[House Document 105-346]
[From the U.S. Government Publishing Office]




105th Congress, 2d Session - - - - - - - - - - - House Document 105-346


 
         DEVELOPMENTS CONCERNING NATIONAL EMERGENCY WITH 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 17, 1998.--Referred to the Committee on International 
                  Relations and ordered to be printed

                               --------

                    U.S. GOVERNMENT PRINTING OFFICE                    
69-011                     WASHINGTON : 1998



                                           The White House,
                                  Washington, DC, November 6, 1998.
Hon. Newt Gingrich,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: 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 the IEEPA. 
A copy of the Order was provided to the Congress by message 
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 United States 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 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. A copy of 
the Regulations is attached to this report.
    3. Since the issuance of Executive Order 13067, OFAC has 
made numerous decisions with respect to applications for 
authorizations to engage in transactions under the Regulations. 
As of September 16, 1998, OFAC has issued 62 authorizations to 
nongovernmental organizations engaged in the delivery of 
humanitarian aid and 141 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, preeffective 
date trade transactions, intellectual property protection, the 
performance of certain legal services, and transactions 
relating to air and sea safety policy.
    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. As of September 10, 
1998, OFAC has blocked nearly $610,000 during this reporting 
period.
    5. Since my last report, OFAC has collected one civil 
monetary penalty in the amount of $5,500 from a U.S. financial 
institution for its violation of IEEPA and the SSR relating to 
a funds transfer. Another 12 cases are undergoing penalty 
action. OFAC, in cooperation with the U.S. Customs Service, is 
closely monitoring potential violations of the import 
prohibitions of the Regulations 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 May 3 through November 2, 1998, 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 $375,000, 
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'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 antiterrorism and 
human rights policies of the United States. I shall exercise in 
powers at my disposal to deal with these problems and will 
continue to report periodically to the Congress on significant 
developments.
            Sincerely,
                                                William J. Clinton.




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