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[House Document 107-16]
[From the U.S. Government Publishing Office]

107th Congress, 1st Session - - - - - - - - - - - House Document 107-16 

 
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO THE TALIBAN 
                            IN AFGHANISTAN

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO THE 
  TALIBAN IN AFGHANISTAN THAT WAS DECLARED IN EXECUTIVE ORDER 13129 OF 
  JULY 4, 1999, PURSUANT TO 50 U.S.C. 1703(c)

January 20, 2001.--Referred to the Committee on International Relations 
                       and ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-011                     WASHINGTON : 2001

                                           The White House,
                                      Washington, January 17, 2001.
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 the Taliban in 
Afghanistan that was declared in Executive Order 13129 of July 
4, 1999.
            Sincerely,
                                                William J. Clinton.
 President's Periodic Report on the National Emergency With Respect to 
                       the Taliban in Afghanistan

    I hereby report to the Congress on the developments 
concerning the national emergency with respect to the actions 
and policies of the Taliban in Afghanistan that was declared in 
Executive Order 13129 of July 4, 1999. This report is submitted 
pursuant to 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).
    1. On July 4, 1999, I signed Executive Order 13129, 
``Blocking Property and Prohibiting Transactions With the 
Taliban'' (the ``order'') (64 Fed. Reg. 36759, July 7, 1999). 
The order blocks all property subject to U.S. jurisdiction in 
which property and interests in property subject to U.S. 
jurisdiction of persons determined by the Secretary of the 
Treasury, in consultation with the Secretary of State and the 
Attorney General, (1) to be owned or controlled by or to act 
for or on behalf of the Taliban, or (2) to provide financial, 
material, or technological support for, or services in support 
of, any of the foregoing.
    The order further prohibits: (1) any transaction or dealing 
by a U.S. person or within the United States in property or 
interests in property blocked by the order, including the 
making or receiving of any contribution of funds, goods, or 
services to or for the benefit of the Taliban or persons 
designated pursuant to the order; (2) the exportation, 
reexportation, sale, or supply, directly or indirectly, from 
the United States, or by a U.S. person, wherever located, to 
the territory of Afghanistan controlled by the Taliban or to 
the Taliban or persons designated pursuant to the order of any 
goods, software, technology (including technical data), or 
services; and (3) the importation into the United States of any 
goods, software, technology, or services owned or controlled by 
the Taliban or persons designated pursuant to the order or from 
the territory of Afghanistan controlled by the Taliban. The 
order also prohibits any transaction by a U.S. person that 
evades or avoids, or has the purpose of evading or avoiding, or 
attempts to violate, any of the prohibitions of the order, and 
any conspiracy formed to violate the prohibitions of the order.
    The order also directs the Secretary of the Treasury, in 
consultation with the Secretary of State, to authorize 
commercial sales of agricultural commodities and products, 
medicine, and Medical equipment for civilian end-use in the 
territory of Afghanistan controlled by the Taliban under 
appropriate safeguards to prevent diversion to military, 
paramilitary, or terrorist or political end-use.
    The term ``the Taliban'' is defined in the order to mean 
the political/military entity headquartered in Kandahar, 
Afghanistan, that exercises de facto control over the territory 
of Afghanistan described in Section 4(d) of the order, its 
agencies and instrumentalities, and the Taliban leaders listed 
in the Annex to the order or designated by the Secretary of 
State, in consultation with the Secretary of the Treasury and 
the Attorney General. The Annex to the order lists one Taliban 
leader: Mohammed Omar (Amir al-Mumineen [Commander of the 
Faithful]). The Taliban is also known as the ``Taliban,'' 
``Islamic Movement of Taliban,'' ``the Taliban Islamic 
Movement,'' ``Talibano Islami Tahrik,'' and ``Tahrike Islami'a 
Taliban.''
    Section 4(d) of the order defines the term ``territory of 
Afghanistan controlled by the Taliban'' to include 18 provinces 
of the country of Afghanistan: Kandhar, Farah, Helmund, Nimrus, 
Herate, Badghis, Ghowr, Oruzghon, Zabol, Paktiha, Ghazni, 
Nangarhar, Lowgar, Vardan, Faryab, Jowlan, Balkh, and Paktika. 
