SITUATION IN PANAMA REMAINS EXPLOSIVE

Approved for Release: 2012/11/07 SECRET The Communist bloc has kept up a sustained propaganda campaign against the US on the Panamanian issue. Soviet com- mentary, while comparatively moderate, has pointed out that the US is trying to settle the crisis without yielding to any major Panamanian demand. Some of it has linked the crisis with Khrushchev's recent proposals for an international agreement renouncing the use of force in settling territorial disputes, claiming that events in Panama mad...