    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [October 13, 1994]
    [Pages 1748-1757]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders Reporting on the National Emergency With
    Respect to Haiti
    October 13, 1994

    Dear Mr. Speaker:  (Dear Mr. President:)
        1. In December 1990, the Haitian people elected Jean-Bertrand
    Aristide as their President by an overwhelming margin in a free and fair
    election. The United States praised Haiti's success in peacefully
    implementing its democratic constitutional system and provided
    significant political and economic support to the new government. The
    Haitian military abruptly interrupted the consolidation of Haiti's new
    democracy when, in September 1991, it illegally and violently ousted
    President Aristide from office and drove him into exile.
        2. The United States, on its own and together with the Organization
    of American States (OAS), immediately imposed sanctions against the
    illegal regime. The United States also actively supported the efforts of
    the OAS and the United Nations to restore democracy to Haiti and to
    bring about President Aristide's return by facilitating negotiations
    between the Haitian parties. The United States and the international
    community also offered material assistance within the context of an
    eventual negotiated settlement of the Haitian crisis to support the
    return to democracy, build constitutional structures, and foster
    economic well-being.
        As a result of continuing military intransigence in the face of
    these efforts and of worsening human rights abuses in Haiti, the
    conclusion was reached that no political settlement of the Haitian
    crisis was possible as long as the three principal military leaders
    remained in power. Therefore, beginning in early May 1994, a series of
    steps were taken to intensify the pressure of sanctions on the military
    leaders and their associates in order to bring the three leaders to step
    down. With U.S. leadership, the U.N. Security Council on May 6, 1994,
    enacted Resolution 917, imposing comprehensive trade sanc-

    [[Page 1749]]

    tions and other measures on Haiti. This was followed by a succession of
    unilateral United States sanctions--banning scheduled air service and
    financial transactions to or from Haiti or between Haiti and third
    countries through the United States and blocking the assets in the
    United States or under United States control of Haitians resident in
    Haiti. Additionally, under authorities not related to the IEEPA, all
    visas that had been issued to Haitians at Port-au-Prince or Curacao
    before May 11, 1994, were revoked. Several other countries took similar
    actions.
        The continued resistance of the illegal regime to the efforts of the
    international community also prompted the United States to augment
    embargo enforcement. The United States and other countries entered into
    a cooperative endeavor with the Dominican Republic to monitor that
    country's enforcement of sanctions along its land border with Haiti and
    in its coastal waters.
        As the reporting period progressed, it became apparent that the
    Haitian military leaders, even under the pressure of intense worldwide
    sanctions, were determined to cling to power and to block the
    restoration of democracy and return of President Aristide. Internal
    repression continued to worsen, exemplified by the expulsion in July of
    the U.N./OAS-sponsored International Civilian Mission (ICM) human rights
    observers. As a result of this deterioration and the threat it posed to
    peace and security in the region, the U.N. Security Council enacted
    Resolution 940 on July 31, 1994, authorizing the use of all necessary
    means to bring about the departure of the military leadership and the
    return of the legitimate authorities including President Aristide. In
    the succeeding weeks, the international community under U.S. leadership
    assembled a multinational coalition force to carry out this mandate.
        On September 18, 1994, I directed the deployment of U.S. Armed
    Forces to Haiti to remove the military leaders and restore democracy.
    However, I remained deeply committed to achieving our goals peacefully
    if possible. Therefore, on the previous day I had sent former President
    Jimmy Carter, Senator Sam Nunn and retired General Colin Powell to Haiti
    on a final diplomatic mission. The combination of an imminent military
    operation and determined diplomacy led to an agreement on September 18,
    that portends the early achievement of our and the international
    community's goals in Haiti. The military leaders have relinquished power
    and the legitimate authorities will be restored by October 15 at the
    latest. As a result of the agreement reached in Port-au-Prince on
    September 18 U.S. forces in the vanguard of the multinational coalition
    force drawn from 26 countries began a peaceful deployment to Haiti on
    September 19.
        In a spirit of reconciliation and reconstruction, President Aristide
    called on September 25 for the immediate easing of sanctions to further
    the mission of the coalition forces and begin without delay the work of
    rebuilding. In response to this request, on September 26, in an address
    before the United Nations General Assembly, I announced my intention to
    suspend all unilateral sanctions against Haiti except those that affect
    the military leaders and their immediate supporters and families. I also
    directed that steps be taken in accordance with Resolutions 917 and 940
    to permit supplies and services to flow to Haiti to restore health care,
    water and electrical services, provide construction materials for
    humanitarian programs, and allow the shipment of communications,
    agricultural, and educational materials.
        Regulations to accomplish those objectives were published in the
    Federal Register on October 5. In addition, the U.N. Security Council on
    September 29 enacted Resolution 944 directing that all U.N. sanctions be
    terminated the day after President Aristide returns to Haiti. Finally,
    the national emergency with respect to Haiti was extended on September
    30, 1994, to allow the continued enforcement of those sanctions that are
    to remain in force until the restoration of democracy to Haiti is
    completed as will be signified by President Aristide's return to his
    country.
        3. This report is submitted to the Congress pursuant to 50 U.S.C.
    1641(c) and 1703(c). It is not a report on all U.S. activities with
    respect to Haiti, but discusses only those Administration actions and
    expenses since my last report (April 25, 1994), that are directly
    related to the national emergency with respect to Haiti declared in
    Executive Order No. 12775, as implemented pursuant to that order and
    Executive Orders Nos. 12779, 12853, 12872, 12914, 12917, 12920, and
    12922.
        4. Economic sanctions against the de facto regime in Haiti were
    first imposed in October 1991. On October 4, 1991, in Executive Order

