Urgent Assistance for Democracy in Panama Act of 1990
PL 101-243 (H.R.3952), enacted 02/14/1990

PUBLIC LAW 101-243—FEB. 14, 1990 
104 STAT. 7 
Public Law 101-243 
101st Congress 
An Act 
To authorize certain United States assistance and trade benefits for Panama, and for 
other purposes. 
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 "Urgent Assistance for Democracy in 
Panama Act of 1990". 
Feb. 14, 1990 
[H.R. 3952] 
Urgent 
Assistance 
for Democracy 
in Panama Act 
of 1990. 
TITLE I—PANAMA 
SECIOI. IMMEDIATE UNITED STATES ASSISTANCE. 
(a) ECONOMIC ASSISTANCE PROGRAMS.— 
(1) AUTHORITY TO USE FUNDS FOR ECONOMIC ASSISTANCE.— 
(A) IN GENERAL.—The President 
may 
use up 
to 
$32,000,000 of funds made available for economic assistance 
progrsims in order to provide economic assistance for 
Panama for fiscal year 1990 notwithstanding the provisions 
of law specified in subsection (c) of this section. 
(B) DEOBUGATION/REOBLIGATION AUTHORITY.—Funds may 
be made available for use under subparagraph (A) without 
regard to the limitation in section 515 of the Foreign Oper-
ations, Export Financing, and Related Programs Appropria-
tions Act, 1990 (Public Law 101-167), that funds deobligated 
under that section are av£iilable for reobligation only for 
countries within the same general region for which the 
funds were originally obligated. 
(C) ECONOMIC ASSISTANCE DEFINED.—As used in subpara-
graph (A), the term "economic assistance" means assistance 
under part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151 and following; relating to development and related 
economic assistance programs) and Eissistance under chap-
ter 4 of part II of that Act (22 U.S.C. 2346 and following; 
relating to the economic support fund). 
(2) AUTHORITY TO USE CERTAIN GUARANTY AUTHORITIES.—The 
President— 
(A) may use up to $10,000,000 of the guaranty authority 
available to carry out section 222 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2182; relating to the housing guar-
anty program), and 
(B) may exercise the authorities of section 224 of that Act 
(22 U.S.C. 2184; relating to the trade credit insurance pro-
gram for Central America), 
with respect to Panama for fiscal year 1990 without regard to 
the provisions of law specified in subsection (c) of this section. 
(b) LAW ENFORCEMENT ASSISTANCE.— 
104 STAT. 8 
PUBLIC LAW 101-243—FEB. 14, 1990 
(1) ADMINISTRATION OF JUSTICE PROGRAM.—Up to $1,200,000 of 
the funds made available for Panama under subsection (aXD of 
this section may be used to provide— 
(A) assistance authorized by subsection Ot)X3) of section 
, 534 of the Foreign Assistance Act of 1961 (22 U.S.C. 2346c; 
relating to the administration of justice program); and 
(B) training for the Public Forces and other civilian law 
enforcement forces of Panama in human rights, civil law, 
and investigative and civilian law enforcement techniques, 
notwithstanding section 660 of that Act (22 U.S.C. 2420; 
relating to the prohibition on assistance for law enforce-
ment forces). 
All assistance provided for Panama under this paragraph shall 
be counted toward the limitation contained in the second sen-
tence of section 534(e) of that Act and toward the requirement of 
the second sentence of section 599G(c) of the Foreign Oper-
ations, Export Financing, and Related Programs Appropriations 
Act, 1990 (Public Law 101-167). 
(2) USE OF MIUTARY ASSISTANCE PIPELINE FOR PANAMA TO 
PROCURE LAW ENFORCEMENT EQUIPMENT.— 
(A) AUTHORITY.—Prior year military assistance funds 
that are obligated for Panama shall be available to finance 
the procurement of defense articles by law enforcement 
forces in Panama and related defense services (other than 
training) notwithstanding the provisions of law specified in 
subsection (c) of this section and section 660 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2420; relating to the 
prohibition on assistance for law enforcement forces). 
(B) LIMITATIONS ON LETHAL EQUIPMENT.—Not more than 
$500,000 of the funds made available under subparagraph 
(A) may be used for the procurement of lethal equipment. 
Only lethal equipment that is appropriate for standard 
civilian law enforcement requirements may be procured 
with such funds. 
(C) PRIOR YEAR MILITARY ASSISTANCE FUNDS DEFINED.—As 
used in subparagraph (A), the term "prior year military 
assistance funds" means funds that were appropriated for a 
fiscal year prior to fiscal year 1990 to carry out chapter 2 of 
part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2311 
and following; relating to the grant military assistance 
program) or section 23 of the Arms Export Control Act (22 
U.S.C. 2763; relating to foreign military sales credits). 
(3) CONGRESSIONAL NOTIFICATION REQUIREMENTS.— 
President of U.S. 
(A) IN GENERAL.—Except as provided in subparagraph (B) 
of this paragraph, the President shall notify the congres-
sional committees specified in section 634A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2394-1) in accordance with 
the procedures applicable to reprogrammings under that 
section at leeist 15 days before— 
(i) each obligation of funds under paragraph (1) of 
this subsection, and 
(ii) each commitment to use funds under paragraph 
(2) of this subsection. 
