    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [May 5, 1998]
    [Pages 697-698]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 697]]

    Message to the Congress Reporting on the National Emergency With Respect
    to Sudan
    May 5, 1998

    To the Congress of the United States:
        I hereby report to the Congress on developments concerning the
    national emergency with respect to Sudan that was declared in Executive
    Order 13067 of November 3, 1997, and matters relating to the measures in
    that order. This report is submitted pursuant to section 204(c) of the
    International Emergency Economic Powers Act (IEEPA), 50 U.S.C. 1703(c),
    and section 401(c) of the National Emergencies Act, 50 U.S.C. 1641(c).
    This report discusses only matters concerning the national emergency
    with respect to Sudan that was declared in Executive Order 13067.
        1. On November 3, 1997, I issued Executive Order 13067 (62 Fed. Reg.
    59989, November 5, 1997--the ``Order'') to declare a national emergency
    with respect to Sudan pursuant to IEEPA. Copies of the Order were
    provided to the Congress by message dated November 3, 1997.
        The Order blocks all property and interests in property of the
    Government of Sudan, its agencies, instrumentalities, and controlled
    entities, including the Central Bank of Sudan, that are in the United
    States, that hereafter come within the United States, or that are or
    hereafter come within the possession or control of United States
    persons, including their overseas branches. The Order also prohibits (1)
    the importation into the United States of any goods or services of
    Sudanese origin except for information or informational materials; (2)
    the exportation or reexportation of goods, technology, or services to
    Sudan or the Government of Sudan except for information or informational
    materials and donations of humanitarian aid; (3) the facilitation by a
    United States person of the exportation or reexportation of goods,
    technology, or services to or from Sudan; (4) the performance by any
    United States person of any contract, including a financing contract, in
    support of an industrial, commercial, public utility, or governmental
    project in Sudan; (5) the grant or extension of credits or loans by any
    United States person to the Government of Sudan; and (6) transactions
    relating to the transportation of cargo. The Order also provided a 30-
    day delayed effective date for the completion of certain trade
    transactions.
        2. Executive Order 13067 became effective at 12:01 a.m., eastern
    standard time on November 4, 1997. On December 2, 1997, the Department
    of the Treasury's Office of Foreign Assets Control (OFAC) issued General
    Notice No. 1, interpreting the delayed effective date for pre-November
    4, 1997, trade contracts involving Sudan if the preexisting trade
    contract was for (a) the exportation of goods, services, or technology
    from the United States or a third country that was authorized under
    applicable Federal regulations in force immediately prior to November 4,
    1997, or (b) the reexportation of goods or technology that was
    authorized under applicable Federal regulations in force immediately
    prior to November 4, 1997. Such exports or reexports were authorized
    until 12:01 a.m. eastern standard time, December 4, 1997, and
    nonfinancing activity by United States persons incidental to the
    performance of the preexisting trade contract (such as the provision of
    transportation or insurance) was authorized through 12:01 a.m. eastern
    standard time, February 2, 1998. If the preexisting trade contract was
    for the importation of goods or services of Sudanese origin or other
    trade transactions relating to goods or services of Sudanese origin or
    owned or controlled by the Government of Sudan, importations under the
    preexisting trade contract were authorized until 12:01 a.m. eastern
    standard time, December 4, 1997.
        3. Since the issuance of Executive Order 13067, OFAC has made
    numerous decisions with respect to applications for authorizations to
    engage in transactions under the Sudanese sanctions. As of March 12,
    1998, OFAC has issued 55 authorizations to nongovernmental organizations
    engaged in the delivery of humanitarian aid and 77 licenses to others.
    OFAC has denied many requests for licenses. The majority of denials were
    in response to requests to authorize commercial exports to Sudan--
    particularly of machinery and equipment for various industries--and the
    importation of Sudanese-origin goods. The majority of licenses issued
    permitted the unblocking of financial transactions

    [[Page 698]]

    for individual remitters who routed their funds through blocked Sudanese
    banks. Other licenses authorized the completion of diplomatic transfers,
    preeffective date trade transactions, and the performance of certain
    legal services.
        4. At the time of signing Executive Order 13067, I directed the
    Secretary of the Treasury to block all property and interests in
    property of persons determined, in consultation with the Secretary of
    State, to be owned or controlled by, or to act for or on behalf of, the
    Government of Sudan. On November 5, 1997, OFAC disseminated details of
    this program to the financial, securities, and international trade
    communities by both electronic and conventional media. This information
    included the names of 62 entities owned or controlled by the Government
    of Sudan. The list includes 12 financial institutions and 50 other
    enterprises.
        5. OFAC, in cooperation with the U.S. Customs Service, is closely
    monitoring potential violations of the import prohibitions of the Order
    by businesses and individuals. Various reports of violations are being
    aggressively pursued.
        6. The expenses incurred by the Federal Government in the 6-month
    period from November 3, 1997, through May 2, 1998, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of a national emergency with respect to Sudan are reported
    to be approximately $425,000, most of which represent wage and salary
    costs for Federal personnel. Personnel costs were largely centered in
    the Department of the Treasury (particularly in the Office of Foreign
    Assets Control, the U.S. Customs Service, the Office of the Under
    Secretary for Enforcement, and the Office of the General Counsel), the
    Department of State (particularly the Bureaus of Economic and Business
    Affairs, African Affairs, Near Eastern Affairs, Consular Affairs, and
    the Office of the Legal Adviser), and the Department of Commerce (the
    Bureau of Export Administration and the General Counsel's Office).
        7. The situation in Sudan continues to present an extraordinary and
    unusual threat to the national security and foreign policy of the United
    States. The declaration of the national emergency with respect to Sudan
    contained in Executive Order 13067 underscores the United States
    Government opposition to the actions and policies of the Government of
    Sudan, particularly its support of international terrorism and its
    failure to respect basic human rights, including freedom of religion.
    The prohibitions contained in Executive Order 13067 advance important
    objectives in promoting the antiterrorism and human rights policies of
    the United States. I shall exercise the powers at my disposal to deal
    with these problems and will continue to report periodically to the
    Congress on significant developments.

                                                          William J. Clinton

    The White House,

    May 5, 1998.