    [[Page 1750]]

    No. 12775, President Bush declared a national emergency to deal with the
    threat to the national security, foreign policy, and economy of the
    United States caused by events that had occurred in Haiti to disrupt the
    legitimate exercise of power by the democratically-elected government of
    that country (56 Fed. Reg. 50641). In that order, the President ordered
    the immediate blocking of all property and interests in property of the
    Government of Haiti (including the Banque de la Republique d'Haiti) then
    or thereafter located in the United States or within the possession or
    control of a U.S. person, including its overseas branches. The Executive
    order also prohibited any direct or indirect payments or transfers to
    the de facto regime in Haiti of funds or other financial or investment
    assets or credits by any U.S. person, including its overseas branches,
    or by any entity organized under the laws of Haiti and owned or
    controlled by a U.S. person.
        Subsequently, on October 28, 1991, President Bush issued Executive
    Order No. 12779, adding trade sanctions against Haiti to the sanctions
    imposed on October 4 (56 Fed. Reg. 55975). This order prohibited
    exportation from the United States of goods, technology, and services
    and importation into the United States of Haitian-origin goods and
    services, after November 5, 1991, with certain limited exceptions. The
    order exempted trade in publications and other informational materials
    from the import, export, and payment prohibitions and permitted the
    exportation to Haiti of donations to relieve human suffering as well as
    commercial sales of five food commodities: rice, beans, sugar, wheat
    flour and cooking oil. In order to permit the return to the United
    States of goods being prepared for U.S. customers by Haiti's substantial
    ``assembly sector,'' the order also permitted, through December 5, 1991,
    the importation into the United States of goods assembled or processed
    in Haiti that contained parts or materials previously exported to Haiti
    from the United States. On February 5, 1992, it was announced that
    specific licenses could be applied for on a case-by-case basis by U.S.
    persons wishing to resume a pre-embargo import/export relationship with
    the assembly sector in Haiti.
        5. On June 30, 1993, I issued Executive Order No. 12853 that
    expanded the blocking of assets of the de facto regime to include assets
    of Haitian nationals identified by the Secretary of the Treasury as
    providing substantial financial or material contributions to the regime,
    or doing substantial business with the regime. That Executive order also
    implemented U.N. Security Council Resolution (UNSC Resolution) 841 of
    June 16, 1993, by prohibiting the sale or supply by U.S. persons or from
    the United States, or using U.S.-registered vessels or aircraft, or
    petroleum or petroleum products or arms and related materials of all
    types to any person or entity in Haiti, or for the purpose of any
    business carried on in or operated from Haiti, or promoting or
    calculated to promote such sale or supply. Carriage of such goods to
    Haiti on U.S.-registered vessels was prohibited, as was any transaction
    for the evasion or avoidance of, or attempt to evade or avoid, any
    prohibition in the order.
        6. As reported earlier, apparent steady progress toward achieving
    the firm goal of restoring democracy in Haiti permitted the United
    States and the world community to suspend economic sanctions against
    Haiti in August 1993. With strong support from the United States, the
    U.N. Security Council adopted Resolution 861 on August 27, 1993,
    suspending the petroleum, arms, and financial sanctions imposed under
    UNSC Resolution 841. On the same day, the Secretary General of the OAS
    announced that the OAS was urging member states to suspend their trade
    embargoes. In concert with these U.N. and OAS actions, U.S. trade and
    financial restrictions against Haiti were suspended, effective at 9:35
    a.m. e.d.t., on August 31, 1993.
        Our work to reach a solution to the Haitian crisis through the
    Governors Island Agreement was seriously threatened by accelerating
    violence in Haiti sponsored or tolerated by the de facto regime. The
    violence culminated on October 11, 1993, with the obstruction by armed
    ``attaches'' supported by the Haitian military and police of the
    deployment of U.S. military trainers and engineers sent to Haiti as part
    of the United Nations Mission in Haiti. The Haitian military's decision
    to dishonor its commitments made in the Governors Island Agreement was
    apparent. On October 13, 1993, the U.N. Security Council issued
    Resolution 873, which terminated the suspension of sanctions effective
    at 11:59 p.m. e.d.t., October 18, 1993.
        As a result, effective at 11:59 p.m. e.d.t., October 18, 1993, the
    Department of the Treasury revoked the suspension of those trade and
    financial sanctions that had been suspended, so that

