[House Document 104-200]
[From the U.S. Government Publishing Office]



                                     

104th Congress, 2d Session - - - - - - - - - - House Document 104-200


    DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO 
 
        SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT 
  TO SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA THAT WAS 
DECLARED IN EXECUTIVE ORDER NO. 12978 OF OCTOBER 21, 1995, PURSUANT TO 
                50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)
                                     




   April 23, 1996.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
To the Congress of the United States:
    I hereby report to the Congress on the developments 
concerning the national emergency with respect to significant 
narcotics traffickers centered in Colombia that was declared in 
Executive Order No. 12978 of October 21, 1995. This report is 
submitted pursuant to 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).
    1. On October 21, 1995, I signed Executive Order No. 12978, 
``Blocking Assets and Prohibiting Transactions with Significant 
Narcotics Traffickers'' the (the ``Order'') (60 Fed. Reg. 
54579, October 24, 1995). The Order blocks all property subject 
to U.S. jurisdiction in which there is any interest of four 
significant foreign narcotics traffickers who are principals in 
the so-called Cali drug cartel centered in Colombia. They are 
listed in the annex to the Order. In addition, the Order blocks 
the property and interests in property of foreign persons 
determined by the Secretary of the Treasury, in consultation 
with the Attorney General and the Secretary of State, (a) to 
play a significant role in international narcotics trafficking 
centered in Colombia or (b) to materially assist in or provide 
financial or technological support for, or goods or services in 
support of, the narcotics trafficking activities of persons 
designated in or pursuant to the Order. In addition the Order 
blocks all property and interests in property subject to U.S. 
jurisdiction of persons determined by the Secretary of the 
Treasury in consultation with the Attorney General and the 
Secretary of State, to be owned or controlled by, or to act for 
or on behalf of, persons designated in or pursuant to the Order 
(collectively ``Specially Designated Narcotics Traffickers'' or 
``SDNTs'').
    The Order further prohibits any transaction or dealing by a 
United States person or within the United States in property or 
interests in property of SDNTs, and any transaction that evades 
or avoids, has the purpose of evading or avoiding, or attempts 
to violate, the prohibitions contained in the Order.
    Designations of foreign persons blocked pursuant to the 
Order are effective upon the date of determination by the 
Director of the Department of the Treasury's Office of Foreign 
Assets Control (FAC) acting under authority delegated by the 
Secretary of the Treasury. Public notice of blocking is 
effective upon the date of filing with the Federal Register, or 
upon prior actual notice.
    2. On October 24, 1995, the Department of the Treasury 
issued a notice containing 76 additional names of persons 
determined to meet the criteria set forth in Executive Order 
No. 12978 (60 Fed. Reg. 54582-84, October 24, 1995). A copy of 
the notice is attached to this report.
    The Department of the Treasury issued another notice adding 
the names of one additional entity and three additional 
individuals, as well as expanded information regarding 
addresses and pseudonyms, to the List of SDNTs on November 29, 
1995 (60 Fed. Reg. 61288-89). A copy of the notice is attached 
to this report.
    3. On March 8, 1996, FAC published a notice in the Federal 
Register adding the names of 138 additional individuals and 60 
entities designated pursuant to the Order, and revising 
information for 8 individuals on the list of blocked persons 
contained in the notices published on November 29, 1995, and 
October 24, 1995 (61 Fed. Reg. 9523-28). A copy of the notice 
is attached to this report. The FAC, in coordination with the 
Attorney General and the Secretary of State, is continuing to 
expand the list of Specially Designated Narcotics Traffickers, 
including both organizations and individuals, as additional 
information is developed.
    4. On October 22, 1995, FAC disseminated details of this 
program to the financial, securities, and international trade 
communities by both electronic and conventional media. This 
information was updated on November 29, 1995, and again on 
March 5, 1996. In addition to bulletins to banking institutions 
via the Federal Reserve System and the Clearing House Inter-
bank Payments System (CHIPS), individual notices were provided 
to all State and Federal regulatory agencies, automated 
clearing houses, and State and independent banking associations 
across the country. The FAC contacted all major securities 
industry associations and regulators, posted electronic notices 
to 10 computer bulletin boards and 2 fax-on-demand services, 
and provided the same material to the U.S. Embassy in Bogota 
for distribution to U.S. companies operating in Colombia.
    5. There were no funds specifically appropriated to 
implement this program. The expenses incurred by the Federal 
Government in the 6-month period from October 21, 1995, through 
April 20, 1996, that are directly attributable to the exercise 
of powers and authorities conferred by the declaration of the 
national emergency with respect to Significant Narcotics 
Traffickers are estimated at approximately $500,000 from 
previously appropriated funds. 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 the U.S. Customs Service), the Department of 
Justice, and the Department of State.
    6. Executive Order No. 12978 provides this Administration 
with a new tool for combating the actions of significant 
foreign narcotics traffickers centered in Colombia, and the 
unparalleled violence, corruption, and harm that they cause in 
the United States and abroad. The Order is designed to deny 
these traffickers the benefit of any assets subject to the 
jurisdiction of the United States and to prevent United States 
persons from engaging in any commercial dealings with them, 
their front companies, and their agents. Executive Order No. 
12978 demonstrates the U.S. commitment to end the scourge that 
such traffickers have wrought upon society in the United States 
and beyond.
    The magnitude and the dimension of the problem in 
Colombia--perhaps the most pivotal country of all in terms of 
the world's cocaine trade--is extremely grave. I shall continue 
to exercise the powers at my disposal to apply economic 
sanctions against significant foreign narcotics traffickers and 
their violent and corrupting activities as long as these 
measures are appropriate, and will continue to report 
periodically to the Congress on significant developments 
pursuant to 50 U.S.C. 1703(c).

                                                William J. Clinton.
    The White House, April 23, 1996.

    
    
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