[House Document 107-276]
[From the U.S. Government Publishing Office]



                                     

107th Congress, 2d Session - - - - - - - - - - - - House Document 107-
276


 
    PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SUDAN

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 A SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
 SUDAN THAT WAS DECLARED IN EXECUTIVE ORDER 13067 OF NOVEMBER 3, 1997, 
          PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)




October 31, 2002.--Referred to the Committee on International Relations 
                       and ordered to be printed
                                           The White House,
                                      Washington, October 29, 2002.
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 am providing herewith a 6-month periodic 
report prepared by my Administration on the national emergency 
with respect to Sudan that was declared in Executive Order 
13067 of November 3, 1997.
            Sincerely,
                                                    George W. Bush.
    Periodic Report on the National Emergency With Respect to Sudan

    This report to Congress covers developments over the course 
of the past 6 months concerning the national emergency with 
respect to Sudan that was declared in Executive Order 13067 of 
November 3, 1997. This report, prepared by my Administration, 
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).
    1. The Department of the Treasury's Office of Foreign 
Assets Control (OFAC) has issued 30 licenses during the current 
reporting period. The majority of licenses were issued 
releasing blocked funds after it was determined that there was 
no Sudanese Government property interest in the funds. Eight 
licenses were issued authorizing commercial sales and 
exportation to Sudan of bulk agricultural commodities, food and 
agricultural products, medicine, and medical equipment. Two 
licenses were issued authorizing the shipment of human remains, 
one license was issued authorizing the sale of equity in a 
Sudanese company held by a U.S. company to a non-sanctioned, 
non-U.S. purchaser, and two licenses were issued authorizing 
certain humanitarian organizations and non-governmental 
organizations (NGOs) to provide humanitarian assistance to 
Sudan. Twenty-five license applications were denied, all 
involving blocked funds that, after review, were determined to 
involve a Sudanese Government property interest.
    2. As of September 5, 2002, OFAC has blocked 46 
transactions totaling more than $1.9 million during this 
reporting period. Under the Sudanese Sanctions Regulations, 31 
C.F.R. Part 538 (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 this reporting period, 208 such 
transactions were rejected by U.S. banks resulting in a 
disruption of at least $7.7 million in business for Sudan. In 
addition, as of September 5, 2002, OFAC has authorized an 
additional 11 NGOs to conduct humanitarian relief operations in 
Sudan, bringing the total number of NGOs licensed to 135.
    3. Since the last report, OFAC has collected 6 civil 
monetary penalties or settlements totaling nearly $108,400 for 
violations, or allegations thereof, of IEEPA and the 
Regulations. The payments originated from 4 U.S. companies, 1 
U.S. financial institution, and 1 individual. Seven defaulted 
assessed penalties totaling $41,740 from 3 U.S. companies, 3 
U.S. financial institutions, and 1 individual have been 
referred to the Financial Management Division for debt 
collection. An additional 39 cases are undergoing penalty 
action for violation of the Regulations and IEEPA.
    4. The expenses incurred by the Federal Government in the 
6-month period from May 3 through November 2, 2002, 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 more than $300,000, 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, and the Department of Commerce.
    5. 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 U.S. Government's opposition to the 
actions and policies of the Government of Sudan, particularly 
its support of certain terrorist organizations, including Hamas 
and Palestinian Islamic Jihad, and its failure to respect basic 
human rights, including its restrictions on religious freedom. 
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 this unusual and 
extraordinary threat and will continue to report periodically 
to the Congress on significant developments as required by law.