[House Document 107-100] [From the U.S. Government Publishing Office] 107th Congress, 1st Session - - - - - - - - - - House Document 107-100 PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO THE TALIBAN IN AFGHANISTAN __________ COMMUNICATION from THE PRESIDENT OF THE UNITED STATES transmitting A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO THE TALIBAN IN AFGHANISTAN THAT WAS DECLARED IN EXECUTIVE ORDER 13129 OF JULY 4, 1999, PURSUANT TO 50 U.S.C. 1703(c)
July 16, 2001.--Referred to the Committee on International Relations and ordered to be printed __________ U.S. GOVERNMENT PRINTING OFFICE 89-011 WASHINGTON : 2001 The White House, Washington, June 30, 2001. 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 the Taliban that was declared in Executive Order 13129 of July 4, 1999. Sincerely, George W. Bush. President's Periodic Report on the National Emergency With Respect to the Taliban in Afghanistan I hereby report to the Congress on developments over the course of the past 6 months concerning the national emergency with respect to the actions and polices of the Taliban in Afghanistan that was declared in Executive Order 13129 of July 4, 1999. This report is submitted pursuant to 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, 50 U.S.C. 1703(c), (``IEEPA''). 1. On January 11, 2001, the Office of Foreign Assests Control (OFAC) issued the Taliban (Afghanistan) Sanctions Regulations, 31 CFR Part 545 (the ``Regulations'') (66 FR 2726, January 11, 2001). A copy of the Regulations is attached to this report. 2. During the past 6 months, OFAC has authorized one nongovernmental organization to conduct humanitarian relief operations in the territory of Afghanistan controlled by the Taliban, bringing the total of such authorizations to 24. In addition, OFAC issued six licenses to authorize certain payments in connection with overflights of Taliban-controlled territory and to unblock funds in which there is no interest of the Taliban. OFAC continues to emphasize to the international banking community in the United States the importance of identifying and blocking payments made by or on behalf of the Taliban and has worked closely with the banks to assure the effectiveness of interdiction software systems used to identify such payments. As of May 9, 2001, 18 transactions totaling approximately $2.56 million were blocked during this period. This brings the total assets blocked since the inception of the program to more than $252 million. Under the Regulations, transactions in violation of the sanctions where there is no blockable interest of the Taliban must be returned to remitters (i.e., ``rejected''). During the reporting period, 42 transactions were rejected by U.S. banks causing a disruption of nearly $1.4 million in financial dealings involving the territory of Afghanistan controlled by the Taliban. On March 1, 2001, OFAC, in consultation with the Department of State, issued a Blocking Order and Notice of Office Closure to the New York representative of the Taliban Islsmic Movement of Afghanistan. This action served effectively to close the Taliban's New York office under the authority of Executive Order 13129, consistent with UN Security Council Resolution 1333. In connection with this action, OFAC issued an order to a New York bank blocking two accounts maintained by the Taliban's New York office. Various other enforcement actions and investigations are being aggressively pursued. Reports of new violations are also being scrutinized. Since the last report, OFAC has collected two civil penalties totaling nearly $5,100 for violations of IEEPA and the Regulations by a US bank and a U.S. company. 3. The expenses incurred by the Federal Government in the 6-month period from January 4 through July 3, 2001, that are directly attributable to the exercise of powers and authorities conferred by the declaration of the national emergency with respect to the Taliban in Afghanistan, are estimated at approximately $300,000. Personnel costs were largely centered in the Department of the Treasury (particularly in the Office of Foreign Assets Control, the Office of the General Counsel, and the U.S. Customs Service), the Department of State, and components of the Department of Justice. 4. The Taliban continues to provide Usama bin Laden and the al-Oaida organization with a safe haven and base of operations, despite repeated efforts by the United States to persuade the Taliban to expel bin Laben to a third country where he can be brought to justice. The Taliban also allows Usama bin Laden to make repeated public threats against the United States, to operate a network of terrorist training camps, and to use Afghanistan as a base from which to sponsor terrorist acts abroad. Available information confirms that bin Laden's organization, working with other terrorist groups, continues actively to plan attacks on Americans and others. Reliable information also indicates that the bin Laden network seeks to acquire weapons of mass destruction, including chemical weapons. The international community recognized that the Taliban's actions pose an unusual threat to international security and the need to take action against the Taliban for its harboring of Usama bin Laden by the unanimous adoption of UN Security Council Resolution 1267, which freezes funds and other financial resources of the Taliban and prohibits Taliban- associated flights. The seriousness of this threat was underscored by the Security Council's subsequent adoption of further sanctions in Resolution 1333. I shall continue to exercise the powers at my disposal to apply economic sanctions against the Taliban in Afghanistan as long as these measures are appropriate, and will continue to report periodically to the Congress on significant developments pursuant to 50 U.S.C. 1703(c).