[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.