    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [July 29, 2003]
    [Pages 951-952]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 951]]

    Letter to Congressional Leaders Transmitting the Executive Order
    Implementing the Clean Diamond Trade Act
    July 29, 2003

    Dear Mr. Speaker:  (Dear Mr. President:)
        Consistent with section 204(b) of the International Emergency
    Economic Powers Act, 50 U.S.C. 1703(b), and section 301 of the National
    Emergencies Act, 50 U.S.C. 1631, I hereby report that I have issued an
    Executive Order (copy attached) to implement the Clean Diamond Trade
    Act, Public Law 108-19 (the ``Act''), which authorizes the President to
    take steps to implement the Kimberley Process Certification Scheme
    (KPCS) for rough diamonds in the United States. In addition, my
    Executive Order amends Executive Orders 13194 and 13213 to harmonize
    those orders with the Act and to reflect recent developments in Sierra
    Leone and Liberia. The prohibitions in section 1 and 3 of the order take
    effect at 12:01 a.m. eastern daylight time on July 30, 2003, and the
    remaining provisions of the order take effect immediately.
        On January 18, 2001, the President issued Executive Order 13194
    taking into account United Nations Security Council Resolution (UNSCR)
    1306 of July 5, 2000. That order declared a national emergency in
    response to the role played by the illicit trade in diamonds in fueling
    conflict and human rights violations in Sierra Leone and prohibited the
    importation into the United States of rough diamonds from Sierra Leone
    that were not controlled by the Government of Sierra Leone through its
    Certificate of Origin regime.
        On May 22, 2001, I issued Executive Order 13213 taking into account
    UNSCR 1343 of March 7, 2001. That order expanded the scope of the
    national emergency declared in Executive Order 13194 to respond to,
    among other things, the Government of Liberia's complicity in the
    illicit trade in rough diamonds through Liberia. Executive Order 13213
    prohibited the direct or indirect importation into the United States of
    all rough diamonds from Liberia, whether or not such diamonds originated
    in Liberia, except to the extent provided in regulations, orders,
    directives, or licenses issued pursuant to the order.
        The United Nations ban against the importation of rough diamonds
    from Sierra Leone without a certificate of origin, imposed by UNSCR 1306
    and renewed by UNSCR 1446 of December 4, 2002, expired on June 4, 2003.
    The United Nations Security Council decided not to renew the measure in
    light of the Government of Sierra Leone's increased efforts to control
    and manage its diamond industry and ensure proper control over diamond
    mining areas, as well as the Government's full participation in the
    KPCS. Although the hostilities fueled by and funded with conflict
    diamonds have ceased in Sierra Leone, the attendant peace and stability
    are tentative, fragile, and jeopardized by ongoing illicit diamond
    production and smuggling. In addition, the Security Council, through
    UNSCR 1478 of May 6, 2003, renewed for 1 year the absolute import ban on
    rough diamonds from Liberia based on evidence that the Government of
    Liberia continues to breach the measures imposed by UNSCR 1343.
        In a related development, representatives of the United States and
    numerous other countries, including Sierra Leone, announced in the
    Interlaken Declaration of November 5, 2002, the launch of the KPCS.
    Participants in the KPCS are expected to prohibit the importation of
    rough diamonds from, or the exportation of rough diamonds to, a non-
    Participant and to require that shipments of rough diamonds from or to a
    Participant be controlled through the KPCS. The Clean Diamond Trade Act,
    which I signed on April 25,

    [[Page 952]]

    2003, enables the United States to implement the KPCS by providing that,
    when the Act is in effect, the President shall, subject to certain
    waiver authorities, prohibit the importation into, or exportation from,
    the United States of any rough diamond, from whatever source, that has
    not been controlled through the KPCS.
        My Executive Order will implement the Clean Diamond Trade Act and
    amend Executive Orders 13194 and 13213 to harmonize those orders with
    the Act and to reflect recent developments in Sierra Leone and Liberia.
    Section 1 of the Executive Order puts in place, as of July 30, 2003, the
    prohibitions of section 4(a) of the Clean Diamond Trade Act. Section 2
    of my Executive Order assigns various functions of the President under
    the Act to the Secretary of State and the Secretary of the Treasury,
    including authorizing the Secretary of the Treasury to issue
    implementing regulations.
        Section 3 of my Executive Order amends Executive Orders 13194 and
    13213 in the following ways. Executive Order 13194 is revised to control
    rough diamonds from Sierra Leone through the KPCS, rather than through
    the Certificate of Origin regime of the Government of Sierra Leone.
    Executive Order 13213 is revised to remove, consistent with section 4(a)
    of the Clean Diamond Trade Act, licensing and other authorities with
    respect to rough diamonds from Liberia.
        Finally, section 4 of my Executive Order provides that for the
    purposes of the order and Executive Order 13194, the definitions set
    forth in section 3 of the Act shall apply, and that the term ``Kimberley
    Process Certification Scheme'' shall not be construed to include any
    changes to the KPCS after April 25, 2003.
        My Executive Order demonstrates the U.S. commitment to exclude
    conflict diamonds from international trade, while promoting the
    legitimate trade in rough diamonds that is so vital to many nations in
    Africa and elsewhere.
             Sincerely,

                                                              George W. Bush

    Note: Identical letters were sent to J. Dennis Hastert, Speaker of the
    House of Representatives, and Richard B. Cheney, President of the
    Senate. The Executive order of July 29 is listed in Appendix D at the
    end of this volume.