SITREP AS OF 1130 HOURS LOCAL TIME

Created: 5/17/1968

OCR scan of the original document, errors are possible

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SU3JECT t SITREP AS8 HOURS LOCAL TlKCOURCES

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t. ASOWS OH HE HAT ZONAL GUARD (GM) STILL HAD NO CLUES AS TO THS KILLERfl CORPORAL THE fflEVlOUS NIGHT It* DOWNTOWW PAR AHA CITY.

CONCERHlhG THE IDENTITY OF THENEWS WED.'A CONTROLLED FY THE OPPOSING FACTIONS ARESOTH THE PRO-

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ABO THE PRO-SANUDIO MEDIA ARE CLAIMING THAT THEIS KNOWtt AND BELCBOEDOOB'sOUaD OF TKE OTHERSOME SHOTS WERE ALSO FIREO INIK1TY OF THE HOTEL PANAMA IH THE EARLY MARKING OF AY, BU NO CASUALTIES WERE REPORTED TO THE

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APPROVEDT.ART. DATE: 2

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general vallarinoeetingfficers on is hay at the commahdancja. attending were all the officers stationed in Panama city and environs, at.the meeting vallariho saio that he. wanted all of his officers to understand that he was in conmako of the

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AND THAT mis COMMANDS wouldceyed, HE went on to SAY THAT litNCEFOflTH ho gh OFFICER uoxd nix in THE pol IT ICALt UATjOH. aky OFFICER FOUHO 0OIN6 SO mould he DEALT with IMMED IATELY. aho harshly. the ON WOULD^ NAH ITS POSITION OF NEUTRALND HO OFFICERTTEMPT to DEVIATE from THAT H. VALLAR IBO

ebded the meeting by saying that if there were_ amy orncgS IN

DISAGREEMENT, they COULD LEAVE the on. NONE of THE OFFICERSAMYALLAR ino'S STATEMENTS.

ON THE HlflHT OFAY VALLARINO REK ABOVE LNFORMAT XOM, AND EXPRESSEO HIS IHTENT ION TO NOTIFY OH AY ALL OF HIS ZONE" CO-WANDERS THAT THEY WERE TO DE COMPLETELY IMPARTIAL. HE SAID HE WOULD HOT PERMIT THE gn TO BF USED FOR POLITICAL OAIH BY EITHER THE HU OR THE AP. HE SAID IF HE HAD TO DO IT OVER AGAIN, HE WOULD RAID THE AP HEADQUARTERS AS WELL AS THE nu. HE SAID HE SID NOT LIKE TO SEE THE-SPLIT IH PANAMA POLITICS (MEANING THE

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INC AWAY OF THE DISSIDENT PARTIES IN TIE FORMER GOVERNMENT COALITION) AND THAT, IN FACT, HE HAD MORE THUE FRIEBOS ON THE NU SIDE THAN ON THE AP SIDE. COIMEHT ING ON THE MURDER OF THE HE SAID IT UOULD NOT SURPRISE HIM IF IT HAD BEEN COWITTEQ BY PRO-GOVERNMENT PERSONS TRYING TO PUT THE 9LA*ff ON THE NU AND THUSE gk TO TAKE ACTION AGAINST THE

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ON THE RORKIKQ OF IS MAY THE ELETAS AND GENERAL VALLARINO WET WITH SOME REPU3LICAH PARTY LEADERS TO TRY TO WORKEAL. THE ELETAS ACKNOWLEDGED THATRIAS HAD WON THE ELECTIONAIRLY RIG MARGIN AND SAID THEY WERE WILLING TO ACKNOWLEDGEEFEAT OVER RADIO AND TV IF THIY WERE GUARAHGEED IMMUNITY FORAND THEIR COMMERCIAL INTERESTS. THE CM WOULD GUAR A* TtE THE AGREEMENT. IT WOULD ALSO EE UNDERSTOOD THAT VALLARINO WOULD STEP DOWN WITH HIS SUCCESSOR RE INC APPOINTED FROM WITHIN THE GUARDHAT TKE RANK STRUCTURE WOULD NOT BE DISTURBED. TIE MAIN 0HE6UOXD LOSE OUT UNDER SUCH AN ARRANGEMENT WOULD EE SAMUDIO, JOAO'JIN PKAVCO, AHD THEIR COLLABORATORS, SO QUITE NATURALLY THEY

