[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

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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.