William J. Hughes - U.S. Ambassador To Panama

U.S. Ambassador To Panama

Bill Hughes was nominated in early 1995 by President Bill Clinton to serve as U.S. Ambassador to Panama. He was confirmed by the U.S. Senate on September 29, 1995, and presented his credentials to President Ernesto Pérez Balladares in early November 1995. When he began his tour in 1995, Panama had become a major transit country for drugs mostly cocaine coming from South America, and money laundering was also a major problem. Panama has been viewed as “ideally positioned for illicit financial transactions and drug smuggling.”

As the Ambassador to Panama, Hughes was responsible for an Embassy of about 425 employees and 21 agencies, including a sizable law enforcement and intelligence component. The United States Southern Command was then based in Panama, so one of Hughes' major functions was to coordinate with the U.S. military. Most of the counter-narcotics missions were directed out of Howard Air Force Base in Panama. From the Multi-national Counter Narcotics Center (MCNC) at Howard, AWAC and other equipment was deployed into South America. The 177th Fighter Wing, based in Pomona, N.J. rotated out of Panama during his tour and provided air cover for the AWAC operations.

Hughes was also an ex-officio member of the Panama Canal Commission and was charged with the responsibility of coordinating the work of the Commission with the Republic of Panama. The central mission of the Commission as well as the Embassy was to lead a successful turnover of the Panama Canal in December 1999 and, as the principal U.S. representative in Panama, Hughes actively participated in the planning and execution process. The military was also responsible for turning over about six remaining military facilities to the Republic of Panama, and Hughes was the lead civilian representing the U.S. government. Between 1995 and 1998, most of the military facilities were turned over to Panama, including some of the more controversial properties such as the bombing ranges and target practice areas, where there was a presence of unexploded ordnance. This required many trips to Washington and meetings with the Panama Foreign Ministry, with Hughes serving as the lead representative for the U.S. In addition to his work overseeing the transfer of military bases and the coordination of the Canal and negotiation of transfer agreements, Hughes led the following efforts:

• Establishment of the first Financial Analysis Unit in the Southern Hemisphere

• Creation of a new initiative to combat alien smuggling, including an increase in the size of the U.S. Embassy to 21 agencies

• Passage of new laws patterned after those in the U.S. to set up an intellectual property regime in Panama, including the creation of a new enforcement unit to fight IP piracy. Formal training was provided to the new unit as well as a public program to create an awareness of the damage caused by IP piracy

• Substantial increase in the size of the Coast Guard, acquisition of surplus boats from the U.S., and the creation of refueling and provisioning stations along the coast, including on the Colombian border

• Creation of a forfeiture law to seize drug assets, including money, airplanes, boats and vehicles. By the time Hughes left Panama, the Coast Guard had seized about 10 vessels and was using them in the battle against the traffickers

• Development of a multi-force border control unit and a comprehensive strategy to combat smuggling at the border with Costa Rica. Most of the contraband seized was destined for the U.S.

• Hughes also participated with the Southern Command, the State Department and others in an effort to negotiate new Treaty rights to advance the U.S.'s counter-narcotics strategy in the Southern Hemisphere.