[Weekly Compilation of Presidential Documents Volume 32, Number 4 (Monday, January 29, 1996)]
[Pages 88-89]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress on Libya

January 22, 1996

To the Congress of the United States:

    I hereby report to the Congress on the developments since my last 
report of July 12, 1995, concerning the national emergency with respect 
to Libya that was declared in Executive Order No. 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 January 3, 1996, 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, all trade with Libya is 
prohibited, and all assets owned or controlled by the Libyan government 
in the United States or in the possession or control of U.S. persons are 
blocked.
    2. There has been one amendment to the Libyan Sanctions Regulations, 
31 C.F.R. Part 550 (the ``Regulations''), administered by the Office of 
Foreign Assets Control (FAC) of the Department of the Treasury, since my 
last report on July 12, 1995. The amendment (60 Fed. Reg. 37940-37941, 
July 25, 1995) added three hotels in Malta to appendix A, Organizations 
Determined to Be Within the Term ``Government of Libya'' (Specially 
Designated Nationals (SDNs) of Libya). A copy of the amendment is 
attached to this report.
    Pursuant to section 550.304(a) of the Regulations, FAC has 
determined that these entities designated as SDNs are owned or 
controlled by, or acting or purporting to act directly or indirectly on 
behalf of, the Government of Libya, or are agencies, instrumentalities, 
or entities of that government. By virtue of this determination, all 
property and interests in property of these entities that are in the 
United States or in the possession or control of U.S. persons are 
blocked. Further, U.S. persons are prohibited from engaging in 
transactions with these entities unless the transactions are licensed by 
FAC. The designations were made in consultation with the Department of 
State.
    3. During the current 6-month period, FAC made numerous decisions 
with respect to applications for licenses to engage in transactions 
under the Regulations, issuing 54 licensing determinations--both 
approvals and denials. Consistent with FAC's ongoing scrutiny of banking 
transactions, the largest category of license approvals (20) concerned 
requests by Libyan and non-Libyan persons or entities to unblock 
transfers interdicted because of an apparent Government of Libya 
interest. A license was also issued to a local taxing authority to 
foreclose on a property owned by the Government of Libya for failure to 
pay property tax arrearages.
    4. During the current 6-month period, FAC continued to emphasize to 
the international banking community in the United States the importance 
of identifying and blocking payments made on behalf of Libya. The Office 
worked closely with the banks to implement new interdiction software 
systems to identify such payments. As a result, during the reporting 
period, more than 107 transactions potentially involving Libya, totaling 
more than $26.0 million, were interdicted. As of December 4, 23 of these 
transactions had been authorized for release, leaving a net amount of 
more than $24.6 million blocked.
    Since my last report, FAC collected 27 civil monetary penalties 
totaling more than $119,500, for violations of the U.S. sanctions 
against Libya. Fourteen of the violations involved the failure of banks 
or credit unions to block funds transfers to Libyan-owned or -controlled 
banks. Two other penalties were received from corporations for export 
violations or violative payments to Libya for unlicensed trademark 
transactions. Eleven additional penalties were paid by U.S. citizens 
engaging in Libyan oilfield-related transactions while another 40 cases 
involving similar violations are in active penalty processing.
    In November 1995, guilty verdicts were returned in two cases 
involving illegal expor- 

[[Page 89]]

tation of U.S. goods to Libya. A jury in Denver, Colorado, found a 
Denver businessman guilty of violating the Regulations and IEEPA when he 
exported 50 trailers from the United States to Libya in 1991. A Houston, 
Texas, jury found three individuals and two companies guilty on charges 
of conspiracy and violating the Regulations and IEEPA for transactions 
relating to the 1992 shipment of oilfield equipment from the United 
States to Libya. Also in November, a Portland, Oregon, lumber company 
entered a two-count felony information plea agreement for two separate 
shipments of U.S.-origin lumber to Libya during 1993. These three 
actions were the result of lengthy criminal investigations begun in 
prior reporting periods. Several other investigations from prior 
reporting periods are continuing and new reports of violations are being 
pursued.
    5. The expenses incurred by the Federal Government in the 6-month 
period from July 6, 1995, through January 5, 1996, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of the Libyan national emergency are estimated at 
approximately $990,000. 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.
    6. The policies and actions of the Government of Libya continue to 
pose an unusual and extraordinary threat to the national security and 
foreign policy of the United States. In adopting UNSCR 883 in November 
1993, the Security Council determined that the continued failure of the 
Government of Libya to demonstrate by concrete actions its renunciation 
of terrorism, and in particular its continued failure to respond fully 
and effectively to the requests and decisions of the Security Council in 
Resolutions 731 and 748, concerning the bombing of the Pan Am 103 and 
UTA 772 flights, constituted a threat to international peace and 
security. The United States will continue to coordinate its 
comprehensive sanctions enforcement efforts with those of other U.N. 
member states. We remain determined to ensure that the perpetrators of 
the terrorist acts against Pan Am 103 and UTA 772 are brought to 
justice. The families of the victims in the murderous Lockerbie bombing 
and other acts of Libyan terrorism deserve nothing less. I shall 
continue to exercise the powers at my disposal to apply economic 
sanctions against Libya fully and effectively, so long as those measures 
are appropriate, and will continue to report periodically to the 
Congress on significant developments as required by law.
                                            William J. Clinton
The White House,
January 22, 1996.