Wanted: Noriega

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The State Department has been trying for some time to persuade the general to step down in favor of a caretaker government that would pave the way for new elections. The indictment may make it more difficult for Noriega to arrange a graceful exit, though in any event the general has shown no sign of wanting to step down. Panama's Foreign Ministry last week released a predictable statement condemning the "new attack" against Noriega and questioning the credibility of Blandon and the other witnesses. The same day, 200 anti-Noriega demonstrators in downtown Panama City called for the general's resignation. Yet with anti-U.S. sentiment never far from the surface in Panama, the indictment may actually inspire support for Noriega.

Complicating matters are the U.S. citizens -- 10,000 troops and 40,000 civilians -- living in Panama. Although U.S. officials do not see an immediate threat, diplomats and military officers are urging Americans to be careful. "We're heading into a very, very rocky period," says an Administration official. The U.S. has pushed a thuggish ally into a corner, and now it can only wait guardedly for his reaction.