Panama Democracy and Economic Recovery Act

Panama Democracy and Economic Recovery Act- Makes certain policy declarations regarding Panama, including: (1) expressing support for a civilian democratic government in Panama; (2) expressing support for a transition to democracy in Panama using multilateral initiatives and other means; (3) pledging increased U.S. drug enforcement cooperation with a Panamanian Government committed to ending drug trafficking; (4) calling for economic assistance to Panama following the departure of General Noriega; and (5) expressing support for the strengthening of democratic institutions in Panama following his departure.

Provides for specified U.S. assistance to Panama if the President certifies to the Congress that: (1) General Noriega is no longer in power in Panama; (2) substantial progress has been made in assuring a separation of civilian and military functions; (3) the Panama Defense Forces will be limited to activities specified in the Panamanian Constitution; (4) constitutional guarantees have been restored in Panama; (5) Panama has agreed to cooperate fully with the United States in drug enforcement efforts; (6) Panama has agreed to enter into negotiations for a mutual legal assistance treaty; and (7) Panama has agreed to prevent drug-related money laundering. Includes among such assistance: (1) assistance to Panama for use in reducing its arrearages to international financial institutions; (2) emergency food assistance; (3) assistance for development and for democratic institutions for further implementation of the Panama Canal treaties; and (4) assistance to the Panamanian housing finance system.

Provides that certain restrictions and prohibitions on U.S. assistance to Panama contained in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 shall not apply in FY 1989 or 1990 if the President makes such certification. Provides that the cooperation with narcotic laws certification required by the Foreign Assistance Act of 1961 shall be deemed to have been approved by the Congress if the President submits to the Congress: (1) the certification described by this Act; and (2) a national interest certification with respect to Panama. Provides that the limitations on assistance to countries in default of loans made by the United States shall not apply to Panama if: (1) the President submits the certification described in this Act; and (2) Panama agrees that all such loans payable during FY 1989 and 1990 will be repaid within an agreed upon time period.

States that if the President makes the certification described in this Act: (1) the Overseas Private Investment Corporation and the Export-Import Bank should assist in the reconstruction of the economy of Panama; (2) the President should direct the Secretary of the Treasury to instruct the U.S. executive directors of various multilateral development institutions to seek to provide assistance to Panama; and (3) the President should urge other countries to help provide economic resources to assist Panama in the transition to democracy.

Authorizes the President to release funds held in the account at the Federal Reserve Bank of New York for the benefit of the Panamanian people after an audit of such account has been conducted and submitted to the Secretary and to appropriate congressional committees.

Calls on the President to furnish directly and through private and voluntary organizations or other nongovernmental agencies assistance: (1) in the form of donations of food or medicine; (2) for continued financing of education for Panamanians in the United States; and (3) to private organizations to strengthen democratic institutions and monitor human rights.

