[Weekly Compilation of Presidential Documents Volume 30, Number 41 (Monday, October 17, 1994)]
[Pages 2012-2021]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders on Haiti

October 13, 1994

Dear Mr. Speaker:  (Dear Mr. President:)

    1. In December 1990, the Haitian people elected Jean-Bertrand 
Aristide as their President by an overwhelming margin in a free and fair 
election. The United States praised Haiti's success in peacefully 
implementing its democratic constitutional system and provided 
significant political and economic support to the new government. The 
Haitian military abruptly interrupted the consolidation of Haiti's new 
democracy when, in September 1991, it illegally and violently ousted 
President Aristide from office and drove him into exile.
    2. The United States, on its own and together with the Organization 
of American States (OAS), immediately imposed sanctions against the 
illegal regime. The United States also actively supported the efforts of 
the OAS and the United Nations to restore democracy to Haiti and to 
bring about President Aristide's return by facilitating negotiations 
between the Haitian parties. The United States and the international 
community also offered material assistance within the context of an 
eventual negotiated settlement of the Haitian crisis to support the 
return to democracy, build constitutional structures, and foster 
economic well-being.
    As a result of continuing military intransigence in the face of 
these efforts and of worsening human rights abuses in Haiti, the 
conclusion was reached that no political settlement of the Haitian 
crisis was possible as long as the three principal military leaders 
remained in power. Therefore, beginning in early May 1994, a series of 
steps were taken to intensify the pressure of sanctions on the military 
leaders and their associates in order to bring the three leaders to step 
down. With U.S. leadership, the U.N. Security Council on May 6, 1994, 
enacted Resolution 917, imposing comprehensive trade sanctions and other 
measures on Haiti. This was followed by a succession of unilateral 
United States sanctions--banning scheduled air service and financial 
transactions to or from Haiti or between Haiti and third countries 
through the United States and blocking the assets in the United States 
or under United States control of Haitians resident in Haiti. 
Additionally, under authorities not related to the IEEPA, all visas that 
had been issued to Haitians at Port-au-Prince or Curacao before May 11, 
1994, were revoked. Several other countries took similar actions.
    The continued resistance of the illegal regime to the efforts of the 
international community also prompted the United States to augment 
embargo enforcement. The United States and other countries entered into 
a cooperative endeavor with the Dominican Republic to monitor that 
country's enforcement of sanctions along its land border with Haiti and 
in its coastal waters.
    As the reporting period progressed, it became apparent that the 
Haitian military leaders, even under the pressure of intense worldwide 
sanctions, were determined to cling to power and to block the 
restoration of democracy and return of President Aristide. Internal 
repression continued to worsen, exemplified by the expulsion in July of 
the U.N./OAS-sponsored International Civilian Mission (ICM) human rights 
observers. As a result of this deterioration and the threat it posed to 
peace and security in the region,

