[House Document 108-68]
[From the U.S. Government Publishing Office]



                                     

108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-68


 
    PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SUDAN

                               __________

                                MESSAGE

                                  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)




May 6, 2003.--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), 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.

                                                    George W. Bush.
    The White House, May 2, 2003.
    Periodic Report on the National Emergency With Respect to Sudan

    This report to the 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 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).
    On October 21, 2002, the Department of the Treasury's 
Office of Foreign Assets Control (``OFAC'') designated seven 
entities as Specially Designated Nationals of Sudan.
    As of February 28, 2003, OFAC had issued 36 licenses during 
the current reporting period. Fifteen of the licenses were 
issued authorizing commercial sales and exportation to Sudan of 
bulk agricultural commodities, agricutlrual products, and 
medicine. Twelve licenses were issued releasing blocked funds 
after it was determined that there was no Sudanese Government 
property interest in the funds. Two licenses were issued 
authorizing the receipt of legal fees, two licenses were issued 
releasing blocked funds in support of certain diplomatic 
activities, three licenses were issued authorizing certain 
administrative transactions, one license was issued authorizing 
the transfer of a Sudanese trademark, and one license was 
issued authorizing the provision of certain humanitarian 
assistance to Sudan. Twenty-three license applications were 
denied, the overwhelming majority involving blocked funds that, 
after review, were determined to involve a Sudanese Government 
property interest.
    As of February 27, 2003, OFAC had blocked 26 transactions 
totaling more than $500,000 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, 195 such transactions were rejected by U.S. 
banks resulting in a disruption of at least $28.1 million in 
business for Sudan. In addition, as of February 27, 2003, OFAC 
had authorized an additional 19 non-governmental organizations 
(``NGOs'') to conduct humanitarian relief operations in Sudan, 
bringing the total number of NGOs licensed to 154.
    Since the last report, OFAC has collected 10 civil monetary 
penalties or settlements totaling nearly $117,000 for 
violations, or allegations thereof, of IEEPA and the 
Regulations. The payments originated from five U.S. companies, 
four U.S. financial institutions, and one individual. One 
defaulted assessed penalty totaling $5,500 from one U.S. 
company has been referred to the Financial Management Division 
for debt collection or installment payment plan arrangement. An 
additional 41 cases are undergoing penalty action for 
violations of the Regulations and IEEPA.
    The expenses incurred by the Federal Government in the 6-
month period from November 3, 2002, through May 2, 2003, 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 
approximately $310,000, 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.
    The situation in Sudan continues to present an unusual and 
extraordinary 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.

                                