 
HR 3169 IH
101st CONGRESS
1st Session
 H. R. 3169
To support the people of Panama in their transition to democracy.
IN THE HOUSE OF REPRESENTATIVES
August 4, 1989
Mr. GEJDENSON introduced the following bill; which was referred jointly to
the Committees on Foreign Affairs and Banking, Finance and Urban Affairs
A BILL
To support the people of Panama in their transition to democracy.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Panama Democracy and Economic Recovery Act'.
SEC. 2. FINDINGS WITH REGARD TO PANAMA.
  The Congress finds that--
  (1) the security of the Panama Canal is a strategic national concern of
  the United States;
  (2) the people of Panama and the people of the United States have maintained
  warm and friendly relations;
  (3) the people of Panama have long struggled to achieve democracy and
  freedom in their country;
  (4) the United States has a vital interest in supporting the development
  and maintenance of stable, democratic institutions in Panama and throughout
  the hemisphere;
  (5) the United States is actively pursuing a multilateral approach in its
  foreign policy toward Panama and encouraging a multilateral resolution by
  working with our Latin American neighbors and especially the Organization
  of American States (OAS);
  (6) United States economic sanctions with respect to Panama have not
  forced the departure of General Manuel Antonio Noriega, head of the Panama
  Defense Forces;
  (7) General Noriega has been indicted by two Federal grand juries in
  Florida on drug trafficking charges;
  (8) General Noriega and his supporters thwarted the democratic process
  in Panama by fraud, manipulation of the process, and outright physical
  attacks on the recognized winners of the election; and
  (9) it will be important for the United States to rebuild relations with
  the Panama Defense Forces under a democratic government in which civilian
  and military functions are separated and the democratic process is upheld.
SEC. 3. POLICY DECLARATIONS REGARDING PANAMA.
  (a) SUPPORT FOR CIVILIAN DEMOCRATIC GOVERNMENT- The Congress--
  (1) condemns General Noriega's continued undermining of the democratic
  process in Panama;
  (2) declares its support for the efforts of the Panamanian people to foster
  constitutional, democratically elected government; and
  (3) calls on the Panama Defense Forces to honor the will of the Panamanian
  people to restore civilian democratic rule to Panama.
  (b) POLICIES TO BE PURSUED- The United States, in order to help bring
  about a solution to Panama's political crisis, pledges--
  (1) to foster the longstanding bond of friendship and mutual respect
  between the people of Panama and the United States;
  (2) to support multilateral, diplomatic initiatives by our Latin American
  neighbors, especially the Organization of American States, and others to
  assist Panama in the transition to democracy;
  (3) to assist the Panamanian people in returning to a free, fair, and open
  democratic system;
  (4) to provide immediate help in the form of economic resources and to
  forge a multilateral coalition to help rebuild the Panamanian economy
  following General Noriega's departure from power; and
  (5) to reaffirm and honor all United States obligations under the Panama
  Canal Treaties and other international agreements.
  (c) SUPPORT FOR TRANSITION TO DEMOCRACY- To support the Panamanian people
  in their transition to democracy and to help them rebuild the economy of
  Panama, the Congress supports the President in a United States strategy
  toward Panama based on the policies expressed in paragraphs (1) through
  (4), as follows:
  (1) MULTILATERAL INITIATIVES-
  (A) The Congress commends and supports the President in his multilateral
  approach to helping the Panamanian people in their struggle for democracy.
  (B) The Congress commends the work of the Organization of American States,
  other international organizations, and distinguished world leaders to
  bring about a peaceful and prompt resolution of the political crisis in
  Panama and the removal from power of General Manuel Antonio Noriega and
  strongly urges the Organization of American States to undertake further
  efforts to achieve those objectives.
  (2) DRUG ENFORCEMENT- The United States pledges to increase United States
  drug enforcement cooperation with a Panamanian Government committed to
  ending drug trafficking, and it expects the Government of Panama to agree
  to cooperate fully with the United States Government and other governments
  in pursuing illicit drug trafficking, transiting, and financing, and
  drug-related money laundering.
  (3) ECONOMIC ASSISTANCE-
  (A) Following the departure from power of General Noriega, the United States
  Government should provide economic assistance to the Panamanian people in
  cooperation with international financial institutions, other countries,
  and other donors.
  (B) United States assistance for Panama should include funds for
