[House Document 106-314]
[From the U.S. Government Publishing Office]
106th Congress, 2d Session - - - - - - - - - - - House Document 106-314
NATIONAL EMERGENCY WITH RESPECT TO SUDAN
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT
TO SUDAN THAT WAS DECLARED IN EXECUTIVE ORDER 13067 OF NOVEMBER 3,
1997, AND MATTERS RELATING TO THE MEASURES IN THAT ORDER, PURSUANT TO
50 U.S.C. 1641(c)
December 4, 2000.--Referred to the Committee on International Relations
and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
89-011 WASHINGTON : 2000
The White House,
Washington, November 17, 2000.
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 Sudan that was
declared in Executive Order 13067 of November 3, 1997.
Sincerely,
William J. Clinton.
President's Periodic Report on the National Emergency With Respect to
Sudan
I hereby report to the Congress on developments concerning
the national emergency with respect to Sudan that was declared
in Executive Order 13067 of November 3, 1997, and matters
relating to the measures in that order. This report is
submitted pursuant to section 204(c) of the International
Emergency Economic Powers Act, 50 U.S.C. 1703(c) (``IEEPA''),
and section 401(c) of the National Emergencies Act, 50 U.S.C.
1641(c). This report discusses only matters concerning the
national emergency with respect to Sudan that was declared in
Executive Order 13067.
1. On November 3, 1997, I issued Executive Order 13067 (62
Fed. Reg. 59989, November 5, 1997--the ``Order'') to declare a
national emergency with respect to Sudan pursuant to IEEPA. A
copy of the Order was provided to the Speaker of the House and
the President of the Senate by letter dated November 3, 1997.
2. Executive Order 13067 became effective at 12:01 a.m.,
eastern standard time on November 4, 1997. On July 1, 1998, the
Department of the Treasury's Office of Foreign Assets Control
(``OFAC'') issued the Sudanese Sanctions Regulations (the
``SSR'' or the ``Regulations'' (63 Fed. Reg. 35809, July 1,
1998)). The Regulations block all property and interests in
property of the Government of Sudan, its agencies,
instrumentalities, and controlled entities, including the
Central Bank of Sudan, that are in the United States, that
hereafter come within the United States, or that are or
hereafter come within the possession or control of U.S.
persons, including their overseas branches. The SSR also
prohibit (1) the importation into the United States of any
goods or services of Sudanese origin except for information or
informational materials; (2) the exportation or reexportation
of goods, technology, or services to Sudan or the Government of
Sudan except for information or informational materials and
donations of humanitarian aid; (3) the facilitation by a U.S.
person of the exportation or reexportation of goods,
technology, or services to or from Sudan; (4) the performance
by any U.S. person of any contract, including a financing
contract, in support of an industrial, commercial, public
utility, or governmental project in Sudan; (5) the grant or
extension of credits or loans by any U.S. person to the
Government of Sudan; and (6) transactions relating to the
transportation of cargo.
3. On April 28, 1999, I announced that existing unilateral
economic sanctions programs would be amended to modify
licensing policies to permit case-by-case review of specific
proposals for the commercial sale of agricultural commodities
and products, as well as medicine and medical equipment, where
the United States Government has the discretion to do so. I
further announced that the Administration was developing
country-specific licensing criteria to guide the case-by-case
review process so that governments subject to sanctions do not
gain unwarranted benefits from such sales.
On July 27, 1999, the Regulations were amended to add
statements of licensing policy with respect to commercial sales
of agricultural commodities and products, medicine and medical
equipment (64 Fed. Reg. 41784, August 2, 1999). These
provisions were amended on October 27, 1999 (64 Fed. Reg.
58789, November 1, 1999) to remove language that had prohibited
the issuance of specific licenses authorizing financing by
entities of the governments of Sudan, Libya, and Iran. In
addition, technical revisions were made to the Regulations
pertaining to license requirements of other federal agencies.
On February 16, 2000, OFAC announced the addition of two
entities determined to be owned or controlled by, or to act for
or on behalf of, the Government of Sudan to the List of
Specially Designated and Blocked Persons. The property of these
entities is blocked and U.S. persons are generally prohibited
from dealing with them.
4. Since the issuing of Executive Order 13067, OFAC has
made numerous decisions with respect to applications for
authorizations to engage in transactions under the Sudanese
sanctions. As of September 8, 2000, OFAC had issued 76
authorizations to non-governmental organizations engaged in the
delivery of humanitarian aid and 442 licenses to others,
including 76 during the current reporting period. OFAC has
denied many requests for licenses. The majority of denials were
in response to requests to authorize commercial exports to
Sudan--particularly of machinery and equipment for various
industries--and the importation of Sudanese-origin goods. The
majority of issued licenses permit the unblocking of financial
transactions for individual remitters who inadvertently routed
their funds through blocked Sudanese banks. Twenty-five
licenses were issued to authorize commercial sales and
exportation to Sudan of bulk agricultural commodities, food and
agricultural products, medicine and medical equipment. Other
licenses authorized certain diplomatic transactions, pre-
effective date trade transactions, divestiture of property in
which the Government of Sudan had an interest, intellectual
property protection, the performance of certain legal services,
and transactions relating to air and sea safety policy.
5. At the time of signing Executive Order 13067, I directed
the Secretary of the Treasury to block all property and
interests in property of persons determined, in consultation
with the Secretary of State, to be owned or controlled by, or
to act for or on behalf of, the Government of Sudan. OFAC has
disseminated details of this program to the financial,
securities, and international trade communities by both
electronic and conventional media. This information includes
the names of 126 entities owned or controlled by the Government
of Sudan, including 12 financial institutions. As of September
7, 2000, 70 transactions totaling more than $1.4 million had
been blocked during this reporting period. Under the
Regulations, transactions in violation of the sanctions where
there is no blockable interest of the Government of Sudan must
be returned to remitters (``rejected''). During the reporting
period, 359 transactions were rejected by U.S. banks causing a
disruption of more than $16.5 million in business for Sudan.
6. Since my last report, OFAC has collected 11 civil
monetary penalties totaling nearly $45,000 for violations of
IEEPA and the Regulations from ten U.S. banks and one U.S.
company. An additional 36 cases are undergoing penalty action
for violations of the Regulations and IEEPA. OFAC, in
cooperation with the U.S. Customs Service, is closely
monitoring potential violations of the prohibitions of the
Regulations by businesses and individuals. Various reports of
violations are being aggressively pursued.
7. The expenses incurred by the federal government in the
six-month period from May 3 through November 2, 2000 that are
directly attributable to the exercise of powers and authorities
conferred by the declaration of a national emergency with
respect to Sudan are reported to be approximately $170,000,
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), the Department of State (particularly the
Bureaus of Economic and Business Affairs, African Affairs, Near
Eastern Affairs, Consular Affairs, and the Office of the Legal
Adviser), and the Department of Commerce (the Bureau of Export
Administration and the General Counsel's Office).
8. The situation in Sudan continues to present an
extraordinary and unusual threat to the national security and
foreign policy of the United States. The declaration of the
national emergency with respect to Sudan contained in Executive
Order 13067 underscores the United States Government's
opposition to the actions and policies of the Government of
Sudan, particularly its support of international terrorism and
its failure to respect basic human rights, including freedom of
religion. The prohibitions contained in Executive Order 13067
advance important objectives in promoting the anti-terrorism
and human rights policies of the United States. I shall
exercise the powers at my disposal to deal with these problems
and will continue to report periodically to the Congress on
significant developments.