[House Document 107-202]
[From the U.S. Government Publishing Office]



107th Congress, 2d Session - - - - - - - - - - - - House Document 107-
202


 
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SIGNIFICANT 
              NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 A SIX-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
    SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA THAT WAS 
 DECLARED IN EXECUTIVE ORDER 12978 OF OCTOBER 21, 1995, PURSUANT TO 50 
                  U.S.C. 1641(c) AND 50 U.S.C. 1703(c)




   April 24, 2002.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
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 204(c) of the International 
Emergency Economic Powers Act, 50 U.S.C. 1703(c), I transmit 
herewith a 6-month periodic report that my Administration has 
prepared on the national emergency with respect to significant 
narcotics traffickers centered in Colombia that was declared in 
Executive Order 12978 of October 21, 1995.

                                                    George W. Bush.
    The White House, April 23, 2002.
 Periodic Report on the National Emergency With Respect to Significant 
               Narcotics Traffickers Centered in Colombia

    This report to the Congress includes developments over the 
course of the past 6 months concerning the national emergency 
with respect to significant narcotics traffickers centered in 
Colombia that was declared in Executive Order 12978 of October 
21, 1995. 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 
(``IEEPA''), 50 U.S.C. 1703(c). Sanctions imposed against 
significant narcotics traffickers centered in Colombia 
(``SDNTs'') pursuant to Executive Order 12978 are separate 
from, and independent of, sanctions imposed pursuant to the 
Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-
1908).
    1. Persons or entities with whom financial and business 
dealings are prohibited and whose assets are blocked under 
Executive Order 12978 total 578, comprised of 10 principals, 
231 entities, and 337 individuals from Colombia's Cali, North 
Valle, and North Coast drug cartels. The narcotics trafficking 
sanctions continue to have a significant adverse impact on the 
operation of these cartels. The SDNT list will continue to be 
expanded to include additional Colombian drug trafficking 
organizations and their fronts, as appropriate.
    2. As of February 21, 2002, the Office of Foreign Asset 
Control (OFAC) had issued one license during the current 
reporting period. That license was issued for the release of 
blocked funds following a determination that there was no 
property interest of an SDNT involved.
    3. During this reporting period, OFAC has continued to 
disseminate and update details of this program to the 
financial, securities, and international trade communities by 
both electronic and conventional media. This included bulletins 
to banking institutions via the Federal Reserve System and the 
Clearing House Interbank Payments System (CHIPS). The same 
material was also provided to the U.S. Embassy in Bogota for 
distribution to U.S. companies operating in Colombia.
    4. Since the last report, OFAC has collected one civil 
monetary penalty for a violation of the Executive Order, IEEPA, 
and the Narcotics Trafficking Sanctions Regulations, 31 C.F.R. 
Part 536, by a U.S. company importing goods in which an SDNT 
had an interest.
    5. The expenses incurred by the Federal Government in the 
6-month period from October 21, 2001, through April 20, 2002, 
that are directly attributable to the exercise of powers and 
authorities conferred by the declaration of the national 
emergency with respect to SDNTs are estimated at more than 
$730,000. Personnel costs were largely centered in the 
Department of the Treasury (particularly in the Office of 
Foreign Assets Control, the U.S. Customs Service, and the 
Office of the General Counsel), the Department of Justice, and 
the Department of State. These personnel cuts do not reflect 
certain costs of operations by the intelligence and law 
enforcement communities.
    6. Executive Order 12978 provides the Government of the 
United States with an effective tool for combating the actions 
of significant foreign narcotics traffickers centered in 
Colombia and the unparalleled violence, corruption, and harm 
that such actions cause in the United States and abroad. The 
magnitude and the dimension of the narcotics trafficking in 
Colombia--perhaps the most pivotal country of all in terms of 
the world's cocaine trade--are extremely grave.