  use by Panama in reducing its arrearages to international financial
  institutions. This assistance should be complemented by the efforts of
  multilateral institutions and other donors to rebuild the economy of Panama.
  (4) FOSTERING DEMOCRATIC INSTITUTIONS- The Congress reaffirms United States
  support for the strengthening of democratic institutions in Panama.
SEC. 4. UNITED STATES ASSISTANCE FOR PANAMA.
  (a) CERTIFICATION ON TRANSITION TO DEMOCRACY- This section applies only
  if the President certifies to the Congress that--
  (1) General Noriega is no longer in power in Panama;
  (2) substantial progress has been made in assuring a separation of civilian
  and military functions;
  (3) the Panama Defense Forces will be limited to the activities specified
  for those forces in the Constitution of Panama;
  (4) freedom of the press, due process of law, and other constitutional
  guarantees have been restored in Panama;
  (5) the Government of Panama has agreed to cooperate fully with the United
  States in drug enforcement efforts;
  (6) the Government of Panama has agreed to enter into negotiations for
  a mutual legal assistance treaty providing for bilateral assistance in
  criminal matters, including the exchange of evidence in admissible form
  in investigative and judicial matters; and
  (7) the Government of Panama has agreed to take steps to prevent drug-related
  money laundering.
Such certification shall be effective for purposes of this section only after
the end of the 15-day period beginning on the date on which it is submitted
to the Congress.
  (b) INTERIM ASSISTANCE TO SUPPORT THE TRANSITION TO DEMOCRACY- In furtherance
  of the objectives of section 564 of the Foreign Operations, Export Financing,
  and Related Programs Appropriations Act, 1989 (Public Law 100-461) and in
  light of the developments since that section was enacted, that section
  shall not apply during fiscal year 1989 and, to the extent necessary to
  carry out subsection (h) of this section, during fiscal year 1990, if the
  certification described in subsection (a) is made and takes effect.
  (c) NARCOTICS LAW CERTIFICATION- If prior to submission of the 1990
  certification for Panama required under section 481(h)(2)(A)(i) of the
  Foreign Assistance Act of 1961--
  (1) the President submits to the Congress a national interest certification
  with respect to Panama under subclause (ii) of that section, and
  (2) the certification described in subsection (a) of this section has been
  made and taken effect,
then for purposes of section 481(h)(5)(B) of that Act, the Congress shall
be deemed to have enacted a joint resolution approving the certification
described in paragraph (1) of this subsection.
  (d) BROOKE AMENDMENT- If the certification described in subsection (a)
  is made and takes effect, section 518 of the Foreign Operation, Export
  Financing, and Related Program Appropriations Act, 1989 (Public Law 100-461),
  shall not apply with respect to Panama if the Government of Panama agrees
  that all foreign assistance loans payable to the United States during
  fiscal year 1989 and 1990 will be repaid within a period agreed upon by
  the Government of Panama and the Government of the United States.
  (e) ECONOMIC SUPPORT ASSISTANCE-
  (1) ASSISTANCE FOR REDUCING INTERNATIONAL ARREARAGES- To assist in the
  reconstruction of Panama, the President shall use the funds transferred
  pursuant to paragraph (2) to provide assistance to Panama, including use in
  reducing Panama's arrearages to international financial institutions. The
  United States expects that these funds would be supplemented by efforts
  of other international donors to rebuild the economy of Panama in order
  to help assure that the Government of Panama institutes its economic
  reconstruction efforts on the basis of sound economic policies.
  (2) TRANSFER OF FUNDS- If the certification described in subsection (a)
  is made and takes effect, the President shall transfer to the appropriate
  appropriation account such unobligated funds from such appropriation
  accounts as the President may determine.
  (f) EMERGENCY FOOD ASSISTANCE-
  (1) PUBLIC LAW 480- Except as provided in paragraphs (2) and (3), amounts
  made available for fiscal year 1990 to carry out the Agricultural Trade
  Development and Assistance Act of 1954 shall be used to provide emergency
  food assistance for Panama, if the certification described in subsection
  (a) is made and takes effect.
  (2) SECTION 416- Agriculture commodities made available under section 416(b)
  of the Agricultural Act of 1949 may be used to provide such emergency food
  assistance in lieu of an equal amount of commodities pursuant to paragraph
  (1) of this subsection.
  (3) DOMESTIC FOOD PRODUCTION IN PANAMA- This subsection applies only to the
  extent that the emergency food assistance provided for in this subsection
  would support, and would not hinder, domestic food production in Panama.
  (g) ASSISTANCE FOR DEVELOPMENT AND FOR DEMOCRATIC INSTITUTIONS FOR FURTHER
