[House Document 108-88]
[From the U.S. Government Publishing Office]



                                    
108th Congress, 1st Session - - - - - - - - - - - - - House Document 
                                                        108-88
 
               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)




July 7, 2003.--Referred to the Committee on International Relations and 
                         ordered to be printed
                                           The White House,
                                         Washington, June 30, 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), 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.
    Periodic Report on the National Emergency With Respect to Libya

    The report to the Congress addresses developments over the 
course of the past 6 months concerning the national emergency 
with respect to Libya that was declared in Executive Order 
12543 of January 7, 1986. This report is submitted consistent 
with 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 May 9, 2003, a total of 75 licenses had 
been issued during the reporting period. Consistent with OFAC's 
ongoing scrutiny of banking transactions, the largest category 
of authorizations (42) 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. 
Twenty-three licenses were issued authorizing the commercial 
sale and exportation of agricultural commodities and/or 
medicine or medical equipment. Three licenses were issued 
authorizing certain legal services and/or payment of 
professional fees. Three licenses were also issued permitting a 
U.S. company to receive previously outstanding debts owed to 
them by Libyan telecommunications companies. Two licenses were 
issued authorizing U.S. companies to pursue and enforce 
intellectual property protections in Libya. Finally, one 
license authorized the reimbursement of travel expenses paid to 
a Libyan-owned airline where such travel was necessary for 
medical treatment and one license was issued authorizing the 
negotiation and entry into agreements with the Government of 
Libya regarding the provision of mobile information services to 
commercial and executive aircraft of non-embargoed countries.
    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 May 8, 
2003, 180 transactions, totaling more than $10 million, had 
been blocked during this reporting period. In addition, 142 
transactions were rejected, without further processing, by U.S. 
banks causing a disruption of more than $6 million in financial 
dealings involving Libya during this reporting period.
    3. Since the last report, OFAC has collected three civil 
monetary penalties totaling nearly $5,000 for violations of 
IEEPA and the Regulations from three companies. An additional 
six cases are undergoing penalty action for violation of IEEPA 
and the Regulations.
    4. On March 26, 2003, a German airline pilot pleaded guilty 
to a two-count indictment for attempting to violate IEEPA and 
the Arms Export Control Act, 22 U.S.C. 2887, arising from his 
attempts to export millions of dollars worth of military 
aircraft parts to Libya. The pilot had contacted U.S. companies 
in an attempt to purchase C-130 aircraft engines, as well as 
CH-47 Chinook helicopter engines, for export to Libya.
    5. The expenses incurred by the Federal Government in the 
6-month period from January 7 through July 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 more than $556,000, 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, while it was a part of the Department 
of the Treasury; the former Office of the Under Secretary for 
Enforcement; and the Office of the General Counsel), the Bureau 
of Customs and Border Protection at the Department of Homeland 
Security, 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.

                                
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