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the U.N. Security Council enacted Resolution 940 on July 31, 1994, 
authorizing the use of all necessary means to bring about the departure 
of the military leadership and the return of the legitimate authorities 
including President Aristide. In the succeeding weeks, the international 
community under U.S. leadership assembled a multinational coalition 
force to carry out this mandate.
    On September 18, 1994, I directed the deployment of U.S. Armed 
Forces to Haiti to remove the military leaders and restore democracy. 
However, I remained deeply committed to achieving our goals peacefully 
if possible. Therefore, on the previous day I had sent former President 
Jimmy Carter, Senator Sam Nunn and retired General Colin Powell to Haiti 
on a final diplomatic mission. The combination of an imminent military 
operation and determined diplomacy led to an agreement on September 18, 
that portends the early achievement of our and the international 
community's goals in Haiti. The military leaders have relinquished power 
and the legitimate authorities will be restored by October 15 at the 
latest. As a result of the agreement reached in Port-au-Prince on 
September 18 U.S. forces in the vanguard of the multinational coalition 
force drawn from 26 countries began a peaceful deployment to Haiti on 
September 19.
    In a spirit of reconciliation and reconstruction, President Aristide 
called on September 25 for the immediate easing of sanctions to further 
the mission of the coalition forces and begin without delay the work of 
rebuilding. In response to this request, on September 26, in an address 
before the United Nations General Assembly, I announced my intention to 
suspend all unilateral sanctions against Haiti except those that affect 
the military leaders and their immediate supporters and families. I also 
directed that steps be taken in accordance with Resolutions 917 and 940 
to permit supplies and services to flow to Haiti to restore health care, 
water and electrical services, provide construction materials for 
humanitarian programs, and allow the shipment of communications, 
agricultural, and educational materials.
    Regulations to accomplish those objectives were published in the 
Federal Register on October 5. In addition, the U.N. Security Council on 
September 29 enacted Resolution 944 directing that all U.N. sanctions be 
terminated the day after President Aristide returns to Haiti. Finally, 
the national emergency with respect to Haiti was extended on September 
30, 1994, to allow the continued enforcement of those sanctions that are 
to remain in force until the restoration of democracy to Haiti is 
completed as will be signified by President Aristide's return to his 
country.
    3. This report is submitted to the Congress pursuant to 50 U.S.C. 
1641(c) and 1703(c). It is not a report on all U.S. activities with 
respect to Haiti, but discusses only those Administration actions and 
expenses since my last report (April 25, 1994), that are directly 
related to the national emergency with respect to Haiti declared in 
Executive Order No. 12775, as implemented pursuant to that order and 
Executive Orders Nos. 12779, 12853, 12872, 12914, 12917, 12920, and 
12922.
    4. Economic sanctions against the de facto regime in Haiti were 
first imposed in October 1991. On October 4, 1991, in Executive Order 
No. 12775, President Bush declared a national emergency to deal with the 
threat to the national security, foreign policy, and economy of the 
United States caused by events that had occurred in Haiti to disrupt the 
legitimate exercise of power by the democratically-elected government of 
that country (56 Fed. Reg. 50641). In that order, the President ordered 
the immediate blocking of all property and interests in property of the 
Government of Haiti (including the Banque de la Republique d'Haiti) then 
or thereafter located in the United States or within the possession or 
control of a U.S. person, including its overseas branches. The Executive 
order also prohibited any direct or indirect payments or transfers to 
the de facto regime in Haiti of funds or other financial or investment 
assets or credits by any U.S. person, including its overseas branches, 
or by any entity organized under the laws of Haiti and owned or 
controlled by a U.S. person.
    Subsequently, on October 28, 1991, President Bush issued Executive 
Order No. 12779, adding trade sanctions against Haiti to the sanctions 
imposed on October 4 (56

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Fed. Reg. 55975). This order prohibited exportation from the United 
States of goods, technology, and services and importation into the 
United States of Haitian-origin goods and services, after November 5, 
1991, with certain limited exceptions. The order exempted trade in 
publications and other informational materials from the import, export, 
and payment prohibitions and permitted the exportation to Haiti of 
donations to relieve human suffering as well as commercial sales of five 
food commodities: rice, beans, sugar, wheat flour and cooking oil. In 
order to permit the return to the United States of goods being prepared 
for U.S. customers by Haiti's substantial ``assembly sector,'' the order 
also permitted, through December 5, 1991, the importation into the 
United States of goods assembled or processed in Haiti that contained 
parts or materials previously exported to Haiti from the United States. 
On February 5, 1992, it was announced that specific licenses could be 
applied for on a case-by-case basis by U.S. persons wishing to resume a 
pre-embargo import/export relationship with the assembly sector in 
Haiti.
    5. On June 30, 1993, I issued Executive Order No. 12853 that 
expanded the blocking of assets of the de facto regime to include assets 
of Haitian nationals identified by the Secretary of the Treasury as 
providing substantial financial or material contributions to the regime, 
or doing substantial business with the regime. That Executive order also 
implemented U.N. Security Council Resolution (UNSC Resolution) 841 of 
June 16, 1993, by prohibiting the sale or supply by U.S. persons or from 
the United States, or using U.S.-registered vessels or aircraft, or 
petroleum or petroleum products or arms and related materials of all 
types to any person or entity in Haiti, or for the purpose of any 
business carried on in or operated from Haiti, or promoting or 
calculated to promote such sale or supply. Carriage of such goods to 
Haiti on U.S.-registered vessels was prohibited, as was any transaction 
for the evasion or avoidance of, or attempt to evade or avoid, any 
prohibition in the order.
    6. As reported earlier, apparent steady progress toward achieving 
the firm goal of restoring democracy in Haiti permitted the United 
States and the world community to suspend economic sanctions against 
Haiti in August 1993. With strong support from the United States, the 
U.N. Security Council adopted Resolution 861 on August 27, 1993, 
suspending the petroleum, arms, and financial sanctions imposed under 
UNSC Resolution 841. On the same day, the Secretary General of the OAS 
announced that the OAS was urging member states to suspend their trade 
embargoes. In concert with these U.N. and OAS actions, U.S. trade and 
financial restrictions against Haiti were suspended, effective at 9:35 
a.m. e.d.t., on August 31, 1993.
    Our work to reach a solution to the Haitian crisis through the 
Governors Island Agreement was seriously threatened by accelerating 
violence in Haiti sponsored or tolerated by the de facto regime. The 
violence culminated on October 11, 1993, with the obstruction by armed 
``attaches'' supported by the Haitian military and police of the 
deployment of U.S. military trainers and engineers sent to Haiti as part 
of the United Nations Mission in Haiti. The Haitian military's decision 
to dishonor its commitments made in the Governors Island Agreement was 
apparent. On October 13, 1993, the U.N. Security Council issued 
Resolution 873, which terminated the suspension of sanctions effective 
at 11:59 p.m. e.d.t., October 18, 1993.
    As a result, effective at 11:59 p.m. e.d.t., October 18, 1993, the 
Department of the Treasury revoked the suspension of those trade and 
financial sanctions that had been suspended, so that the full scope of 
prior prohibitions was reinstated (58 Fed. Reg. 54024, October 19, 
1993). The reinstated sanctions in the Haitian Transactions Regulations, 
31 C.F.R. Part 580 (the HTR), prohibited most unlicensed trade with 
Haiti, and blocked the assets of the de facto regime in Haiti, and of 
the Government of Haiti. Restrictions on the entry into U.S. ports of 
vessels whose Haitian calls would violate U.S. or OAS sanctions had they 
been made by U.S. persons were also reinstated.
    Also effective at 11:59 p.m., October 18, 1993, I issued Executive 
Order No. 12872 (58 Fed. Reg. 54029), authorizing the Department of the 
Treasury to block assets of persons who have: (1) contributed to the 
obstruction of UNSC Resolutions 841 and 873, the Governors Island 
Agreement, or the ac- 

