U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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89–011 2000

106th Congress, 2d Session – – – – – – – – – – – – House Document 106–314

NATIONAL EMERGENCY WITH RESPECT TO SUDAN

COMMUNICATION

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A REPORT 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, PURSUANT

TO 50 U.S.C. 1641(c)

DECEMBER 4, 2000.—Referred to the Committee on International Relations

and ordered to be printed

(1)

THE WHITE HOUSE,

Washington, November 17, 2000.

Hon. J. DENNIS HASTERT,

Speaker of the House of Representatives,

Washington, DC.

DEAR MR. SPEAKER: 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.

Sincerely,

WILLIAM J. CLINTON.

(3)

PRESIDENT’S PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH

RESPECT TO SUDAN

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 provided to the Speaker of the House and the President

of the Senate by letter 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 U.S. 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 U.S. person of the exportation or reexportation of goods, technology, or services to or from Sudan; (4) the performance by any

U.S. 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 U.S. person to the Government of Sudan; and (6) transactions

relating to the transportation of cargo.

3. On April 28, 1999, I announced that existing unilateral economic sanctions programs would be amended to modify licensing

policies to permit case-by-case review of specific proposals for the

commercial sale of agricultural commodities and products, as well

as medicine and medical equipment, where the United States Government has the discretion to do so. I further announced that the

Administration was developing country-specific licensing criteria to

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guide the case-by-case review process so that governments subject

to sanctions do not gain unwarranted benefits from such sales.

On July 27, 1999, the Regulations were amended to add statements of licensing policy with respect to commercial sales of agricultural commodities and products, medicine and medical equipment (64 Fed. Reg. 41784, August 2, 1999). These provisions were

amended on October 27, 1999 (64 Fed. Reg. 58789, November 1,

1999) to remove language that had prohibited the issuance of specific licenses authorizing financing by entities of the governments

of Sudan, Libya, and Iran. In addition, technical revisions were

made to the Regulations pertaining to license requirements of other

federal agencies.

On February 16, 2000, OFAC announced the addition of two entities determined to be owned or controlled by, or to act for or on behalf of, the Government of Sudan to the List of Specially Designated and Blocked Persons. The property of these entities is

blocked and U.S. persons are generally prohibited from dealing

with them.

4. Since the issuing 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 September 8, 2000, OFAC had issued 76 authorizations to non-governmental organizations engaged in the delivery of humanitarian aid

and 442 licenses to others, including 76 during the current reporting period. 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 issued licenses permit the unblocking of financial

transactions for individual remitters who inadvertently routed

their funds through blocked Sudanese banks. Twenty-five licenses

were issued to authorize commercial sales and exportation to

Sudan of bulk agricultural commodities, food and agricultural products, medicine and medical equipment. Other licenses authorized

certain diplomatic transactions, pre-effective date trade transactions, divestiture of property in which the Government of Sudan

had an interest, intellectual property protection, the performance of

certain legal services, and transactions relating to air and sea safety policy.

5. 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. OFAC has disseminated details of this

program to the financial, securities, and international trade communities by both electronic and conventional media. This information includes the names of 126 entities owned or controlled by the

Government of Sudan, including 12 financial institutions. As of

September 7, 2000, 70 transactions totaling more than $1.4 million

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, 359 transactions

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were rejected by U.S. banks causing a disruption of more than

$16.5 million in business for Sudan.

6. Since my last report, OFAC has collected 11 civil monetary penalties totaling nearly $45,000 for violations of IEEPA and the

Regulations from ten U.S. banks and one U.S. company. An additional 36 cases are undergoing penalty action for violations 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.

7. The expenses incurred by the federal government in the sixmonth period from May 3 through November 2, 2000 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 $170,000, 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).

8. 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 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.

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