    [[Page 1751]]

    the full scope of prior prohibitions was reinstated (58 Fed. Reg. 54024,
    October 19, 1993). The reinstated sanctions in the Haitian Transactions
    Regulations, 31 C.F.R. Part 580 (the HTR), prohibited most unlicensed
    trade with Haiti, and blocked the assets of the de facto regime in
    Haiti, and of the Government of Haiti. Restrictions on the entry into
    U.S. ports of vessels whose Haitian calls would violate U.S. or OAS
    sanctions had they been made by U.S. persons were also reinstated.
        Also effective at 11:59 p.m., October 18, 1993, I issued Executive
    Order No. 12872 (58 Fed. Reg. 54029), authorizing the Department of the
    Treasury to block assets of persons who have: (1) contributed to the
    obstruction of UNSC Resolutions 841 and 873, the Governors Island
    Agreement, or the activities of the U.N. Mission in Haiti; (2)
    perpetuated or contributed to the violence in Haiti; or (3) materially
    or financially supported either the obstruction or the violence referred
    to above. This authority was in addition to the blocking authority
    provided for in the original sanctions and in Executive Order No. 12853
    of June 30, 1993, and ensured adequate authority to reach assets subject
    to U.S. jurisdiction of military and police officials, civilian
    ``attaches'' and their financial patrons meeting these criteria. A list
    of 41 such individuals was published on November 1, 1993, by the Office
    of Foreign Assets Control of the Department of the Treasury (FAC) (58
    Fed. Reg. 58480).
        On October 18, 1993, I ordered the deployment of six U.S. Navy
    vessels off Haiti's shores. To improve compliance with the ban on
    petroleum and munitions shipments to Haiti contained in UNSC Resolutions
    841 and 873, the United States succeeded in securing the passage of UNSC
    Resolution 875. UNSC Resolution 875 called upon the United Nations
    Member States, acting with national or through regional agencies or
    arrangements, to halt inbound maritime shipping for Haiti in order to
    inspect and verify that the Haiti-bound cargo does not contain UNSC
    prohibited petroleum or arms. A multinational Maritime Interdiction
    Force, including elements of the U.S. Navy and the U.S. Coast Guard, was
    established.
        7. The declaration of the national emergency on October 4, 1991, was
    made pursuant to the authority vested in the President by the
    Constitution and laws of the United States, including the International
    Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the
    National Emergencies Act (50 U.S.C. 1601 et seq.) and section 301 of
    title 3 of the United States Code. The emergency declaration was
    reported to the Congress on October 4, 1991, pursuant to section 204(b)
    of IEEPA (50 U.S.C. 1703 (b)). The additional sanctions set forth in
    Executive Orders Nos. 12779, 12853, and 12872 were imposed pursuant to
    the authority vested in the President by the Constitution and laws of
    the United States, including the statutes cited above, as well as the
    United Nations Participation Act, 22 U.S.C. 287c, and represent the
    response by the United States to the U.N. Security Council and OAS
    directives and recommendations discussed above.
        8. Since my report of April 25, 1994, in order to implement UNSC
    Resolution 917 of May 6, and to take additional steps with respect to
    the actions and policies of the de facto regime in Haiti, I issued
    Executive Order No. 12914, dated May 7, 1994. Effective at 11:59 p.m.
    e.d.t., on May 8, 1994, the order blocks all funds and financial
    resources of three categories of individuals that are or hereafter come
    within the possession or control of U.S. persons, including their
    overseas branches. These groups include (a) all officers of the Haitian
    military, including the police, and their immediate families; (b) the
    major participants in the coup d'etat in Haiti of 1991 and in the
    illegal governments since the coup d'etat and their immediate families;
    and (c) those employed by or acting on behalf of the Haitian military,
    and their immediate families. The Executive order also bans arriving and
    departing flights, and overflights stopping or originating in Haiti,
    except regularly scheduled commercial passenger flights. A copy of E.O.
    No. 12914 (59 Fed. Reg. 24339, May 10, 1994), is attached for reference.
        9. Subsequently, on May 21, 1994, in implementation of UNSC
    Resolution 917 of May 6, and in order to further strengthen sanctions in
    response to the actions and policies of the de facto regime in Haiti, I
    issued Executive Order No. 12917. Effective at 11:59 p.m. e.d.t., on May
    21, 1994, the order prohibits (1) the importation into the United States
    of any goods originating in Haiti or services performed in Haiti, that
    are exported from Haiti after May 21, 1994, or any activity by any U.S.
    persons or in the United States that promotes, or is intended to
    promote, such importation; (2) any activity by U.S. persons or in the
    United States that promotes the exportation or transshipment of any

