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Question 2. Provide for the record all information available relating to loans to the Republic of Panama, if any, from the Soviet Bloe of Socialist countries. e Department of State is not aware of any loans to Republic of lauawa from the Soviet Union or other Communist countries. 67 Questions 3 and 4. Discuss any past negotiations for such loans to Panam& that fell through. Provide detailed information on the very recent, and perhaps con- tinuing negotiations for increased trade between Panama and the Soviet Bloe and loans to Panama that may be contemplated in the discussions. Soviet trade delegation visited Panama in July of 1977. The an- nouncement which followed that visit indicated that a number of projects had been discussed during the delegation's visit. However, no agreements were con- cluded as a result of the visit. There is no indication that the talks have been pursued, nor do any loans to Panama by the U.S.S.R. or other communist coun- tries appear to be in the offing. Question 5. To what extent could the Socialist Bloe's lending institutions compete with U.S. and other free world banks operating in Panama ? All foreign banks in Panama operate under that country's banking LANUL