The Miami Herald
March 17, 2001

Ex-Panama leader's visa revocation raises new questions

                                      BY JUAN O. TAMAYO

                                     PANAMA -- A U.S. government decision to revoke the visa
                                      of former President Ernesto Pérez Balladares has raised
                                      fresh questions about allegations that he allowed Chinese
                                      migrants to use Panama as a springboard for sneaking into
                                      the United States.

                                      Was the sanction imposed only because of his
                                      acknowledged role in a 1999 scandal over 137 Chinese
                                      migrants? Or do U.S. authorities suspect he was involved in
                                      a separate scheme that smuggled ``thousands'' of other
                                      Chinese to the United States? Were the 137 crime bosses,
                                      maybe communist spies?

                                      Pérez Balladares' visa revocation was certainly a harsh blow
                                      to the man who revived the political wing of Gen. Manuel
                                      Noriega's military regime, the Revolutionary Democratic
                                      Party, and served as president from 1994 to 1999.

                                      Documents released recently by Pérez Balladares, who has
                                      denied any wrongdoing, show that the Consul General at the
                                      U.S. Embassy in Panama, Robert J. Blohm, notified him in
                                      a Sept. 27 letter that his visa had been revoked.
                                      OFFICIALS KEEP QUIET

                                      U.S. officials have confirmed only the visa was yanked under
                                      U.S. Immigration and Naturalization laws that sanction
                                      foreigners who aid others to enter the United States illegally,
                                      but declined further comment.

                                      Privately, officials in Washington say the sanction was the
                                      result of allegations that he knowingly allowed mainland
                                      Chinese to use Panama as a way station for entering the
                                      United States illegally.

                                      But U.S. officials have steadfastly refused to comment on
                                      the evidence against Pérez Balladares, triggering much
                                      speculation about the scope of his alleged involvement in the
                                      Chinese-smuggling scandal.

                                      U.S. Ambassador Simon Ferro, a Miami lawyer and former
                                      Florida Democratic Party chairman, said U.S. privacy
                                      regulations barred him from commenting on the evidence
                                      behind the visa revocation.

                                      ``The sensitivity of his position was well considered, and the
                                      conclusions are the conclusions,'' Ferro said.

                                      Pérez Balladares, a powerfully built man nicknamed Toro, or
                                      Bull, declined several Herald interview requests.

                                      But he has repeatedly claimed that Washington is punishing
                                      him for spurning U.S. attempts to leave behind a regional
                                      anti-narcotics center as the U.S. military prepared to close
                                      the last of its Canal Zone bases in 1999.

                                      He has blamed U.S. congressional conservatives critical of
                                      his government's decision to hire a Hong Kong firm with
                                      Beijing connections, Hutchison Whampoa, to administer and
                                      help develop Panamanian ports.

                                      Washington's refusal to provide any proof of the allegations
                                      against him ``corroborates, beyond any doubt, that there
                                      were hidden motives behind the decision,'' Pérez Balladares
                                      told reporters. He also has received a letter from the U.S.
                                      Department of Justice notifying him that no criminal charges
                                      will be filed in the case.

                                      Pérez Balladares has acknowledged that he pressured his
                                      intelligence service chief, Samantha Smith, to expedite her
                                      review of visa applications by 137 Chinese who wanted to
                                      visit relatives in Panama in 1998 and 1999.
                                      `SENSITIVE' VISITORS

                                      Smith had to sign off on visas for visitors from ``sensitive''
                                      nations -- China, Arab countries, Cuba, North Korea and
                                      India -- because of a previous scandal with Chinese migrants
                                      under former President Guillermo Endara.

                                      Pérez Balladares has claimed that he pressured Smith only
                                      because leaders of Panama's 250,000-member Chinese
                                      community had complained about the slow pace of
                                      approvals for family reunification visas.

                                      He never had any hint the 137 Chinese intended to go on to
                                      the United States, and in fact has evidence that all but one
                                      are still living in Panama, the former president told a news
                                      conference last month.

                                      Smith told The Herald in 1999, however, that she had warned
                                      Pérez Balladares that the 137 Chinese ``obviously'' planned
                                      to slip into the United States. But he replied that he had
                                      already been paid for them. ``I have obligations . . .
                                      creditors,'' she quoted the former president as saying.

                                      Pérez Balladares told the news conference that he was
                                      referring to political debts with the Chinese community
                                      leaders, and denied having received any money for the visas.

                                      Smith and a half-dozen other top government officials,
                                      including the former president's personal secretary, also lost
                                      their visas over the scandal. Pérez Balladares fired Smith,
                                      but she has cooperated with U.S. investigators.

                                      Fueling the speculation about the reasons behind the harsh
                                      sanction on Pérez Balladares are allegations that the 137
                                      Chinese whose cases he pushed were not just poor people
                                      hoping to land a job in the United States.

                                      ``Pérez Balladares gave them preference, first-class
                                      treatment, so these were more than just people looking for
                                      work in a noodle shop in New York somewhere,'' said Al
                                      Santoli, a senior aide to Rep. Dana Rohrabacher, R-Calif., a
                                      longtime critic of the U.S. military withdrawal from Panama.

                                      ``Alien smuggling is just the tip of the iceberg. There are
                                      national security concerns at stake here, whether these
                                      people are high rollers or intelligence agents,'' Santoli said.