Lawmaker accused of U.S. killing eyes top Panama job

PANAMA CITY (Reuters) - Panama's ruling party has nominated a lawmaker who was indicted for the murder of a U.S. soldier in the 1990s as its candidate to head the National Assembly in a vote likely to upset Washington.

The Revolutionary Democratic Party backed Pedro Miguel Gonzalez on Tuesday night to lead the country's parliament, making him almost certain to win the job at a September 1 vote.

Gonzalez, 42, was indicted in the United States on charges that he shot dead U.S. Army Sgt. Zak Hernandez in June 1992, a day before a visit by former President George Bush.

At a tense time following the 1989 U.S. invasion and capture of Panamanian strongman Manuel Noriega, the Puerto Rican soldier was killed when the Humvee he was driving was ambushed north of Panama City.

Gonzalez said he was at a demonstration miles away to protest the Bush visit at the time of the shooting, and he was acquitted at a 1997 trial in Panama.

Washington says the trial was marred by jury rigging, witness intimidation and government harassment, and Gonzalez is still wanted in the United States.

But Panama has refused to extradite him and has warned Washington not to try to influence the parliamentary vote on Sept 1.

"This is an internal political issue," said President Martin Torrijos, although he also described claims that the United States asked for Gonzalez's candidacy to be withdrawn as speculation.

Veteran opposition leader Guillermo Ford said picking Gonzalez to lead the National Assembly would provoke an unnecessary conflict with the United States, which is Panama's top trading partner and built its famed 50-mile (80-km) canal.

"Why do we need to provoke a new confrontation, a row with the United States?" he said.