    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book II)]
    [July 22, 1996]
    [Pages 1179-1181]
    [From the U.S. Government Publishing Office www.gpo.gov]

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

    To the Congress of the United States:
        I hereby report to the Congress on the developments since my last
    report of January 22, 1996, 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 ex-

    [[Page 1180]]

    tended 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 have been no amendments to the Libyan Sanctions
    Regulations, 31 C.F.R. Part 550 (the ``Regulations''), administered by
    the Office of Foreign Assets Control (OFAC) of the Department of the
    Treasury, since my last report on January 22, 1996.
        3. During the current 6-month period, OFAC reviewed numerous
    applications for licenses to authorize transactions under the
    Regulations. Consistent with OFAC's ongoing scrutiny of banking
    transactions, the largest category of license approvals (91) concerned
    requests by non-Libyan persons or entities to unblock transfers
    interdicted because of what appeared to be Government of Libya
    interests. Three licenses were issued for the expenditure of funds and
    acquisition of goods and services in the United States by or on behalf
    of accredited persons and athletes of Libya in connection with
    participation in the 1996 Paralympic Games. One license was issued to
    authorize a U.S. company to initiate litigation against an entity of the
    Government of Libya.
        4. During the current 6-month period, OFAC 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
    Office worked closely with the banks to assure the effectiveness of
    interdiction software systems used to identify such payments. During the
    reporting period, more than 129 transactions potentially involving Libya
    were interdicted, with an additional $7 million held blocked as of May
    15.
        5. Since my last report, OFAC collected eight civil monetary
    penalties totaling more than $51,000 for violations of the U.S.
    sanctions against Libya. Two of the violations involved the failure of
    banks to block funds transfers to Libyan-owned or Libyan-controlled
    banks. Two other penalties were received from corporations for export
    violations, including one received as part of a plea agreement before a
    U.S. district judge. Four additional penalties were paid by U.S.
    citizens engaging in Libyan oilfield-related transactions while another
    30 cases involving similar violations are in active penalty processing.
        On February 6, 1996, a jury sitting in the District of Connecticut
    found two Connecticut businessmen guilty on charges of false statements,
    conspiracy, and illegally diverting U.S.-origin technology to Libya
    between 1987 and 1993 in violation of U.S. sanctions. On May 22, 1996, a
    major manufacturer of farm and construction equipment entered a guilty
    plea in the United States District Court for the Eastern District of
    Wisconsin for Libyan sanctions violations. A three-count information
    charged the company with aiding and abetting the sale of construction
    equipment and parts from a foreign affiliate to Libya. The company paid
    $1,810,000 in criminal fines and $190,000 in civil penalties. Numerous
    investigations carried over from prior reporting periods are continuing
    and new reports of violations are being pursued.
        6. The expenses incurred by the Federal Government in the 6-month
    period from January 6 through July 6, 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 $730,000. 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.
        7. 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 United Nations Security
    Council Resolution 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

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    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 22, 1996.