[[Page 2015]]

tivities of the U.N. Mission in Haiti; (2) perpetuated or contributed to 
the violence in Haiti; or (3) materially or financially supported either 
the obstruction or the violence referred to above. This authority was in 
addition to the blocking authority provided for in the original 
sanctions and in Executive Order No. 12853 of June 30, 1993, and ensured 
adequate authority to reach assets subject to U.S. jurisdiction of 
military and police officials, civilian ``attaches'' and their financial 
patrons meeting these criteria. A list of 41 such individuals was 
published on November 1, 1993, by the Office of Foreign Assets Control 
of the Department of the Treasury (FAC) (58 Fed. Reg. 58480).
    On October 18, 1993, I ordered the deployment of six U.S. Navy 
vessels off Haiti's shores. To improve compliance with the ban on 
petroleum and munitions shipments to Haiti contained in UNSC Resolutions 
841 and 873, the United States succeeded in securing the passage of UNSC 
Resolution 875. UNSC Resolution 875 called upon the United Nations 
Member States, acting with national or through regional agencies or 
arrangements, to halt inbound maritime shipping for Haiti in order to 
inspect and verify that the Haiti-bound cargo does not contain UNSC 
prohibited petroleum or arms. A multinational Maritime Interdiction 
Force, including elements of the U.S. Navy and the U.S. Coast Guard, was 
established.
    7. The declaration of the national emergency on October 4, 1991, was 
made pursuant to the authority vested in the President by the 
Constitution and laws of the United States, including the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
National Emergencies Act (50 U.S.C. 1601 et seq.) and section 301 of 
title 3 of the United States Code. The emergency declaration was 
reported to the Congress on October 4, 1991, pursuant to section 204(b) 
of IEEPA (50 U.S.C. 1703 (b)). The additional sanctions set forth in 
Executive Orders Nos. 12779, 12853, and 12872 were imposed pursuant to 
the authority vested in the President by the Constitution and laws of 
the United States, including the statutes cited above, as well as the 
United Nations Participation Act, 22 U.S.C. 287c, and represent the 
response by the United States to the U.N. Security Council and OAS 
directives and recommendations discussed above.
    8. Since my report of April 25, 1994, in order to implement UNSC 
Resolution 917 of May 6, and to take additional steps with respect to 
the actions and policies of the de facto regime in Haiti, I issued 
Executive Order No. 12914, dated May 7, 1994. Effective at 11:59 p.m. 
e.d.t., on May 8, 1994, the order blocks all funds and financial 
resources of three categories of individuals that are or hereafter come 
within the possession or control of U.S. persons, including their 
overseas branches. These groups include (a) all officers of the Haitian 
military, including the police, and their immediate families; (b) the 
major participants in the coup d'etat in Haiti of 1991 and in the 
illegal governments since the coup d'etat and their immediate families; 
and (c) those employed by or acting on behalf of the Haitian military, 
and their immediate families. The Executive order also bans arriving and 
departing flights, and overflights stopping or originating in Haiti, 
except regularly scheduled commercial passenger flights. A copy of E.O. 
No. 12914 (59 Fed. Reg. 24339, May 10, 1994), is attached for reference.
    9. Subsequently, on May 21, 1994, in implementation of UNSC 
Resolution 917 of May 6, and in order to further strengthen sanctions in 
response to the actions and policies of the de facto regime in Haiti, I 
issued Executive Order No. 12917. Effective at 11:59 p.m. e.d.t., on May 
21, 1994, the order prohibits (1) the importation into the United States 
of any goods originating in Haiti or services performed in Haiti, that 
are exported from Haiti after May 21, 1994, or any activity by any U.S. 
persons or in the United States that promotes, or is intended to 
promote, such importation; (2) any activity by U.S. persons or in the 
United States that promotes the exportation or transshipment of any 
goods originating in Haiti that are exported from Haiti after May 21, 
1994; (3) any dealing by U.S. persons or in the United States, or using 
U.S.-registered vessels or aircraft, of any goods originating in Haiti 
that are exported from Haiti after May 21, 1994; and (4) the sale, 
supply, or exportation by U.S. persons or from the United States, or 
using U.S.-registered vessels or aircraft, of

