    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [January 22, 1996]
    [Pages 77-79]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress on Economic Sanctions Against Libya
    January 22, 1996

    To the Congress of the United States:
        I hereby report to the Congress on the developments since my last
    report of July 12, 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 January 3, 1996, 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 July 12, 1995. The amendment (60 Fed. Reg. 37940-37941,
    July 25, 1995) added three hotels in Malta to appendix A, Organizations
    Determined to Be Within the Term ``Government of Libya'' (Specially
    Designated Nationals (SDNs) 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 designated as SDNs are owned or
    controlled by, or acting or purporting to act directly or indirectly on
    behalf of, the Government of

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    Libya, or are agencies, instrumentalities, or entities of that
    government. By virtue of this determination, all property and interests
    in property of these entities 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 entities unless
    the transactions are licensed by FAC. The designations were made in
    consultation with the Department of State.
        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 54 licensing determinations--both
    approvals and denials. Consistent with FAC's ongoing scrutiny of banking
    transactions, the largest category of license approvals (20) concerned
    requests by Libyan and non-Libyan persons or entities to unblock
    transfers interdicted because of an apparent Government of Libya
    interest. A license was also issued to a local taxing authority to
    foreclose on a property owned by the Government of Libya for failure to
    pay property tax arrearages.
        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 on behalf of Libya. The Office
    worked closely with the banks to implement new interdiction software
    systems to identify such payments. As a result, during the reporting
    period, more than 107 transactions potentially involving Libya, totaling
    more than $26.0 million, were interdicted. As of December 4, 23 of these
    transactions had been authorized for release, leaving a net amount of
    more than $24.6 million blocked.
        Since my last report, FAC collected 27 civil monetary penalties
    totaling more than $119,500, for violations of the U.S. sanctions
    against Libya. Fourteen of the violations involved the failure of banks
    or credit unions to block funds transfers to Libyan-owned or -controlled
    banks. Two other penalties were received from corporations for export
    violations or violative payments to Libya for unlicensed trademark
    transactions. Eleven additional penalties were paid by U.S. citizens
    engaging in Libyan oilfield-related transactions while another 40 cases
    involving similar violations are in active penalty processing.
        In November 1995, guilty verdicts were returned in two cases
    involving illegal exportation of U.S. goods to Libya. A jury in Denver,
    Colorado, found a Denver businessman guilty of violating the Regulations
    and IEEPA when he exported 50 trailers from the United States to Libya
    in 1991. A Houston, Texas, jury found three individuals and two
    companies guilty on charges of conspiracy and violating the Regulations
    and IEEPA for transactions relating to the 1992 shipment of oilfield
    equipment from the United States to Libya. Also in November, a Portland,
    Oregon, lumber company entered a two-count felony information plea
    agreement for two separate shipments of U.S.-origin lumber to Libya
    during 1993. These three actions were the result of lengthy criminal
    investigations begun in prior reporting periods. Several other
    investigations from prior reporting periods are continuing and new
    reports of violations are being pursued.
        5. The expenses incurred by the Federal Government in the 6-month
    period from July 6, 1995, through January 5, 1996, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of the Libyan national emergency are estimated at
    approximately $990,000. 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.
        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
    Resolutions 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 will continue to coordinate its
    comprehensive sanctions enforcement efforts with those of other U.N.
    member states. 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

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    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 22, 1996.