    [[Page 1752]]

    goods originating in Haiti that are exported from Haiti after May 21,
    1994; (3) any dealing by U.S. persons or in the United States, or using
    U.S.-registered vessels or aircraft, of any goods originating in Haiti
    that are exported from Haiti after May 21, 1994; and (4) the sale,
    supply, or exportation by U.S. persons or from the United States, or
    using U.S.-registered vessels or aircraft, of any goods, regardless of
    origin, to Haiti, or for the purpose of any business carried on in or
    operated from Haiti, or any activity by U.S. persons or in the United
    States that promotes such sale, supply, or exportation.
        Exemptions from the foregoing prohibitions include: (1)
    informational materials, such as books and other publications, needed
    for the free flow of information; (2) the sale, supply, or exportation
    of medicines and medical supplies, as authorized by the Secretary of the
    Treasury, and rice, beans, sugar, wheat flour, cooking oil, corn, corn
    flour, milk and edible tallow, provided that neither the de facto regime
    in Haiti nor any person designated by the Secretary of the Treasury as a
    blocked individual or entity of Haiti is a direct or indirect party to
    the transaction; and (3) transactions specifically licensed or otherwise
    authorized by FAC. A copy of E.O. No. 12917 (59 Fed. Reg. 26925, May 24,
    1994) is attached for reference.
        10. Again, on June 10, 1994, in order to take additional steps with
    respect to the actions and policies of the de facto regime in Haiti, I
    issued Executive Order No. 12920. Effective at 11:59 p.m. e.d.t., on
    June 10, 1994, the order prohibits, first, any payment or transfer of
    funds or other financial or investment assets or credits to Haiti from
    or through the United States, or to or through the United States from
    Haiti, with the following exceptions: (1) payments and transfers for the
    conduct of activities in Haiti of the United States Government, the
    United Nations, the OAS, or foreign diplomatic missions; (2) payments
    and transfers between the United States and Haiti for the conduct of
    activities in Haiti of nongovernmental organizations (NGOs) engaged in
    the provision in Haiti of essential humanitarian assistance as
    authorized by the Secretary of the Treasury; (3) payments and transfers
    from a U.S. person to any close relative of the remitter or of the
    remitter's spouse who is resident in Haiti, provided that such payments
    do not exceed $50.00 per month to any one household, and that neither
    the de facto regime in Haiti nor any person designated by the Secretary
    of the Treasury as a blocked individual or entity of Haiti is a
    beneficiary of the remittance; (4) reasonable amounts of funds carried
    by travelers to or from Haiti to cover their travel-related expenses;
    and (5) payments and transfers incidental to shipments to Haiti of food,
    medicine, medical supplies, and informational materials exempt from the
    export prohibitions of this order. The order also prohibits the sale,
    supply, or exportation by U.S. persons or from the United States, or
    using U.S.-registered vessels or aircraft, of any goods, technology, or
    services, regardless of origin, to Haiti, or for the purpose of any
    business carried on in or operated from Haiti, or any activity by U.S.
    persons in the United States that promotes such sale, supply, or
    exportation. Exportations of the following types are exempt from the
    foregoing provision: (1) informational materials, such as books and
    other publications needed for the free flow of information; (2)
    medicines and medical supplies, as authorized by the Secretary of the
    Treasury, and rice, beans, sugar, wheat flour, cooking oil, corn, corn
    flour, milk, and edible tallow, provided that neither the de facto
    regime in Haiti nor any person designated by the Secretary of the
    Treasury as a blocked individual or entity of Haiti is a direct or
    indirect party to the transaction; and (3) donations of food, medicine,
    and medical supplies intended to relieve human suffering. A copy of E.O.
    No. 12920 (59 Fed. Reg. 30501, June 14, 1994), is attached for
    reference.
        11. Once again, on June 21, 1994, in order to take additional steps
    with respect to the actions and policies of the de facto regime in
    Haiti, I issued Executive Order No. 12922. Effective at 10:09 p.m.
    e.d.t., on June 21, 1994, the order blocks all property and interests in
    property that are or come within the United States or within the
    possession or control of U.S. persons, including their overseas
    branches, of (1) any Haitian national resident in Haiti; or (2) any
    other person subject to the blocking provisions of Executive Order Nos.
    12775, 12779, 12853, 12872, or 12914 and Haitian citizens who are
    members of the immediate family of any such person, as identified by the
    Secretary of the Treasury. This provision does not apply to property of
    nongovernmental organizations engaged in the provision of essential
    humanitarian assistance in Haiti or in the conduct of refugee and
    migration operations in Haiti, as identified by the Secretary of the
    Treasury.