[[Page 2016]]

any goods, regardless of origin, to Haiti, or for the purpose of any 
business carried on in or operated from Haiti, or any activity by U.S. 
persons or in the United States that promotes such sale, supply, or 
exportation.
    Exemptions from the foregoing prohibitions include: (1) 
informational materials, such as books and other publications, needed 
for the free flow of information; (2) the sale, supply, or exportation 
of medicines and medical supplies, as authorized by the Secretary of the 
Treasury, and rice, beans, sugar, wheat flour, cooking oil, corn, corn 
flour, milk and edible tallow, provided that neither the de facto regime 
in Haiti nor any person designated by the Secretary of the Treasury as a 
blocked individual or entity of Haiti is a direct or indirect party to 
the transaction; and (3) transactions specifically licensed or otherwise 
authorized by FAC. A copy of E.O. No. 12917 (59 Fed. Reg. 26925, May 24, 
1994) is attached for reference.
    10. Again, on June 10, 1994, in order to take additional steps with 
respect to the actions and policies of the de facto regime in Haiti, I 
issued Executive Order No. 12920. Effective at 11:59 p.m. e.d.t., on 
June 10, 1994, the order prohibits, first, any payment or transfer of 
funds or other financial or investment assets or credits to Haiti from 
or through the United States, or to or through the United States from 
Haiti, with the following exceptions: (1) payments and transfers for the 
conduct of activities in Haiti of the United States Government, the 
United Nations, the OAS, or foreign diplomatic missions; (2) payments 
and transfers between the United States and Haiti for the conduct of 
activities in Haiti of nongovernmental organizations (NGOs) engaged in 
the provision in Haiti of essential humanitarian assistance as 
authorized by the Secretary of the Treasury; (3) payments and transfers 
from a U.S. person to any close relative of the remitter or of the 
remitter's spouse who is resident in Haiti, provided that such payments 
do not exceed $50.00 per month to any one household, and that neither 
the de facto regime in Haiti nor any person designated by the Secretary 
of the Treasury as a blocked individual or entity of Haiti is a 
beneficiary of the remittance; (4) reasonable amounts of funds carried 
by travelers to or from Haiti to cover their travel-related expenses; 
and (5) payments and transfers incidental to shipments to Haiti of food, 
medicine, medical supplies, and informational materials exempt from the 
export prohibitions of this order. The order also prohibits the sale, 
supply, or exportation by U.S. persons or from the United States, or 
using U.S.-registered vessels or aircraft, of any goods, technology, or 
services, regardless of origin, to Haiti, or for the purpose of any 
business carried on in or operated from Haiti, or any activity by U.S. 
persons in the United States that promotes such sale, supply, or 
exportation. Exportations of the following types are exempt from the 
foregoing provision: (1) informational materials, such as books and 
other publications needed for the free flow of information; (2) 
medicines and medical supplies, as authorized by the Secretary of the 
Treasury, and rice, beans, sugar, wheat flour, cooking oil, corn, corn 
flour, milk, and edible tallow, provided that neither the de facto 
regime in Haiti nor any person designated by the Secretary of the 
Treasury as a blocked individual or entity of Haiti is a direct or 
indirect party to the transaction; and (3) donations of food, medicine, 
and medical supplies intended to relieve human suffering. A copy of E.O. 
No. 12920 (59 Fed. Reg. 30501, June 14, 1994), is attached for 
reference.
    11. Once again, on June 21, 1994, in order to take additional steps 
with respect to the actions and policies of the de facto regime in 
Haiti, I issued Executive Order No. 12922. Effective at 10:09 p.m. 
e.d.t., on June 21, 1994, the order blocks all property and interests in 
property that are or come within the United States or within the 
possession or control of U.S. persons, including their overseas 
branches, of (1) any Haitian national resident in Haiti; or (2) any 
other person subject to the blocking provisions of Executive Order Nos. 
12775, 12779, 12853, 12872, or 12914 and Haitian citizens who are 
members of the immediate family of any such person, as identified by the 
Secretary of the Treasury. This provision does not apply to property of 
nongovernmental organizations engaged in the provision of essential 
humanitarian assistance in Haiti or in the conduct of refugee and 
migration operations in Haiti, as identified by the Secretary of the 
Treasury. Pay- 

