The World - News from May 12, 1988

American television network news broadcasts and a federal prosecutor reported that the United States has made a new offer to Panamanian strongman Manuel A. Noriega, proposing to drop U.S. drug-trafficking charges against him if he would leave power. But the Panamanian government and U.S. sources strongly denied that any offer has been made. The reported proposal was said to be part of an as-yet-unsettled deal under which Gen. Noriega would step down, probably in August, and stay out of Panama until after presidential elections there.