[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.