[House Document 108-115]
[From the U.S. Government Publishing Office]



                                     

108th Congress, 1st Session - - - - - - - - - - - - House Document 108-115

 
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SIERRA LEONE 
                              AND LIBERIA

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  SIX MONTH PERIODIC 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, PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)




    September 3, 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 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), I am transmitting a 6-month periodic report prepared 
by my Administration on the national emergency declared with 
respect to Sierra Leone and Liberia in Executive Order 13194 of 
January 18, 2001, as expanded in scope in Executive Order 13213 
of May 22, 2001.
            Sincerely,
                                                    George W. Bush.
Periodic Report on the National Emergency With Respect to Sierra Leone 
                              and Liberia

    This report to the Congress concerns developments over the 
course of the past 6 months on the national emergency declared 
in Executive Order 13194 of January 18, 2001, in response to 
the actions and policies of the insurgent Revolutionary United 
Front (``RUF'') in Sierra Leone and pursuant to which the 
United States imposed a general ban on the direct and indirect 
importation into the United States of all rough diamonds from 
Sierra Leone, except those imports controlled through the 
Certificate of Origin regime of the Government of Sierra Leone. 
On May 22, 2001, I issued Executive Order 13213, which expanded 
the scope of that national emergency to include actions of the 
Government of Liberia in support of the RUF and prohibited the 
importation of all rough diamonds from Liberia. This report is 
submitted pursuant to section 204(c) of the International 
Emergency Economic Powers Act, 50 U.S.C. 1703(c) and section 
401(c) of the National Emergencies Act, 50 U.S.C. 1641(c).
    1. Representatives of the United States and 47 other 
countries, including Sierra Leone, announced in the Interlaken 
Declaration of November 5, 2002, the launch of the Kimberley 
Process Certification Scheme for rough diamonds (the ``KPCS''). 
Countries participating in the scheme are expected to prohibit 
the importation of rough diamonds from, or the exportation of 
rough diamonds to, non-participants and to require that 
shipments of rough diamonds from or to participating countries 
be controlled through the KPCS.
    In a related development, the United Nations ban against 
the importation of rough diamonds from Sierra Leone without a 
certificate of origin, imposed by United Nations Security 
Council Resolution (``UNSCR'') 1306 (2000) and renewed by UNSCR 
1446 (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 ongoing illicit diamond production and 
smuggling. In addition, the Security Council through UNSCR 1478 
of May 6, 2003, renewed for one year the absolute import ban 
onrough diamonds from Liberia on evidence that Liberia continues to 
breach the measures imposed by UNSCR 1343 (2001).
    On April 25, 2003, I signed the Clean Diamond Trade Act 
(Pub. L. 108-19) (the ``Act''), which authorizes the President 
to take steps to implement the KPCS in the United States. The 
Act provides that, subject to certain waiver authorities, the 
President shall prohibit, when the Act is in effect, the 
importation into, or exportation from, the United States of any 
rough diamond, from whatever source, that has not been 
controlled through the KPCS.
    Recently, I have issued an Executive Order to implement the 
Act. 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 
Executive Order puts in place, as of July 30, 2003, the 
prohibitions of the Act described above. The Department of the 
Treasury's Office of Foreign Assets Control (``OFAC'') will 
issue implementing regulations to carry out the purposes of my 
Executive Order.
    2. In the 6-month period since January 18, 2003, OFAC has 
not issued any specific licenses authorizing transactions 
otherwise prohibited by the Rough Diamonds (Sierra Leone & 
Liberia) Sanctions Regulations, 31 CFR Part 591. The expenses 
incurred by the Federal Government in the 6-month period from 
January 18 through July 17, 2003, that are directly 
attributable to the exercise of powers and authorities 
conferred by the declaration of a national emergency with 
respect to Sierra Leone and Liberia are reported to be 
approximately $50,000, 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 former Office of the 
General Counsel), the Bureau of Customs and Border Protection 
at the Department of Homeland Security, the Department of 
State, and the Department of Commerce.
    3. Sierra Leone is at peace and the RUF have disbanded. In 
the near term, the country can expect political security due to 
the 13,000 United Nations peacekeepers deployed at strategic 
locations in the capital, Freetown, and around the country. 
However, future stability depends on ongoing reform of the 
Sierra Leone armed forces and police so that they are able to 
replace United Nations peacekeepers as they withdraw over the 
next 2 years. Moreover, the economy has barely begun to recover 
from a decade of civil war, devastation, and neglect, and many 
Sierra Leoneans have no jobs and little livelihood. Life for 
many will remain difficult in coming years as economic 
redevelopment measures gain momentum.
    A significant portion of the mining and trading of diamonds 
remains outside Sierra Leone government control. Liberian 
President Charles Taylor, who supported and sustained the RUF 
during its campaign against the Sierra Leone government, 
continues to defy United Nations Security Council sanctions. He 
continues to trade in illegal diamonds smuggled from Sierra 
Leone, smuggle illegal arms, support RUF elements within 
Liberia, and pose a threat to security and the fragile 
stability in Sierra Leone. Although he is now under immense 
pressure from rebel forces within Liberia, the outcome of the 
conflict at this juncture is uncertain. Until the threat to 
Sierra Leone from Charles Taylor is eliminated, and the mining 
of Sierra Leonenan diamonds is brought under control, the 
threat to U.S. foreign policy remains, and Executive Orders 
13194 and 13213, as amended, will remain in effect.

                                
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