[House Document 105-247]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-247


 
   DEVELOPMENTS CONCERNING NATIONAL EMERGENCY WITH RESPECT TO SUDAN

                               __________

                                MESSAGE

                                  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)





May 5, 1998.--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 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 (IEEPA), 50 U.S.C. 1703(c), 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. 
Copies of the Order were provided to the Congress by message 
dated November 3, 1997.
    The Order blocks 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 United States persons, including their overseas 
branches. The Order also prohibits (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 United States person of the exportation 
or reexportation of goods, technology, or services to or from 
Sudan; (4) the performance by any United States 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 
United States person to the Government of Sudan; and (6) 
transactions relating to the transportation of cargo. The Order 
also provided a 30-day delayed effective date for the 
completion of certain trade transactions.
    2. Executive Order 13067 became effective at 12:01 a.m., 
eastern standard time on November 4, 1997. On December 2, 1997, 
the Department of the Treasury's Office of Foreign Assets 
Control (OFAC) issued General Notice No. 1, interpreting the 
delayed effective date for pre-November 4, 1997, trade 
contracts involving Sudan if the preexisting trade contract was 
for (a) the exportation of goods, services, or technology from 
the United States or a third country that was authorized under 
applicable Federal regulations in force immediately prior to 
November 4, 1997, or (b) the reexportation of goods or 
technology that was authorized under applicable Federal 
regulations in force immediately prior to November 4, 1997. 
Such exports or reexports were authorized until 12:01 a.m. 
eastern standard time, December 4, 1997, and nonfinancing 
activity by United States persons incidental to the performance 
of the pre-existing trade contract (such as the provision of 
transportation or insurance) was authorized through 12:01 a.m. 
eastern standard time, February 2, 1998. If the preexisting 
trade contract was for the importation of goods or services of 
Sudanese origin or other trade transactions relating to goods 
or services of Sudanese origin or owned or controlled by the 
Government of Sudan, importations under the preexisting trade 
contract were authorized until 12:01 a.m. eastern standard 
time, December 4, 1997.
    3. Since the issuance of Executive Order 13067, OFAC has 
made numerous decisions with respect to applications for 
authorizations to engage is transactions under the 
Sudanesesanctions. As of March 12, 1998, OFAC has issued 55 
authorizations to nongovernmental organizations engaged in the delivery 
of humanitarian aid and 77 licenses to others. 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 licenses issued permitted the 
unblocking of financial transactions for individual remitters who 
routed their funds through blocked Sudanese banks. Other licenses 
authorized the completion of diplomatic transfers, preefective date 
trade transactions, and the performance of certain legal services.
    4. 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. On 
November 5, 1997, OFAC disseminated details of this program to 
the financial, securities, and international trade communities 
by both electronic and conventional media. This information 
included the names of 62 entities owned or controlled by the 
Government of Sudan. The list includes 12 financial 
institutions and 50 other enterprises.
    5. OFAC, in cooperation with the U.S. Customs Service, is 
closely monitoring potential violations of the import 
prohibitions of the Order by businesses and individuals. 
Various reports of violations are being aggressively pursued.
    6. The expenses incurred by the Federal Government in the 
6-month period from November 3, 1997, through May 2, 1998, that 
are directly attributable to the exercise of power and 
authorities conferred by the declaration of a national 
emergency with respect to Sudan are reported to be 
approximately $425,000, 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).
    7. 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 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 antiterrorism 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.

                                                William J. Clinton.
    The White House, May 5, 1998.