    [[Page 1753]]

    Payments and transfers previously authorized by Executive Order No.
    12920, of June 10, 1994, may continue to be made in a manner directed by
    the Secretary of the Treasury. A copy of Executive Order No. 12922 (59
    Fed. Reg. 32645, June 23, 1994), is attached for reference.
        12. A policy statement, effective January 31, 1994 (59 Fed. Reg.
    8134, February 18, 1994), was published to extend until March 31, 1994,
    the expiration date for all current assembly sector licenses issued by
    FAC pursuant to the HTR, and a second policy notice, effective March 29,
    1994, was published on April 1, 1994 (59 Fed. Reg. 15342), extending
    these licenses through May 31, 1994. These licenses provided an
    exception to the comprehensive U.S. trade embargo on Haiti under which
    the ``assembly sector'' continued to receive parts and supplies from,
    and supply finished products to, persons in the United States.
        Assembly sector trade with the United States accounted for a
    significant portion of Haiti's imports, and a substantial majority of
    its exports, prior to the institution of the OAS-requested embargo in
    November 1991. Although initially suspended due to the embargo, assembly
    sector imports from and exports to the United States were allowed to
    resume on a case-by-case basis beginning in February 1992 in order to
    keep poorer segments of the Haitian population employed and to reduce
    their incentive to attempt illegal and dangerous migration by sea to the
    United States and other countries. However, the continuing uncertainties
    of the Haitian situation led to a sharp decline in assembly sector
    activity, with such employment estimated by the spring of 1994 to be no
    more than 10 percent of pre-embargo levels.
        As noted above and as mandated by UNSC Resolution 917, Executive
    Order No. 12917 further restricted imports from and exports to Haiti
    after May 21, 1994. Consequently, all FAC licenses for importation into
    the United States from the Haitian assembly sector were withdrawn
    effective May 22, 1994. The FAC is continuing, in close coordination
    with the Department of State, to evaluate license applications from U.S.
    companies seeking to repatriate capital equipment, parts, and components
    previously exported for use in assembly sector activities.
        Following the successful deployment to Haiti of U.S. forces serving
    as the vanguard of the multinational coalition force, and as promised in
    my September 26 address before the United Nations General Assembly,
    amendments to the HTR were published on October 5, 1994, suspending,
    effective 10:28 a.m. on October 5, 1994, the sanctions that the United
    States had imposed on Haiti unilaterally, with the exceptions noted
    below. Section 580.211 of the HTR, which was added to the HTR in June
    1992 to deny entry into U.S. ports to vessels engaged in certain trade
    transactions with Haiti, was removed. A new section, 580.518, was added
    to license generally the export from the United States to Haiti of all
    food and food products.
        Section 580.519 was added to the HTR to remove the prohibition
    (which I had imposed in Executive Order No. 12920 on June 14) on
    payments or transfers of funds or other financial or investment assets
    to Haiti from or through the United States, or to or through the United
    States from Haiti. Section 580.520 was added to unblock the property and
    interests in the United States of Haitian nationals resident in Haiti,
    which I had blocked in Executive Order No. 12922 on June 23; however,
    section 580.520 provides that the property and interests in property of
    certain persons, listed in the revised ``Appendix A'' to the HTR, will
    remain blocked until further notice. The HTR were also amended by the
    addition of section 580.521 to permit the specific licensing of exports
    to Haiti of fuel and equipment for electric power generation,
    telecommunications materials, media and educational supplies,
    agricultural supplies, and construction and transportation supplies for
    humanitarian purposes. Section 580.522 was added to authorize the case-
    by-case licensing of charter flights between the United States and Haiti
    for use by humanitarian relief agencies to transport needed personnel
    and supplies, or for journalists covering events in Haiti. The HTR were
    also amended to provide, in new section 580.523, a general license
    authorizing the export to Haiti from the United States of equipment
    needed for reporting and broadcasting from Haiti and for documentary
    film making in Haiti, provided that such equipment is removed from Haiti
    when the reporting, broadcasting, or filming has been completed.
        Each of the new sections added to the HTR provides that no
    transaction authorized thereunder may result in a payment or transfer
    to, from or through a person listed in the revised ``Appendix A'' to the
    HTR. In the revised ``Appendix A'' are set forth, in section I, the
    names

