    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [April 23, 1991]
    [Page 415]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 415]]

    Message to the Congress Transmitting a Report on Panamanian Government
    Assets Held by the United States
    April 23, 1991

    To the Congress of the United States:
        1. I hereby report to the Congress on developments since the last
    Presidential report on October 27, 1990, concerning the continued
    blocking of Panamanian government assets. This report is submitted
    pursuant to section 207(d) of the International Emergency Economic
    Powers Act, 50 U.S.C. 1706(d).
        2. On April 5, 1990, I issued Executive Order No. 12710, terminating
    the national emergency declared on April 8, 1988, with respect to
    Panama. While this order terminated the sanctions imposed pursuant to
    that declaration, the blocking of Panamanian government assets in the
    United States was continued in order to permit completion of the orderly
    unblocking and transfer of funds that I directed on December 20, 1989,
    and to foster the resolution of claims of U.S. creditors involving
    Panama, pursuant to 50 U.S.C. 1706(a). The termination of the national
    emergency did not affect the continuation of compliance audits and
    enforcement actions with respect to activities taking place during the
    sanctions period, pursuant to 50 U.S.C. 1622(a).
        3. Since my last report, the Office of Foreign Assets Control of the
    Department of the Treasury (``FAC'') has released to the control of the
    Government of Panama approximately $180,000 of the $130.7 million that
    was blocked. The amount released represents blocked tangible property on
    which creditors' liens have been allowed to be executed.
        Of the approximately $132.76 million remaining blocked at this time
    (which includes approximately $2.2 million in interest credited to the
    accounts since my last report), some $131.7 million is held in escrow by
    the Federal Reserve Bank of New York at the request of the Government of
    Panama to fund a portion of Panama's arrearage to international
    financial institutions. Additionally, approximately $1.1 million is held
    in commercial bank accounts for which the Government of Panama has not
    requested unblocking. A small residual in blocked reserve accounts
    established under section 565.509 of the Panamanian Transactions
    Regulations, 31 CFR 565.509, remains on the books of U.S. firms pending
    the final reconciliation of accounting records involving claims and
    counterclaims between the firms and the Government of Panama.
        4. I will continue to report periodically to the Congress on the
    exercise of authorities to prohibit transactions involving property in
    which the Government of Panama has an interest, pursuant to 50 U.S.C.
    1706(d).

                                                                 George Bush

    The White House,
    April 23, 1991.