[House Document 106-314]
[From the U.S. Government Publishing Office]



106th Congress, 2d Session - - - - - - - - - - - House Document 106-314


 
               NATIONAL EMERGENCY WITH RESPECT TO 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 4, 2000.--Referred to the Committee on International Relations 
                       and ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-011                     WASHINGTON : 2000

                                           The White House,
                                     Washington, November 17, 2000.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: 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.
            Sincerely,
                                                William J. Clinton.
 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 or 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 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 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 announced 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 license requirements of other federal agencies.
    On February 16, 2000, OFAC announced the addition of two 
entities determined to be owned or controlled by, or to act for 
or on behalf of, the Government of Sudan to the List of 
Specially Designated and Blocked Persons. The property of these 
entities is blocked and U.S. persons are generally prohibited 
from dealing with them.
    4. Since the issuing 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 September 8, 2000, OFAC had issued 76 
authorizations to non-governmental organizations engaged in the 
delivery of humanitarian aid and 442 licenses to others, 
including 76 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 issued licenses permit the unblocking of financial 
transactions for individual remitters who inadvertently routed 
their funds through blocked Sudanese banks. Twenty-five 
licenses were issued to authorize commercial sales and 
exportation to Sudan of bulk agricultural commodities, food and 
agricultural products, medicine and medical equipment. Other 
licenses 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 126 entities owned or controlled by the Government 
of Sudan, including 12 financial institutions. As of September 
7, 2000, 70 transactions totaling more than $1.4 million 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, 359 transactions were rejected by U.S. banks causing a 
disruption of more than $16.5 million in business for Sudan.
    6. Since my last report, OFAC has collected 11 civil 
monetary penalties totaling nearly $45,000 for violations of 
IEEPA and the Regulations from ten U.S. banks and one U.S. 
company. An additional 36 cases are undergoing penalty action 
for violations of the Regulations and IEEPA. 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 May 3 through November 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 $170,000, 
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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