[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.