[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[April 7, 1992]
[Pages 552-553]
[From the U.S. Government Publishing Office www.gpo.gov]



Message to the Congress Reporting on Panamanian Government Assets Held 
by the United States

April 7, 1992
To the Congress of the United States:
    1. I hereby report to the Congress on developments since the last 
Presidential report on October 3, 1991, 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. The Office of Foreign Assets Control of the Department of the 
Treasury (``FAC'') has released to the control of the Government of 
Panama approximately $134 million of the approximately $137.3 million 
that remained blocked at the time of my last report. The amount released 
represents blocked financial accounts that the Government of Panama 
requested be unblocked.
    Of the approximately $6.1 million remaining blocked at this time 
(which includes approximately $2.8 million in interest credited to the 
accounts since my last report), some $5.5 million is held in escrow by 
the Federal Reserve Bank of New York at the request of the Government of 
Panama. Additionally, approximately $600,000 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 ac-

[[Page 553]]

counting 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 7, 1992.