[House Document 108-114]
[From the U.S. Government Publishing Office]



                                     

108th Congress, 1st Session - - - - - - - - - - - - House Document 108-114


 
  REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SIERRA LEONE AND 
         LIBERIA AND IMPLEMENTING THE CLEAN DIAMOND TRADE ACT

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  A REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SIERRA LEONE AND 
LIBERIA THAT WAS DECLARED IN EXECUTIVE ORDER 13194, OF JANUARY 18, 2001 
AND EXPANDED IN SCOPE IN EXECUTIVE ORDER 13213, OF MAY 22, 2001 ALSO TO 
IMPLEMENT THE ``CLEAN DIAMOND TRADE ACT'', PUBLIC LAW 108-19, PURSUANT 
                TO 50 U.S.C. 1703(b) AND 50 U.S.C. 1631




    September 13, 2003.--Referred to the Committee on International 
                  Relations and ordered to be printed
                                           The White House,
                                         Washington, July 29, 2003.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: Consistent with section 204(b) of the 
International Emergency Economic Powers Act, 50 U.S.C. 1703(b), 
and section 301 of the National Emergencies Act, 50 U.S.C. 
1631, I hereby report that I have issued an Executive Order 
(copy attached) to implement the Clean Diamond Trade Act, 
Public Law 108-19 (the ``Act''), which authorizes the President 
to take steps to implement the Kimberley Process Certification 
Scheme (KPCS) for rough diamonds in the United States. In 
addition, my Executive Order amends Executive Orders 13194 and 
13213 to harmonize those orders with the Act and to reflect 
recent developments in Sierra Leone and Liberia. The 
prohibitions in section 1 and 3 of the order take effect at 
12:01 a.m. eastern daylight time on July 30, 2003, and the 
remaining provisions of the order take effect immediately.
    On January 18, 2001, the President issued Executive Order 
13194 taking into account United Nations Security Council 
Resolution (UNSCR) 1306 of July 5, 2000. That order declared a 
national emergency in response to the role played by the 
illicit trade in diamonds in fueling conflict and human rights 
violations in Sierra Leone and prohibited the importation into 
the United States of rough diamonds from Sierra Leone that were 
not controlled by the Government of Sierra Leone through its 
Certificate of Origin regime.
    On May 22, 2001, I issued Executive Order 13213 taking into 
account UNSCR 1343 of March 7, 2001. That order expanded the 
scope of the national emergency declared in Executive Order 
13194 to respond to, among other things, the Government of 
Liberia's complicity in the illicit trade in rough diamonds 
through Liberia. Executive Order 13213 prohibited the direct or 
indirect importation into the United States of all rough 
diamonds from Liberia, whether or not such diamonds originated 
in Liberia, except to the extent provided in regulations, 
orders, directives, or licenses issued pursuant to the order.
    The United Nations ban against the importation of rough 
diamonds from Sierra Leone without a certificate of origin, 
imposed by UNSCR 1306 and renewed by UNSCR 1446 of December 4, 
2002, expired on June 4, 2003. The United Nations Security 
Council decided not to renew the measure in light of the 