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ments and transfers previously authorized by Executive Order No. 12920, 
of June 10, 1994, may continue to be made in a manner directed by the 
Secretary of the Treasury. A copy of Executive Order No. 12922 (59 Fed. 
Reg. 32645, June 23, 1994), is attached for reference.
    12. A policy statement, effective January 31, 1994 (59 Fed. Reg. 
8134, February 18, 1994), was published to extend until March 31, 1994, 
the expiration date for all current assembly sector licenses issued by 
FAC pursuant to the HTR, and a second policy notice, effective March 29, 
1994, was published on April 1, 1994 (59 Fed. Reg. 15342), extending 
these licenses through May 31, 1994. These licenses provided an 
exception to the comprehensive U.S. trade embargo on Haiti under which 
the ``assembly sector'' continued to receive parts and supplies from, 
and supply finished products to, persons in the United States.
    Assembly sector trade with the United States accounted for a 
significant portion of Haiti's imports, and a substantial majority of 
its exports, prior to the institution of the OAS-requested embargo in 
November 1991. Although initially suspended due to the embargo, assembly 
sector imports from and exports to the United States were allowed to 
resume on a case-by-case basis beginning in February 1992 in order to 
keep poorer segments of the Haitian population employed and to reduce 
their incentive to attempt illegal and dangerous migration by sea to the 
United States and other countries. However, the continuing uncertainties 
of the Haitian situation led to a sharp decline in assembly sector 
activity, with such employment estimated by the spring of 1994 to be no 
more than 10 percent of pre-embargo levels.
    As noted above and as mandated by UNSC Resolution 917, Executive 
Order No. 12917 further restricted imports from and exports to Haiti 
after May 21, 1994. Consequently, all FAC licenses for importation into 
the United States from the Haitian assembly sector were withdrawn 
effective May 22, 1994. The FAC is continuing, in close coordination 
with the Department of State, to evaluate license applications from U.S. 
companies seeking to repatriate capital equipment, parts, and components 
previously exported for use in assembly sector activities.
    Following the successful deployment to Haiti of U.S. forces serving 
as the vanguard of the multinational coalition force, and as promised in 
my September 26 address before the United Nations General Assembly, 
amendments to the HTR were published on October 5, 1994, suspending, 
effective 10:28 a.m. on October 5, 1994, the sanctions that the United 
States had imposed on Haiti unilaterally, with the exceptions noted 
below. Section 580.211 of the HTR, which was added to the HTR in June 
1992 to deny entry into U.S. ports to vessels engaged in certain trade 
transactions with Haiti, was removed. A new section, 580.518, was added 
to license generally the export from the United States to Haiti of all 
food and food products.
    Section 580.519 was added to the HTR to remove the prohibition 
(which I had imposed in Executive Order No. 12920 on June 14) on 
payments or transfers of funds or other financial or investment assets 
to Haiti from or through the United States, or to or through the United 
States from Haiti. Section 580.520 was added to unblock the property and 
interests in the United States of Haitian nationals resident in Haiti, 
which I had blocked in Executive Order No. 12922 on June 23; however, 
section 580.520 provides that the property and interests in property of 
certain persons, listed in the revised ``Appendix A'' to the HTR, will 
remain blocked until further notice. The HTR were also amended by the 
addition of section 580.521 to permit the specific licensing of exports 
to Haiti of fuel and equipment for electric power generation, 
telecommunications materials, media and educational supplies, 
agricultural supplies, and construction and transportation supplies for 
humanitarian purposes. Section 580.522 was added to authorize the case-
by-case licensing of charter flights between the United States and Haiti 
for use by humanitarian relief agencies to transport needed personnel 
and supplies, or for journalists covering events in Haiti. The HTR were 
also amended to provide, in new section 580.523, a general license 
authorizing the export to Haiti from the United States of equipment 
needed for reporting and broadcasting from Haiti and for documentary 
film making

