[Weekly Compilation of Presidential Documents Volume 29, Number 16 (Monday, April 26, 1993)]
[Pages 642-643]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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 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).

[[Page 643]]

    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.