    [[Page 1754]]

    of individuals who, until further notice, will remain ``Blocked
    Individuals of Haiti,'' and in section II, entities of the de facto
    regime in Haiti whose assets will remain blocked.
        On September 29, I directed the Secretary of Transportation to issue
    the necessary directives to terminate the ban on regularly-scheduled air
    passenger service between the United States and Haiti that had been
    imposed on June 24.
        The HTR will be further amended upon the return of President
    Aristide to Haiti to provide that, in accordance with U.N. Resolution
    944 of September 29, 1994, on the day following his return, the U.S.
    sanctions imposed pursuant to U.N. Resolutions 841, 873, and 917 will be
    terminated. At that time, I will also direct the Secretary of
    Transportation to rescind the ban on all other air transportation (all
    cargo and charter) between the United States and Haiti that I imposed on
    May 7, 1994.
        13. Humanitarian Shipments. Executive Order No. 12917 revoked an
    earlier exception to the export ban permitting the exportation to Haiti
    of ``donated articles to relieve human suffering.'' A substantial amount
    of humanitarian aid, such as clothing or shoes, had previously been
    shipped to Haiti pursuant to this exception. The exception of donated
    foodstuffs was not affected. However, the Executive order provides an
    exemption from its trade prohibitions for the sale, supply, or
    exportation of certain basic commodities essential to humanitarian
    assistance programs serving Haiti's urban and rural poor, i.e.,
    medicines and medical supplies and certain nutritional staples of the
    Haitian diet, as well as for informational materials. The FAC developed
    procedures to facilitate U.N. Sanctions Committee approval for
    humanitarian shipments to Haiti that do not fall within the narrowly-
    defined U.N. exemption categories. Specific authorizations have also
    been issued on a case-by-case basis for commercial deliveries to certain
    ``blocked individuals of Haiti,'' in order to allow the continued supply
    in Haiti of essential foodstuffs, while retaining the ability to closely
    monitor such transactions. Food supplies and prices are being monitored
    for profiteering by Haitian food importers. Between issuance of
    Executive Order No. 12917 on May 21, and September 1, 1994, FAC issued
    94 specific licenses for such humanitarian exports.
        Humanitarian Services. Executive Order No. 12920 exempts from its
    financial prohibitions payments and transfers between the United States
    and Haiti in support of the conduct of activities in Haiti of NGOs
    engaged in the provision in Haiti of essential humanitarian assistance.
    The FAC immediately issued a specific license to the U.S. Agency for
    International Development (AID), permitting it to continue uninterrupted
    its essential services in Haiti. Subsequently, based on recommendations
    by AID and the State Department, FAC developed a system of registration
    for NGOs engaged in relief efforts such as the delivery of food,
    medicine and medical supplies, as well as refugee and migration
    operations, to assure that approved payment orders are neither rejected
    nor blocked by U.S. banks in implementing the financial prohibitions of
    recent Executive orders. Since June 10, FAC has registered 156 NGOs, of
    which 16 have been issued specific licenses authorizing provision of
    their services in Haiti. One application has been denied. Others are
    under review by the Department of State and AID.
        Air Transportation Services. Executive Order No. 12914, effective
    11:59 p.m. e.d.t., May 8, 1994, banned arriving and departing flights
    and overflights stopping or originating in Haiti, except regularly
    scheduled commercial passenger flights. On June 10, an order was issued
    by the President to the Secretary of Transportation that terminated,
    effective June 24, 1994, regularly scheduled air service between the
    United States and Haiti by U.S. and Haitian carriers.
        Specific licenses have been issued to authorize air ambulance
    services for medical evacuation flights to and from Haiti. Licenses have
    also been issued to authorize certain cargo flights for the delivery of
    humanitarian shipments, including food and medicine, by registered NGOs,
    as well as passenger service for NGO personnel and a congressional
    delegation wishing to assist in food distribution. The FAC also has
    licensed a U.S. air carrier to continue paying its Haitian employees in
    Port-au-Prince. In addition to providing support for the airline's
    Haitian employees and their families, the license aimed to position the
    airline to resume service speedily in the event of an emergency or when
    sanctions were lifted. Effective on the date of the rescission of the
    June 10, 1994, unilateral ban on scheduled air service between the
    United States and Haiti, carriers are authorized to resume such in
    coordination with the commander of the Multinational Force who controls
    the Haitian airports.

