Andy Osnard is an
MI6 agent reassigned to
Panama after having an affair in
Madrid with the foreign minister's mistress. His superior warns him of the corruption present in Panama, but Osnard views that as an opportunity. Consulting a list of British
expatriates residing in Panama, he meets Harry Pendel, the tailor to many of the country's elite. Pendel, a gifted storyteller, passes himself off as being formerly of
Savile Row, but is in fact an ex-con who used to run scams with his late uncle Benny. Pendel's American wife Louisa, the assistant to the administrator of the
Panama Canal Authority, is unaware of his criminal record. While Harry is a superb tailor, he is a bad businessman; his tailor shop is constantly in debt, and he owes $50,000 of Louisa's money to the bank for a failed farming business. Knowing that Pendel needs money, Osnard offers to help him if Pendel feeds him information about the elite of
Panama City. Pendel agrees and uses the money to pay off his debts and help his friend Mickie, a down-on-his-luck
alcoholic, and his assistant Marta, who was raped and disfigured by
Manuel Noriega's soldiers. However, Osnard soon requires better information, threatening to cut off the money and reveal that Pendel has been spying for a foreign government if he does not get what he wants. Pendel starts "tailoring" his stories, escalating the roles of friends to make them appear more significant than they are. He casts Mickie as a revolutionary who still holds sway over the youth of Panama, and his shop manager as the leader of an opposition movement. After fixing the suit of the
president of Panama (whose conversation consisted of his suit being too tight), he comes up with a tale that the president intends to sell the
Panama Canal to China. When an incredulous Osnard asks which,
Beijing or
Taiwan, Pendel replies "both." Osnard knows that Pendel is making up these stories but does not care as long as his superiors believe them. As Osnard passes along this misinformation (bypassing the embassy staff, apart from Francesca, a staffer he is sleeping with), it makes its way to
Washington, where military and government officials are alarmed and plan an invasion to prevent the canal from falling into Chinese hands. Pendel, meanwhile, seeks to end his spying, saying the opposition won't listen to him because it needs $10 million. He thinks the figure will put Osnard off, but Osnard relays a request to fund the opposition as a means to control Panama after this supposed revolution; he asks for $
15 million, which is granted by the
Pentagon. Osnard's superior arrives with a briefcase containing the money, ready to meet with the opposition, while American attack helicopters are preparing for an assault on the capital. The British ambassador uncovers what Osnard has been up to and threatens to reveal everything. Osnard pays for his silence and cooperation with $1.25 million. He manages to ditch his superior and make off with the briefcase. Meanwhile, Pendel gets a call from Marta, who tells him that Mickie has committed suicide out of fear that he would go to prison for his supposed revolutionary ties. Pendel blames himself for Mickie's death and resolves to thwart Osnard's plans. He waylays Osnard as he flees to the airport, but Osnard gives him the slip. Louisa, who has to fight off Osnard after she goes to investigate him and he attempts to rape her, finds out what Pendel has been doing and races to the Administrator's office. The Administrator contacts the president, who is able to contact the U.S. government and have the invasion called off shortly after it began. During the confusion, Osnard goes to the airport, where he meets the ambassador and hands him his bribe. The ambassador allows Osnard to get on an airplane. Pendel returns home to Louisa and tells her about his criminal past, and she forgives him. Osnard, meanwhile, escapes the country with the money. == Cast ==