[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.