New Panamanian president sworn in

PANAMA CITY, Panama, Sept. 1 (UPI) -- Panama's new president, Martin Torrijos, assumed office Wednesday to lead a nation engaged in a three-way diplomatic spat and suffering a flagging economy.

The 41-year-old Texas University educated economist -- the son of former Panamanian dictator Gen. Omar Torrijos (1968-1981) -- must immediately begin mending relations with nearby Cuba and Venezuela following his predecessor's controversial decision to pardon four Cuban dissidents serving sentences in Panamanian prison.

Last week, now former President Mireya Moscoso pardoned the men accused of plotting to assassinate Cuban dictator Fidel Castro in November 2000 during a summit in Panama attended by the Communist leader.

Among the men is one of Cuba's most wanted. Luis Posada Carriles, who is accused of orchestrating the 1976 crash of a Cuban passenger plane off the coast of Barbados.

Venezuela entered the diplomatic spat on Cuba's behalf when it condemned the pardons and criticized the United States for providing asylum to at least three of the Cuban dissidents.

Panama's decision has sparked a political backlash across the region, with Panama withdrawing its ambassador from Cuba, and Havana deciding to sever political ties with Panama. Venezuela withdrew its ambassador from Panama last Friday.

During his inaugural speech Wednesday, Torrijos attempted to quell Panamanians concerns over the diplomatic row and restore diplomatic ties with Cuba.