Pubdate: Sun, 31 May 1998 Source: Associated Press Author: Juan Zamorano, Associated Press Writer US-PANAMA DRUG CENTER FALLS THROUGH PANAMA CITY, Panama (AP) -- Five months after the United States and Panama announced they would build a multinational anti-drug center on the rolling grounds of a U.S military base, the deal appears to have fallen through. President Ernesto Perez Balladares said Thursday the anti-drug center would amount to a continued U.S. military presence in Panama, despite his previous insistence it would not. The two countries began discussions in 1995 about a center to monitor anti-drug operations throughout the Americas, and negotiations formally began last year. The center would be built on the grounds of Howard Air Force Base, which the United States must abandon in 1999 under 1977 treaties signed by then-President Jimmy Carter and Panamanian strongman Gen. Omar Torrijos. Since 1992, the United States has monitored anti-drug operations from a small building on Howard. The announcement in December that the two sides had reached an agreement sparked strong opposition from many Panamanians who want U.S. soldiers out in 1999, and considered the center to be an extension of the nine-decade U.S. military presence in Panama. Perez Balladares assured his critics that the center wouldn't amount to a U.S. military presence. But he told a group of students on Thursday that Washington was trying to get a military base without paying for it after 1999. Some analysts believe Perez Balladares is trying to quiet critics in advance of an Aug. 30 referendum on whether to change the constitution to allow his re-election next year. Despite the shift, Foreign Minister Ricardo Arias said: ``We continue to explore the possibility of a center.'' U.S. Ambassador William Hughes said the United States isn't seeking to maintain troops in Panama. ``We can, and we do, project our power in the entire world without these bases,'' Hughes said. - --- Checked-by: Melodi Cornett