[House Document 104-248]
[From the U.S. Government Publishing Office]
104th Congress, 2d Session - - - - - - - - - - House Document 104-248
DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO LIBYA
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A REPORT ON DEVELOPMENTS SINCE HIS LAST REPORT OF JANUARY 22, 1996,
CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO LIBYA THAT WAS
DECLARED IN EXECUTIVE ORDER NO. 12543 OF JANUARY 7, 1986, PURSUANT TO
50 U.S.C. 1641(c), 50 U.S.C. 1703(c), AND 22 U.S.C. 2349aa-9(c)
July 22, 1996.--Message 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 since
my last report of January 22, 1996, concerning the national
emergency with respect to Libya that was declared in Executive
Order No. 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. On January 3, 1996, I renewed for another year the
national emergency with respect to Libya pursuant to IEEPA.
This renewal extended the current comprehensive financial and
trade embargo against Libya in effect since 1986. Under these
sanctions, all trade with Libya is prohibited, and all assets
owned or controlled by the Libyan government in the United
States or in the possession or control of U.S. persons are
blocked.
2. There have been no amendments to the Libyan Sanctions
Regulations, 31 C.F.R. Part 550 (the ``Regulations''),
administered by the Office of Foreign Assets Control (OFAC) of
the Department of the Treasury, since my last report on January
22, 1996.
3. During the current 6-month period, 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 license
approvals (91) concerned requests by non-Libyan persons or
entities to unblock transfers interdicted because of what
appeared to be Government of Libya interests. Three licenses
were issued for the expenditure of funds and acquisition of
goods and services in the United States by or on behalf of
accredited persons and athletes of Libya in connection with
participation in the 1996 Paralympic Games. One license was
issued to authorize a U.S. company to initiate litigation
against an entity of the Government of Libya.
4. During the current 6-month period, OFAC continued to
emphasize to the international banking community in the United
States the importance of identifying and blocking payments made
by or on behalf of Libya. The Office worked closely with the
banks to assure the effectiveness of interdiction software
systems used to identify such payments. During the reporting
period, more than 129 transactions potentially involving Libya
were interdicted, with an additional $7 million held blocked as
of May 15.
5. Since my last report, OFAC collected eight civil
monetary penalties totaling more than $51,000 for violations of
the U.S. sanctions against Libya. Two of the violations
involved the failure of banks to block funds transfers to
Libyan-owned or Libyan-controlled banks. Two other penalties
were received from corporations for export violations,
including one received as part of a plea agreement before a
U.S. district judge. Four additional penalties were paid by
U.S. citizens engaging in Libyan oilfield-related transactions
while another 30 cases involving similar violations are in
active penalty processing.
On February 6, 1996, a jury sitting in the District of
Connecticut found two Connecticut businessmen guilty on charges
of false statements, conspiracy, and illegally diverting U.S.-
origin technology to Libya between 1987 and 1993 in violation
of U.S. sanctions. On May 22, 1996, a major manufacturer of
farm and construction equipment entered a guilty plea in the
United States District Court for the Eastern District of
Wisconsin for Libyan sanctions violations. A three-count
information charged the company with aiding and abetting the
sale of construction equipment and parts from a foreign
affiliate to Libya. The company paid $1,810,000 in criminal
fines and $190,000 in civil penalties. Numerous investigations
carried over from prior reporting periods are continuing and
new reports of violations are being pursued.
6. The expenses incurred by the Federal Government in the
6-month period from January 6 through July 6, 1996, that are
directly attributable to the exercise of powers and authorities
conferred by the declaration of the Libyan national emergency
are estimated at approximately $730,000. 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 the U.S. Customs Service),
the Department of State, and the Department of Commerce.
7. The policies and actions of the Government of Libya
continue to pose an unusual and extraordinary threat to the
national security and foreign policy of the United States. In
adopting United Nations Security Council Resolution 883 in
November 1993, the Security Council determined that the
continued failure of the Government of Libya to demonstrate by
concrete actions its renunciation of terrorism, and in
particular its continued failure to respond fully and
effectively to the requests and decisions of the Security
Council in Resolutions 731 and 748, concerning the bombing of
the Pan Am 103 and UTA 772 flights, constituted a threat to
international peace and security. The United States will
continue to coordinate its comprehensive sanctions enforcement
efforts with those of other U.N. member states. We remain
determined to ensure that the perpetrators of the terrorist
acts against Pan Am 103 and UTA 772 are brought to justice. The
families of the victims in the murderous Lockerbie bombing and
other acts of Libyan terrorism deserve nothing less. I shall
continue to exercise the powers at my disposal to apply
economic sanctions against Libya fully and effectively, so long
as those measures are appropriate, and will continue to report
periodically to the Congress on significant developments as
required by law.
William J. Clinton.
The White House, July 22, 1996.