[House Document 106-58]
[From the U.S. Government Publishing Office]




106th Congress, 1st Session - - - - - - - - - - - - House Document 106-58
_________________________________________________________________________


 
  6-MONTH PERIODIC 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 3, 1999.--Message and accompanying papers referred to the committee 
          on International Relations and ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
69-011                     WASHINGTON : 1999



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 113067 of November 3, 1997.

                                                William J. Clinton.
    The White House, May 3, 1999.

   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 or cargo.
    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 Sudanese 
sanctions. As of March 23, 1999, OFAC has issued 68 
authorizations to non-governmental organizations engaged in the 
delivery of humanitarian aid and 198 licenses to others. OFAC 
has denied many requests for licenses. The majority of 
denialswere 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. Other licenses authorized the completion of 
diplomatic transfers, pre-effective 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 March 17, 1999, 
OFAC has blocked approximately $730,000 during this reporting 
period.
    5. During this reporting period, OFAC has collected three 
civil monetary penalties totaling more than $13,000 from three 
U.S. financial institutions for violations of IEEPA and the 
SSR. The violations related to funds transfers 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 import prohibitions of the Regulations by 
businesses and individuals. Various reports of violations are 
being pursued aggressively.
    6. The expenses incurred by the Federal Government in the 
six-month period from November 3, 1998, through May 2, 1999, 
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 $360,000, most of which represent wage and salary 
costs of 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 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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