Created: 10/14/1968

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Pa"ana: Shooting occurredight in Panama City following line formal installation of thejunja'and cabinet, and new clashes between Arias^orces and the national guard may erupt today.

Arias yesterdayighly inflammatory statement, which may have been broadcastfor his followers to take up arms against the guard, in addition, leaflets wore circulating urging people to go into the streets. Somendicate that Arias supporters hope to organize disturbanceseneral strike today. Conmunist elements probably would join in any violent action, but they are remaining aloof for the time being until other forces take the initiative. In the past, efforts by Arias toeneral strike have failed.

moved qulctiy over trie Weeken'u tu rouna up potential Patrols entered the un:versity"andraterials for molotov cocl.tails. Junta forces can be expected to takection against student militants who try to precipitate disorders.

Efforts by the military leaders to seek the cooperation of as many parties as possible have continued, as they attempt to cloaj; their take-overemblance of broadly based popular support. Most members of Arias' National Un:.on coalition, however, are reluctant to desert the ousteduntil it appears clear that he will not return to power.

If*ths provisional military junta manages to make its authority stick, as now scorns probable. Arias] partners probably will switch their support to gain seme voice in the new government. I



Oct 68

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Original document.

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