[Weekly Compilation of Presidential Documents Volume 34, Number 19 (Monday, May 11, 1998)]
[Pages 799-800]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress on Sudan

May 5, 1998

To the Congress of the United States:

    I hereby report to the Congress on developments concerning the 
national emergency with respect to Sudan that was declared in Executive 
Order 13067 of November 3, 1997, and matters relating to the measures in 
that order. This report is submitted pursuant to section 204(c) of the 
International Emergency Economic Powers Act (IEEPA), 50 U.S.C. 1703(c), 
and section 401(c) of the National Emergencies Act, 50 U.S.C. 1641(c). 
This report discusses only matters concerning the national emergency 
with respect to Sudan that was declared in Executive Order 13067.
    1. On November 3, 1997, I issued Executive Order 13067 (62 Fed. Reg. 
59989, November 5, 1997--the ``Order'') to declare a national emergency 
with respect to Sudan pursuant to IEEPA. Copies of the Order were 
provided to the Congress by message dated November 3, 1997.
    The Order blocks all property and interests in property of the 
Government of Sudan, its agencies, instrumentalities, and controlled 
entities, including the Central Bank of Sudan, that are in the United 
States, that hereafter come within the United States, or that are or 
hereafter come within the possession or control of United States 
persons, including their overseas branches. The Order also prohibits (1) 
the importation into the United States of any goods or services of 
Sudanese origin except for information or informational materials; (2) 
the exportation or reexportation of goods, technology, or services to 
Sudan or the Government of Sudan except for information or informational 
materials and donations of humanitarian aid; (3) the facilitation by a 
United States person of the exportation or reexportation of goods, 
technology, or services to or from Sudan; (4) the performance by any 
United States person of any contract, including a financing contract, in 
support of an industrial, commercial, public utility, or governmental 
project in Sudan; (5) the grant or extension of credits or loans by any 
United States person to the Government of Sudan; and (6) transactions 
relating to the transportation of cargo. The Order also provided a 30-
day delayed effective date for the completion of certain trade 
transactions.
    2. Executive Order 13067 became effective at 12:01 a.m., eastern 
standard time on November 4, 1997. On December 2, 1997, the Department 
of the Treasury's Office of Foreign Assets Control (OFAC) issued General 
Notice No. 1, interpreting the delayed effective date for pre-November 
4, 1997, trade contracts involving Sudan if the preexisting trade 
contract was for (a) the exportation of goods, services, or technology 
from the United States or a third country that was authorized under 
applicable Federal regulations in force immediately prior to November 4, 
1997, or (b) the reexportation of goods or technology that was 
authorized under applicable Federal regulations in force immediately 
prior to November 4, 1997. Such exports or reexports were authorized 
until 12:01 a.m. eastern standard time, December 4, 1997, and 
nonfinancing activity by United States persons incidental to the 
performance of the preexisting trade contract (such as the provision of 
transportation or insurance) was authorized through 12:01 a.m. eastern 
standard time, February 2, 1998. If the preexisting trade contract was 
for the importation of goods or services of Sudanese origin or other 
trade transactions relating to goods or services of Sudanese origin or 
owned or controlled by the Government of Sudan, importations under the 
preexisting trade contract

[[Page 800]]

were authorized until 12:01 a.m. eastern standard time, December 4, 
1997.
    3. Since the issuance of Executive Order 13067, OFAC has made 
numerous decisions with respect to applications for authorizations to 
engage in transactions under the Sudanese sanctions. As of March 12, 
1998, OFAC has issued 55 authorizations to nongovernmental organizations 
engaged in the delivery of humanitarian aid and 77 licenses to others. 
OFAC has denied many requests for licenses. The majority of denials were 
in response to requests to authorize commercial exports to Sudan--
particularly of machinery and equipment for various industries--and the 
importation of Sudanese-origin goods. The majority of licenses issued 
permitted the unblocking of financial transactions for individual 
remitters who routed their funds through blocked Sudanese banks. Other 
licenses authorized the completion of diplomatic transfers, preeffective 
date trade transactions, and the performance of certain legal services.
    4. At the time of signing Executive Order 13067, I directed the 
Secretary of the Treasury to block all property and interests in 
property of persons determined, in consultation with the Secretary of 
State, to be owned or controlled by, or to act for or on behalf of, the 
Government of Sudan. On November 5, 1997, OFAC disseminated details of 
this program to the financial, securities, and international trade 
communities by both electronic and conventional media. This information 
included the names of 62 entities owned or controlled by the Government 
of Sudan. The list includes 12 financial institutions and 50 other 
enterprises.
    5. OFAC, in cooperation with the U.S. Customs Service, is closely 
monitoring potential violations of the import prohibitions of the Order 
by businesses and individuals. Various reports of violations are being 
aggressively pursued.
    6. The expenses incurred by the Federal Government in the 6-month 
period from November 3, 1997, through May 2, 1998, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of a national emergency with respect to Sudan are reported 
to be approximately $425,000, most of which represent wage and salary 
costs for Federal personnel. Personnel costs were largely centered in 
the Department of the Treasury (particularly in the Office of Foreign 
Assets Control, the U.S. Customs Service, the Office of the Under 
Secretary for Enforcement, and the Office of the General Counsel), the 
Department of State (particularly the Bureaus of Economic and Business 
Affairs, African Affairs, Near Eastern Affairs, Consular Affairs, and 
the Office of the Legal Adviser), and the Department of Commerce (the 
Bureau of Export Administration and the General Counsel's Office).
    7. The situation in Sudan continues to present an extraordinary and 
unusual threat to the national security and foreign policy of the United 
States. The declaration of the national emergency with respect to Sudan 
contained in Executive Order 13067 underscores the United States 
Government opposition to the actions and policies of the Government of 
Sudan, particularly its support of international terrorism and its 
failure to respect basic human rights, including freedom of religion. 
The prohibitions contained in Executive Order 13067 advance important 
objectives in promoting the antiterrorism and human rights policies of 
the United States. I shall exercise the powers at my disposal to deal 
with these problems and will continue to report periodically to the 
Congress on significant developments.
                                            William J. Clinton
The White House,
May 5, 1998.