U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–011 2001

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

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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.

(3)

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,

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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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