Executive Order 12635—Prohibiting Certain Transactions With Respect to Panama

By the authority vested in me as President by the Constitution and laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3 of the United States Code, I, Ronald Reagan, President of the United States of America, find that the policies and actions in Panama of Manuel Antonio Noriega and Manuel Soils Palma constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and hereby declare a national emergency to deal with that threat. Section 1. I hereby order blocked all property and interests in property of the Government of Panama that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of persons located within the United States. For purposes of this Order, the Government of Panama is defined to include its agencies, instrumentalities and controlled entities, including the Banco Nacional de Panama and the Caja de Ahorros. Sec. 2. Except to the extent provided in regulations which may hereafter be issued pursuant to this Order: (a) Any direct or indirect payments or transfers from the United States to the Noriega/Solis regime of funds, including currency, cash or coins of any nation, or of other financial or investment assets or credits are prohibited. All transfers, or payments owed, to the Government of Panama shall be made into an account at the Federal Reserve Bank of New York, to be held for the benefit of the Panamanian people. For purposes of this Order, the term "Noriega/ Solis regime" shall mean Manuel Antonio Noriega, Manuel Solis Palma, and any agencies, instrumentalities or entities purporting to act on their behalf or under their asserted authority. (b) Any direct or indirect payments or transfers to the Noriega/Solis regime of funds, including currency, cash or coins of any nation, or of other financial or investment assets or credits, by any United States person located in the territory of Panama, or by any person organized under the laws of Panama and owned or controlled by a United States person, are prohibited. All transfers, or payments owed, to the Government of Panama by such persons shall be made into an account at the Federal Reserve Bank of New York, to the held for the benefit of the Panamanian people. For purposes of Section 2(b), "United States person" is defined to mean any United States citizen, permanent resident alien, juridical person organized under the laws of the United States, or any person in the United States. Sec. 3. Sections 1 and 2 shall not be deemed to block property or interests in property of the Government of Panama, including, but not limited to, accounts established at the Federal Reserve Bank of New York as described in section 2, with respect to which transactions are authorized by, or on behalf of, the recognized representative of the Government of Panama as certified by the Secretary of State, or are otherwise authorized in regulations which may hereafter be issued pursuant to this Order. Section 2 shall not be deemed to prohibit interbank clearing payments. Sec. 4. The measures taken pursuant to this Order are intended to extend the effectiveness of actions initiated in cooperation with the Government of Panama and its President, Eric Arturo Delvalle, and are not intended to block private Panamanian assets subject to the jurisdiction of the United States or to prohibit remittances by United States persons to Panamanian persons other than the Noriega/Solis regime. Sec. 5. This Order shall take effect at 4:00 p.m. Eastern Daylight Time on April 8, 1988, except as otherwise provided in regulations issued pursuant to this Order. Sec. 6. The Secretary of the Treasury, in consultation with the Secretary of State, is authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to me by the International Emergency Economic Powers Act, as may be necessary to carry out the purposes of this Order. The Secretary of the Treasury may redelegate any of these functions to other officers or agencies of the Federal Government. Sec. 7. Nothing contained in this Order shall confer any substantive or procedural right or privilege on any person or organization, enforceable against the United States, its agencies or its officers, or the Federal Reserve Bank of New York or its officers. This Order shall be transmitted to the Congress and published in the Federal Register. RONALD REAGAN The White House, April 8, 1988. [Filed with the Office of the Federal Register, 12:04 p.m., April 11, 1988]