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[House Document 107-141]
[From the U.S. Government Publishing Office]

                                     

107th Congress, 1st Session - - - - - - - - - -  House Document 107-141

 
                    PERIODIC REPORT ON THE NATIONAL
                    EMERGENCY WITH RESPECT TO SUDAN

                               __________

                                MESSAGE

                                  FROM

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
 SUDAN THAT WAS DECLARED IN EXECUTIVE ORDER 13067 OF NOVEMBER 3, 1997, 
          PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)

  November 5, 2001.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
To the Congress of the United States:
    As required by 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), I 
transmit herewith a 6-month periodic report on the national 
emergency with respect to Sudan that was declared in Executive 
Order 13067 of November 3, 1997, based upon information made 
available to me.

                                                    George W. Bush.
    The White House, October 31, 2001.
 President's Periodic Report on the National Emergency With Respect to 
                                 Sudan

    I hereby report to the Congress on developments over the 
course of the past 6 months concerning the national emergency 
with respect to Sudan that was declared in Executive Order 
13067 of November 3, 1997. 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) and based upon 
information duly provided.
    1. In light of the recent passage of the Trade Sanctions 
Reform and Export Enhancement Act of 2000, Title IX of Public 
Law 106-387 (October 28, 2000) (the ``TSRA''), conforming 
amendments were promulgated to the Sudanese Sanctions 
Regulations, 31 CFR Part 538 (the ``Regulations'') (66 FR 
36683, July 12, 2001). The TSRA requires the President to 
terminate unilateral sanctions on the exportation of most 
agricultural commodities, medicine, and medical devices and 
imposes the requirement, with certain exceptions, that exports 
of such products to the governments of countries, such as 
Sudan, designated by the Secretary of State to have repeatedly 
provided support for acts of international terrorism, and any 
other entity within such countries, only be made available 
pursuant to 1-year licenses. The TSRA requires that procedures 
be put in place to deny licenses for exports to any entity in 
such country promoting international terrorism. A copy of the 
conforming amendments is attached to this report.
    2. The Department of the Treasury's Office of Foreign 
Assets Control (``OFAC'') has issued 44 licenses during the 
current reporting period. The majority of licenses were issued 
releasing blocked funds after it was determined that there was 
no Sudanese Government property interest in the funds.
    Thirteen licenses were issued authorizing commercial sales 
and exportation to Sudan of bulk agricultural commodities, food 
and agricultural products, medicine, and medical equipment. 
Three licenses were issued authorizing various payments or 
services, including the settlement payment of a life insurance 
policy to the designated Sudanese individual beneficiary, the 
payment of dues to an international organization and 
transactions associated with the shipment of human remains from 
the United States to Sudan. Another license was issued 
authorizing legal representation and payment of legal fees. 
Forty-five license applications were denied, including 28 
applications involving blocked funds that, after review, were 
determined to involve a Sudanese Government property interest. 
The remainder of the denials involved commercial goods or 
services.
    3. Since the inception of the program, 126 entities have 
been designated by OFAC as being owned or controlled by the 
Government of Sudan, including 12 financial institutions. As of 
September 10, 2001, 38 transactions totaling more than $437,000 
had been blocked during this reporting period. Under the 
Regulations, transactions in violation of the sanctions where 
there is no blockable interest of the Government of Sudan must 
be returned to remitters (``rejected''). During the reporting 
period, 235 such transactions were rejected by U.S. banks 
causing a disruption of more than $20 million in business for 
Sudan.
    4. Since my last report, OFAC has collected seven civil 
monetary penalties totaling nearly $19,500 for violations of 
IEEPA and the Regulations from four U.S. financial 
institutions, two carriers and one company. An additional 42 
cases are undergoing penalty action for violation of the 
Regulations and IEEPA. OFAC, in cooperation with the U.S. 
Customs Service, is closely monitoring potential violations of 
the prohibitions of the Regulations by businesses and 
individuals. Various reports of violations are being 
aggressively pursued.
    5. The expenses incurred by the Federal Government in the 
6-month period from May 3, 2001, through November 2, 2001, 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 $260,000, 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).
    6. 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'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 its 
restrictions on religious freedom. The prohibitions contained 
in Executive Order 13067 advance important objectives in 
promoting the anti-terrorism 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.

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