BOOKS: A MAN, A PLAN, A CANAL

JOHN LE CARRE WEAVES A TERRIFIC TALE ABOUT A BRITISH SPY IN PURSUIT OF A CONSPIRACY THAT DOESN'T EXIST

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During his more than 30 years of turning out literate, suspenseful, best-selling novels, John le Carre has played just about every imaginable variation on the themes of espionage and betrayal. But The Tailor of Panama (Knopf; 333 pages; $25) shows that he knows a few more tricks than he has so far revealed. How about, for example, a story of some eager beavers in British intelligence hot on the trail of a conspiracy that does not actually exist?

Harry Pendel, 40, is the outwardly prosperous proprietor of Pendel & Braithwaite, Limitada, a gentlemen's tailor shop that bears on its frosted-glass window the legend PANAMA AND SAVILE ROW SINCE 1921. Legend seems the right word because Harry thinks he is the only person in Panama City, including his wife Louisa, who knows the falsity of his front. There was no Braithwaite and no establishment on Savile Row. Harry is in truth an ex-con who did time for torching his Uncle Benny's London garment warehouse, at his uncle's request, for the insurance. His new life in Panama has been made possible by a wealthy friend of the grateful Benny.

Into Harry's shop one day walks Andrew Osnard, a presumed customer who slowly turns into a tormentor. Osnard reveals that he knows all about Harry's past and nearly as much about his present, especially his investment of Louisa's $200,000 inheritance in a money-losing rice farm. "I'm a spy," Osnard tells the stunned Harry. "Spy for Merrie England. We're reopening Panama."

Harry doesn't see what any of this has to do with him, so Osnard explains. Not only do Panama City's elite gather for fittings and gossip at Pendel & Braithwaite; Harry also personally tends to both the current Panamanian President and the general in charge of the U.S. Southern Command. "You're God's gift, Harry," Osnard says. "Classic, ultimate listening post." After the carrot comes the stick: "Why blow the whistle on old Braithwaite, make a fool o' you to your wife and kids, break up the happy home? We want you, Harry. You've got a hell of a lot to sell. All we want to do is buy it."

The trouble is that Harry, bribed and bludgeoned into cooperation, has no idea what he has to sell or what Osnard and his superiors back in London want to purchase. So Osnard drops clues that he picked up from his boss Scottie Luxmore before being posted, on his maiden spying mission, to Panama. He recalls Luxmore warming to the topic at hand: "Not only have the Americans signed a totally misbegotten treaty with the Panamanians--given away the shop, thank you very much Mr. Jimmy Carter!--they're also proposing to honour it." A frightful power vacuum will occur, Luxmore argues, when the U.S. cedes control of the Panama Canal to the Panamanians on Dec. 31, 1999. "Our task--your task--will be to provide the grounds, young Mr. Osnard, the arguments, the evidence needful to bring our American allies to their senses."

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