[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[January 10, 1992]
[Pages 74-75]
[From the U.S. Government Publishing Office www.gpo.gov]



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

January 10, 1992
Dear Mr. Speaker:  (Dear Mr. President:)
    I hereby report to the Congress on the developments since my last 
report of July 9, 1991, 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 (``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 July 9, 1991, 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 August 5, 1991, 
56 Fed. Reg. 37156, added the names of 12 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). This amendment also added a new Appendix 
B, ``Individuals Determined to be Specially Designated Nationals of 
Libya,'' containing the names of persons determined to be acting, or 
purporting to act, directly or indirectly on behalf of the Government of 
Libya. An amendment removing one name from Appendix B was published on 
December 20, 1991, 56 Fed. Reg. 65993. A further amendment of the 
Regulations, effective December 19, 1991, 56 Fed. Reg. 66334 (Dec. 20, 
1991), with a correction published on January 7, 1992, 57 Fed. Reg. 525, 
revoked the authorization set forth in Section 550.514 that permitted 
transfers between two non-Libyan foreign banks located outside the 
United States to clear through accounts located in the United States 
when the money is being sent to or from the Government of Libya. This 
action was taken as a partial response to evidence of the Government of 
Libya's role in the bombing of Pan Am Flight 103. Copies of these 
amendments and correction are enclosed.
    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 three new licenses and amending three 
previously issued licenses. The new licenses typically permit, for the 
benefit of U.S. persons, minor transactions of little or no economic 
benefit to Libya. The license amendments permit several U.S. firms with 
substantial pre-embargo investments in their Libyan oil concessions to 
renew standstill agreements preserving their interests despite 
nonperformance of concession agreements due to the U.S. sanctions.
    3. Various enforcement actions mentioned in previous reports 
continue to be

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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 one 
such case, a penalty of $137,500 was collected from a major U.S. 
manufacturer, after an investigation developed evidence that it had 
exported services to Libya and engaged in contracts in support of 
projects in Libya.
    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 were 
triggered by the recent amendment 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 initial 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.
    4. The expenses incurred by the Federal Government in the 6-month 
period from June 15, 1991, through December 14, 1991, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of the Libyan national emergency are estimated at $487,815. 
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 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 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.