[House Document 107-273]
[From the U.S. Government Publishing Office]




107th Congress, 2d Session - - - - - - - - - - - - House Document 107-273


 
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)




  October 17, 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) 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, October 16, 2002.
 Periodic Report on the National Emergency With Respect to Significant 
               Narcotics Traffickers Centered in Colombia

    This report to the Congress covers 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. 11641(c), and 
section 204(c) of the International Emergency Economic Powers 
Act (IEEPA), 50 U.S.C. 1703(c). Sanctions imposed against 
specifically designated narcotics traffickers (SDNT) centered 
in Colombia 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; 
8 U.S.C. 1182).
    1. During this reporting period, the Department of the 
Treasury's Office of Foreign Assets Control (OFAC), in 
consultation with the Departments of Justice and State, removed 
two individuals from the SDNT list because they no longer met 
the criteria. Persons or entities with whom financial and 
business dealings are prohibited and whose assets are blocked 
under Executive Order 12978 total 576, comprised of ten 
principals, 231 entities, and 335 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 August 22, 2002, OFAC had issued six licenses 
during the current reporting period. One license authorized the 
payment/receipt of legal fees and costs in connection with the 
provision of legal services, while the other five licenses 
authorized the release to blocked funds following a 
determination that there was no property interest of an SNDT 
involved.
    3. During this reporting period, as of August 19, 2002, 
U.S. banks have blocked 25 financial transactions involving 
SDNT-related assets, totaling $120,000. 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. The expenses incurred by the Federal Government in the 
6-month period from April 21 through October 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 approximately $745,000. 
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 data do not reflect certain costs of operations by 
the intelligence and law enforcement communities.
    5. Executive Order 12978 provides the Government of the 
United States with an effective tool for combating the actions 
of significant narcotics traffickers centered in Colombia and 
the extreme level of 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.

                                
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