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in Haiti, provided that such equipment is removed from Haiti when the 
reporting, broadcasting, or filming has been completed.
    Each of the new sections added to the HTR provides that no 
transaction authorized thereunder may result in a payment or transfer 
to, from or through a person listed in the revised ``Appendix A'' to the 
HTR. In the revised ``Appendix A'' are set forth, in section I, the 
names of individuals who, until further notice, will remain ``Blocked 
Individuals of Haiti,'' and in section II, entities of the de facto 
regime in Haiti whose assets will remain blocked.
    On September 29, I directed the Secretary of Transportation to issue 
the necessary directives to terminate the ban on regularly-scheduled air 
passenger service between the United States and Haiti that had been 
imposed on June 24.
    The HTR will be further amended upon the return of President 
Aristide to Haiti to provide that, in accordance with U.N. Resolution 
944 of September 29, 1994, on the day following his return, the U.S. 
sanctions imposed pursuant to U.N. Resolutions 841, 873, and 917 will be 
terminated. At that time, I will also direct the Secretary of 
Transportation to rescind the ban on all other air transportation (all 
cargo and charter) between the United States and Haiti that I imposed on 
May 7, 1994.
    13. Humanitarian Shipments. Executive Order No. 12917 revoked an 
earlier exception to the export ban permitting the exportation to Haiti 
of ``donated articles to relieve human suffering.'' A substantial amount 
of humanitarian aid, such as clothing or shoes, had previously been 
shipped to Haiti pursuant to this exception. The exception of donated 
foodstuffs was not affected. However, the Executive order provides an 
exemption from its trade prohibitions for the sale, supply, or 
exportation of certain basic commodities essential to humanitarian 
assistance programs serving Haiti's urban and rural poor, i.e., 
medicines and medical supplies and certain nutritional staples of the 
Haitian diet, as well as for informational materials. The FAC developed 
procedures to facilitate U.N. Sanctions Committee approval for 
humanitarian shipments to Haiti that do not fall within the narrowly-
defined U.N. exemption categories. Specific authorizations have also 
been issued on a case-by-case basis for commercial deliveries to certain 
``blocked individuals of Haiti,'' in order to allow the continued supply 
in Haiti of essential foodstuffs, while retaining the ability to closely 
monitor such transactions. Food supplies and prices are being monitored 
for profiteering by Haitian food importers. Between issuance of 
Executive Order No. 12917 on May 21, and September 1, 1994, FAC issued 
94 specific licenses for such humanitarian exports.
    Humanitarian Services. Executive Order No. 12920 exempts from its 
financial prohibitions payments and transfers between the United States 
and Haiti in support of the conduct of activities in Haiti of NGOs 
engaged in the provision in Haiti of essential humanitarian assistance. 
The FAC immediately issued a specific license to the U.S. Agency for 
International Development (AID), permitting it to continue uninterrupted 
its essential services in Haiti. Subsequently, based on recommendations 
by AID and the State Department, FAC developed a system of registration 
for NGOs engaged in relief efforts such as the delivery of food, 
medicine and medical supplies, as well as refugee and migration 
operations, to assure that approved payment orders are neither rejected 
nor blocked by U.S. banks in implementing the financial prohibitions of 
recent Executive orders. Since June 10, FAC has registered 156 NGOs, of 
which 16 have been issued specific licenses authorizing provision of 
their services in Haiti. One application has been denied. Others are 
under review by the Department of State and AID.
    Air Transportation Services. Executive Order No. 12914, effective 
11:59 p.m. e.d.t., May 8, 1994, banned arriving and departing flights 
and overflights stopping or originating in Haiti, except regularly 
scheduled commercial passenger flights. On June 10, an order was issued 
by the President to the Secretary of Transportation that terminated, 
effective June 24, 1994, regularly scheduled air service between the 
United States and Haiti by U.S. and Haitian carriers.
    Specific licenses have been issued to authorize air ambulance 
services for medical evacuation flights to and from Haiti. Licenses have 
also been issued to authorize certain

