PARTNERSHIP WITH PANAMA: ACTION PLAN TO FOSTER ECONOMIC RECOVERY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP01M00147R000100350002-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: August 9, 2011
• Sequence Number: 2
• Publication Date: January 24, 1990
• Content Type: MEMO

Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
EXECUTIVE SECRETARIAT
ROUTING SLIP
ACTION
INFO
DATE
INITIAL
1
DCI
2
DDCI
3
D/ICS
X
4
DDA
5
DDI
6
DDO
7
DDP&C
8
DDS&T
9
IG
10
COMPT
X
11
D/OCA
12
GC
X !5
JAN 91
13
Chm/NIC
x
14
D/PAO
15
COUNSEL/DCI
16
D/ALA/DI
17
C/LA/DO
x
18
I0/LA
X
19
20
21
22
25 Jan 190
Date
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
2S Jan 190
Date
EXECUTIVE SECRETARIAT
ROUTING SLIP
ACTION
INFO
DATE
INITIAL
1
DCI
DCI
x
X-
D/ICS
X
4
DDA
5
DDI
6
DDO
7
DDP&C
8
DDS&T
9
1G
10
COMPT
x
11
D/OCA
12
GC
13
Chm/NIC
x
14
D/PAO
15
COUNSEL/DCI
16
D/ALA/DI
17
C/LA/DO
X
18
I0/LA
X
19
20
21
22
!_-tog - 4
N
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
EXECUTIVE SECRETARIAT
ROUTING SLIP
DDI
DDO
DDP&C
DDS&T
IG
COMPT
D/OCA
D/ALA/DI
C/LA/DO
I0/LA
ER 90-0398
ACTION
25 Jan 1.90
Date N S 0 3 L
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011 /09 : CIA-RDP01 M00147R000100350002
AV _-Z_V
No. NSD 34
COPY #12 (CIA)
NATIONAL SECURITY
COUNCIL
INFORMATION
Notice
The attached document contains classified National Security Council
Information. It is to be read and discussed only by persons authorized by
law.
Your signature acknowledges you are such a person and you promise you
will show or discuss information contained in the document only with
persons who are authorized by law to have access to this document.
Persons handling this document acknowledge he or she knows and
understands the security law relating thereto and will cooperate fully with
any lawful investigation by the United States Government into any
unauthorized disclosure of classified information contained herein.
Access List
DATE NAME DATE NAME
26 Jan 90 ER FILE
L--1 L -P:
1AW Idw W ivs D 3,
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
ER 90--0398
L 20100
CONFIDENTIAL COrnENI[
,
THE WHITE HOUSE
January 24, 1990
NATIONAL SECURITY DIRECTIVE S4
MEMORANDUM FOR THE VICE PRESIDENT
THE SECRETARY OF STATE
THE SECRETARY OF THE TREASURY
THE SECRETARY OF DEFENSE
THE SECRETARY OF AGRICULTURE
THE SECRETARY OF COMMERCE
THE SECRETARY OF HEALTH AND HUMAN SERVICES
THE SECRETARY OF TRANSPORTATION
THE DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET
THE CHIEF OF STAFF TO THE PRESIDENT
ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY
AFFAIRS
THE DIRECTOR OF CENTRAL INTELLIGENCE
CHAIRMAN, COUNCIL OF ECONOMIC ADVISORS
CHAIRMAN, JOINT CHIEFS OF STAFF
ADMINISTRATOR, AGENCY FOR INTERNATIONAL
DEVELOPMENT
ADMINISTRATORt ENVIRONMENTAL PROTECTION AGENCY
PRESIDENT AND CHAIRMAN, EXPORT-IMPORT BANK
OF THE UNITED STATES
ADMINISTRATOR, SMALL BUSINESS ADMINISTRATION
PRESIDENT AND CHIEF EXECUTIVE OFFICER,
OVERSEAS PRIVATE INVESTMENT CORPORATION
SUBJECT: Partnership with Panama: Action Plan to Foster
Economic Recovery (U)
The U.S. must make every effort to assist the Government of
Panama (GOP) and the Panamanian people in their efforts to
restore the health of Panama's economy. Private sector
initiative, supported by the. government's reform
policies, will be the ke;y to Panama' S recovery. TO assist
Panama, I direct that the following action plan be implemented
forthwith: (U)
I. Humanitarian Assistance
The Administrator of the Agency for International Development
shall initiate a $42 million humanitarian assistance program for
Panama, covering:
CONFIDENTIAL
Declassify on: OADR
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
replacement housing for the former residents of the
Chorillo area;
an emergency public works program, principally for
Panama City and Colon, but also including rural areas;
small business rehabilitation to assist those
businesses affected by the looting that do not have
access to theformal credit system; and
technical assistance to GOP agencies. (U)
The Secretaries of the Treasury and Defense shall develop ways to
assist U.S. firms wishing to donate products to Panamanian
businesses. (U)
II. Loans, Guarantees and Export Opportunities to Strengthen
Panama's Private Sector and to Create Jobs
The President of the Export-Import Bank (Exim) shall, consistent
with statutory criteria, provide up to $400 million in short-term
and medium-term guarantees, through Exim and its affiliate, the
Foreign Credit Insurance Association, to finance sales of
American products. (U)
The Administrator of AID shall, consistent with statutory
criteria, use $15 million in Trade Credit Insurance Program funds
authority to support additional Eximbank lending to private
sector borrowers. (U)
The President of the Overseas Private Insurance Corporation
(OPIC) shall reopen its insurance and finance programs to support
American private investment in Panama. (U)
The Secretary of Agriculture shall initiate, in cooperation with
