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work of the Board by addressing issues prior to full Board action.
As was mentioned, I was elected Chairman at that first meeting, and the Board approved the regulations by which it will operate.
I would say basically that it was a productive and harmonious first meeting.
EMERGENCY FUND
Senator LEVIN. Did you address the problem of the emergency fund authorization in your total statement?
Mr. BLUMENFELD. Yes.
Senator LEVIN. Have you explained in that how the legal status issue has been resolved?
Mr. BLUMENFELD. The legal status issue?
Senator LEVIN. Of the emergency fund, how you have been able, in effect, to achieve an emergency fund with respect to the problem we had last year?
Mr. BLUMENFELD. We are seeking in 1981 the authorization of that emergency fund. My statement and that of Administrator McAuliffe indicate authorization of that fund would be feasible within the restraints on what may be authorized and appropriated by the Congress.
Senator LEVIN. The upshot is that there is a $25 million emergency fund authorized in 1981; is that correct?
Mr. BLUMENFELD. If a bill which is identical in that respect, in both the House and the Senate versions, is enacted, that is the case. It will be authorized. There will still remain the matter of appropriation.
TREATY PAYMENTS
Senator LEVIN. Have you addressed in your statement the question of negotiations relative to the scheduling of payments to Panama and the payment of debts owed to the Commission by Panama?
Mr. BLUMENFELD. Yes. I am very pleased to report that agreement was reached in late March on a schedule both of payments by the United States and of repayments by Panama. Panama's complete back debt will be repaid by December 1981, and there are provisions for any future unpaid obligations of Panama that develop to be offset quarterly from the monthly treaty payments.
GAO REPORT
Senator LEVIN. Secretary Blumenfeld, the GAO recently completed an overview of the problems in implementing the treaties. One of the issues they addressed was assurance of procedural guaranties for U.S. citizens accused of crimes by the Panamanian authorities. This is a sensitive area for our citizens in Panama.
The GAO seemed to think that substantial problems remain to be solved. I am wondering if you would comment on that?
Mr. BLUMENFELD. I think these are problems remaining to be solved. I think progress is being made. We are accompanied by Mr. Richard Wyrough, from the State Department, who is prepared to speak in more detail on that issue, or we can elaborate for the record if you would prefer.
Senator LEVIN. We would prefer that. If you will give us the current status of that, it will be useful. Also, if you would comment for the record on the question of taxation of U.S. businesses. GAO noted that contractor exemption from local taxes was not yet fully accepted by
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