[House Document 108-12]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-12
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) AND 50 U.S.C. 1703(c)
January 7, 2003.--Referred to the Committee on International Relations
and ordered to be printed
The White House,
Washington, January 2, 2003.
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), section 204(c) of
the International Emergency Economic Powers Act, 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), I
am transmitting a 6-month periodic report prepared by my
Administration 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 six 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. During the current reporting period, OFAC reviewed
numerous applications for licenses to authorize transactions
under the Libyan Sanctions Regulations, 31 CFR Part 550 (the
``Regulations''). As of November 6, 2002, a total of 97
licenses had been issued during the reporting period.
Consistent with OFAC's ongoing scrutiny of banking
transactions, the largest category of authorizations (47)
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. Fourteen licenses were
issued authorizing the commercial sale and exportation of
agricultural commodities and/or medicine or medical equipment.
Twenty-nine licenses were issued authorizing U.S. companies to
pursue and enforce intellectual property protections in Libya.
Four licenses authorizing certain legal services and/or payment
of professional fees were also issued. Finally, one license
authorized travel to Libya in connection with the provision of
legal services, one license was issued authorizing a filing for
an extension to a concession agreement, and one license was
issued authorizing the importation of documentation and samples
relating to Libyan oil wells drilled prior to 1970.
2. 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. As of
November 5, 2002, 168 transactions, totaling more than $7.3
million, had been blocked during this reporting period. During
the reporting period, 142 transactions were rejected, without
further processing, by U.S. banks causing a disruption of
nearly $3.5 million in financial dealings involving Libya.
3. Since my last report, OFAC has collected four civil
monetary penalties totaling nearly $13,000 for violations of
IEEPA and the Regulations from three U.S. financial
institutions and one company. An additional 14 cases are
undergoing penalty action for violation of IEEPA and the
Regulations.
On November 21, 2002, the U.S. Court of Appeals for the
Fifth Circuit upheld the U.S. District Court for the Southern
District of Texas' granting the government's motion for summary
judgment in the case Vitol, S.A. versus U.S. Dep't. of the
Treasury, et al. The plaintiff, Vitol, S.A., challenged the
government's 1994 blocking of approximately 350,000 barrels of
Libyan-origin fuel oil. In upholding the District Court's
decision, the appeals court affirmed the blocking based on the
government's reasonable determination that a U.S. person had
constructive possession or control of the oil at a time when
the Government of Libya held a blockable interest in the
property.
4. During the reporting period, OFAC updated its published
information on two Libyan Specially Designated Nationals
(``SDNs''). OFAC also blocked the assets of another entity
pending investigation pursuant to the Regulations. OFAC's
intervention in that matter prevented the takeover of a third
country bank by a Government of Libya entity.
5. The expenses incurred by the Federal Government in the
six-month period from July 7, 2002, through January 6, 2003,
that are directly attributable to the exercise of powers and
authorities conferred by the declaration of a national
emergency with respect to Libya, are reported to be
approximately $530,000, most of which represent wage and salary
costs for Federal personnel. Personnel costs were largely
centered in the Department of the Treasury (particularly in the
Office of Foreign Assets Control, the U.S. Customs Service, the
Office of the Under Secretary for Enforcement, and the Office
of the General Counsel) and the Departments of State and
Commerce.
6. Despite the U.N. Security Council's suspension of U.N.
sanctions against Libya upon the Libyan government's handover
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 U.N. 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
deal with this unusual and extraordinary threat and will
continue to report periodically to the Congress on significant
developments as required by law.