    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book II)]
    [July 12, 1995]
    [Pages 1086-1088]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress on Economic Sanctions Against Libya
    July 12, 1995

    To the Congress of the United States:
        I hereby report to the Congress on the developments since my last
    report of January 30, 1995, 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 Department of the Treasury, since my
    last report on January 30, 1995. The amendment (60 Fed. Reg. 8300,
    February 14, 1995) added 144 entities to appendix A, Organizations
    Determined to Be Within the Term ``Government of Libya'' (Specially
    Designated Nationals (``SDNs'') of Libya). The amendment also added 19
    individuals to appendix B, Individuals Determined to Be Specially
    Designated Nationals of the Government of Libya. A copy of the amendment
    is attached to this report.
        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

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    designations were made in consultation with the Department of State and
    announced by FAC in notices issued on January 10 and January 24, 1995.
        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 119 licensing determinations--both
    approvals and denials. Consistent with FAC's ongoing scrutiny of banking
    transactions, the largest category of license approvals (83) concerned
    requests by Libyan and non-Libyan persons or entities to unblock bank
    accounts initially blocked because of an apparent Government of Libya
    interest. The largest category of denials (14) was for banking
    transactions in which FAC found a Government of Libya interest. One
    license was issued authorizing intellectual property protection in Libya
    and another for travel to Libya to visit close family members.
        In addition, FAC issued one determination 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 171 transactions involving Libya, totaling more than
    $6.5 million, were blocked. As of May 25, 27 of these transactions had
    been licensed to be released, leaving a net amount of more than $5.2
    million blocked.
        Since my last report, FAC collected 37 civil monetary penalties
    totaling more than $354,700 for violations of the U.S. sanctions against
    Libya. Eleven of the violations involved the failure of banks to block
    funds transfers to Libyan-owned or -controlled banks. Two other
    penalties were received from companies for originating funds transfers
    to Libyan-owned or -controlled banks. Two corporations paid penalties
    for export violations. Twenty-two additional penalties were paid by U.S.
    citizens engaging in Libyan oilfield-related transactions while another
    54 cases of similar violations are in active penalty processing.
        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 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 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 January 7 through July 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 $830,000.00. 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

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    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,

    July 12, 1995.