[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[July 7, 1992]
[Pages 1094-1096]
[From the U.S. Government Publishing Office www.gpo.gov]



Letter to Congressional Leaders Reporting on the National Emergency With 
Respect to Libya

July 7, 1992
Dear Mr. Speaker:  (Dear Mr. President:)
    I hereby report to the Congress on the developments since my last 
report of January 10, 1992, concerning the national emergency with 
respect to Libya that was declared in Executive Order No. 12543 of Jan-

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uary 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. Since my last report on January 10, 1992, the Libyan Sanctions 
Regulations (the ``Regulations''), 31 C.F.R. Part 550, administered by 
the Office of Foreign Assets Control (``FAC'') of the Department of the 
Treasury, have been amended. One amendment, published on January 14, 
1992, 57 Fed. Reg. 1386, at 1389, amended the provisions of the 
Regulations relating to licensing and availability of information to 
reflect the closing of the Federal Reserve Bank of New York's Foreign 
Assets Control Division. A second amendment, published on March 30, 
1992, 57 Fed. Reg. 10798, added the names of 46 companies to Appendix A 
of the Regulations, which contains a list of organizations determined to 
be within the definition of the term ``Government of Libya'' (Specially 
Designated Nationals of Libya).
    2. During the current 6-month period, FAC made numerous decisions 
with respect to applications for licenses to engage in transactions 
under the Regulations, issuing nine new licenses. Three of the licenses 
authorize travel to Libya to discuss possible legal representation of 
the two indicated suspects in the bombing of Pan Am Flight 103. The 
remaining licenses authorize the correction of certain errors made by 
banks resulting in mistaken credits to blocked accounts. All of the 
licenses concern minor transactions of little or no economic benefit to 
Libya.
    3. Various enforcement actions mentioned in previous reports 
continue to be pursued, and several new investigations of possibly 
significant violations of the Libyan sanctions were initiated. During 
the current reporting period, substantial monetary penalties were 
assessed against U.S. firms for engaging in prohibited transactions with 
Libya. In March 1992, FAC announced the collection of almost $550,000 in 
civil penalties from six companies for violations of U.S. sanctions 
against Libya, including almost $350,000 from two ``Yugoslav'' entities 
with offices in the United States.
    Due to aggressive enforcement efforts and increased public 
awareness, FAC has received numerous voluntary disclosures from U.S. 
firms concerning their sanctions violations. Many of these reports 
continue to be triggered by the periodic amendments to the Regulations 
listing additional organizations and individuals determined to be 
Specially Designated Nationals (``SDNs'') of Libya. For purposes of the 
Regulations, all dealings with the organizations and individuals listed 
will be considered dealings with the Government of Libya. All unlicensed 
transactions with these persons, or in property in which they have an 
interest, are prohibited. The listing of Libyan SDNs is not a static 
list and will be augmented from time to time as additional organizations 
or individuals owned or controlled by, or acting on behalf of, the 
Government of Libya are identified.
    In March 1992, FAC announced a new law enforcement initiative, 
Operation Roadblock, which targets U.S. travellers who violate the U.S. 
sanctions on Libya. Under this initiative, warning letters and requests 
for information are being sent to persons believed to have travelled to 
and worked in Libya, or made travel-related payments to Libya in 
violation of U.S. law. The investigation of suspected violations is 
being undertaken by FAC, assisted by an interagency task force including 
the Departments of State and Justice, the Treasury Department's 
Financial Crimes Enforcement Network (FinCEN), the Federal Bureau of 
Investigation, and the U.S. Customs Service.
    4. The expenses incurred by the Federal Government in the 6-month 
period from December 15, 1991, through June 14, 1992, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of the Libyan national emergency are estimated at $590,000. 
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.
    5. The policies and actions of the Govern-

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ment 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 fully and effectively, as long as those measures 
are appropriate, and will continue to report periodically to the 
Congress on significant developments as required by law.
    Sincerely,

                                                             George Bush

                    Note: Identical letters were sent to Thomas S. 
                        Foley, Speaker of the House of Representatives, 
                        and Dan Quayle, President of the Senate.