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Completed Programs - Panama


Number of Claims 67
Number of Awards 62
Amount of Awards - Principal $441,892
Amount of Fund $400,000
Amount of Payment

90% of Principal


On October 11, 1950  the Governments of the United States and Panama concluded a claims settlement agreement regarding certain property claims of  U.S. nationals against the Government of Panama.  By the terms of this Agreement, the two governments recognized that it was most desirable to dispose of, on an equitable basis and without reference to the legal aspect of the controversies, claims of the United States against the Republic of Panama arising as a consequence of the judgment rendered by the Supreme Court of Justice of the Republic of Panama on October 20, 1931, which declared as the property of the Republic of Panama the El Encanto properties which certain nationals of the United States alleged that they had acquired in good faith.  The Government of Panama agreed to pay the United States the sum of $400,000 with respect to property losses suffered by United States nationals in relation to the El Encanto lands.  Article 5 of the Agreement provided as follows:

"With reference to the so-called El Encanto claims, the Government of the Republic of Panama expressly declares that, in agreeing to the settlement of these claims, it has not ignored or disregarded the decision rendered by the Supreme Court of the Republic of Panama in a litigation relating to the El Encanto lands, which judgment sets forth the legal aspects of the matter. In agreeing to the settlement of those claims, the Government of the Republic of Panama is prompted by reasons of strictest equity to make good the losses suffered by several nationals of the United States of America who acted in good faith in the acquisition of lands to which reference is made."

The Agreement further provided that upon execution of the provisions of the Convention, the two governments shall consider as reciprocally cancelled, renounced and satisfied, all claims in reference to the El Encanto Tract.  It further provided that, if upon such adjudication of all the claims the Claims Commission shall find the sum of $400,000 in excess of the total amount of the claims which may be determined to be valid, plus the cost of adjudication, the Government of the United States should return such excess to the Government of Panama.

Under section 4(a) of Title I of the International Claims Settlement Act of 1949, the Commission is authorized to adjudicate claims of nationals of the United States for the nationalization or other taking of property included within the terms of any claims settlement agreement thereafter concluded between the United States and a foreign government (exclusive of governments against which the United States declared the existence of a state of war during World War II).  Pursuant to this authorization, the Commission administered a program under the claims settlement agreement.  The Commission completed its affairs under the agreement on December 31, 1954.


Pub. L. 81-455; (22 U.S.C. 1623)


United States of America and Panama Claims Convention. Signed at Panama City, January 26, 1950.


Lead Decisions

Final Report of the Program

Updated July 30, 2014