[[Page 2019]]

cargo flights for the delivery of humanitarian shipments, including food 
and medicine, by registered NGOs, as well as passenger service for NGO 
personnel and a congressional delegation wishing to assist in food 
distribution. The FAC also has licensed a U.S. air carrier to continue 
paying its Haitian employees in Port-au-Prince. In addition to providing 
support for the airline's Haitian employees and their families, the 
license aimed to position the airline to resume service speedily in the 
event of an emergency or when sanctions were lifted. Effective on the 
date of the rescission of the June 10, 1994, unilateral ban on scheduled 
air service between the United States and Haiti, carriers are authorized 
to resume such in coordination with the commander of the Multinational 
Force who controls the Haitian airports.
    More than 35 requests have been received from news organizations for 
specific licenses to charter flights to Haiti in connection with 
newsgathering activities, ranging from personnel rotation and equipment 
transportation to proposals from nationally known television anchors to 
conduct interviews. Licensees include major U.S. and foreign networks.
    Blocked Haitian-Owned Vessels. Several dozen Haitian-owned vessels 
in the United States were blocked by Executive Order No. 12922 on June 
21, 1994. Nearly all such vessels were old, small-capacity vessels (many 
wood-hulled) that formerly loaded and discharged cargoes along the 
narrow Miami River. These vessels that had previously delivered the bulk 
of humanitarian assistance shipments to Haiti, were moored at the 
facilities of their U.S. agents and presented a serious hazard to 
navigation (particularly with the onset of the hurricane season), 
clogging the channel and occupying needed docking space. Most Haitian-
owners were unable to finance the costs of a long-term lay-up. Some 170 
crew members, who were confined to the vessels, were faced with 
diminishing provisions and maintenance supplies, and dependency upon 
donations from the local community.
    Specific licenses have been issued to U.S. agents for the blocked 
vessels to authorize the provisioning, maintenance and repairs necessary 
to ensure seaworthiness to facilitate the lawful return of crew members 
to their home countries. No debits of U.S.-blocked funds were authorized 
by such licenses. The FAC has also issued licenses effectively 
unblocking the Haitian vessels by authorizing them to engage in trade 
transactions consistent with sanctions, particularly the carriage of 
authorized humanitarian supplies to Haiti. In some cases, where 
appropriate, the vessels were licensed to depart the United States but 
not return for the duration of the sanctions.
    14. Following the issuance of the blocking order in Executive Order 
No. 12922 on June 21, more than 1,200 Haitian accounts were blocked 
totaling in excess of $79.1 million as of August 30, 1994. This success 
was due, in part, to FAC notices about the new Executive orders posted 
to banks through the Federal Reserve, the New York Clearing House, the 
Council on International Banking and the International Banking 
Operations Association in Miami. Notices also were posted to other 
electronic bulletin boards such as the Federal Bulletin Board of the 
United States Government Printing Office and the Economic Bulletin Board 
of the Department of Commerce. These notices were passed on to family 
remittance forwarders by banking oversight authorities in New York and 
Florida. The FAC launched an aggressive compliance initiative to 
identify family remittance forwarders in the Miami area who route funds 
to Haiti. This review revealed that one of the largest companies in 
south Florida handling remittances to Haiti (previously valued at about 
$500,000 per month) is owned and controlled by a Haitian national 
resident in Haiti. The company's accounts, with combined balances of 
more than $1 million, were blocked and other enforcement actions 
involving them were undertaken.
    15. Continued close coordination between FAC special agents and the 
U.S. Customs Service in Miami has resulted in the interception of 
substantial quantities of checks and currency transported from and to 
Haiti through the United States, as well as the seizure of merchandise 
valued at $1.5 million. Numerous other enforcement matters are under 
active investigation.
    During the reporting period, the multinational Maritime Interdiction 
Force (MIF),

