Foreign Military Assistance
Ever since the early post-World War II period, Panama has been
the recipient of some annual military aid under various programs
established by the United States government (see
table 19, Appendix
A). In a diplomatic message accompanying the Panama Canal treaties,
the United States agreed (pending congressional approval) to
provide up to US$50 million in credits under the Foreign Military
Sales (FMS) program. The credits were to be spread over the first
ten years of the treaty period.
In fact, FMS deliveries to Panama have risen dramatically in
the 1980s, from a mere US$187,000 in fiscal year (FY) 1980 to over
US$12 million in FY 1986. Assistance under the International
Military Education and Training Program also has registered a
steady increase from US$270,000 in FY 1980 to US$575,000 in FY
1985, with a slight drop to US$507,000 in FY 1986.
In late 1987, however, it remained to be seen whether and under
what circumstances Panama would continue to receive United States
military aid. The United States suspended all military and economic
aid to Panama in the summer of 1987, in response to Panama's
failure to take steps toward a democratic, civilian-ruled
government, in accordance with conditions associated with the
Panama Canal treaties.
Data as of December 1987