The World - News from June 6, 1989

Panama protested a toll increase for ships using the Panama Canal, calling it a unilateral U.S. decision that will hurt Latin America. The five U.S. board members of the Canal Commission approved the 9.8% increase June 1 at a meeting in Miami. None of the four Panamanian board members attended. Due to take effect Oct. 1, 1989, the toll increase is the first in six years. Canal officials maintain that the increase is needed to offset inflation as well as a drop in traffic and revenue. An operating deficit has been forecast for fiscal 1989 because of a drop in canal transits.