appropriate agencies, a $15 million P.L. 480 Title 1 program and
a $15 million GSM 102/103 program for Panama. (U)
The United States Trade Representative shall:
restore Panama's Suspended 1990 sugar quota and,
consistent with U.S. policy, compensate Panama for its
foregone 1989quota;
initiate an educational program to ensure Panama makes
full use sf trade ibenefits under the Caribbean Basin
Initiative and Generalized System of Preferences
programs; and
remove the quota on cotton pants. (U)
The Secretary of Transportation shall arrange for the Federal
Aviation Administration to negotiate a Memorandum of Agreement
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
CONF1JENT1L
with the GOP on the provision of technical assistance, in order
to ease air travel to and from Panama. (U)
The Secretary of State shall, if the GOP so wishes, arrange that
the already-negotiated bilateral investment treaty be resubmitted
to Congress. (U)
The Secretary of the Treasury shall:
discuss with the GOP the conclusion of a Tax
Information Exchange Agreement(TIEA), thus permittin;,
U.S. firms, under established tax guidelines, to deduct
expenses of conventions held in Panama. A TIEA would
also make Panama eligible for Section 936 funds;
working with other interested agencies and
organizations, offer technical assistance to the
Panamanian banking sector;
initiate discussions with the GOP with the view toward
concluding an agreement pursuant to Section 4702 of the
Anti-Drug Abuse Act of 1988 for the exchange of large
currency transaction information. (U)
The Secretary of Commerce shall lead a business development
mission to Panama and undertake other efforts to stimulate trade
and investment with Panama. (U)
III. Department of Defense Assistance
The Secretary of Defense shall:
resume promptly preferential buying of Panamanian goods
and services by U.S. military authorities in Panama,
the Panama Canal Commission and all other U.S.
entities, in accordance with the provisions of the
Panama Canal Treaty of 1977;
undertake a training program aimed at providing repairs
to the Trans-Isthmian Highway and the Panama Railway,
necessary for support of normal DOD activities in
Panama;
authorize the return of U.S. military dependents to
Panama, when he determines the military situation
permits;
discuss with the GOP an acceleration of property
transfers from the U.S. military to Panamanian
authorities;
working with the Secretary of State, examine with the
GOP the possibility of widening the Panama Canal. (U)
CONFIDENTIAL
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
 Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7
CONFIDENTIAL
CONE! DEN T14L
IV. Rebuilding the U.S. Working Relationship with the GOP
The U.S. Ambassador to Panama shall submit recommendations for
staff and programs from other U.S. agencies such as AID,
Treasury, Commerce, Agriculture, Health and Human Resources, the
Environmental Protection Agency and the Small Business
Administration. (C)
The Secretary of State, working with theGOP and the Government
of Japan, shall urge resumption of the Panama Canal Alternative
Study Commission. (U)
V. Promoting Sustained Economic Recovery
Significant but temporary external economic assistance will be
required to assure that Panama's economy returns to a sustained
growth pattern. This undertaking will be a partnership involving
the United States, Panama, other donor countries and
international financial institutions (IFIs). (U)
The Secretaries of State and the Treasury, in cooperation with
the Director of OMB, are directed to seek an additional $500
million in FY 90 for U.S. assistance to Panama. This amount
shall be offset from other programs. They should develop a
legislative strategy to support this request. The $500 million
shall be used to help Panama normalize relations with the IFIs
for balance of payments support and business credit, for a public
investment program, for public sector restructuring and for
development support. (C)
The Secretary of the Treasury shall establish a Support Group of
friendly donor countries to help clear Panama's arrears to the
IFIs. Treasury will ask the IDB to play a special role in the
Support Group. (U)
The Secretaries of State and the Treasury shall work for an early
and generous rescheduling of Panama's debt to foreign governments
under the auspices of the Paris Club. (U)
The Secretary of the Treasury shall work toward the conclusion of
a satisfactory financing package for Panama's commercial bank
debt that addresses the amount of debt and the level of debt
service payments in the context of the strengthened debt
strategy. (U)
VI. Oversight
Agencies should report implementation of these activities to the
Assistant to the President for National Security Affairs who will
coordinate and review the implementation of this economic action
program. (U)
CONFIDENTIAL
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/08/09: CIA-RDP01 M00147R000100350002-7