Monday, May. 09, 1988

World Notes PANAMA

He is reputed to have welshed on deals before. Still, the word in Washington last week was that General Manuel Antonio Noriega had reached a tentative agreement with the Reagan Administration to step down as commander of the Panama defense forces. The terms of the agreement remain fuzzy, but White House officials hinted at one major U.S. concession: Noriega might be permitted to remain in his country. "We have said we prefer him to leave Panama," said White House Spokesman Marlin Fitzwater, "but the policy issue is to leave power."

Among the unresolved details: when Noriega would resign and where he would go if he left Panama. With both sides eager to save face, one prospect was that Noriega would remain in the country a while longer, then emigrate for an extended period before returning home to settle.