[Congressional Record Volume 142, Number 53 (Tuesday, April 23, 1996)]
[Senate]
[Pages S3952-S3953]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REPORT RELATIVE TO NARCOTICS TRAFFICKERS--MESSAGE FROM THE PRESIDENT--
                                 PM 140

  The PRESIDING OFFICER laid before the Senate the following message

[[Page S3953]]

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 concerning the 
national emergency with respect to significant narcotics traffickers 
centered in Colombia that was declared in Executive Order No. 12978 of 
October 21, 1995. This report is submitted pursuant to 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).
  1. On October 21, 1995, I signed Executive Order No. 12978, 
``Blocking Assets and Prohibiting Transactions with Significant 
Narcotics Traffickers'' (the ``Order'') (60 Fed. Reg. 54579, October 
24, 1995). The Order blocks all property subject to U.S. jurisdiction 
in which there is any interest of four significant foreign narcotics 
traffickers who are principals in the so-called Cali drug cartel 
centered in Colombia. They are listed in the annex to the Order. In 
addition, the Order blocks the property and interests in property of 
foreign persons determined by the Secretary of the Treasury, in 
consultation with the Attorney General and the Secretary of State, (a) 
to play a significant role in international narcotics trafficking 
centered in Colombia or (b) to materially assist in or provide 
financial or technological support for, or goods or services in support 
of, the narcotics trafficking activities of persons designated in or 
pursuant to the Order. In addition the Order blocks all property and 
interests in property subject to U.S. jurisdiction of persons 
determined by the Secretary of the Treasury in consultation with the 
Attorney General and the Secretary of State, to be owned or controlled 
by, or to act for or on behalf of, persons designated in or pursuant to 
the Order (collectively ``Specially Designated Narcotics Traffickers'' 
or ``SDNTs'').
  The Order further prohibits any transaction or dealing by a United 
States person or within the United States in property or interests in 
property of SDNTs, and any transaction that evades or avoids, has the 
purpose of evading or avoiding, or attempts to violate, the 
prohibitions contained in the Order.
  Designations of foreign persons blocked pursuant to the Order are 
effective upon the date of determination by the Director of the 
Department of the Treasury's Office of Foreign Assets Control (FAC) 
acting under authority delegated by the Secretary of the Treasury. 
Public notice of blocking is effective upon the date of filing with the 
Federal Register, or upon prior actual notice.
  2. On October 24, 1995, the Department of the Treasury issued a 
notice containing 76 additional names of persons determined to meet the 
criteria set forth in Executive Order No. 12978 (60 Fed. Reg. 54582-84, 
October 24, 1995). A copy of the notice is attached to this report.
  The Department of the Treasury issued another notice adding the names 
of one additional entity and three additional individuals, as well as 
expanded information regarding addresses and pseudonyms, to the List of 
SDNTs on November 29, 1995 (60 Fed. Reg. 61288-89). A copy of the 
notice is attached to this report.
  3. On March 8, 1996, FAC published a notice in the Federal Register 
adding the names of 138 additional individuals and 60 entities 
designated pursuant to the Order, and revising information for 8 
individuals on the list of blocked persons contained in the notices 
published on November 29, 1995, and October 24, 1995 (61 Fed. Reg. 
9523-28). A copy of the notice is attached to this report. The FAC, in 
coordination with the Attorney General and the Secretary of State, is 
continuing to expand the list of Specially Designated Narcotics 
Traffickers, including both organizations and individuals, as 
additional information is developed.
  4. On October 22, 1995, FAC disseminated details of this program to 
the financial, securities, and international trade communities by both 
electronic and conventional media. This information was updated on 
November 29, 1995, and again on March 5, 1996. In addition to bulletins 
to banking institutions via the Federal Reserve System and the Clearing 
House Inter-bank Payments System (CHIPS), individual notices were 
provided to all State and Federal regulatory agencies, automated 
clearing houses, and State and independent banking associations across 
the country. The FAC contacted all major securities industry 
associations and regulators, posted electronic notices to 10 computer 
bulletin boards and 2 fax-on-demand services, and provided the same 
material to the U.S. Embassy in Bogota for distribution to U.S. 
companies operating in Colombia.
  5. There were no funds specifically appropriated to implement this 
program. The expenses incurred by the Federal Government in the 6-month 
period from October 21, 1995, through April 20, 1996, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of the national emergency with respect to Significant 
Narcotics Traffickers are estimated at approximately $500,000 from 
previously appropriated funds. 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 Justice, and the Department of State.
  6. Executive Order No. 12978 provides this Administration with a new 
tool for combating the actions of significant foreign narcotics 
traffickers centered in Colombia, and the unparalleled violence, 
corruption, and harm that they cause in the United States and abroad. 
The Order is designed to deny these traffickers the benefit of any 
assets subject to the jurisdiction of the  United States and to prevent 
United States persons from engaging in any commercial dealings with 
them, their front companies, and their agents. Executive Order No. 
12978 demonstrates the U.S. commitment to end the scourge that such 
traffickers have wrought upon society in the United States and beyond.

  The magnitude and the dimension of the problem in Colombia--perhaps 
the most pivotal country of all in terms of the world's cocaine trade--
is extremely grave. I shall continue to exercise the powers at my 
disposal to apply economic sanctions against significant foreign 
narcotics traffickers and their violent and corrupting activities as 
long as these measures are appropriate, and will continue to report 
periodically to the Congress on significant developments pursuant to 50 
U.S.C. 1703(c).
                                                  William J. Clinton.  
  The White House, April 23, 1996.

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