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VOULDOUP D'ETAT IF NECESSARY. IT

IS NOT KNOWN WHETHER ARNULFO ARIAS WILL ACCEPT SUCH AN ARRANGEMENT

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WILL BE UP TO THE REPUBLICANS AND OTHER DISSIDENT PARTY LEADERS TO TRY TO CONVINCE HIM. [

AT ABOUT 0 HOURS ON AY MRS VALLARI WO, ACTING WITH THE OF THE GENERAL, DISCUSSED WITH INOCENCIO GALIUOO, HARRYND PABLO THAYER (ALL RELATIVES OF THE VALLAR NU SUPPORTERS) THEONVICTION THAT ARNULFO ARIAS HASELECTION AND THEEARS REGARDING PR OBABLE PERSECUTION

OF THE GN AND FRIENDS SUCH AS THE ELETA BROTHERS BY ARIAS. SHE AGREEDROPOSAL THAT JUAN DE AR CO OALINDO, NU LEADER WHO WAS NOT AT THE MEETING, APPROACH ARIAS ON AY TO DISCUSS THE SITUATION AND SECURE THE REQUIRED ASSURANCES.

EARLY ON THE MORNING OF AY VALLAR INO AND DEPUTY COMMANDERS MET WITH ARNULFO ARIAS, AUGUSTO "SAMY"DE ARCO CALINDO, AND RUBEN CARLES AT THE HOME OF STRUNZ. WAS CORDIAL, AND VALLAR INO REPORTEDLY SAID HE WOULDAS PRESIDENT-ELECT. IF THE RESULTS SHOWED ARIAS HAD WON THEACCEPT THIS AS THE WILL OF THE PEOPLE. ARIAS SAID HE WOXDRETALIATORY ACTION AGAINST THE GN, SAID ME WANTED THE GN TO

REMAIN NEUTRAL, AND THAT THE ON SHOULD ARREST ALL THOSE WHOl

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CRIMES, WHET HER THEY Be ftp OR NI> SUPPORTERS,

VALLARINO IS

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6LOWLY ISOLATING THET HIN THE

GK. iFIELDHIS OBSERVATION

NOT BE

LY OBJECT IVE

IS GENERALLY

HOWEVER,ER ilEl-ORTlNG TO THE

wallah UK) is rfiYlNG ic MOVE neutral POSITION WHILE

the roaswoa cltoub is trying to force the gn to stand firm

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THE PRINCIPAL MEMBERS

(;T- THEHUDIC GH0UP NOW ARK TORRIJOS, PUBLIC RELATIONS OFFICER -BOBBY' MUKaHDEZ, MAJOR FRKO BOYD, AND MAJOR JUAN EEHNAL. MAJOR RAMIRO SlL'JERA, WW HAS ACT EDO-BETWEEN,SLIPPEDlC. EDGE OF THE GROUP.

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3. AHNULF0 ARIAS IS VFJIY CONFIDENT AND STATES THAT A SOLUTION TO

OE SENT DIFFICULT POLITICAL SITUATION HAS BEEN FOUND. HE PREDICTED THAT THE GN WOULDHIHOURSWlTS WILLINGNESS TO ACCEPT THE DECISION OF THE NATIONALRD ASIE FUTURE PRESIDENT OF PANAItA p

HE CONSIOERS VALLARINO TO M IB CONTROL OF

NATIONAL GKARD Cll INC AS Atf EXAMPLEEPORTTHATOL.

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TORRIJOS HAD HEtW OFFERED THE POSITION OF COMMANDANT BUT HAD IMMEDIATELY REPORTED THE OFFER TO VALLARINO.

DISSEKt STATE, ARHY, NAVY, AIR, PANCANAL, CIHC30,

CIHCLAN1.

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s^cret^

Original document.

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