[House Document 108-12]
[From the U.S. Government Publishing Office]



                                     

108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-12


 
    PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO LIBYA

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

  A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
 LIBYA THAT WAS DECLARED IN EXECUTIVE ORDER 12543 OF JANUARY 7, 1986, 
          PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)




January 7, 2003.--Referred to the Committee on International Relations 
                       and ordered to be printed
                                           The White House,
                                       Washington, January 2, 2003.
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), section 204(c) of 
the International Emergency Economic Powers Act, 50 U.S.C. 
1703(c), and section 505(c) of the International Security and 
Development Cooperation Act of 1985, 22 U.S.C. 2349aa-9(c), I 
am transmitting a 6-month periodic report prepared by my 
Administration on the national emergency with respect to Libya 
that was declared in Executive Order 12543 of January 7, 1986.
            Sincerely,
                                                    George W. Bush.
 President's Periodic Report on the National Emergency With Respect to 
                                 Libya

    I hereby report to the Congress on developments over the 
course of the past six months concerning the national emergency 
with respect to Libya that was declared in Executive Order 
12543 of January 7, 1986. This report is submitted pursuant to 
section 401(c) of the National Emergencies Act, 50 U.S.C. 
1641(c); section 204(c) of the International Emergency Economic 
Powers Act (``IEEPA''), 50 U.S.C. 1703(c); and section 505(c) 
of the International Security and Development Cooperation Act 
of 1985, 22 U.S.C. 2349aa-9(c).
    1. During the current reporting period, OFAC reviewed 
numerous applications for licenses to authorize transactions 
under the Libyan Sanctions Regulations, 31 CFR Part 550 (the 
``Regulations''). As of November 6, 2002, a total of 97 
licenses had been issued during the reporting period. 
Consistent with OFAC's ongoing scrutiny of banking 
transactions, the largest category of authorizations (47) 
involved types of financial transactions that are consistent 
with U.S. policy. Most of these licenses authorized remittances 
between persons who are not blocked parties to flow through 
Libyan banks located outside Libya. Fourteen licenses were 
issued authorizing the commercial sale and exportation of 
agricultural commodities and/or medicine or medical equipment. 
Twenty-nine licenses were issued authorizing U.S. companies to 
pursue and enforce intellectual property protections in Libya. 
Four licenses authorizing certain legal services and/or payment 
of professional fees were also issued. Finally, one license 
authorized travel to Libya in connection with the provision of 
legal services, one license was issued authorizing a filing for 
an extension to a concession agreement, and one license was 
issued authorizing the importation of documentation and samples 
relating to Libyan oil wells drilled prior to 1970.
    2. Under the Regulations, unauthorized commercial funds 
transfers involving Libya must be returned to the remitters 
without further processing, rather than blocked, where there is 
no blockable interest of the Government of Libya. As of 
November 5, 2002, 168 transactions, totaling more than $7.3 
million, had been blocked during this reporting period. During 
the reporting period, 142 transactions were rejected, without 
further processing, by U.S. banks causing a disruption of 
nearly $3.5 million in financial dealings involving Libya.
    3. Since my last report, OFAC has collected four civil 
monetary penalties totaling nearly $13,000 for violations of 
IEEPA and the Regulations from three U.S. financial 
institutions and one company. An additional 14 cases are 
undergoing penalty action for violation of IEEPA and the 
Regulations.
    On November 21, 2002, the U.S. Court of Appeals for the 
Fifth Circuit upheld the U.S. District Court for the Southern 
District of Texas' granting the government's motion for summary 
judgment in the case Vitol, S.A. versus U.S. Dep't. of the 
Treasury, et al. The plaintiff, Vitol, S.A., challenged the 
government's 1994 blocking of approximately 350,000 barrels of 
Libyan-origin fuel oil. In upholding the District Court's 
decision, the appeals court affirmed the blocking based on the 
government's reasonable determination that a U.S. person had 
constructive possession or control of the oil at a time when 
the Government of Libya held a blockable interest in the 
property.
    4. During the reporting period, OFAC updated its published 
information on two Libyan Specially Designated Nationals 
(``SDNs''). OFAC also blocked the assets of another entity 
pending investigation pursuant to the Regulations. OFAC's 
intervention in that matter prevented the takeover of a third 
country bank by a Government of Libya entity.
    5. The expenses incurred by the Federal Government in the 
six-month period from July 7, 2002, through January 6, 2003, 
that are directly attributable to the exercise of powers and 
authorities conferred by the declaration of a national 
emergency with respect to Libya, are reported to be 
approximately $530,000, 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) and the Departments of State and 
Commerce.
    6. Despite the U.N. Security Council's suspension of U.N. 
sanctions against Libya upon the Libyan government's handover 
of the Pan Am 103 bombing suspects in April 1999, and a 
Scottish court's conviction of one suspect on January 31, 2001, 
Libya has not yet complied with U.N. Security Council 
Resolutions 731 (1992), 748 (1992), and 883 (1993), including 
Libya's obligation to accept responsibility for the actions of 
Libyan officials and to pay appropriate compensation. Libya 
continues to pose an unusual and extraordinary threat to the 
national security and foreign policy interests of the United 
States and U.S. economic sanctions will, therefore, remain in 
force.
    I will continue to 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.

                                
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