    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [January 30, 1995]
    [Pages 124-126]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress on Libya
    January 30, 1995

    To the Congress of the United States:
        I hereby report to the Congress on the developments since my last
    report of July 18, 1994, 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. On December 22, 1994, I renewed for another year the national
    emergency with respect to Libya pursuant to IEEPA. This renewal extended
    the current comprehensive financial and trade embargo against Libya in
    effect since 1986. Under these sanctions, all trade with Libya is
    prohibited, and all assets owned or controlled by the Libyan government
    in the United States or in the possession or control of U.S. persons are
    blocked.
        2. There has been one amendment to the Libyan Sanctions Regulations,
    31 C.F.R. Part 550 (the ``Regulations''), administered by the Office of
    Foreign Assets Control (FAC) of the

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    Department of the Treasury, since my last report on July 18, 1994. The
    amendment (59 Fed. Reg. 51106, October 7, 1994) identified Arab Hellenic
    Bank (AHB), an Athens-based financial institution, 4 other entities, and
    10 individuals as Specially Designated Nationals (SDNs) of Libya. (In
    addition to the recent SDN action against AHB, the Greek central bank
    has recently announced that AHB's banking license has been revoked.)
    Included among the individuals are three Italian shareholders in
    Oilinvest (Netherlands) B.V., who increased their positions in the
    Libyan government-controlled firm shortly before United Nations Security
    Council Resolution (UNSCR) 883 directed a freeze on certain Libyan
    assets owned or controlled by the Government or public authorities of
    Libya.
        Pursuant to section 550.304(a) of the Regulations, FAC has
    determined that these entities and individuals designated as SDNs are
    owned or controlled by, or acting or purporting to act directly or
    indirectly on behalf of, the Government of Libya, or are agencies,
    instrumentalities, or entities of that government. By virtue of this
    determination, all property and interests in property of these entities
    or persons that are in the United States or in the possession or control
    of U.S. persons are blocked. Further, U.S. persons are prohibited from
    engaging in transactions with these individuals or entities unless the
    transactions are licensed by FAC. The designations were made in
    consultation with the Department of State and announced by FAC in
    notices issued on June 17 and July 22 and 25, 1994. A copy of the
    amendment is attached to this report.
        3. During the current 6-month period, FAC made numerous decisions
    with respect to applications for licenses to engage in transactions
    under the Regulations, issuing 136 licensing determinations--both
    approvals and denials. Consistent with FAC's ongoing scrutiny of banking
    transactions, the largest category of license approvals (73) concerned
    requests by non-Libyan persons or entities to unblock bank accounts
    initially blocked because of an apparent Government of Libya interest.
    The largest category of denials (41) was for banking transactions in
    which FAC found a Government of Libya interest. Three licenses were
    issued authorizing intellectual property protection in Libya.
        In addition, FAC issued eight determinations with respect to
    applications from attorneys to receive fees and reimbursement of
    expenses for provision of legal services to the Government of Libya in
    connection with wrongful death civil actions arising from the Pan Am 103
    bombing. Civil suits have been filed in the U.S. District Court for the
    District of Columbia and in the Southern District of New York.
    Representation of the Government of Libya when named as a defendant in
    or otherwise made a party to domestic U.S. legal proceedings is
    authorized by section 550.517(b)(2) of the Regulations under certain
    conditions.
        4. During the current 6-month period, FAC continued to emphasize to
    the international banking community in the United States the importance
    of identifying and blocking payments made by or on behalf of Libya. The
    FAC worked closely with the banks to implement new interdiction software
    systems to identify such payments. As a result, during the reporting
    period, more than 210 transactions involving Libya, totaling more than
    $14.8 million, were blocked. As of December 9, 1994, 13 of these
    transactions had been licensed to be released, leaving a net amount of
    more than $14.5 million blocked.
        Since my last report, FAC collected 15 civil monetary penalties
    totaling more than $76,000 for violations of the U.S. sanctions against
    Libya. Nine of the violations involved the failure of banks to block
    funds transfers to Libyan-owned or -controlled banks. Two other
    penalties were received for corporate export violations. Four additional
    penalties were paid by U.S. citizens engaging in Libyan oilfield-related
    transactions while another 76 cases of similar violations are in active
    penalty processing.
        In October 1994, two U.S. businessmen, two U.S. corporations, and
    several foreign corporations were indicted by a Federal grand jury in
    Connecticut on three counts of violating the Regulations and IEEPA for
    their roles in the illegal exportation of U.S. origin fuel pumps to
    Libya. Various enforcement actions carried over from previous reporting
    periods have continued to be aggressively pursued. The FAC has continued
    its efforts under the Operation Roadblock initiative. This ongoing
    program seeks to identify U.S. persons who travel to and/or work in
    Libya in violation of U.S. law.
        Several new investigations of potentially significant violations of
    the Libyan sanctions have been initiated by FAC and cooperating U.S. law
    enforcement agencies, primarily the U.S. Customs Service. Many of these
    cases are believed

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    to involve complex conspiracies to circumvent the various prohibitions
    of the Libyan sanctions, as well as the utilization of international
    diversionary shipping routes to and from Libya. The FAC has continued to
    work closely with the Departments of State and Justice to identify U.S.
    persons who enter into contracts or agreements with the Government of
    Libya, or other third-country parties, to lobby United States Government
    officials or to engage in public relations work on behalf of the
    Government of Libya without FAC authorization. In addition, during the
    period FAC hosted or attended several bilateral and multilateral
    meetings with foreign sanctions authorities, as well as with private
    foreign institutions, to consult on issues of mutual interest and to
    encourage strict adherence to the U.N.-mandated sanctions.
        5. The expenses incurred by the Federal Government in the 6-month
    period from July 7, 1994, through January 6, 1995, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of the Libyan national emergency are estimated at
    approximately $1.4 million. 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.
        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. In adopting UNSCR 883 in November
    1993, the Security Council determined that the continued failure of the
    Government of Libya to demonstrate by concrete actions its renunciation
    of terrorism, and in particular its continued failure to respond fully
    and effectively to the requests and decisions of the Security Council in
    UNSCRs 731 and 748, concerning the bombing of the Pan Am 103 and UTA 772
    flights, constituted a threat to international peace and security. The
    United States continues to believe that still stronger international
    measures than those mandated by UNSCR 883, possibly including a
    worldwide oil embargo, should be imposed if Libya continues to defy the
    will of the international community as expressed in UNSCR 731. We remain
    determined to ensure that the perpetrators of the terrorist acts against
    Pan Am 103 and UTA 772 are brought to justice. The families of the
    victims in the murderous Lockerbie bombing and other acts of Libyan
    terrorism deserve nothing less. I shall continue to exercise the powers
    at my disposal to apply economic sanctions against Libya fully and
    effectively, so long as those measures are appropriate, and will
    continue to report periodically to the Congress on significant
    developments as required by law.

                                                          William J. Clinton

    The White House,

    January 30, 1995.

    Note: This message was released by the Office of the Press Secretary on
    January 31.