(B) EXCEPTION.—Such notification is not required with 
respect to— 
(i) obligations under paragra|>h (1), and 
PUBLIC LAW 101-243—FEB. 14, 1990 
104 STAT. 9 
(ii) commitments to use funds under paragraph (2) for 
the procurement of uniforms and communications 
equipment (and related defense services), 
that occur prior to the end of the 15-day period beginning 
on the date of enactment of this Act to the extent that such 
obUgations or commitments, as the case may be, were 
previously justified to the Congress, 
(c) BROOKE-ALEXANDER AMENDMENT.—The provisions of law re-
ferred to in subsections (aXD, (aX2), and (bX2XA) of this section are 
section 620(q) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2370(q)); and section 518 of the Foreign Operations, Export Financ-
ing, and Related Progrsuns Appropriations Act, 1990 (Public Law 
101-167), and the corresponding sections of foreign assistance appro-
priations Acts for prior fiscal years. 
SEC. 102. RESUMPTION OF UNITED STATES ASSISTANCE: ANTINARCOTICS 
CERTIFICATION REQUIREMENTS. 
Because the vital national interests of the United States so re-
quire and because the Endara Government of Panama has indicated 
its willingness, and is taking steps, to cooperate fully with the 
United States to control narcotics production, trafficking, and 
money laundering, the requirements of paragraphs (1) and (5) of 
section 481(h) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291(h)) shall cease to apply to Panama as of the date of enactment 
of this Act to the extent that those requirements became applicable 
to Panama by reason of the fact that the President did not make a 
certification with respect to Panama under paragraph (2) of that 
section at the time the international narcotics control strategy 
reports for 1988 and 1989 were submitted to the Congress pursuant 
to section 481(e) of that Act. 
SEC. 103. RESUMPTION OF TRADE BENEFITS: ANTINARCOTICS CERTIFI-
CATION REQUIREMENTS. 
(a) RESUMPTION UPON DATE OF ENACTMENT.—Because the vital 
national interests of the United States so require and because the 
Endara Grovemment of Panama has indicated its willingness, and is 
taking steps, to cooperate fully with the United States to control 
narcotics production, trafficking, and money laundering, the condi-
tions specified in section 802(bX4XB) of the Narcotics Control Trade 
Act (19 U.S.C. 2492(bX4XB)) shall be deemed to be satisfied as of the 
date of enactment of this Act with respect to the action taken 
pursuant to section 802(a) of that Act that is described in subsection 
(b) of this section. 
(b) SPECIFICATION OF BENEFITS.—The action referred to in subsec-
tion (a) is the denial to articles imported from Panama of pref-
erential tariff treatment under the Generalized System of Pref-
erences (19 U.S.C. 2461 and following) and the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2701 and following) pursuant to 
Presidential Proclamation 5779 of March 23,1988. 
SEC. 104. REPORT ON PANAMANIAN BANK SECRECY LAWS. 
(a) CONGRESSIONAL CONCERNS.—The CJongress commends the 
Endara Government for its cooperation and assistance in freezing 
Panamanian bank accounts believed to be implicated in narcotics-
related and other illegal financial transactions. The Congress re-
mains concerned, however, that the current status of bank secrecy 
104 STAT. 10 
PUBLIC LAW 101-243—FEB. 14, 1990 
laws in Panama may lend itself to continued criminal abuse of those 
laws despite the best intentions of the Endara Government. 
President of U.S. 
(b) REPORT.—Therefore, no later than April 15,1990, the President 
shall submit a detailed report to the Speaker of the House of 
Representatives and the Chairman of the Committee on Foreign 
Relations of the Senate on specific actions being undertaken by the 
Government of Panama to modify the existing bank secrecy regime 
in order to facilitate detection and prosecution of criminal activities, 
including— 
(1) the modification of bank secrecy laws by the Government 
of Panama; 
(2) the conclusion of an exchange-of-information agreement 
between the United States and Panama; and 
(3) agreements entered into by the Government of Panama or 
in the process of negotiation that are designed to deter illegal 
financial transactions and to facilitate early detection and 
prosecution of such illegal activities. 
TITLE II—EASTERN EUROPE AND YUGOSLAVIA 
President of U.S. 
SEC. 201. ASSISTANCE TO SUPPORT TRANSITION TO DEMOCRACY. 
(a) AUTHORITY.—Notwithstanding any other provision of law, the 
President may use up to $10,000,000 of the funds appropriated for 
fiscal year 1990 to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2346 and following; relating to the 
economic support fund) to support the process of democratic transi-
tion in East European countries and Yugoslavia, in addition to 
amounts otherwise available for such purposes. 
0?) LIMITATION.—Funds provided under this section shall be made 
available only— 
(1) after the President has certified to the Congress that the 
country where funds are being expended has had, or is sched-
uled to have, open and free multiparty national or regional 
elections; and 
(2) in such a manner so as to benefit substantially a full range 
of non-Communist political parties in the countries in which 
such funds are used. 
Approved February 14, 1990. 
LEGISLATIVE HISTORY—H.R. 3952 (S. 2073): 
HOUSE REPORTS: No. 101-401, Pt. 1 (Comm. on Foreign Affairs) and Pt. 2 (Comm. on 
Ways and Means). 
CONGRESSIONAL RECORD, Vol. 136 (1990): 
Feb. 7, considered and passed House and Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 26 (1990): 
Feb. 14, Presidential remarks and statement.