The Secretary of State, in consultation with the Secretary of 
the Treasury, had since added the City of Kabul to the list of 
territory of Afghanistan controlled by the Taliban (64 Fed. 
Reg. 58879, November 1, 1999). The territory of Afghanistan 
controlled by the Taliban is also knows as the ``Islamic 
Emirate of Afghanistan,'' in Pashtun as ``de Afghanistan Islami 
Emarat,'' and in Dari as ``Emarat Islami-e Afghanistan.''
    2. The Department of the Treasury's Office of Foreign 
Assets Control (``OFAC''), in consultation with the Departments 
of State and justice, has added three entities to the list of 
those persons whose assets are blocked pursuant to the 
Executive Order 13129. On August 18, 1999, OFAC added Ariana 
Afghan Airlines (f.k.a. Bakhtar Afghan Airlines). On October 
22, 1999, OFAC added Banke Millie Afghan (a.k.a. Afghan 
National Bank; a.k.a. Bank E. Millie Afghan), and Da 
Afghanistan Bank (a.k.a. Bank of Afghanistan; a.k.a. Central 
Bank of Afghanistan; a.k.a. The Afghan Stat Bank). These 
entities have been found to be controlled by the Taliban, and 
to be entities in which the Taliban has an interest.
    Additional designations may be made by the Secretary of the 
Treasury, in consultation with Secretary of State and the 
Attorney General. Designations of persons blocked pursuant to 
the order are effective upon the date of determination by the 
Secretary of the Treasury. Public notice of blocking is 
effective upon the date of filing with the Federal Register, or 
upon prior actual notice.
    On October 15, 1999, the United Nations Security Council 
issued Resolution 1267 that, inter alia, directs member States 
to freeze funds and other financial resources of the Taliban, 
and to prohibit landings and take-offs by Taliban-associated 
flights, effective November 14, 1999.
    3. On January 11, 2001, OFAC issued the Taliban 
(Afghanistan) Sanctions Regulations, 31 CFR Part 545 (the 
``Regulations'') (65 FR 2726, January 11, 2001) Paragraph (a) 
of 545.201 of the Regulations implements section 1(a) of 
Executive Order 13129 by blocking all property and interests in 
property of the Taliban 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. To implement 
section 1(b) of the order, 545.201 also blocks all property and 
interests in property of persons determined by the Secretary of 
the Treasury, in consultation with the Secretary of State and 
the Attorney General, to be owned or controlled by, or to be 
acting for or on behalf of, or to provide financial, material, 
or technological support for, or services in support of, the 
Taliban and those associated with the Taliban. Persons coming 
within any of these categories are referred to as persons whose 
property or interests in property are blocked pursuant to 
545.201 in the Regulations. Section 545.201(b) implements 
section 2(a) of the order by prohibiting U.S. persons from 
transferring, paying, exporting, withdrawing, or otherwise 
dealing in property or interests in property blocked pursuant 
to the order.
    Sections 545.204 implements section 2(b) of the order by 
prohibiting the exportation, reexportation, sales, or supply, 
directly or indirectly, from the United States or by a U.S. 
person, wherever located, of any goods, software, technology 
(including technical data), or services to the territory of 
Afghanistan controlled by the Taliban or to the Taliban or 
persons whose property or interests in property are blocked 
pursuant to 545.201.
    Section 545.205 of the Regulations implements section 2(c) 
of the order by prohibiting the importation into the United 
States of goods, software, technology, or services owned or 
controlled by the Taliban or persons whose property or 
interests in property are blocked pursuant to 545.201 or from 
the territory controlled by the Taliban.
    Section 545.206 of the Regulations implements section 2(d) 
of the order by prohibiting actions that evade, avoid, or 
attempt to violate the Regulations. This section also forbids 
conspiracies to violate the Regulations, implementing section 
2(e) of the order.
    Section 545.209 details those types of transactions that 
are exempt from the Regulations. Exempted are transactions 
related to personal communications, information and 
informational materials, travel, official United States 
Government business, journalistic activity, and donations of 
articles to relieve human suffering. These exemptions derive in 
large part from the exemptions set out in section 203(b) of 
IEEPA (50 U.S.C. 1702(b)).
    The prohibitions in 545.201, 545.204, 545.205, and 545.206 
extend to U.S. persons wherever they may be located. 
Consequently, 545.408 makes clear that even while outside the 
