U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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89–011 2002

107th Congress, 2d Session – – – – – – – – – – – – House Document 107–209

PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO SUDAN

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A SIX 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)

MAY 7, 2002.—Message and accompanying papers referred to the

Committee on International Relations and ordered to be printed

(1)

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 am providing herewith a 6-month periodic report prepared by my Administration on the national emergency with respect to Sudan that was

declared in Executive Order 13067 of November 3, 1997.

GEORGE W. BUSH.

THE WHITE HOUSE, May 7, 2002.

(3)

PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO

SUDAN

This report to the Congress covers 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).

1. 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. Nineteen licenses were issued authorizing commercial sales and exportation to Sudan of bulk agricultural commodities, food and agriculture products, medicine, and

medical equipment. One additional license was issued authorizing

the provision of very limited banking services, and one license was

issued permitting the liquidation of tangible assets belonging to the

Government of Sudan that are currently in the possession of a U.S.

company, with the proceeds to be deposited into a blocked account.

Twenty-five license applications were denied, including 18 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.

2. As of March 11, 2002, 25 transactions totaling more than

$443,000 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, 142

such transactions were entered into OFAC’s database as being re- jected by U.S. banks indicating a disruption of at least $3.4 million

in business for Sudan. In addition, as of March 11, 2002, OFAC has

authorized nine non-governmental organizations to conduct humanitarian relief operations in Sudan, bringing the total number of

such authorizations to 84.

3. Since the last report, OFAC has collected 11 civil monetary penalities totaling nearly $53,000 for violations of IEEPA and the

Sudanese Sanctions Regulations, 31 C.F.R. Part 538 (the ‘‘Regulations’’), from nine U.S. financial institutions and one carrier. Three

defaulted penalties totaling more than $19,000 have been referred

for debt collection. An additional 35 cases are undergoing penalty

action for violation of the Regulations and IEEPA.

4. On February 26, 2002, OFAC issued a Notice of Blocking to

a U.S. company in possession of a commercial shipment consigned

to the Greater Nile Petroleum Operating Company (‘‘GNPOC’’), a

Specially Designated National of Sudan.

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5. The expenses incurred by the Federal Government in the 6-

month period from November 3, 2001, through May 2, 2002, 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 $295,000, 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 of Enforcement, and the

Office of the General Counsel), the Department of State, and the

Department of Commerce.

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.

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