    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [January 11, 1991]
    [Page 30]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 30]]

    Message to the Congress Reporting on the Economic Sanctions Against
    Libya
    January 11, 1991

    To the Congress of the United States:
        1. I hereby report to the Congress on developments since my last
    report of July 13, 1990, 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, 50 U.S.C. 1703(c)
    (``IEEPA''); and section 505(c) of the International Security and
    Development Cooperation Act of 1985, 22 U.S.C. 2349aa-9(c).
        2. Since my last report on July 13, 1990, there have been no
    amendments to the Libyan Sanctions Regulations, 31 C.F.R. Part 550 (the
    ``Regulations''), administered by the Office of Foreign Assets Control
    (``FAC'') of the Department of the Treasury. Additionally, since July
    13, 1990, there have been no amendments or changes to orders of the
    Department of Commerce or the Department of Transportation implementing
    aspects of Executive Order No. 12543 relating to exports from the United
    States and air transportation, respectively.
        3. During the current 6-month period, FAC approved only one license
    application authorizing the renewal of a patent. Twenty licensing
    decisions were made prohibiting transactions in connection with Libya.
        4. Various enforcement actions mentioned in previous reports
    continue to be pursued. In October 1990, based upon violations of IEEPA,
    the U.S. Customs Service seized $3 million in funds at a New York bank
    and $800,000 at a bank in Florida. The U.S. attorneys for the respective
    jurisdictions utilized 18 U.S.C. 1956, the Money Laundering Control Act,
    to effect the seizures. This marks the first time that this statute has
    been used to effect seizures based upon an IEEPA violation. This
    continuing investigation centers around an alleged conspiracy to invest
    Libyan funds in various U.S. businesses and technology.
        In November 1990, FAC blocked a letter of credit in the amount of
    $332,124, drawn on the account of a U.S. manufacturer to pay a South
    Korean firm for the shipment of industrial equipment to Libya. The funds
    have been placed into a blocked account, and the investigation into the
    actions of the U.S. firm continues.
        5. The expenses incurred by the Federal Government in the 6-month
    period from July 13, 1990, through December 14, 1990, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of the Libyan national emergency are estimated at $407,603.
    Personnel costs were largely centered in the Department of the Treasury
    (particularly in the Office of Foreign Assets Control, the Customs
    Service, the Office of the Assistant Secretary for Enforcement, the
    Office of the Assistant Secretary for International Affairs, and the
    Office of the General Counsel), the Department of State, the Department
    of Commerce, the Department of Justice, the Federal Reserve Board, and
    the National Security Council.
        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. I shall continue to exercise the
    powers at my disposal to apply economic sanctions against Libya as long
    as these measures are appropriate, and will continue to report
    periodically to the Congress on significant developments as required by
    law.

                                                                 George Bush

    The White House,
    January 11, 1991.