United States, U.S. persons are prohibited from taking part in 
any transactions involving property in which the Taliban or 
persons whose property or interests in property are blocked 
pursuant to 545.201 have an interest, or dealing in goods, 
software, technology, or services owned or controlled by the 
Taliban or persons whose property or interests in property are 
blocked pursuant to 545.201. Similarly, U.S. persons may not 
participate in the exportation or importation of goods, 
software, technology, or services into or out of the territory 
of Afghanistan controlled by the Taliban.
    Transactions otherwise prohibited under part 545 but found 
to be consistent with U.S. policy may be authorized by one of 
the general licenses contained in subpart E or by a specific 
license issued pursuant to the procedures described in subpart 
D of part 501 of 31 CFR chapter V. Penalties for violations of 
the Regulations are described in subpart G of the Regulations.
    The general licenses contained in subpart E include in 
545.504 an authorization for U.S. financial institutions to 
debit blocked accounts for normal service charges. Subject to 
the presentation of proof satisfactory to the U.S. 
CustomsService, under 545.505 importation will be permitted of certain 
goods, software, or technology (but not services) from the territory of 
Afghanistan controlled by the Taliban that left that territory before 
the effective date of the order. This authority does not extend to 
those goods, software, or technology owned or controlled by the Taliban 
or persons whose property or interests in property are blocked pursuant 
to 545.201.
    Section 545.506 permits the importation into the United 
States of gifts valued at no more than $100 per recipient. 
Section 545.507 allows travelers to enter or depart from the 
United States with their accompanied baggage. Sections 545.508 
and 545.509 authorize transactions related to 
telecommunications and mail services. Section 545.510 permits 
the importation and exportation of household and personal 
effects.
    Section 545.511 references the provision in the Reporting 
and Procedures Regulations found in 31 CFR Part 501 permitting 
the registration of nongovernmental organizations involved in 
humanitarian or religious activities intended to relieve human 
suffering. Registration numbers authorize nongovernmental 
organizations to engage in transactions otherwise prohibited by 
the Regulations, including the exportation of goods, software, 
technology, and services to the territory of Afghanistan 
controlled by the Taliban, and the transfer of funds to and 
from the territory of Afghanistan controlled by the Taliban, 
intended for the purpose of relieving human suffering.
    Section 545.512 through 545.515 implement section 3 of the 
order by permitting, subject to certain requirements and 
restrictions, and commercial sale of agricultural commodities 
and products, medicine, and medical equipment to private 
persons or nongovernmental entities in the territory of 
Afghanistan controlled by the Taliban.
    Section 545.516 grants a general license for payments to 
U.S. persons for obligations that arose prior to the effective 
date. Section 545.517 authorizes the provision and exportation 
of certain legal services, provided that receipt of payment for 
such services is specifically licensed. Section 545.518 
provides for specific licensing of payments into an escrow 
account under United Nations control consistent with UNSCR 1267 
for services to aircraft provided by the Taliban in connection 
with overflights or emergency landings. That section also 
indicates that specific licenses may be issued for the 
exportation to the territory of Afghanistan controlled by the 
Taliban of goods, software, technology, and services to ensure 
safe operation of aircraft.
    Section 545.519 permits U.S. persons to perfect and protect 
intellectual property rights in the territory of Afghanistan 
controlled by the Taliban. Section 545.520 permits U.S. 
financial institutions to process funds transfers to or from 
the territory of Afghanistan controlled by the Taliban where 
such transfers are related to transactions exempted or 
authorized under the Regulations. Section 545.521 authorizes 
provision of certain emergency medical services, provided that 
payment for such services is specifically licensed. Section 
545.522 allows investment and reinvestment of blocked assets as 
long as immediate benefits do not accrue to persons whose 
property or interests in property is blocked pursuant to 
Sec. 545.201.
    Section 545.524 allows specific licenses authorizing 
payments for goods or service exported prior to the effective 
