[Congressional Record Volume 144, Number 54 (Tuesday, May 5, 1998)]
[Senate]
[Pages S4353-S4354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPORT CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO SUDAN--MESSAGE 
                       FROM THE PRESIDENT--PM 119

  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 developments concerning the 
national emergency with respect to Sudan that was declared in Executive 
Order 13067 of November 3, 1997, and matters relating to the measures 
in that order. This report is submitted pursuant to section 204(c) of 
the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. 
1703(c), and section 401(c) of the National Emergencies Act, 50 U.S.C. 
1641(c). This report discusses only matters concerning the national 
emergency with respect to Sudan that was declared in Executive Order 
13067.
  1. On November 3, 1997, I issued Executive Order 13067 (62 Fed. Reg. 
59989, November 5, 1997--the ``Order'') to declare a national emergency 
with respect to Sudan pursuant to IEEPA. Copies of the Order were 
provided to the Congress by message dated November 3, 1997.
  The Order blocks all property and interests in property of the 
Government of Sudan, its agencies, instrumentalities, and controlled 
entities, including the Central Bank of Sudan, that are in the United 
States, that hereafter come within the United States, or that are or 
hereafter come within the possession or control of United States 
persons, including their overseas branches. The Order also prohibits 
(1) the importation into the United States of any goods or services of 
Sudanese origin except for information or informational materials; (2) 
the exportation or reexportation of goods, technology, or services to 
Sudan or the Government of Sudan except for information or 
informational materials and donations of humanitarian aid; (3) the 
facilitation by a United States person of the exportation or 
reexportation of goods, technology, or services to or from Sudan; (4) 
the performance by any United States person of any contract, including 
a financing contract, in support of an industrial, commercial, public 
utility, or governmental project in Sudan; (5) the grant or extension 
of credits or loans by any United States person to

[[Page S4354]]

the Government of Sudan; and (6) transactions relating to the 
transportation of cargo. The Order also provided a 30-day delayed 
effective date for the completion of certain trade transactions.
  2. Executive Order 13067 became effective at 12:01 a.m., eastern 
standard time on November 4, 1997. On December 2, 1997, the Department 
of the Treasury's Office of Foreign Assets Control (OFAC) issued 
General Notice No. 1, interpreting the delayed effective date for pre-
November 4, 1997, trade contracts involving Sudan if the preexisting 
trade contract was for (a) the exportation of goods, services, or 
technology from the United States or a third country that was 
authorized under applicable Federal regulations in force immediately 
prior to November 4, 1997, or (b) the reexportation of goods or 
technology that was authorized under applicable Federal regulations in 
force immediately prior to November 4, 1997. Such exports or reexports 
were authorized until 12:01 a.m. eastern standard time, December 4, 
1997, and nonfinancing activity by United States persons incidental to 
the performance of the preexisting trade contract (such as the 
provision of transportation or insurance) was authorized through 12:01 
a.m. eastern standard time, February 2, 1998. If the preexisting trade 
contract was for the importation of goods or services of Sudanese 
origin or other trade transactions relating to goods or services of 
Sudanese origin or owned or controlled by the Government of Sudan, 
importations under the preexisting trade contract were authorized until 
12:01 a.m. eastern standard time, December 4, 1997.
  3. Since the issuance of Executive Order 13067, OFAC has made 
numerous decisions with respect to applications for authorizations to 
engage in transactions under the Sudanese sanctions. As of March 12, 
1998, OFAC has issued 55 authorizations to nongovernmental 
organizations engaged in the delivery of humanitarian aid and 77 
licenses to others. OFAC has denied many requests for licenses. The 
majority of denials were in response to requests to authorize 
commercial exports to Sudan--particularly of machinery and equipment 
for various industries--and the importation of Sudanese--origin goods. 
The majority of licenses issued permitted the unblocking of financial 
transactions for individual remitters who routed their funds through 
blocked Sudanese banks. Other licenses authorized the completion of 
diplomatic transfers, preeffective date trade transactions, and the 
performance of certain legal services.

  4. At the time of signing Executive Order 13067, I directed the 
Secretary of the Treasury to block all property and interests in 
property of persons determined, in consultation with the Secretary of 
State, to be owned or controlled by, or to act for or on behalf of, the 
Government of Sudan. On November 5, 1997, OFAC disseminated details of 
this program to the financial, securities, and international trade 
communities by both electronic and conventional media. This information 
included the names of 62 entities owned or controlled by the Government 
of Sudan. The list includes 12 financial institutions and 50 other 
enterprises.
  5. OFAC, in cooperation with the U.S. Customs Service, is closely 
monitoring potential violations of the import prohibitions of the Order 
by businesses and individuals. Various reports of violations are being 
aggressively pursued.
  6. The expenses incurred by the Federal Government in the 6-month 
period from November 3, 1997, through May 2, 1998, 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 $425,000, 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 (particularly the Bureaus of Economic and Business 
Affairs, African Affairs, Near Eastern Affairs, Counsular Affairs, and 
the Office of the Legal Adviser), and the Department of Commerce (the 
Bureau of Export Administration and the General Counsel's Office).
  7. The situation in Sudan continues to present an extraordinary and 
unusual 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 United 
States Government opposition to the actions and policies of the 
Government of Sudan, particularly its support of international 
terrorism and its failure to respect basic human rights, including 
freedom of religion. The prohibitions contained in Executive Order 
13067 advance important objectives in promoting the antiterrorism and 
human rights policies of the United States. I shall exercise the powers 
at my disposal to deal with these problems and will continue to report 
periodically to the Congress on significant developments.
                                                  William J. Clinton.  
  The White House, May 5, 1998.

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