    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [July 19, 1999]
    [Pages 1255-1256]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on the National Emergency With Respect
    to Libya
    July 19, 1999

    To the Congress of the United States:
        I hereby report to the Congress on the developments since my last
    report of December 30, 1998, 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. On December 30, 1998, I renewed for another year the national
    emergency with respect to Libya pursuant to 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 Government of
    Libya in the United States or in the possession or control of U.S.
    persons are blocked.
        2. On April 28, 1999, I announced that the United States will exempt
    commercial sales of agricultural commodities and products, medicine, and
    medical equipment from future unilateral sanctions regimes. In addition,
    my Administration will extend this policy to existing sanctions programs
    by modifying licensing policies for currently embargoed countries to
    permit case-by-case review of specific proposals for commercial sales of
    these items. Certain restrictions apply.
        The Office of Foreign Assets Control (OFAC) of the Department of the
    Treasury is currently drafting amendments to the Libyan Sanctions
    Regulations, 31 C.F.R. Part 550 (the Regulations), to implement this
    initiative. The amended Regulations will provide for the licensing of
    sales of agricultural commodities and products, medicine, and medical
    supplies to nongovernmental entities in Libya or to government
    procurement agencies and parastatals not affiliated with the coercive
    organs of that country. The amended Regulations will also provide for
    the licensing of all transactions necessary and incident to licensed
    sales transactions, such as insurance and shipping arrangements.
    Financing for the licensed sales transactions will be permitted in the
    manner described in the amended Regulations.
        3. During the reporting 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 (20) involved types of financial
    transactions that are consistent with U.S. policy. Most of these
    licenses authorized personal remittances not involving Libya between
    persons who are not blocked parties to flow through Libyan banks located
    outside Libya. Three licenses were issued authorizing certain travel-
    related transactions. One license was issued to a U.S. firm to allow it
    to protect its intellectual property rights in Libya; another authorized
    receipt of payment for legal services; and a third authorized payments
    for telecommunications services. A total of 26 licenses were issued
    during the reporting period.

    [[Page 1256]]

        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, 87 transactions potentially involving Libya, totaling
    nearly $3.4 million, were interdicted.
        5. Since my last report, OFAC has collected 7 civil monetary
    penalties totaling $38,000 from 2 U.S. financial institutions, 3
    companies, and 2 individuals for violations of the U.S. sanctions
    against Libya. The violations involved export transactions relating to
    Libya and dealings in Government of Libya property or property in which
    the Government of Libya had an interest.
        On April 23, 1999, a foreign national permanent resident in the
    United States was sentenced by the Federal District Court for the Middle
    District of Florida to 2 years in prison and 2 years supervised release
    for criminal conspiracy to violate economic sanctions against Libya,
    Iran, and Iraq. He had previously been convicted of violation of the
    Libyan Sanctions Regulations, the Iranian Transactions Regulations, the
    Iraqi Sanctions Regulations, and the Export Administration Regulations
    for exportation of industrial equipment to the oil, gas, petrochemical,
    water, and power industries of Libya, Iran, and Iraq.
        Various enforcement actions carried over from previous reporting
    periods have continued to be aggressively pursued. Numerous
    investigations are ongoing and new reports of violations are being
    scrutinized.
        6. The expenses incurred by the Federal Government in the 6-month
    period from January 7 through July 6, 1999, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of the Libyan national emergency are estimated at
    approximately $4.4 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 the U.S. Customs
    Service), the Department of State, and the Department of Commerce.
        7. In April 1999, Libya surrendered the 2 suspects in the Lockerbie
    bombing for trial before a Scottish court seated in the Netherlands. In
    accordance with UNSCR 748, upon the suspects' transfer, UN sanctions
    were immediately suspended. We will insist that Libya fulfill the
    remaining UNSCR requirements for lifting UN sanctions and are working
    with UN Secretary Annan and UN Security Council members to ensure that
    Libya does so promptly. U.S. unilateral sanctions remain in force, and I
    will continue to exercise the powers at my disposal to apply these
    sanctions fully and effectively, as long as they remain appropriate. I
    will continue to report periodically to the Congress on significant
    developments as required by law.

                                                          William J. Clinton

    The White House,

    July 19, 1999.