their
    country and some bristle at the presence of U.S. forces even
    during off-shore exercises such as PANAMAX.  In 1994, Panama
    amended its constitution (article 310) to prohibit the
    establishment of a permanent military.  The constitution
    permits legislation to organize necessary police services
    which led to the creation of the Panamanian Public Forces
    (PPF) all under civilian control.  (Comment: the current SMN
    director wears a white Rear Admiral's uniform, an irritant to
    many anti-military Panamanians.  End comment.)  The PPF
    includes the Panamanian National Police (PNP), SAN, and SMN
    under the authority of the MOGJ.  The Ministry of the
    Presidency supervises the fourth element of the PNP, the
    Institutional Protection Service (SPI), the Presidential
    bodyguard.

    Immediate Response
    ------------------
    ¶4.  (SBU)  Shortly after Aleman's announcement about the
    proposed Coast Guard, former President Guillermo Endara and
    (separately) retired Noriega-era General Ruben Dario Paredes
    denounced the plan as unconstitutional.  Endara, Panama's
    president from 1989 to 1994, told newspaper reporters that
    the plan made him nervous.  Endara fears that concentrating
    power in a single organization could pose a threat to
    democracy.  Clear divisions between the PPF elements,
    established during his presidency, were designed to prevent a
    concentrating power.  Paredes labeled the proposed Coast
    Guard a violation of article 310 of the constitution and
    expressed fears that it would lead to an evolution of a
    "strong man" who could threaten Panama's democracy.
    (Comment: Paredes comments are somewhat ironical since he has
    first hand-knowledge of how "strong-men" emerge.  He won a
    power struggle to became chief of staff of Panama's Guardia
    Nacional after the death of Omar Torrijos in 1981, then
    forced Panama's President Royo to resign, but was eventually
    forced out of power by Noriega.  End comment.)

    Reorganization "a real possibility"
    -----------------------------------
    ¶5.  (SBU)  In January 2005, the SMN was shaken by the death
    of a marine recruit and in August by the drowning of three
    marines during a mock assault on an island in the Panama
    Canal.  Amid calls for his resignation, SMN director Rear
    Admiral Ricardo Traad drew heavy criticism for the deaths and
    for his frequent travel and comfortable lifestyle.   Toro
    spoke openly and confidently about the reorganization during
    his discussion with PolOff, adding that a final decision
    rests with President Martin Torrijos, Aleman, and the
    National Assembly.  Toro emphasized that the initial
    reorganization plan had been developed in June before the
    PANAMAX drownings, it was not a reaction to the tragedy as
    many newspaper accounts claimed.  He also said Panama cannot
    afford to continue wasting its money by funding the SMN and
    SAN as inefficient separate entities which always compete for
    scarce resources.  Toro did not discuss how joining the two
    services would save money.  Toro also emphasized the proposal
    does not represent a change in Panama's relationship with the
    United States or the Department of Defense.

    SMN/SAN: no real threat to democracy.
    -------------------------------------
    ¶6.  (SBU)  Neither the SMN or the SAN currently pose any
    threat to the GOP according to Embassy DOD officers.  Neither
    service has heavy weaponry, tanks, armored vehicles, attack
    helicopters or fighter aircraft to stage a coup.  Toro
    reminded PolOff that the PNP has over 15,000 members, much
    more than the SMN and SAN combined.  Currently three of the
    six SMN's lightly armed patrol boats are dry-docked due to
    corrosion problems.

    ¶7.  (SBU)  The SMN has only 700 members, 150 of whom are
    marines, but leadership at all ranks is poor.  Public
    criticism of its professionalism is rampant.  The SAN's aging
    fleet of helicopters and transport aircraft, the majority of
    which are over twenty years old, suffer from poor
    maintenance, often the result of high turnover of experienced
    mechanics to better paying jobs. The 700 member SAN has four
    unarmed T-35 trainer aircraft and two propeller driven C-212
    transport aircraft.  The rotary squadron of 14 aircraft
    consists of mostly UH-1 helicopters only five of which are
    currently airworthy.  Four of the helicopters are being
    cannibalized for spare parts.  Following a maintenance
    assessment by the Missouri Army National Guard in September,
    the Embassy has advised its personnel not to fly on
    Panamanian helicopters due to safety concerns.  Any threat
    posed to the GOP by the SAN/SMN could be answered by the over
    15,000 members of the PNP but that organization is also in
    the process of reorganization.

    The Canal is always the key
    ---------------------------
    ¶8.  (SBU)  Maritime security and protecting the Canal and its
    associated ports is crucial to Panama's economy, Toro
    emphasized.  Much of Panama's infrastructure such as its
    Atlantic-to-Pacific railway and communications systems are
    located on or near the Canal.  In an incident two weeks ago
    that rendered most of Panama's phone and computer systems
    inoperable, vandals cut a fiber optic cable in the Atlantic
    port city of Colon possibly believing it was copper wire that
    could quickly be sold for cash.  Toro feels this incident
    underscores the need for better protection of the country's
    infrastructure.  (Comment: an act of vandalism, such as the
    cutting of a phone cable is a problem for the police to
    prevent, not maritime forces.)

    A well-thought out plan?
    ------------------------
    ¶9.  (SBU)  When PolOff asked Toro what Panama needs to effect
    this proposed merger, he quickly provided a checklist agenda.
     Toro's checklist, although not detailed, provides a good
    overview of some of the problems with the current force
    structure.  Toro stated the plan must begin with the
    development of new doctrine focused on coastal defense, not
    just defending the Canal.  Next, the new Coast Guard would
    need additional naval bases and airports to base its
    operations.  Toro cited the need to increase resources for
    proper maintenance of ships and aircraft.  The final part of
    the plan is to increase training for all PPF members in the
    new service.

    Comment: Time for a fresh start?
    --------------------------------
    ¶10.  (SBU) The idea of creating a coast guard, possibly
    modeled along the lines of the U.S. Coast Guard (USCG), is
    innovative and shows both the GOP and MOGJ are willing to try
    new ideas to solve systemic problems in the SAN and SMN.  In
    some ways, starting a new organization might be easier than
    trying to repair the existing structure of the SMN and SAN.
    It also avoids potential disagreements about which service
    should receive new equipment at the expense of the other.
    Since the USCG is nominally a law enforcement agency under
    DHS, Panama's use of this model could address some of the
    existing public fears of remilitarization.
    Spend Money to Save Money?
    --------------------------
    ¶11.  (SBU)  The missing pieces in the plan are resources and
    training.  Simply merging the two poorly- equipped forces is
    not a solution.  Purchasing new helicopters and ships will be
    expensive and also pointless without proper maintenance.
    Though part of the justification for the reorganization is to
    reduce spending, the GOP will need to spend a considerable
    amount of money to ensure their plan succeeds.  The issue of
    training and professionalism in the PPF also needs to be
    addressed.

    Opportunity for the U.S.?
    -------------------------
    ¶12.  (SBU)  The drowning of three marines conducting what
    should be a basic military maneuver for them points to
    serious training deficiencies.  Panama faces a real challenge
    in creating a new organization from two troubled units and
    will look to the U.S. for guidance, training, and resources
    if it attempts to move forward with this major change.  The
    plan also presents the U.S. with an opportunity to assist in
    the creation of an organization that will better serve U.S.
    interests in a region frequently called "America's third
    border."  Aleman and Toro have said Panama cannot afford to
    continue operating both the SAN and SMN.  How Panama plans to
    fund a Coast Guard that will need new bases, equipment, and
    maintenance facilities is the critical issue.

    EATON

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