  IMPLEMENTATION OF CANAL TREATIES-
  (1) EARMARKING OF ASSISTANCE- If the certification described in subsection
  (a) is made and takes effect, amounts made available for fiscal year
  1989 and fiscal year 1990 to carry out chapter 1 of part I of the Foreign
  Assistance Act of 1961 (relating to development assistance) shall be used
  to provide assistance for Panama in accordance with paragraph (2).
  (2) TYPES OF ASSISTANCE- The assistance provided pursuant to this subsection
  shall be provided in accordance with the authorities of chapter 1 part I
  of the Foreign Assistance Act of 1961, including section 116(e) (relating
  to assistance to promote political and civil rights), and the authorities
  of section 534 of that Act (relating to administration of justice). Such
  assistance shall include--
  (A) assistance through private and voluntary organizations;
  (B) assistance for employment generating activities, especially through
  the provision of credit for small business and agriculture;
  (C) the use of funds to provide technical assistance for shelter and urban
  infrastructure projects and to support private sector initiatives;
  (D) the use of funds to support immediate and long-term activities to
  foster democratic political institutions, including legal education,
  judicial education, and the administration of justice.
  (h) HOUSING GUARANTY PROGRAM- If the certification described in subsection
  (a) is made and takes effect, in addition to the amount of guaranties
  otherwise authorized, guaranties may be issued during fiscal years 1989
  and 1990 under title III of chapter 2 of part I of the Foreign Assistance
  Act of 1961 (relating to housing guaranties) to provide assistance to the
  Panamanian housing finance system (including secondary mortgage market
  operations), which will also stimulate critically needed employment,
  construction, and community development.
  (i) OPIC AND EXPORT-IMPORT BANK ASSISTANCE- The Congress calls on the
  Overseas Private Investment Corporation and the Export-Import Bank, if
  the certification described in subsection (a) is made and takes effect, to
  assist during fiscal year 1989 and fiscal year 1990 in the reconstruction
  of the economy of Panama. Such assistance should include--
  (1) an investment mission to Panama sponsored by the Overseas Private
  Investment Corporation;
  (2) the extension by the Overseas Private Investment Corporation of
  investment guaranties with respect to Panama; and
  (3) expansion of the Export-Import Bank's Trade Credit Insurance Program
  for Central America to include Panama.
  (j) MULTILATERAL ASSISTANCE- The Congress calls on the President, if the
  certification described in subsection (a) is made and takes effect, to
  direct the Secretary of the Treasury to instruct the United States Executive
  Directors to the International Bank for Reconstruction and Development,
  the International Monetary Fund, and the Inte-American Development Bank
  to seek timely, sufficient assistance to Panama by those institutions.
  (k) OTHER BILATERAL ASSISTANCE FOR PANAMA- The Congress calls on the
  President, if the certification described in subsection (a) is made and takes
  effect, to urge the governments of other nations to help provide economic
  resources on a timely basis to help Panama in the transition to democracy.
  (l) FUNDS HELD IN ESCROW-
  (1) Subject to paragraph (2), the President may release funds held in the
  account at the Federal Reserve Bank of New York for the benefit of the
  Panamanian people pursuant to Executive Order number 12635 of April 8, 1988.
  (2)(A) Except as provided in subparagraph (B), the Secretary of the
  Treasury shall provide for a financial audit of the account described in
  paragraph (1) by an independent accounting firm. A report of such audit
  shall be prepared and submitted to the Secretary of the Treasury and to
  the appropriate committees of the Congress. In accordance with paragraph
  (1), funds held in such account may be released not less than 30 days
  after the submission of such report to the Congress.
  (B) The requirements of subparagraph (A) shall not apply to funds paid
  into such account by the Panama Canal Commission.
SEC. 5. HUMANITARIAN AND PRIVATE SECTOR ASSISTANCE.
  To the extent not prohibited under section 518 of the Foreign Operation,
  Export Financing, and Related Program Appropriations Act, 1989 (Public Law
  100-461), the Congress calls on the President to furnish directly and through
  private and voluntary organizations or other nongovernmental agencies such
  assistance as may be necessary and appropriate which involves (1) donations
  of food or medicine, particularly emergency food aid for needy mothers and
  children, (2) assistance necessary for the continued financing of education
  for Panamanians in the United States, and (3) assistance to private voluntary
  organizations to strengthen democratic institutions and monitor human rights.