    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [October 15, 1997]
    [Pages 1373-1376]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders Reporting on the National Emergency With
    Respect to Narcotics Traffickers Centered in Colombia
    October 15, 1997

    Dear Mr. Speaker:   (Dear Mr. President:)
        I hereby report to the Congress on the developments since my last
    report concerning the national emergency with respect to significant
    narcotics traffickers centered in Colombia that

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    was declared in Executive Order 12978 of October 21, 1995. This report
    is submitted pursuant to section 401(c) of the National Emergencies Act,
    50 U.S.C. 1641(c), and section 204(c) of the International Emergency
    Economic Powers Act (IEEPA), 50 U.S.C. 1703(c).
        1. On October 21, 1995, I signed Executive Order 12978, ``Blocking
    Assets and Prohibiting Transactions with Significant Narcotics
    Traffickers'' (the ``Order'') (60 Fed. Reg. 54579, October 24, 1995).
    The Order blocks all property subject to U.S. jurisdiction in which
    there is any interest of four significant foreign narcotics traffickers,
    one of whom is now deceased, who were principals in the so-called Cali
    drug cartel centered in Colombia. These persons are listed in the annex
    to the Order. The Order also blocks the property and interests in
    property of foreign persons determined by the Secretary of the Treasury,
    in consultation with the Attorney General and the Secretary of State,
    (a) to play a significant role in international narcotics trafficking
    centered in Colombia or (b) to materially assist in or provide financial
    or technological support for, or goods or services in support of, the
    narcotics trafficking activities of persons designated in or pursuant to
    the Order. In addition the Order blocks all property and interests in
    property subject to U.S. jurisdiction of persons determined by the
    Secretary of the Treasury, in consultation with the Attorney General and
    the Secretary of State, to be owned or controlled by, or to act for or
    on behalf of, persons designated in or pursuant to the Order
    (collectively ``Specially Designated Narcotics Traffickers'' or SDNTs).
        The Order further prohibits any transaction or dealing by a United
    States person or within the United States in property or interests in
    property of SDNTs, and any transaction that evades or avoids, has the
    purpose of evading or avoiding, or attempts to violate, the prohibitions
    contained in the Order.
        Designations of foreign persons blocked pursuant to the Order are
    effective upon the date of determination by the Director of the
    Department of the Treasury's Office of Foreign Assets Control (OFAC)
    acting under authority delegated by the Secretary of the Treasury.
    Public notice of blocking is effective upon the date of filing with the
    Federal Register, or upon prior actual notice.
        2. On October 24, 1995, the Department of the Treasury issued a
    Notice containing 76 additional names of persons determined to meet the
    criteria set forth in Executive Order 12978 (60 Fed. Reg. 54582, October
    24, 1995).
        The Department of the Treasury issued another Notice adding the
    names of one additional entity and three additional individuals, as well
    as expanded information regarding addresses and pseudonyms, to the list
    of SDNTs on November 29, 1995, (60 Fed. Reg. 61288).
        On March 8, 1996, OFAC published a Notice in the Federal Register
    adding the names of 138 additional individuals and 60 entities
    designated pursuant to the Order, and revising information for 8
    individuals on the list of blocked persons contained in the notices
    published on November 29, 1995, and October 24, 1995. (61 Fed. Reg.
    9523).
        3. On January 21, 1997, OFAC published a Notice in the Federal
    Register adding the names of 57 individuals and 21 entities designated
    pursuant to the Order, and revising information for 58 individuals and 1
    entity (62 Fed. Reg. 2903). In addition, the name of one individual
    specially designated narcotics trafficker was removed from the list.
    These changes were effective January 15, 1997.
        These 78 new names brought the total list of SDNTs to 359. Each of
    the 78 newly designated entities and individuals has been determined to
    be owned or controlled or to act for or on behalf of the Cali cartel's
    Helmer ``Pacho'' Herrera Buitrago organization. The newly identified
    SDNTs included several large poultry processing plants and farms,
    investment and import/export firms, real estate businesses, a consulting
    firm, a lumber distributor, and a construction company, all located in
    Colombia.
        The additional name and address information includes one previously
    designated company controlled by the Herrera Buitrago family and 58
    previously designated individuals from either the Herrera Buitrago or
    the Rodriguez Orejuela organizations of the Cali cartel.
        Effective February 28, 1997, OFAC issued the Narcotics Trafficking
    Sanctions Regulations (NTSR), 31 C.F.R. Part 536, to further implement
    the President's declaration of a national emergency and imposition of
    sanctions against significant foreign narcotics traffickers centered in
    Colombia (62 Fed. Reg. 9959, March 5, 1997).
        4. On April 17, 1997, OFAC added to appendices A and B to 31 C.F.R.
    chapter V the names

