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Noriega worked with the Central Intelligence Agency (CIA) from the late 1950s to the 1980s, and was on the CIA payroll for much of this time, although the relationship had not become contractual until 1967.[4]

From Wikipedia

Panama was part of the Spanish empire for 300 years (1538–1821). From the outset, Panamanian identity was based on a sense of "geographic destiny," and Panamanian fortunes fluctuated with the geopolitical importance of the isthmus. The colonial experience also spawned Panamanian nationalism as well as a racially complex and highly stratified society, the source of internal conflicts that ran counter to the unifying force of nationalism. Modern Panamanian history has been shaped by its transisthmian canal, which had been a dream since the beginning of Spanish colonization. From 1880 to 1890, a French company under Ferdinand de Lesseps attempted unsuccessfully to construct a sea-level canal on the site of the present Panama Canal. In November 1903, with U.S. encouragement, Panama proclaimed its independence and concluded the Hay/Bunau-Varilla Treaty with the United States. The treaty granted rights to the United States "as if it were sovereign" in a zone roughly 10 miles wide and 50 miles long. In that zone, the U.S. would build a canal, then administer, fortify, and defend it "in perpetuity." In 1914, the United States completed the existing 83-kilometer (52 mile) canal. The early 1960s saw the beginning of sustained pressure in Panama for the renegotiation of this treaty. From 1903 until 1968, Panama was a constitutional democracy dominated by a commercially oriented oligarchy. During the 1950s, the Panamanian military began to challenge the oligarchy's political hegemony. In October 1968, Arnulfo Arias Madrid, twice elected president and twice ousted by the Panamanian military, was ousted for a third time as president by the National Guard after only 10 days in office. A military government was established, and the commander of the National Guard, Brigadier General Omar Torrijos, soon emerged as the principal power in Panamanian political life. Torrijos' regime was harsh and corrupt, but his charisma, populist domestic programs, and nationalist (anti-U.S.) foreign policy appealed to the rural and urban constituencies largely ignored by the oligarchy. Torrijos' death in 1981 altered the tone but not the direction of Panama's political evolution. Despite the 1983 constitutional amendments, which appeared to proscribe a political role for the military, the Panama Defense Forces (PDF), as they were then known, continued to dominate Panamanian political life behind a facade of civilian government. By this time, General Manuel Noriega was firmly in control of both the PDF and the civilian government. The United States froze economic and military assistance to Panama in the summer of 1987 in response to the domestic political crisis in Panama and an attack on the U.S. Embassy. In April 1988, U.S. President Ronald Reagan invoked the International Emergency Economic Powers Act, freezing Panamanian Government assets in all U.S. organizations. In May 1989 Panamanians voted overwhelmingly for the anti-Noriega candidates. The Noriega regime promptly annulled the election, and embarked on a new round of repression. By the fall of 1989 the regime was barely clinging to power, and the regime's paranoia made daily existence unsafe for American citizens. Aftermath of urban warfare during the U.S. invasion of Panama On December 20, 1989, President George H.W. Bush ordered the U.S. military into Panama to "protect U.S. lives and property, to fulfill U.S. treaty responsibilities to operate and defend the Canal, to assist the Panamanian people in restoring democracy, and to bring Noriega to justice." The U.S. troops involved in Operation "Just Cause" Nonetheless Noriega, he retained U.S. support until February 4, 1989, when the Drug Enforcement Administration indicted him on federal drug charges. On February 25, President Delvalle issued a decree declaring that Noriega was relieved of his duties. Noriega ignored the decree, but instead instructed the National Assembly, dominated by the PRD, to remove Delvalle from office; Delvalle fled the country. Noriega claims that on March 18, 1988, he met with United States Department of State officials William Walker and Michael Kozak, who offered him $2 million to go into exile in Spain. According to Noriega, he refused the offer. In early 1988, an Associated Press story alleged he attempted to buy thousands of 9x19mm Parabellum Browning Hi-Power pistols from U.S. businessman and arms trader Leo Wanta.[6] The U.S. saw Noriega as a double agent (his State Department nickname was "rent-a-colonel"[citation needed]) and believed that he gave information not only to the U.S. and U.S. allies Taiwan and Israel, but also to communist Cuba. He also sold weapons to the leftist Sandinista government in Nicaragua in the late 1970s.[7]