    [[Page 1755]]

        More than 35 requests have been received from news organizations for
    specific licenses to charter flights to Haiti in connection with
    newsgathering activities, ranging from personnel rotation and equipment
    transportation to proposals from nationally known television anchors to
    conduct interviews. Licensees include major U.S. and foreign networks.
        Blocked Haitian-Owned Vessels. Several dozen Haitian-owned vessels
    in the United States were blocked by Executive Order No. 12922 on June
    21, 1994. Nearly all such vessels were old, small-capacity vessels (many
    wood-hulled) that formerly loaded and discharged cargoes along the
    narrow Miami River. These vessels that had previously delivered the bulk
    of humanitarian assistance shipments to Haiti, were moored at the
    facilities of their U.S. agents and presented a serious hazard to
    navigation (particularly with the onset of the hurricane season),
    clogging the channel and occupying needed docking space. Most Haitian-
    owners were unable to finance the costs of a long-term lay-up. Some 170
    crew members, who were confined to the vessels, were faced with
    diminishing provisions and maintenance supplies, and dependency upon
    donations from the local community.
        Specific licenses have been issued to U.S. agents for the blocked
    vessels to authorize the provisioning, maintenance and repairs necessary
    to ensure seaworthiness to facilitate the lawful return of crew members
    to their home countries. No debits of U.S.-blocked funds were authorized
    by such licenses. The FAC has also issued licenses effectively
    unblocking the Haitian vessels by authorizing them to engage in trade
    transactions consistent with sanctions, particularly the carriage of
    authorized humanitarian supplies to Haiti. In some cases, where
    appropriate, the vessels were licensed to depart the United States but
    not return for the duration of the sanctions.
        14. Following the issuance of the blocking order in Executive Order
    No. 12922 on June 21, more than 1,200 Haitian accounts were blocked
    totaling in excess of $79.1 million as of August 30, 1994. This success
    was due, in part, to FAC notices about the new Executive orders posted
    to banks through the Federal Reserve, the New York Clearing House, the
    Council on International Banking and the International Banking
    Operations Association in Miami. Notices also were posted to other
    electronic bulletin boards such as the Federal Bulletin Board of the
    United States Government Printing Office and the Economic Bulletin Board
    of the Department of Commerce. These notices were passed on to family
    remittance forwarders by banking oversight authorities in New York and
    Florida. The FAC launched an aggressive compliance initiative to
    identify family remittance forwarders in the Miami area who route funds
    to Haiti. This review revealed that one of the largest companies in
    south Florida handling remittances to Haiti (previously valued at about
    $500,000 per month) is owned and controlled by a Haitian national
    resident in Haiti. The company's accounts, with combined balances of
    more than $1 million, were blocked and other enforcement actions
    involving them were undertaken.
        15. Continued close coordination between FAC special agents and the
    U.S. Customs Service in Miami has resulted in the interception of
    substantial quantities of checks and currency transported from and to
    Haiti through the United States, as well as the seizure of merchandise
    valued at $1.5 million. Numerous other enforcement matters are under
    active investigation.
        During the reporting period, the multinational Maritime Interdiction
    Force (MIF), which contains elements of the U.S. Navy and U.S. Coast
    Guard, continued to patrol offshore Haiti and to conduct ship boardings,
    inspections of cargoes bound for Haiti, identification of suspected
    violators and referrals for investigation. The MIF boardings resulted in
    numerous vessel diversions to non-Haitian ports after MIF boarding
    parties determined that cargo was not fully accessible for inspection or
    that vessels were attempting to enter Haiti with cargo prohibited by
    UNSC resolutions and U.S. sanctions. The FAC acted on MIF boarding
    reports by subsequently denying entry into the United States of several
    vessels that had attempted to violate the sanctions. With assumption of
    control of Haitian ports by the Multinational Force following its
    September 19 deployment to Haiti, enforcement of the maritime sanctions
    in the ports became possible. The MIF operations therefore were
    terminated on September 28, 1994.
        16. Since my report of April 25, 1994, in consultation with the
    Department of State and other Federal agencies, FAC has issued General
    Notices No. 5, No. 6, No. 7, No. 8, No. 9, and No. 10, ``Notification of
    Blocked Individuals and Blocked Entities of Haiti.'' The Notices (issued
    June 2, June 17, June 22 (two Notices),

