[Weekly Compilation of Presidential Documents Volume 34, Number 45 (Monday, November 9, 1998)]
[Pages 2269-2271]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders Reporting on the National Emergency With 
Respect to Sudan

November 6, 1998

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

    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, 50 U.S.C. 1703(c) (IEEPA), 
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. A copy of the Order was

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provided to the Congress by message dated November 3, 1997.
    2. Executive Order 13067 became effective at 12:01 a.m., eastern 
standard time on November 4, 1997. On July 1, 1998, the Department of 
the Treasury's Office of Foreign Assets Control (OFAC) issued the 
Sudanese Sanctions Regulations (the ``SSR'' or the ``Regulations'' (63 
Fed. Reg. 35809, July 1, 1998)). The Regulations block 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 
SSR also prohibit: (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. A copy of 
the Regulations is attached to this report.
    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 Regulations. As of September 16, 1998, 
OFAC has issued 62 authorizations to nongovernmental organizations 
engaged in the delivery of humanitarian aid and 141 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, intellectual property protection, the 
performance of certain legal services, and transactions relating to air 
and sea safety policy.
    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. As of September 10, 1998, OFAC has blocked nearly $610,000 
during this reporting period.
    5. Since my last report, OFAC has collected one civil monetary 
penalty in the amount of $5,500 from a U.S. financial institution for 
its violation of IEEPA and the SRR relating to a funds transfer. Another 
12 cases are undergoing penalty action. OFAC, in cooperation with the 
U.S. Customs Service, is closely monitoring potential violations of the 
import prohibitions of the Regulations 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 May 3 through November 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 $375,000, 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

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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 under-scores the United States 
Government's 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.
    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.