[House Document 106-237]
[From the U.S. Government Publishing Office]
106th Congress, 2d Session - - - - - - - - - - - House Document 106-237
SIX MONTH REPORT ON THE 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 17, 2000.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
79-011 WASHINGTON : 2000
To the Congress of the United States:
As required by 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), I
transmit herewith a 6-month periodic report on the national
emergency with respect to Sudan that was declared in Executive
Order 13067 of November 3, 1997.
William J. Clinton.
The White House, May 17, 2000.
President's Periodic Report on the National Emergency With Respect to
Sudan
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 IEEPA. A
copy of the Order was provided to the Speaker of the House and
the President of the Senate by letter 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 U.S.
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 on informational materials and
donations of humanitarian aid; (3) the facilitation by a U.S.
person of the exportation or reexportation of goods,
technology, or services to or from Sudan; (4) the performance
by any U.S. person or 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 U.S. person to the
Government of Sudan; and (6) transactions relating to the
transportation of cargo.
3. On April 28, 1999, I announced that existing unilateral
economic sanctions programs would be amended to modify
licensing policies to permit case-by-case review of specific
proposals for the commercial sale of agricultural commodities
and products, as well as medicine and medical equipment, where
the United States Government has the discretion to do so. I
further announce that the Administration was developing
country-specific licensing criteria to guide the case-by-case
review process so that governments subject to sanctions do not
gain unwarranted benefits from such sales.
On July 27, 1999, the Regulations were amended to add
statements of licensing policy with respect to commercial sales
of agricultural commodities and products, medicine and medical
equipment (64 Fed. Reg. 41784, August 2, 1999). These
provisions were amended on October 27, 1999 (64 Fed. Reg.
58789, November 1, 1999) to remove language that had prohibited
the issuance of specific licenses authorizing financing by
entities of the governments of Sudan, Libya, and Iran. In
addition, technical revisions were made to the Regulations
pertaining to licensing requirements of other Federal agencies.
A copy of the October 27 amendments is attached to this report.
On February 16, 2000, OFAC announced the addition of the
names of two entities determined to be owned or controlled by,
or to act for or on behalf of, the Government of Sudan. The
property of these entities is blocked and U.S. persons are
generally prohibited from dealing with them.
4. Since the issuance of Executive Order 13067, OFAC has
made numerous decisions with respect to applications for
authorizations to engage in transactions under the Sudanese
sanctions. As of March 15, 2000, OFAC has issued 74
authorizations to non-governmental organizations engaged in the
delivery of humanitarian aid and 366 licenses to others,
including 106 during the current reporting period. 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
inadvertently routed their funds through blocked Sudanese
banks. Eleven licenses were issued authorizing commercial sales
and exportation to Sudan of bulk agricultural commodities, food
and agricultural products, medicine and medical equipment.
Others authorized certain diplomatic transactions, pre-
effective date trade transactions, divestiture of property in
which the Government of Sudan had an interest, intellectual
property protection, the performance of certain legal services,
and transactions relating to air and sea safety policy.
5. 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. OFAC has
disseminated details of this program to the financial,
securities, and international trade communities by both
electronic and conventional media. This information includes
the names of 124 entities owned or controlled by the Government
of Sudan, including 12 financial institutions. As of March 9,
2000, 65 transactions totaling more than $350,000 had been
blocked during this reporting period. Under the Regulations,
transactions in violation of the sanctions where there is no
blockable interest of the Government of Sudan must be returned
to remitters (``rejected''). During the reporting period, 245
transactions were rejected by U.S. banks causing a disruption
of more than $7.6 million in business for Sudan.
6. During this reporting period, OFAC has collected 11
civil monetary penalties totaling nearly $77,000 from seven
U.S. financial institutions, three companies, and one
individual for violations of IEEPA and the SSR. The
individual's and banks' violations involved the transfer of
funds in which the Government of Sudan or an entity owned or
controlled by the Government of Sudan had an interest or which
involved commercial transactions relating to Sudan. OFAC, in
cooperation with the U.S. Customs Service, is closely
monitoring potential violations of the prohibitions of the
Regulations by businesses and individuals. Various reports of
violations are being aggressively pursued.
7. The expenses incurred by the Federal Government in the
six-month period from November 3, 1999 through May 2, 2000 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 $180,000, 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).
8. 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 anti-terrorism
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.