[Congressional Record Volume 140, Number 13 (Thursday, February 10, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO LIBYA--MESSAGE FROM 
                          THE PRESIDENT--PM 87

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Banking, Housing, and 
Urban Affairs.

To the Congress of the United States:
  I hereby report to the Congress on the developments since my last 
report of July 12, 1993, concerning the national emergency with respect 
to Libya that was declared in Executive Order No. 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. On December 3, 1993, I announced new measures to tighten economic 
sanctions against Libya. These measures are taken pursuant to the 
imposition by the world community of new sanctions against Libya under 
Security Council [UNSC] Resolution 883 of November 11, 1993, and are 
designed to bring to justice the perpetrators of terrorist attacks 
against Pan Am flight 103 and UTA flight 772. The actions signal that 
Libya cannot continue to defy justice and flout the will of the 
international community with impunity.
  UNSC Resolution 883 freezes on a worldwide basis certain financial 
assets owned or controlled by the Government of Libya or certain Libyan 
entities and bans provision of equipment for refining and transporting 
oil. It tightens the international air embargo and other measures 
imposed in 1992 under UNSC Resolution 748. It is the result of close 
cooperation between the United States, France, and the United Kingdom, 
whose citizens were the principal victims of Libyan-sponsored terrorist 
attacks against Pan Am 103 and UTA 772, and of consultations with 
Russia and other friends and allies.
  On December 2, 1993, I renewed for another year the national 
emergency with respect to Libya pursuant to IEEPA. This renewal extends 
the current comprehensive financial and trade embargo against Libya in 
effect since 1986. Under these sanctions, all trade with Libya is 
prohibited, and all assets owned or controlled by the Libyan government 
in the United States or in the possession or control of U.S. persons 
are blocked. In addition, I have instructed the Secretary of Commerce 
to reinforce our current trade embargo against Libya by prohibiting the 
re-export from foreign countries to Libya of U.S.-origin products, 
including equipment for refining and transporting oil.

  2. There has been one amendment to the Libyan Sanctions Regulations, 
31 CFR Part 550 [the Regulations], administered by the Office of 
Foreign Assets Control [FAC] of the Department of the Treasury, since 
my last report on July 12, 1993. The amendment [58 Fed. Reg. 47643] 
requires U.S. financial institutions to provide written notification to 
FAC of any transfers into blocked accounts within 10 days of each 
transfer. It also standardizes registration and reporting requirements 
applicable to all persons holding blocked property and requires the 
annual designation of an individual contact responsible for maintaining 
the property in a blocked status. A copy of the amendment is attached 
to this report.
  3. During the current 6-month period, FAC made numerous decisions 
with respect to applications for licenses to engage in transactions 
under the Regulations, issuing 65 licensing determinations--both 
approvals and denials. Consistent with FAC's ongoing scrutiny of 
banking transactions, the largest category of license approvals 17 
concerned requests by non-Libyan persons or entities to unblock bank 
accounts initially blocked because of an apparent Libyan interest. One 
license involved export transactions from the United States to support 
a United Nations program in Libya. Six licenses were issued authorizing 
intellectual property protection in Libya. Two licenses were issued 
that permit U.S. attorneys to provide legal representation under 
circumstances permitted by the Regulations. FAC has also issued one 
license authorizing U.S. landlords to liquidate the personality of the 
People's Committee for Libyan Students, with the net proceeds from the 
sale paid into blocked accounts. Finally, FAC has issued three licenses 
to the Embassy of the United Arab Emirates, as Protecting Power for 
Libya, to manage Libyan property in the United States subject to 
stringent FAC reporting requirements.

  4. During the current 6-month period, FAC has continued to emphasize 
to the international banking community in the United States the 
importance of identifying and blocking payments made by or on behalf of 
Libya. The FAC worked closely with the banks to implement new 
interdiction software systems to identify such payments. As a result, 
during the reporting period, more than 130 transactions involving 
Libya, totaling more than $20.7 million, were blocked.
  Since my last report, FAC has collected 39 civil monetary penalties 
totaling nearly $277,000 for violations of U.S. sanctions against 
Libya. All but eight of the violations involved the failure of banks to 
block funds transfers to Libyan-owned or -controlled banks, with five 
of the remainder involving the U.S. companies that ordered the funds 
transfers. The balance involved one case each for violations involving 
a letter of credit, trademark registrations, and export transactions.
  Various enforcement actions carried over from previous reporting 
periods have continued to be aggressively pursued. Several new 
investigations of potentially significant violations of the Libyan 
sanctions have been initiated by FAC and cooperating U.S. law 
enforcement agencies. Many of these cases are believed to involve 
complex conspiracies to circumvent the various prohibitions of the 
Libyan sanctions, as well as the utilization of international 
diversionary shipping routes to and from Libya. FAC continued to work 
closely with the Departments of State and Justice to identify U.S. 
persons who enter into contracts or agreements with the Government of 
Libya, or other third-country parties, to lobby U.S. Government 
officials and to engage in public relations work on behalf of the 
Government of Libya without FAC authorization.
  FAC also continued its efforts under the Operation Roadblock 
initiative. This ongoing program seeks to identify U.S. persons who 
travel to and/or work in Libya in violation of U.S. law.
  FAC has continued to pursue the investigation and identification of 
Libyan entities as Specially Designated Nationals of Libya. During the 
reporting period, those activities have resulted in the addition of one 
third-country Libyan bank to the Specially Designated Nationals list; 
and FAC has intervened with respect to a Libyan takeover attempt of 
another foreign bank. FAC is also reviewing options for additional 
measures directed against Libyan assets in order to ensure strict 
implementation of UNSC Resolution 883 that has imposed international 
sanctions against Libyan financial assets.
  5. The expenses incurred by the Federal Government in the 6-month 
period from July 7, 1993, through January 6, 1994, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of the Libyan national emergency are estimated at 
approximately $1 million. Personnel costs were largely centered in the 
Department of the Treasury, particularly in the Office of Foreign 
Assets Control, the Office of the General Counsel, and the U.S. Customs 
Service, the Department of State, and the Department of Commerce.
  6. The policies and actions of the Government of Libya continue to 
pose an unusual and extraordinary threat to the national security and 
foreign policy of the United States. The United States continues to 
believe that still stronger international measures than those mandated 
by UNSC Resolution 883, including a worldwide oil embargo, should be 
enacted if Libya continues to defy the international community. We 
remain determined to ensure the perpetrators of the terrorists acts 
against Pan Am 103 and UTA 772 are brought to justice. The families of 
the victims in the murderous Lockerbie bombing and other acts of Libyan 
terrorism deserve nothing less. I shall continue to exercise the powers 
at my disposal to apply economic sanctions against Libya fully and 
effectively, so long as those measures are appropriate, and will 
continue to report periodically to the Congress on significant 
developments as required by law.
                                                  William J. Clinton.  
  The White House, February 10, 1994.

                          ____________________