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
� 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
� 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
� 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
� William J. Clinton
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