date. Section 545.525 permits noncommercial remittances to or 
from the territory of Afghanistan controlled by the Taliban. 
Section 545.526 allows U.S. citizens permanently residing in 
the territory of Afghanistan controlled by the Taliban to 
engage in transactions related to their necessary maintenance 
and living expenses. Section 545.527 authorizes U.S. financial 
institutions to operate accounts for private persons in the 
territory of Afghanistan controlled by the Taliban, provided 
that person's property is not blocked pursuant to 545.201.
    Sections 545.528 and 545.529 permit the extension or 
renewal of letters of credit (by general license) or loans (by 
specific license). Where the State Department has issued visas, 
545.530 permits the importation of services and the completion 
of activities consistent with the visas. Section 545.531 allows 
the importation of goods, software, technology, or services for 
diplomatic missions.
    4. Since the issuance of Executive Order 13129, OFAC has 
authorized 21 nongovernmental organizations to continue their 
humanitarian relief operations in the territory of Afghanistan 
controlled by the Taliban. In addition, OFAC issued three 
licenses to authorize completion of certain financial 
transactions initiated prior to issuance of the order, 
completion of certain imports predating the national emergency, 
and certain administrative transactions.
    Since the inception of the program, OFAC has continued to 
emphasize to the international banking community in the United 
States the importance of identifying the blocking payments made 
by or on behalf of the Taliban and has worked closely with the 
banks to assure the effectiveness of interdiction software 
systems used to identify such payments. As of November 21, 
2000, two transactions totaling more than $493,000 were blocked 
during this period. This brings the total assets blocked since 
the inception of the program to more than $250 million. Under 
the Regulations, transactions in violation of the sanctions 
where there is no blockable interest of the Taliban must be 
returned to remitters (i.e., ``rejected''). During the 
reporting period, 29 transactions were rejected by U.S. banks 
causing a disruption of more than $1.2 million in business for 
the Taliban.
    Various enforcement actions and investigations are being 
aggressively pursued. Reports of new violations are being 
scrutinized. Since my last report, OFAC has initiated two 
administrative civil penalty proceedings for violations of 
IEEPA and the sanctions.
    5. The expenses incurred by the federal government in the 
6-month period from July 4, 2000, through January 3, 2001, that 
are directly attributable to the exercise of powers and 
authorities conferred by the declaration of the national 
emergency with respect to the Taliban in Afghanistan are 
estimated at approximately $260,000. Personnel costs were 
largely centered in the Department of the Treasury 
(particularly in the Office of Foreign Assets Control, the 
Office of the General Counsel, and the U.S. Customs Service), 
the Department of State, and components of the Department of 
Justice.
    6. The Taliban continues to provide Usama bin Ladin and his 
organization, Al-Qaida, with safe haven and security allowing 
him the necessary freedom to operate, despite repeated efforts 
by the United States to persuade the Taliban to expel bin Ladin 
to a third country where he can be brought to justice. The 
Taliban also allows Usama bin Laden to make repeated public 
threats against the United States, to operate a network of 
terrorist training camps, and to use Afghanistan as a base from 
which to sponsor terrorist acts abroad. For these reasons, the 
Taliban actions pose an unusual threat to international 
security.
    Available information confirms that bin Laden's 
organization, working with other terrorist groups, continues 
actively to plan attacks on Americans and others. Reliable 
evidence also indicates that the bin Laden network seeks to 
acquire weapons of mass destruction, including chemical 
weapons.
    The international community recognized the need to take 
action against the Taliban for its harboring of Usama bin Ladin 
in the unanimous adoption of UN Security Council Resolution 
1267, which freezes funds and other financial resources of the 
Taliban and prohibits Taliban-associated flights.
    I shall continue to exercise the powers at my disposal to 
apply economic sanctions against the Taliban in Afghanistan as 
long as these measures are appropriate, and will continue to 
report periodically to the Congress on significant developments 
pursuant to 50 U.S.C. 1703(c).

                                  
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