    [[Page 1756]]

    August 2, and September 14, 1994, respectively) identify a total of 372
    additional individuals and 94 companies and banks determined by the
    Department of the Treasury to be Blocked Individuals and Blocked
    Entities of Haiti. These are persons (1) who seized power illegally from
    the democratically-elected government of President Jean-Bertrand
    Aristide on September 30, 1991, or who have since the effective date of
    Executive Order No. 12775, acted or purported to act directly or
    indirectly on behalf of, or under the asserted authority of, such
    persons or of any agencies, instrumentalities or entities of the de
    facto regime in Haiti or any extra-constitutional successor thereto; (2)
    are the immediate family members of an individual who is (a) an officer
    of the Haitian military, including the police, (b) a major participant
    in the coup d'etat in Haiti of 1991 or in the illegal governments since
    the coup d'etat, (c) employed by or acting on behalf of the Haitian
    military, or (d) a Haitian national resident in Haiti; or persons
    subject to the blocking provisions of Executive Orders No. 12775, No.
    12779, No. 12853, No. 12872, or No. 12914, or a Haitian citizen who is
    member of the immediate family of such person. United States persons are
    prohibited from engaging in transactions with these entities and
    individuals and with all officers of the Haitian military unless the
    transactions are licensed by FAC. All assets owned or controlled by
    these parties that are or come within the United States or that are or
    come within the possession or control of U.S. persons, including their
    overseas branches, are blocked. United States persons are not
    prohibited, however, from paying funds owed to these entities or
    individuals into blocked Government of Haiti Account No. 021083909 at
    the Federal Reserve Bank of New York, or, pursuant to specific licenses
    issued by FAC, into blocked accounts held in the names of the blocked
    parties in domestic U.S. financial institutions. Copies of General
    Notices No. 5 - No. 10 are attached for reference.

        On August 18, 1994, in consultation with the Department of State and
    other Federal agencies, FAC identified three additional entities of
    Haiti, whose property and interests in property are now blocked pursuant
    to Executive Order No. 12922. On the same date, FAC removed the name of
    one individual from the list of Blocked Individuals of Haiti. These
    actions bring the total number of entities so blocked to 128 and the
    number of individuals to 916.

        Since March 1994, FAC has collected 49 civil monetary penalties,
    totaling in excess of $133,000 as of August 30, 1994. Penalties were
    imposed pursuant to FAC enforcement investigations, U.S. Customs Service
    referrals, and FAC compliance audits of reports required pursuant to
    specific licenses. The enforcement investigations dealt with violations
    of the HTR by vessels carrying unauthorized and nonexempt cargo to
    Haiti. The Customs Service referrals all involved import and export
    violations of the embargo. Compliance audits related to licenses issued
    to U.S. participants in Haiti's assembly sector.

        17. The expenses incurred by the Federal Government in the 6-month
    period from April 4 through October 3, 1994, that are directly
    attributable to the authorities conferred by the declaration of a
    national emergency with respect to Haiti are estimated at about $3.7
    million, most of which represent wage and salary costs for Federal
    personnel. Personnel costs were largely centered in the Department of
    the Treasury (particularly in FAC, the U.S. Customs Service, and the
    Office of the General Counsel), the Department of State, the U.S. Coast
    Guard and the Department of Commerce.

        The combination over time of mediation among the Haitian parties and
    steadily intensified sanctions proved, in the end, ineffective in
    budging the Haitian military leaders from their stubborn and illegal
    hold on power. Only the imminent threat of force combined with
    determined diplomacy was in the end successful in making it possible to
    achieve our objectives and further our national interests regarding
    Haiti. With the return of Haiti's democratically-elected President near,
    it is my hope and expectation that those U.N. and unilateral sanctions
    that remain in effect, as detailed in this report, can soon be
    terminated, and that I will shortly have the privilege of sending to you
    my final report, pursuant to 50 U.S.C. 1641(c) on implementation of the
    national emergency regarding Haiti declared 3 years ago by the previous
    Administration in Executive Order No. 12775.

    [[Page 1757]]

        Sincerely,

                                                          William J. Clinton

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