[Weekly Compilation of Presidential Documents Volume 33, Number 42 (Monday, October 20, 1997)]
[Pages 1589-1591]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders Reporting on Narcotics Traffickers 
Centered in Colombia

October 15, 1997

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

    I hereby report to the Congress on the developments since my last 
report concerning the national emergency with respect to significant 
narcotics traffickers centered in Colombia that was declared in 
Executive Order 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 12978, ``Blocking 
Assets and Prohibiting Transactions with Significant Narcotics 
Traffickers'' (the ``Order'') (60 Fed. Reg. 54579, October 24, 1995). 
The Order blocks all property subject to U.S. jurisdiction in which 
there is any interest of four significant foreign narcotics traffickers, 
one of whom is now deceased, who were principals in the so-called Cali 
drug cartel centered in Colombia. These persons are listed in the annex 
to the Order. The Order also 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 (OFAC) 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 12978 (60 Fed. Reg. 54582, October 
24, 1995).
    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).
    On March 8, 1996, OFAC 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).
    3. On January 21, 1997, OFAC published a Notice in the Federal 
Register adding the names of 57 individuals and 21 entities designated 
pursuant to the Order, and revising information for 58 individuals and 1 
entity (62 Fed. Reg. 2903). In addition, the name of one individual 
specially designated narcotics trafficker was removed from the list.

[[Page 1590]]

These changes were effective January 15, 1997.
    These 78 new names brought the total list of SDNTs to 359. Each of 
the 78 newly designated entities and individuals has been determined to 
be owned or controlled or to act for or on behalf of the Cali cartel's 
Helmer ``Pacho'' Herrera Buitrago organization. The newly identified 
SDNTs included several large poultry processing plants and farms, 
investment and import/export firms, real estate businesses, a consulting 
firm, a lumber distributor, and a construction company, all located in 
Colombia.
    The additional name and address information includes one previously 
designated company controlled by the Herrera Buitrago family and 58 
previously designated individuals from either the Herrera Buitrago or 
the Rodriguez Orejuela organizations of the Cali cartel.
    Effective February 28, 1997, OFAC issued the Narcotics Trafficking 
Sanctions Regulations (NTSR), 31 C.F.R. Part 536, to further implement 
the President's declaration of a national emergency and imposition of 
sanctions against significant foreign narcotics traffickers centered in 
Colombia (62 Fed. Reg. 9959, March 5, 1997).
    4. On April 17, 1997, OFAC added to appendices A and B to 31 C.F.R. 
chapter V the names 46 individuals and 11 entities, and revised 
information concerning 25 individuals, who have been determined to play 
a significant role in international narcotics trafficking centered in 
Colombia or have been determined to be owned or controlled by, or to act 
for or on behalf of, other specially designated narcotics traffickers 
(62 Fed. Reg. 19500, April 22, 1997).
    On July 30, 1997, OFAC published the names of seven businesses and 
seven associated individuals determined to be acting as fronts for the 
Cali cartel in Colombia (62 Fed. Reg. 41850, August 4, 1997). The seven 
newly designated companies are successors to firms previously designated 
because they were owned or controlled by the Rodriguez Orejuela, Herrera 
Buitrago, or Santacruz Londono families of the Cali cartel. This action 
is part of the ongoing interagency implementation of Executive Order 
12978 of October 21, 1995. These 14 names were added to the previous 
SDNT list bringing to a total of 428 businesses and individuals with 
whom financial and business dealings are prohibited and whose assets are 
blocked under the Order. All 428 SDNTs were determined to be owned or 
controlled by, or to act for or on behalf of, persons designated in or 
pursuant to the Order.
    The seven newly named companies include a major poultry farm as well 
as investment, construction, and real estate firms that have undergone 
name changes since the time of their original designations as SDNT 
entities. The OFAC has determined that the kingpins and agents of the 
Cali cartel continue to exert ultimate control over them. The seven 
newly designated individuals all have been determined to act for or on 
behalf of these seven successor entities. The OFAC, in coordination with 
the Departments of Justice and State, is continuing to expand the list 
of SDNTs, including both organizations and individuals, as additional 
information is developed.
    On September 9, 1997, OFAC amended appendices A and B to 31 C.F.R. 
chapter V by removing the names of two individuals

previously designated as specially designated narcotics traffickers. All 
real and personal property of these individuals, including all accounts not 
otherwise subject to blocking in which they have an interest, are 
unblocked; and all lawful transactions involving United States persons and 
these individuals are authorized (62 Fed. Reg. 48177, September 15, 1997). 
Copies of these amendments are attached to this report.

    5. The OFAC has disseminated and routinely updated details of this 
program to the financial, securities, and international trade 
communities by both electronic and conventional media. In addition to 
bulletins to banking institutions via the Federal Reserve System and the 
Clearing House Interbank Payments System (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 OFAC contacted all major securities industry 
associations and regulators. It posted electronic notices on the 
Internet and over 10 computer bulletin boards and two fax-on-demand serv

[[Page 1591]]

ices, and provided the same material to the U.S. Embassy in Bogota for 
distribution to U.S. companies operating in Colombia.
    6. As of August 15, 1997, OFAC had issued nine specific licenses 
pursuant to Executive Order 12978. These licenses were issued in 
accordance with established Treasury policy authorizing the completion 
of presanctions transactions and the provision of legal services to and 
payment of fees for representation of SDNTs in proceedings within the 
United States arising from the imposition of sanctions.
    7. The expenses incurred by the Federal Government in the 6-month 
period from April 21 through October 20, 1997, 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 $800,000. 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 
Justice, and the Department of State. These data do not reflect certain 
costs of operations by the intelligence and law enforcement communities.
    8. Executive Order 12978 provides this Administration with a tool 
for combatting 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 12978 demonstrates the U.S. 
commitment to end the scourge that such traffickers have wrought upon 
society in the United States and abroad.
    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).
    Sincerely,
                                            William J. Clinton

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