[House Document 104-95]
[From the U.S. Government Publishing Office]





                                     

        104th Congress, 1st Session - - - - - - - - - - - - - House 
Document 104-95


 
  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 30, 1995, 
CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO LIBYA, PURSUANT TO 50 
     U.S.C. 1641(c), 50 U.S.C. 1703(c), AND 22 U.S.C. 2349aa-9(c).




    July 12, 1995.--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 since 
my last report of January 30, 1995, 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 December 22, 1994, 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 has been one amendment to the Libyan Sanctions 
Regulations, 31 C.F.R. Part 550 (the ``Regulations''), 
administered by the Office of Foreign Assets Control (FAC) of 
the Department of the Treasury, since my last report on January 
30, 1995. The amendment (60 Fed. Reg. 8300, February 14, 1995) 
added 144 entities to appendix A, Organizations Determined to 
Be Within the Term ``Government of Libya'' (Specially 
Designated Nationals (``SDNs'') of Libya). The amendment also 
added 19 individuals to appendix B, Individuals Determined to 
Be Specially Designated Nationals of the Government of Libya. A 
copy of the amendment is attached to this report.
    Pursuant to section 550.304(a) of the Regulations, FAC has 
determined that these entities and individuals designated as 
SDNs are owned or controlled by, or acting or purporting to act 
directly or indirectly on behalf of, the Government of Libya, 
or are agencies, instrumentalities or entities of that 
government. By virtue of this determination, all property and 
interests in property of these entities or persons that are in 
the United States or in the possession or control of U.S. 
persons are blocked. Further, U.S. persons are prohibited from 
engaging in transactions with these individuals or entities 
unless the transactions are licensed by FAC. The designations 
were made in consultation with the Department of State and 
announced by FAC in notices issued on January 10 and January 
24, 1995.
    3. During the current 6-month period, FAC made numerous 
decisions with respect to applications for licenses to engage 
in transactions under the Regulations, issuing 119 licensing 
determinations--both approvals and denials. Consistent with 
FAC's ongoing scrutiny of banking transactions, the largest 
category of license approvals (83) concerned requests by Libyan 
and non-Libyan persons or entities to unblock bank accounts 
initially blocked because of an apparent Government of Libya 
interest. The largest category of denials (14) was for banking 
transactions in which FAC found a Government of Libya interest. 
One license was issued authorizing intellectual property 
protection in Libya and another for travel to Libya to visit 
close family members.
    In addition, FAC issued one determination with respect to 
applications from attorneys to receive fees and reimbursement 
of expenses for provision of legal services to the Government 
of Libya in connection with wrongful death civil actions 
arising from the Pan Am 103 bombing. Civil suits have been 
filed in the U.S. District Court for the District of Columbia 
and in the Southern District of New York. Representation of the 
Government of Libya when named as a defendant in or otherwise 
made a party to domestic U.S. legal proceedings is authorized 
by section 550.517(b)(2) of the Regulations under certain 
conditions.
    4. During the current 6-month period, FAC 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 FAC worked closely with the banks 
to implement new interdiction software systems to identify such 
payments. As a result, during the reporting period, more than 
171 transactions involving Libya, totaling more than $6.5 
million, were blocked. As of May 25, of these transactions had 
been licensed to be released, leaving a net amount of more than 
$5.2 million blocked.
    Since my last report, FAC collected 37 civil monetary 
penalties totaling more than $354,700 for violations of the 
U.S. sanctions against Libya. Eleven of the violations involved 
the failure of banks to block funds transfers to Libyan-owned 
or -controlled banks. Two other penalties were received from 
companies for originating funds transfers to Libyan-owned or -
controlled banks. Two corporations paid penalties for export 
violations. Twenty-two additional penalties were paid by U.S. 
citizens engaging in Libyan oilfield-related transactions while 
another 54 cases of similar violations are in active penalty 
processing.
    Various enforcement actions carried over from previous 
reporting periods have continued to be aggressively pursued. 
The FAC has continued its efforts under the ``Operation 
Roadblock'' initiative. This ongoing program seeks to identify 
U.S. persons who travel to and/or work in Libya in violation of 
U.S. law.
    Several new investigations of potentially significant 
violations of the Libyan sanctions have been initiated by FAC 
and cooperating U.S. law enforcement agencies, primarily the 
U.S. Customs Service. Many of these cases are believed to 
involve complex conspiracies to circumvent the various 
prohibitions of the Libyan sanctions, as well as the 
utilization of international diversionary shipping routes to 
and from Libya. The FAC has continued to work closely with the 
Departments of State and Justice to identify U.S. persons who 
enter into contracts or agreements with the Government of 
Libya, or other third-country parties, to lobby United States 
Government officials or to engage in public relations work on 
behalf of the Government of Libya with FAC authorization. In 
addition, during the period FAC attend several bilateral and 
multilateral meetings with foreign sanctions authorities, as 
well as with private foreign institutions, to consult on issues 
of mutual interest and to encourage strict adherence to the 
UN--mandated sanctions.
    5. The expenses incurred by the Federal Government in the 
6-month period from January 7 through July 6, 1995, that are 
directly attributable to the exercise of powers and authorities 
conferred by the declaration of the Libyan national emergency 
are estimated at approximately $830,000.00. 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.
    6. 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 UNSCR 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 UNSCRs 731 and 748, concerning the bombing 
of the Pan Am 103 and UTA 722 flights, constituted a threat to 
international peace and security. The United States continues 
to believe that still stronger international measures than 
those mandated by UNSCR 883, possibly including a worldwide oil 
embargo, should be imposed if Libya continues to defy the will 
of the international community as expressed in UNSCR 731. 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 12, 1995.