Monday, January 4, 1999

 

Volume 34, Issue 53; ISSN: 0511-4187

 

Letter to Congressional leaders reporting on economic sanctions against Libya

William J Clinton

 

 

� December 30, 1998

 

 

� Dear Mr. Speaker: (Dear Mr. President:)

 

 

� I hereby report to the Congress on the developments since my last

report of July 6, 1998, 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. On December 30, 1998, I renewed for another year the national

emergency with respect to Libya pursuant to IEEPA. This renewal

extended the current comprehensive financial and trade embargo

against Libya in effect since 1986. Under these sanctions, virtually

all trade with Libya is prohibited, and all assets owned or

controlled by the Government of Libya in the United States or in the

possession or control of United States persons are blocked.

 

 

� 2. There have been no amendments to the Libyan Sanctions

Regulations, 31 C.F.R. Part 550 (the "Regulations"), administered by

the Office of Foreign Assets Control (OFAC) of the Department of the

Treasury, since my last report of July 6, 1998.

 

 

� 3. During the reporting period, OFAC reviewed numerous applications

for licenses to authorize transactions under the regulations.

Consistent with OFAC's ongoing scrutiny of banking transactions, the

largest category of license approvals (26) involved types of

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

these licenses authorized personal remittances not involving Libya

between persons who are not blocked parties to flow through Libyan

banks located outside Libya. Seven licenses were issued to U.S.

firms to allow them to protect their intellectual property rights in

Libya. One license was issued in connection with law enforcement

activities and one authorized certain travel-- related transactions.

A total of 35 licenses were issued during the reporting period.

 

 

� 4. During the current 6-month period, OFAC continued to emphasize

to the international banking community in the United States the

importance of identifying and blocking payments made by or on behalf

of Libya. The Office worked closely with the banks to assure the

effectiveness of interdiction software systems used to identify such

payments. During the reporting period, more than 87 transactions

potentially involving Libya, totaling more than $7.9 million, were

interdicted.

 

 

� 5. Since my last report, OFAC has collected 4 civil monetary

penalties totaling more than $15,000 for violations of the U.S.

sanctions against Libya. Three of the violations involved the

failure of U.S. banks to block payments or letters of credit

transactions relating to Libyan-owned or Libyan-- controlled

financial institutions. One U.S. individual paid an OFAC penalty for

dealing in Government of Libya property.

 

 

� On October 16, 1998, two Canadian corporations entered a guilty

plea acknowledging IEEPA violations charged in a March 8, 1995,

indictment. Pursuant to the plea agreement, the defendants each paid

$65,000 in criminal fines and $10,000 in OFAC civil penalties.

 

 

� Various enforcement actions carried over from previous reporting

periods have continued to be aggressively pursued. Numerous

investigations are ongoing and new reports of violations are being

scrutinized.

 

 

� 6. The expenses incurred by the Federal Government in the 6-month

period from July 7, 1998, through January 6, 1999, that are directly

attributable to the exercise of powers and authorities conferred by

the declaration of the Libyan national emergency are estimated at

approximately $500,000. 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 the Department of

Commerce.

 

 

� 7. The policies and actions of the Government of Libya continue to

pose an unusual and extraordinary threat to the national security

and foreign policy of the United States. In adopting UNSCR 883 in

November 1993, the United Nations Security Council determined that

the continued failure of the Government of Libya to demonstrate by

concrete actions its renunciation of terrorism, and in particular

its continued failure to respond fully and effectively to the

requests and decisions of the Security Council in Resolutions 731

and 748, concerning the bombing of the Pan Am 103 and UTA 772

flights, constituted a threat to international peace and security.

The United States will continue to coordinate its comprehensive

sanctions enforcement efforts with those of other U.N. Member

States. We remain determined to ensure that the perpetrators of the

terrorist acts against Pan Am 103 and UTA 772 are brought to

justice. The families of the victims in the murderous Lockerbie

bombing and other acts of Libyan terrorism deserve nothing less. I

shall continue to exercise the powers at my disposal to apply

economic sanctions against Libya fully and effectively, so long as

those measures are appropriate, and will continue to report

periodically to the Congress on significant developments as required

by law.

 

 

� Sincerely,

 

 

� William J. Clinton