Government of Sierra Leone's increased efforts to control and 
manage its diamond industry and ensure proper control over 
diamond mining areas, as well as the Government's full 
participation in the KPCS. Although the hostilities fueled by 
and funded with conflict diamonds have ceased in Sierra Leone, 
the attendant peace and stability are tentative, fragile, and 
jeopardized by ongonig illicit diamond production and 
smuggling. In addition, the Security Council, through UNSCR 
1478 of May 6, 2003, renewed for 1 year the absolute import ban 
on rough diamonds from Liberia based on evidence that the 
Government of Liberia continues to breach the measures imposed 
by UNSCR 1343.
    In a related development, representatives of the United 
States and numerous other countries, including Sierra Leone, 
announced in the Interlaken Declaration of November 5, 2002, 
the launch of the KPCS. Participants in KPCS are expected to 
prohibit the importation of rough diamonds from, or the 
exportation of rough diamonds to, a non-Participant and to 
require that shipments of rough diamonds from or to a 
Participant be controlled through the KPCS. The Clean Diamond 
Trade Act, which I signed on April 25, 2003, enables the United 
States to implement the KPCS by providing that, when the Act is 
in effect, the President shall, subject to certain waiver 
authorities, prohibit the importation into, or exportation 
from, the United States of any rough diamond, from whatever 
source, that has not been controlled through the KPCS.
    My Executive Order will implement the Clean Diamond Trade 
Act and amend Executive Orders 13194 and 13213 to harmonize 
those orders with the Act and to reflect recent development in 
Sierra Leone and Liberia. Section 1 of the Executive Order puts 
in place, as of July 30, 2003, the prohibitions of section 4(a) 
of the Clean Diamond Trade Act. Section 2 of my Executive Order 
assigns various functions of the President under the Act to the 
Secretary of State and the Secretary of the Treasury, including 
authorizing the Secretary of the Treasury to issue implementing 
regulations.
    Section 3 of my Executive Order amends Executive Order 
13194 and 13213 in the following ways. Executive Order 13194 is 
revised to control rough diamonds from Sierra Leone through the 
KPCS, rather than through the Certificate of Origin regime of 
the Government of Sierra Leone. Executive Order 13213 is 
revised to remove, consistent with section 4(a) of the Clean 
Diamond Trade Act, licensing and other authorities with respect 
to rough diamonds from Liberia.
    Finally, section 4 of my Executive Order provides that for 
the purposes of the order and Executive Order 13194, the 
definitions set forth in section 3 of the Act shall apply, and 
that the term ``Kimberley Process Certification Scheme'' shall 
not be construed to include any changes to the KPCS after April 
25, 2003.
    My Executive Order demonstrates the U.S. commitment to 
exclude conflict diamonds from international trade, while 
promoting the legitimate trade in rough diamonds that is so 
vital to many nations in Africa and elsewhere.
            Sincerely,
                                                    George W. Bush.
                            Executive Order

