World Notes PANAMA

The first time he called on Panama's General Manuel Antonio Noriega, in September 1983, says Steven Kalish, he brought along a briefcase containing $300,000 in cash. When the meeting ended, Kalish left the satchel behind. "Noriega called me back," Kalish says, "and said I forgot my briefcase. I told him it was for him, and he smiled."

That is the story that Kalish, 35, a convicted drug dealer, told a congressional subcommittee last week. His testimony was the most damaging public testimony so far linking the Panamanian strongman to drug-smuggling operations. Kalish testified that he gave at least $650,000 to the general and his associates to help with drug deals and money laundering. Noriega had no comment on the charges. Meanwhile, a Miami grand jury is conducting a separate inquiry into drug-trafficking allegations against Noriega.