[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.


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