    [Weekly Compilation of Presidential Documents Volume 32, Number 17 (Monday, April 29, 1996)]
    [Pages 710-712]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Message to the Congress Reporting on Drug Traffickers in Colombia

    April 23, 1996

    To the Congress of the United States:

        I hereby report to the Congress on the developments concerning the
    national emergency with respect to significant narcotics traffickers
    centered in Colombia that was declared in Executive Order No. 12978 of
    October 21, 1995. This report is submitted pursuant to section 401(c) of
    the National Emergencies Act, 50 U.S.C. 1641(c), and section 204(c) of
    the International Emergency Economic Powers Act (IEEPA), 50 U.S.C.
    1703(c).
        1. On October 21, 1995, I signed Executive Order No. 12978,
    ``Blocking Assets and Prohibiting Transactions with Significant
    Narcotics Traffickers'' (the ``Order'') (60 Fed. Reg. 54579, October 24,
    1995). The Order

    [[Page 711]]

    blocks all property subject to U.S. jurisdiction in which there is any
    interest of four significant foreign narcotics traffickers who are
    principals in the so-called Cali drug cartel centered in Colombia. They
    are listed in the annex to the Order. In addition, the Order blocks the
    property and interests in property of foreign persons determined by the
    Secretary of the Treasury, in consultation with the Attorney General and
    the Secretary of State, (a) to play a significant role in international
    narcotics trafficking centered in Colombia or (b) to materially assist
    in or provide financial or technological support for, or goods or
    services in support of, the narcotics trafficking activities of persons
    designated in or pursuant to the Order. In addition the Order blocks all
    property and interests in property subject to U.S. jurisdiction of
    persons determined by the Secretary of the Treasury in consultation with
    the Attorney General and the Secretary of State, to be owned or
    controlled by, or to act for or on behalf of, persons designated in or
    pursuant to the Order (collectively ``Specially Designated Narcotics
    Traffickers'' or ``SDNTs'').
        The Order further prohibits any transaction or dealing by a United
    States person or within the United States in property or interests in
    property of SDNTs, and any transaction that evades or avoids, has the
    purpose of evading or avoiding, or attempts to violate, the prohibitions
    contained in the Order.
        Designations of foreign persons blocked pursuant to the Order are
    effective upon the date of determination by the Director of the
    Department of the Treasury's Office of Foreign Assets Control (FAC)
    acting under authority delegated by the Secretary of the Treasury.
    Public notice of blocking is effective upon the date of filing with the
    Federal Register, or upon prior actual notice.
        2. On October 24, 1995, the Department of the Treasury issued a
    notice containing 76 additional names of persons determined to meet the
    criteria set forth in Executive Order No. 12978 (60 Fed. Reg. 54582-84,
    October 24, 1995). A copy of the notice is attached to this report.
        The Department of the Treasury issued another notice adding the
    names of one additional entity and three additional individuals, as well
    as expanded information regarding addresses and pseudonyms, to the List
    of SDNTs on November 29, 1995 (60 Fed. Reg. 61288-89). A copy of the
    notice is attached to this report.
        3. On March 8, 1996, FAC published a notice in the Federal Register
    adding the names of 138 additional individuals and 60 entities
    designated pursuant to the Order, and revising information for 8
    individuals on the list of blocked persons contained in the notices
    published on November 29, 1995, and October 24, 1995 (61 Fed. Reg. 9523-
    28). A copy of the notice is attached to this report. The FAC, in
    coordination with the Attorney General and the Secretary of State, is
    continuing to expand the list of Specially Designated Narcotics
    Traffickers, including both organizations and individuals, as additional
    information is developed.
        4. On October 22, 1995, FAC disseminated details of this program to
    the financial, securities, and international trade communities by both
    electronic and conventional media. This information was updated on
    November 29, 1995, and again on March 5, 1996. In addition to bulletins
    to banking institutions via the Federal Reserve System and the Clearing
    House Inter-bank Payments Systems (CHIPS), individual notices were
    provided to all State and Federal regulatory agencies, automated
    clearing houses, and State and independent banking associations across
    the country. The FAC contacted all major securities industry
    associations and regulators, posted electronic notices to 10 computer
    bulletin boards and 2 fax-on-demand services, and provided the same
    material to the U.S. Embassy in Bogota for distribution to U.S.
    companies operating in Colombia.
        5. There were no funds specifically appropriated to implement this
    program. The expenses incurred by the Federal Government in the 6-month
    period from October 21, 1995, through April 20, 1996, that are directly
    attributable to the exercise of powers and authorities conferred by the
    declaration of the national emergency with respect to Significant
    Narcotics Traffickers are estimated at approximately $500,000 from
    previously appropriated funds. Personnel costs were largely centered in
    the Department of

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    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 Justice, and the Department of State.
        6. Executive Order No. 12978 provides this Administration with a new
    tool for combating the actions of significant foreign narcotics
    traffickers centered in Colombia, and the unparalleled violence,
    corruption, and harm that they cause in the United States and abroad.
    The Order is designed to deny these traffickers the benefit of any
    assets subject to the jurisdiction of the United States and to prevent
    United States persons from engaging in any commercial dealings with
    them, their front companies, and their agents. Executive Order No. 12978
    demonstrates the U.S. commitment to end the scourge that such
    traffickers have wrought upon society in the United States and beyond.
        The magnitude and the dimension of the problem in Colombia--perhaps
    the most pivotal country of all in terms of the world's cocaine trade--
    is extremely grave. I shall continue to exercise the powers at my
    disposal to apply economic sanctions against significant foreign
    narcotics traffickers and their violent and corrupting activities as
    long as these measures are appropriate, and will continue to report
    periodically to the Congress on significant developments pursuant to 50
    U.S.C. 1703(c).
                                                William J. Clinton
    The White House,
    April 23, 1996.