[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[October 5, 1992]
[Pages 1757-1758]
[From the U.S. Government Publishing Office www.gpo.gov]



Letter to Congressional Leaders Reporting on Panamanian Government 
Assets Held by the United States
October 5, 1992

Dear Mr. Speaker:  (Dear Mr. President:)
    1. I hereby report to the Congress on developments since the last 
Presidential report on April 7, 1992, 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. Of the approximately $6.2 million remaining blocked at this time 
(which includes approximately $100,000 in interest credited to the 
accounts since my last report), some $5.6 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 
ac-

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counts 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).
    Sincerely,

                                                             George Bush

                    Note: Identical letters were sent to Thomas S. 
                        Foley, Speaker of the House of Representatives, 
                        and Dan Quayle, President of the Senate.