[House Document 108-88]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - - - House Document
108-88
PERIODIC REPORT ON THE NATIONAL EMERGENCY
WITH RESPECT TO LIBYA
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A 6-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)
July 7, 2003.--Referred to the Committee on International Relations and
ordered to be printed
The White House,
Washington, June 30, 2003.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: Consistent with section 401(c) of the
National Emergencies Act, 50 U.S.C. 1641(c), section 204(c) of
the International Emergency Economic Powers Act, 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), I
am transmitting 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 7, 1986.
Sincerely,
George W. Bush.
Periodic Report on the National Emergency With Respect to Libya
The report to the Congress addresses 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 consistent
with 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''). As of May 9, 2003, a total of 75 licenses had
been issued during the reporting period. Consistent with OFAC's
ongoing scrutiny of banking transactions, the largest category
of authorizations (42) 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.
Twenty-three licenses were issued authorizing the commercial
sale and exportation of agricultural commodities and/or
medicine or medical equipment. Three licenses were issued
authorizing certain legal services and/or payment of
professional fees. Three licenses were also issued permitting a
U.S. company to receive previously outstanding debts owed to
them by Libyan telecommunications companies. Two licenses were
issued authorizing U.S. companies to pursue and enforce
intellectual property protections in Libya. Finally, one
license authorized the reimbursement of travel expenses paid to
a Libyan-owned airline where such travel was necessary for
medical treatment and one license was issued authorizing the
negotiation and entry into agreements with the Government of
Libya regarding the provision of mobile information services to
commercial and executive aircraft of non-embargoed countries.
2. 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. As of May 8,
2003, 180 transactions, totaling more than $10 million, had
been blocked during this reporting period. In addition, 142
transactions were rejected, without further processing, by U.S.
banks causing a disruption of more than $6 million in financial
dealings involving Libya during this reporting period.
3. Since the last report, OFAC has collected three civil
monetary penalties totaling nearly $5,000 for violations of
IEEPA and the Regulations from three companies. An additional
six cases are undergoing penalty action for violation of IEEPA
and the Regulations.
4. On March 26, 2003, a German airline pilot pleaded guilty
to a two-count indictment for attempting to violate IEEPA and
the Arms Export Control Act, 22 U.S.C. 2887, arising from his
attempts to export millions of dollars worth of military
aircraft parts to Libya. The pilot had contacted U.S. companies
in an attempt to purchase C-130 aircraft engines, as well as
CH-47 Chinook helicopter engines, for export to Libya.
5. The expenses incurred by the Federal Government in the
6-month period from January 7 through July 6, 2003, 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 $556,000, 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, while it was a part of the Department
of the Treasury; the former Office of the Under Secretary for
Enforcement; and the Office of the General Counsel), the Bureau
of Customs and Border Protection at the Department of Homeland
Security, and the Departments of State and Commerce.
6. Despite the U.N. Security Council's suspension of U.N.
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.