    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [April 21, 1993]
    [Pages 475-476]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders Reporting on Panamanian Government
    Assets
    April 21, 1993

    Dear Mr. Speaker:  (Dear Mr. President:)
        1. I hereby report on developments since the last Presidential
    report on October 5, 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, President Bush issued Executive Order No.
    12710, terminating the na-

    [[Page 476]]

    tional 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 the President 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 $6.3 million remaining blocked at this time
    (which includes approximately $100,000 in interest credited to the
    accounts since the last report), some $5.7 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 accounting records involving claims and counterclaims
    between the firms and the Government of Panama.
        4. I will continue to report periodically 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,

                                                          William J. Clinton

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