Monday, November 9, 1998

 

Volume 34, Issue 45; ISSN: 0511-4187

 

Letter to Congressional leaders reporting on the national emergency with

respect to Sudan

William J Clinton

 

 

� Letter to Congressional Leaders Reporting on the National Emergency

With Respect to Sudan

 

 

� November 6,1998

 

 

� Dear Mr. Speaker: (Dear Mr. President:) 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 Congress by message 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 United States 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 United States person of the exportation or reexportation of goods,

technology, or services to or from Sudan; (4) the performance by any

United States 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 United States person to the Government of

Sudan; and (6) transactions relating to the transportation of cargo.

A copy of the Regulations is attached to this report

 

 

� 3. Since the issuance of Executive Order 13067, OFAC has made

numerous decisions with respect to applications for authorizations

to engage in transactions under the Regulations. As of September 16,

1998, OFAC has issued 62 authorizations to nongovernmental

organizations engaged in the delivery of humanitarian aid and 141

licenses to others. 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 licenses issued permitted the unblocking of

financial transactions for individual remitters who routed their

funds through blocked Sudanese banks. Other licenses authorized the

completion of diplomatic transfers, preeffective date trade

transactions, intellectual property protection, the performance of

certain legal services, and transactions relating to air and sea

safety policy.

 

 

� 4. 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. On November 5, 1997, OFAC disseminated

details of this program to the financial, securities, and

international trade communities by both electronic and conventional

media. This information included the names of 62 entities owned or

controlled by the Government of Sudan. The list includes 12

financial institutions and 50 other enterprises. As of September 10,

1998, OFAC has blocked nearly $610,000 during this reporting period.

 

 

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

penalty in the amount of $5,500 from a U.S. financial institution

for its violation of IEEPA and the SRR relating to a funds transfer.

Another 12 cases are undergoing penalty action. OFAC, in cooperation

with the U.S. Customs Service, is closely monitoring potential

violations of the import prohibitions of the Regulations by

businesses and individuals. Various reports of violations are being

aggressively pursued.

 

 

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

period from May 3 through November 2, 1998, 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 $375,000, 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).

 

 

� 7. 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.

 

 

� Sincerely,

 

 

� William J. Clinton.