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which contains elements of the U.S. Navy and U.S. Coast Guard, continued 
to patrol offshore Haiti and to conduct ship boardings, inspections of 
cargoes bound for Haiti, identification of suspected violators and 
referrals for investigation. The MIF boardings resulted in numerous 
vessel diversions to non-Haitian ports after MIF boarding parties 
determined that cargo was not fully accessible for inspection or that 
vessels were attempting to enter Haiti with cargo prohibited by UNSC 
resolutions and U.S. sanctions. The FAC acted on MIF boarding reports by 
subsequently denying entry into the United States of several vessels 
that had attempted to violate the sanctions. With assumption of control 
of Haitian ports by the Multinational Force following its September 19 
deployment to Haiti, enforcement of the maritime sanctions in the ports 
became possible. The MIF operations therefore were terminated on 
September 28, 1994.
    16. Since my report of April 25, 1994, in consultation with the 
Department of State and other Federal agencies, FAC has issued General 
Notices No. 5, No. 6, No. 7, No. 8, No. 9, and No. 10, ``Notification of 
Blocked Individuals and Blocked Entities of Haiti.'' The Notices (issued 
June 2, June 17, June 22 (two Notices, August 2, and September 14, 1994, 
respectively) identify a total of 372 additional individuals and 94 
companies and banks determined by the Department of the Treasury to be 
Blocked Individuals and Blocked Entities of Haiti. These are persons (1) 
who seized power illegally from the democratically-elected government of 
President Jean-Bertrand Aristide on September 30, 1991, or who have 
since the effective date of Executive Order No. 12775, acted or 
purported to act directly or indirectly on behalf of, or under the 
asserted authority of, such persons or of any agencies, 
instrumentalities or entities of the de facto regime in Haiti or any 
extra-constitutional successor thereto; (2) are the immediate family 
members of an individual who is (a) an officer of the Haitian military, 
including the police, (b) a major participant in the coup d'etat in 
Haiti of 1991 or in the illegal governments since the coup d'etat, (c) 
employed by or acting on behalf of the Haitian military, or (d) a 
Haitian national resident in Haiti; or persons subject to the blocking 
provisions of Executive Orders No. 12775, No. 12779, No. 12853, No. 
12872, or No. 12914, or a Haitian citizen who is member of the immediate 
family of such person. United States persons are prohibited from 
engaging in transactions with these entities and individuals and with 
all officers of the Haitian military unless the transactions are 
licensed by FAC. All assets owned or controlled by these parties that 
are or come within the United States or that are or come within the 
possession or control of U.S. persons, including their overseas 
branches, are blocked. United States persons are not prohibited, 
however, from paying funds owed to these entities or individuals into 
blocked Government of Haiti Account No. 021083909 at the Federal Reserve 
Bank of New York, or, pursuant to specific licenses issued by FAC, into 
blocked accounts held in the names of the blocked parties in domestic 
U.S. financial institutions. Copies of General Notices No. 5 - No. 10 
are attached for reference.
    On August 18, 1994, in consultation with the Department of State and 
other Federal agencies, FAC identified three additional entities of 
Haiti, whose property and interests in property are now blocked pursuant 
to Executive Order No. 12922. On the same date, FAC removed the name of 
one individual from the list of Blocked Individuals of Haiti. These 
actions bring the total number of entities so blocked to 128 and the 
number of individuals to 916.
    Since March 1994, FAC has collected 49 civil monetary penalties, 
totaling in excess of $133,000 as of August 30, 1994. Penalties were 
imposed pursuant to FAC enforcement investigations, U.S. Customs Service 
referrals, and FAC compliance audits of reports required pursuant to 
specific licenses. The enforcement investigations dealt with violations 
of the HTR by vessels carrying unauthorized and nonexempt cargo to 
Haiti. The Customs Service referrals all involved import and export 
violations of the embargo. Compliance audits related to licenses issued 
to U.S. participants in Haiti's assembly sector.
    17. The expenses incurred by the Federal Government in the 6-month 
period from April 4 through October 3, 1994, that are directly 
attributable to the authorities con- 

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ferred by the declaration of a national emergency with respect to Haiti 
are estimated at about $3.7 million, most of which represent wage and 
salary costs for Federal personnel. Personnel costs were largely 
centered in the Department of the Treasury (particularly in FAC, the 
U.S. Customs Service, and the Office of the General Counsel), the 
Department of State, the U.S. Coast Guard and the Department of 
Commerce.
    The combination over time of mediation among the Haitian parties and 
steadily intensified sanctions proved, in the end, ineffective in 
budging the Haitian military leaders from their stubborn and illegal 
hold on power. Only the imminent threat of force combined with 
determined diplomacy was in the end successful in making it possible to 
achieve our objectives and further our national interests regarding 
Haiti. With the return of Haiti's democratically-elected President near, 
it is my hope and expectation that those U.N. and unilateral sanctions 
that remain in effect, as detailed in this report, can soon be 
terminated, and that I will shortly have the privilege of sending to you 
my final report, pursuant to 50 U.S.C. 1641(c) on implementation of the 
national emergency regarding Haiti declared 3 years ago by the previous 
Administration in Executive Order No. 12775.
    Sincerely,
                                            William J. Clinton

Note: Identical letters were sent to Thomas S. Foley, Speaker of the 
House of Representatives, and Albert Gore, Jr., President of the Senate.