    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [June 26, 1997]
    [Pages 830-831]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on Economic Sanctions Against Libya
    June 26, 1997

    To the Congress of the United States:
        I hereby report to the Congress on the developments since my last
    report of January 10, 1997, concerning the national emergency with
    respect to Libya that was declared in Executive Order 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. As previously reported, on January 2, 1997, I renewed for another
    year the national emergency with respect to Libya pursuant to the IEEPA.
    This renewal extended the current comprehensive financial and trade
    embargo against Libya in effect since 1986. Under these sanctions,
    virtually 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 10, 1997.
        3. During the last 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 (68) concerned
    requests by non-Libyan persons or entities to unblock transfers
    interdicted because of what appeared to be Government of Libya
    interests. Two licenses authorized the provision of legal services to
    the Government of Libya in connection with actions in U.S. courts in
    which the Government of Libya was named as defendant. Licenses were also
    issued authorizing diplomatic and U.S. government transactions and to
    permit U.S. companies to engage in transactions with respect to
    intellectual property protection in Libya. A total of 75 licenses were
    issued during the reporting period.
        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 in
    interdiction software systems used to identify such payments. During the
    reporting period, more than 100 transactions potentially involving Libya
    were interdicted.
        5. Since my last report, OFAC collected 13 civil monetary penalties
    totaling nearly $90,000 for violations of the U.S. sanctions against
    Libya. Ten of the violations involved the failure of banks to block
    funds transferred to Libyan-controlled financial institutions or
    commercial entities in Libya. Three U.S. corporations paid the OFAC
    penalties for export violations as part of the global plea agreements
    with the Department of Justice. Sixty-seven other cases are in active
    penalty processing.
        6. Various enforcement actions carried over from previous reporting
    periods have continued

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    to be aggressively pursued. Numerous investigations are ongoing and new
    reports of violations are being scrutinized.
        7. The expenses incurred by the Federal Government in the 6-month
    period from January 7 through July 6, 1997, that are directly
    attributable to the exercise of the powers and authorities conferred by
    the declaration of the Libyan national emergency are estimated at
    approximately $660,000.00. 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.
        8. The policies and the 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 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,

    June 26, 1997.

    Note: This message was released by the Office of the Press Secretary on
    June 27.