[House Document 107-101]
[From the U.S. Government Publishing Office]
107th Congress, 1st Session - - - - - - - -- House Document 107-101
PERIODIC REPORT ON THE NATIONAL EMERGENCY
WITH RESPECT TO LIBYA
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
Transmitting
A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
LIBYA THAT WAS DECLARED IN EXECUTIVE ORDER 12543 OF JANUARY 7, 1986,
PURSUANT TO 50 U.S.C. 1641(c)
July 16, 2001.--Referred to the Committee on International Relations
and ordered to be printed
The White House,
Washington, July 4, 2001.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: As required by section 401(c) of the
National Emergencies Act, 50 U.S.C. 1641(c), and section 204(c)
of the International Emergency Economic Powers Act (IEEPA), 50
U.S.C. 1703(c), I transmit herewith a 6-month periodic report
on the national emergency with respect to Libya that was
declared in Executive Order 12543 of January 7, 1986.
Sincerely,
George W. Bush.
President's Periodic Report on the National Emergency with Respect to
Libya
I hereby report to the Congress on developments over the
course of the past 6 months concerning the national emergency
with respect to Libya that was declared in Executive Order
12543 of January 7, 1986. This report is submitted pursuant to
section 401(c) of the National Emergencies Act, 50 U.S.C.
1641(c); section 204(c) of the International Emergency Economic
Powers Act (``IEEPA''), 50 U.S.C. 1703(c); and section 505(c)
of the International Security and Development Cooperation Act
of 1985, 22 U.S.C. 2349aa-9(c).
1. In light of the recent passage of the Trade Sanctions
Reform and Export Enhancement Act of 2000, Title IX of Public
Law 106-387 (October 28, 2000) (the ``Trade Act''), conforming
amendments are being promulgated to the Libyan Sanctions
Regulations, 31 CFR Part 550 (the ``Regulations''). The Trade
Act requires the President to terminate most unilateral
sanctions on the exportation of agricultural commodities and
medicine and medical devices and imposes the requirement, with
certain exceptions, that exports of such products to the
government of and any other entity within countries, such as
Libya, designated by the Secretary of State to have repeatedly
provided support for acts of international terrorism, only be
made available pursuant to 1-year licenses.
2. During the current reporting period, the Office of
Foreign Assets Control (OFAC) reviewed numerous applications
for licenses to authorize transactions under the Regulations.
Consistent with OFAC's ongoing scrutiny of banking
transactions, the largest category of authorizations (41)
involved types of financial transactions that are consistent
with U.S. policy. Most of these licenses authorized remittances
between persons who are not blocked parties to flow through
Libyan banks located outside Libya. Eighty-nine applications to
unblock funds transfers were denied due to a Government of
Libya interest, as well as four applications to engage in
certain commercial transactions. Fourteen licenses were issued
authorizing the commercial sale and exportation of bulk
agricultural commodities and four for medicine or medical
equipment, while six applications were denied as inconsistent
with U.S. policy. Eight licenses authorizing certain legal
services, including intellectual property protection, were also
issued. Finally, three licenses were issued to U.S. companies
authorizing travel transactions to and within Libya; one
insurance-related transaction and one diplomatic transaction
were also authorized.As of May 14, 2001, a total of 73 licenses
had been issued during the reporting period.
3. OFAC continues to emphasize to the international banking
community in the United States the importance of identifying
and blocking payments made by or on behalf of the Government of
Libya. OFAC worked closely with banks to assure the
effectiveness of interdiction software systems used to identify
such payments. As of May 16, 2001, 218 transactions, totaling
more than $9.5 million, were blocked during this reporting
period. Under the Regulations, unauthorized commercial funds
transfers involving Libya must be returned to the remitters
without further processing, rather than blocked, where there is
no blockable interest of the Government of Libya. During the
reporting period, 150 transactions were rejected, without
further processing, by U.S. banks causing a disruption of more
than $4.4 million in financial dealings involving Libya.
4. Since the President's last report, OFAC has collected
seven civil monetary penalties totaling nearly $99,000 for
violations of IEEPA and the Regulations. Five banks and two
corporations paid penalties for transactions relating to the
Government of Libya or entities owned or controlled by the
Government of Libya or to exports to Libya in violation of the
sanctions. An additional 42 cases are undergoing penalty action
for violation of IEEPA and the Regulations.
Trial has been scheduled for August 20, 2001, for a
Houston-based corporation and its two principal officers who
were charged in a 23-count criminal indictment on April 26,
2000. The indictment charges violations of IEEPA and other
Federal statutes involving the illegal exportation to Libya of
pipe coating material for use in the Great Man Made River
Project. Other enforcement actions carried over from previous
reporting periods continue and new reports of alleged
violations are being aggressively pursued.
5. The expenses incurred by the Federal Government in the
6-month period from January 7 through July 6, 2001, that are
directly attributable to the exercise of powers and authorities
conferred by the declaration of the Libyan national emergency,
are estimated at approximately $605,000. Personnel costs were
largely centered in the Department of the Treasury
(particularly in the Office of Foreign Assets Control, the
Office of the General Counsel, and U.S. Customs Service), the
Department of State, and the Department of Commerce.
6. Despite the UN Security Council's suspension of UN
sanctions against Libya upon the Libyan Government's hand over
of the Pan Am 103 bombing suspects in April 1999, and a
Scottish court's conviction of one suspect on January 31, 2001,
Libya has not yet complied with UN Security Council Resolutions
731 (1992), 748 (1992), and 883 (1993), including Libya's
obligation to accept responsibility for the actions of Libyan
officials and to pay appropriate compensation. Libya continues
to pose an unusual and extraordinary threat to the national
security and foreign policy interests of the United States and
U.S. economic sanctions will, therefore, remain in force. I
will continue to exercise the powers at my disposal to apply
these sanctions fully and effectively, as long as they remain
appropriate. I will continue to report periodically to the
Congress on significant developments as required by law.