U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

99–011 2002

107th Congress, 2d Session – – – – – – – – – – – – House Document 107–251

PERIODIC REPORT ON THE NATIONAL EMERGENCY 

WITH RESPECT TO LIBYA

COMMUNICATION

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY 

WITH RESPECT TO LIBYA THAT WAS DECLARED IN EXECUTIVE 

ORDER 12543 OF JANUARY 7, 1986, PURSUANT TO 50 U.S.C. 

1641(c) AND 50 U.S.C. 1703(c)

SEPTEMBER 4, 2002—Referred to the Committee on International Relations 

and ordered to be printed 


E:\Seals\Congress.#13
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THE WHITE HOUSE, 

Washington. 

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, 50 U.S.C. 1703(c), I 

transmit herewith a 6-month periodic report prepared by my Administration on the national emergency with respect to Libya that 

was declared in Executive Order 12543 of January 1986. 

Sincerely, 

GEORGE W. BUSH.

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PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO

LIBYA

This report to the Congress covers developments over the course 

of the past 6 months concerning the national emergency with respect to Libya that was declared in Executive Order 12543 of January 7, 1986. This report is submitted pursuant to section 401(c) of 

the National Emergencies Act, 50 U.S.C. 1641(c); section 204(c) of 

the International Emergency Economic Powers Act (‘‘IEEPA’’), 50 

U.S.C. 1703(c); and section 505 (c) of the International Security and 

Development Cooperation Act of 1985, 22 U.S.C. 2349aa–9(c). 

1. During the current reporting period, OFAC reviewed numerous applications for licenses to authorize transactions under the 

Libyan Sanctions Regulations, 31 CFR Part 550 (the ‘‘Regulations’’). Consistent with OFAC’s ongoing scrutiny of banking transactions, the largest category of authorizations (40) involved types 

of financial transactions that are consistent with U.S. policy. Most 

of these licenses authorized remittances between persons who are 

not blocked parties to flow through Libyan banks located outside 

Libya. Eighteen licenses were issued authorizing the commercial 

sale and exportation of bulk agricultural commodities and two for 

medicine or medical equipment. Two licenses authorizing certain 

legal services and/or payment of professional fees were also issued. 

Finally, one license was issued authorizing the negotiation of a new 

standstill agreement and one license was issued authorizing the 

negotiation of a new suspension agreement; one license for the sale 

of telecommunications equipment for use in an embassy in Libya 

was also authorized. As of May 9, 2002, a total of 65 licenses had 

been issued during the reporting period. 

2. OFAC continues to emphasize to the international banking 

community in the United States the importance of identifying and 

blocking payments made by or on behalf of the Government of 

Libya. As of May 10, 2002, 75 transactions, totaling more than $5.4 

million, were blocked during this reporting period. Under the Regulations, unauthorized commercial funds transfers involving Libya 

must be returned to the remitters without further processing, rather than blocked, where there is no blockable interest of the Government of Libya. During the reporting period, 140 transactions were 

rejected, without further processing, by U.S. banks causing a disruption of $5.8 million in financial dealings involving Libya.

3. Since my last report, OFAC has collected 13 civil monetary 

penalties totaling nearly $90,000 for violations of IEEPA and the 

Regulations from nine U.S. financial institutions, two indivdiuals, 

and two companies. Two of the individuals remitting penalties as 

part of plea agreements with the Department of Justice. An additional 14 cases are undergoing penalty action for violation of 

IEEPA and the Regulations. 

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On September 17, 2001, the U.S. District Court for the Southern 

District of Texas granted the government’s motion for summary 

judgment in the case Vitol, S.A. v. U.S. Dep’t. of the Treasury, et 

al. The plaintiff, Vitol, S.A., challenged the government’s 1994 

blocking of approximately 350,000 barrels of Libyan-origin fuel oil. 

In granting the government’s motion, the court affirmed the blocking based on the government’s reasonable determination that a 

U.S. person had constructive possession or control of the oil at a 

time when the Government of Libya held a blockable interest in 

the property. Vitol, S.A. has filed an appeal in the U.S. Court of 

Appeals for the Fifth Circuit. The matter is still pending before the 

court. Other enforcement actions carried over from previous reporting periods continue and new reports of alleged violations are being 

aggressively pursued. 

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

month period from January 7 through July 6, 2002, that are directly attributable to the exercise of powers and authorities conferred by the declaration of a national emergency with respect to 

Libya, are reported to be more than $500,000, 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) and the Departments of State and 

Commerce. 

5. Despite the U.N. Security council’s suspension of UN sanctions 

against Libya upon the Libyan government’s handover of the Pan 

Am 103 bombing suspects in April 1999, and a Scottish court’s conviction of one suspect on January 31, 2001, Libya has not yet complied with U.N. Security Council Resolutions 731 (1992), 748 

(1992), and 883 (1993), including Libya’s obligation to accept responsibility for the actions of Libyan officials and to pay appropriate compensation. Libya continues to pose an unusual and extraordinary threat to the national security and foreign policy interests of the United States and U.S. economic sanctions will, therefore, remain in force.

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