                              ----------                              


                Implementing the Clean Diamond Trade Act

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including the Clean Diamond Trade Act (Public Law 108-19) (the 
``Act''), the International Emergency Economic Powers Act, as 
amended (50 U.S.C. 1701 et seq.), the National Emergencies Act 
(50 U.S.C. 1601 et seq.), section 5 of the United Nations 
Participation Act, as amended (22 U.S.C. 287c), and section 301 
of title 3, United States Code, and in view of the national 
emergency described and declared in Executive Order 13194 of 
January 18, 2001, and expanded in scope in Executive Order 
13213 of May 22, 2001,
    I, GEORGE W. BUSH, President of the United States of 
America, note that, in response to the role played by the 
illicit trade in diamonds in fueling conflict and human rights 
violations in Sierra Leone, the President declared a national 
emergency in Executive Order 13194 and imposed restrictions on 
the importation of rough diamonds into the United States from 
Sierra Leone. I expanded the scope of that emergency in 
Executive Order 13213 and prohibited absolutely the importation 
of rough diamonds from Liberia. I further note that 
representatives of the United States and numerous other 
countries announced in the Interlaken Declaration of November 
5, 2002, the launch of the Kimberley Process Certification 
Scheme (KPCS) for rough diamonds, under which Participants 
prohibit the importation of rough diamonds from or the 
exportation of rough diamonds to, a non-Participant and require 
that shipments of rough diamonds from or to a Participant be 
controlled through the KPCS. The Clean Diamond Trade Act 
authorizes the President to take steps to implement the KPCS. 
Therefore, in order to implement the Act, to harmonize 
Executive Orders 13194 and 13213 with the Act, to address 
further threats to international peace and security posed by 
the trade in conflict diamonds, and to avoid undermining the 
legitimate diamond trade, it is hereby ordered as follows:
    Section 1. Prohibitions. Notwithstanding the existence of 
any rights or obligations conferred or imposed by any contract 
entered into or any license or permit granted prior to July 30, 
2003, the following are, except to the extent a waiver issued 
under section 4(b) of the Act applies, prohibited:
    (a) the importation into, or exportation from, the United 
States on or after July 30, 2003, of any rough diamond, from 
whatever source, unless the rough diamond has been controlled 
through the KPCS;
    (b) any transaction by a United States person anywhere, or 
any transaction that occurs in whole or in part within the 
United States, that evades or avoids, or has the purpose of 
evading or avoiding, or attempts to violate, any of the 
prohibitions set forth in this section; and
    (c) any conspiracy formed to violate any of the 
prohibitions of this section.
    Sec. 2. Assignment of Functions. (a) The functions of the 
President under the Act are assigned as follows:
          (i) sections 4(b), 5(c), 6(b), 11, and 12 to the 
        Secretary of State; and
          (ii) sections 5(a) and 5(b) to the Secretary of the 
        Treasury.
    (b) The Secretary of State and the Secretary of the 
Treasury may reassign any of these functions to other officers, 
officials, departments, and agencies within the executive 
branch, consistent with applicable law.
    (c) In performing the function of the President under 
section 11 of the Act, the Secretary of State shall establish 
the coordinating committee as part of the Department of State 
for administrative purposes only, and shall, consistentwith 
applicable law, provide administrative support to the coordinating 
committee. In the performance of functions assigned by subsection 2(a) 
of this order or by the Act, the Secretary of State, the Secretary of 
the Treasury, and the Secretary of Homeland Security shall consult the 
coordinating committee, as appropriate.
    Sec. 3. Amendments to Related Executive Orders. (a) Section 
1 of Executive Order 13194 of January 18, 2001, is revised to 
read as follows:
    ``Section 1. Except to the extent provided by section 2 of 
this order, and notwithstanding the existence of any rights or 
obligations conferred or imposed by any contract entered into 
or any license or permit granted prior to the effective date of 
this order, the importation into, or exportation from the 
United States of any rough diamond from Sierra Leone, on or 
after July 30, 2003, is prohibited.''
    (b) Section 2 of Executive Order 13194 is revised to read 
as follows: ``Sec. 2. The prohibitions in section 1 of this 
order shall not apply to the importation or exportation of any 
rough diamond that has been controlled through the Kimberley 
Process Certification Scheme.''
    (c) Sections 4(c), (d), and (e) of Executive Order 13194 
are deleted, and the word ``and'' is added after the semicolon 
at the end of section 4(a).
    (d) Section 1 of Executive Order 13213 of May 22, 2001, is 
revised to read as follows: ``Section 1. Notwithstanding the 
existence of any rights or obligations conferred or imposed by 
any contract entered into or any license or permit granted 
prior to the effective date of this order, the direct or 
indirect importation into the United States of all rough 
diamonds from Liberia, whether or not such diamonds originated 
in Liberia, on or after July 30, 2003, is prohibited.''
    Sec. 4. Definitions. For the purposes of this order and 
Executive Order 13194, the definitions set forth in section 3 
of the Act shall apply, and the term ``Kimberley Process 
Certification Scheme'' shall not be construed to include any 
changes to the KPCS after April 25, 2003.
    Sec. 5. General Provisions. This order is not intended to, 
and does not, create any right or benefit, substantive or 
procedural, enforceable at law or in equity by any party 
against the United States, its departments, agencies, 
instrumentalities or entities, its officers or employees, or 
any other person.
    Sec. 6. Effective Date and Transmittal. (a) Sections 1 and 
3 of this order are effective at 12:01 a.m. eastern daylight 
time on July 30, 2003. The remaining provisions of this order 
are effective immediately.
    (b) This order shall be transmitted to the Congress and 
published in the Federal Register.

                                                    George W. Bush.
    The White House, July 29, 2003.

                                
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