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    46 individuals and 11 entities, and revised information concerning 25
    individuals, who have been determined to play a significant role in
    international narcotics trafficking centered in Colombia or have been
    determined to be owned or controlled by, or to act for or on behalf of,
    other specially designated narcotics traffickers (62 Fed. Reg. 19500,
    April 22, 1997).
        On July 30, 1997, OFAC published the names of seven businesses and
    seven associated individuals determined to be acting as fronts for the
    Cali cartel in Colombia (62 Fed. Reg. 41850, August 4, 1997). The seven
    newly designated companies are successors to firms previously designated
    because they were owned or controlled by the Rodriguez Orejuela, Herrera
    Buitrago, or Santacruz Londono families of the Cali cartel. This action
    is part of the ongoing interagency implementation of Executive Order
    12978 of October 21, 1995. These 14 names were added to the previous
    SDNT list bringing to a total of 428 businesses and individuals with
    whom financial and business dealings are prohibited and whose assets are
    blocked under the Order. All 428 SDNTs were determined to be owned or
    controlled by, or to act for or on behalf of, persons designated in or
    pursuant to the Order.
        The seven newly named companies include a major poultry farm as well
    as investment, construction, and real estate firms that have undergone
    name changes since the time of their original designations as SDNT
    entities. The OFAC has determined that the kingpins and agents of the
    Cali cartel continue to exert ultimate control over them. The seven
    newly designated individuals all have been determined to act for or on
    behalf of these seven successor entities. The OFAC, in coordination with
    the Departments of Justice and State, is continuing to expand the list
    of SDNTs, including both organizations and individuals, as additional
    information is developed.
        On September 9, 1997, OFAC amended appendices A and B to 31 C.F.R.
    chapter V by removing the names of two individuals previously designated
    as specially designated narcotics traffickers. All real and personal
    property of these individuals, including all accounts not otherwise
    subject to blocking in which they have an interest, are unblocked; and
    all lawful transactions involving United States persons and these
    individuals are authorized (62 Fed. Reg. 48177, September 15, 1997).
    Copies of these amendments are attached to this report.
        5. The OFAC has disseminated and routinely updated details of this
    program to the financial, securities, and international trade
    communities by both electronic and conventional media. In addition to
    bulletins to banking institutions via the Federal Reserve System and the
    Clearing House Interbank Payments System (CHIPS), individual notices
    were provided to all State and Federal regulatory agencies, automated
    clearing houses, and State and independent banking associations across
    the country. The OFAC contacted all major securities industry
    associations and regulators. It posted electronic notices on the
    Internet and over 10 computer bulletin boards and two fax-on-demand
    services, and provided the same material to the U.S. Embassy in Bogota
    for distribution to U.S. companies operating in Colombia.
        6. As of August 15, 1997, OFAC had issued nine specific licenses
    pursuant to Executive Order 12978. These licenses were issued in
    accordance with established Treasury policy authorizing the completion
    of presanctions transactions and the provision of legal services to and
    payment of fees for representation of SDNTs in proceedings within the
    United States arising from the imposition of sanctions.
        7. The expenses incurred by the Federal Government in the 6-month
    period from April 21 through October 20, 1997, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of the national emergency with respect to Significant
    Narcotics Traffickers are estimated at approximately $800,000. 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
    Justice, and the Department of State. These data do not reflect certain
    costs of operations by the intelligence and law enforcement communities.
        8. Executive Order 12978 provides this Administration with a tool
    for combatting the actions of significant foreign narcotics traffickers
    centered in Colombia, and the unparalleled violence, corruption, and
    harm that they cause in the United States and abroad. The Order is
    designed to deny these traffickers the benefit of any assets subject to
    the jurisdiction of the United States and to prevent United States
    persons from engaging in any commercial dealings

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    with them, their front companies, and their agents. Executive Order
    12978 demonstrates the U.S. commitment to end the scourge that such
    traffickers have wrought upon society in the United States and abroad.
        The magnitude and the dimension of the problem in Colombia--perhaps
    the most pivotal country of all in terms of the world's cocaine trade--
    is extremely grave. I shall continue to exercise the powers at my
    disposal to apply economic sanctions against significant foreign
    narcotics traffickers and their violent and corrupting activities as
    long as these measures are appropriate, and will continue to report
    periodically to the Congress on significant developments pursuant to 50
    U.S.C. 1703(c).
        Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to Newt Gingrich, Speaker of the House
    of Representatives, and Albert Gore, Jr., President of the Senate.