    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [August 12, 1997]
    [Pages 1096-1098]
    [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
    August 12, 1997

    Dear Mr. Speaker:   (Dear Mr. President:)
        I hereby report to the Congress on the developments since my report
    of October 21, 1996, concerning the national emergency with respect to
    significant narcotics traffickers centered in Colombia that 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.

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        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. 54582-84,
    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. 61288-89).
        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-
    28).
        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. 2903-09). In addition, the name of one individual
    specially designated narcotics trafficker was removed from the list.
    These changes were effective January 15, 1997. A copy of the notice is
    attached to this report.
        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 include 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. The OFAC, in
    coordination with the Attorney General and the Secretary of State, is
    continuing to expand the list of SDNTs, including both organizations and
    individuals, as additional information is developed.
        Effective February 28, 1997, OFAC issued the Narcotics Trafficking
    Sanctions Regulations (the ``Regulations'' or NTSR), 31 C.F.R. Part 536,
    to further implement my declaration of a national emergency and
    imposition of sanctions against significant foreign narcotics
    traffickers centered in Colombia (62 Fed. Reg. 9959-68, March 5, 1997).
    A copy of the Regulations is attached to this report.
        4. 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, individual notices were
    provided to all State and Federal regulatory agencies, automated
    clearinghouses, and State and independent banking associations across
    the country. OFAC contacted all major securities industry associations
    and regulators. It posted electronic notices on the Internet and over 10
    computer bulletin boards and 2 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.
        5. As of March 4, 1997, OFAC had issued five 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.
        6. The expenses incurred by the Federal Government in the 6-month
    period from October 21, 1996, through April 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 $1.1 million.
    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

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    the U.S. Customs Service), the Department of Justice, and the Department
    of State.
        7. Executive Order 12978 provides this Administration with a new
    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 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. This
    letter was released by the Office of the Press Secretary on August 13.