[House Document 108-68]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-68
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SUDAN
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
SUDAN THAT WAS DECLARED IN EXECUTIVE ORDER 13067 OF NOVEMBER 3, 1997,
PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)
May 6, 2003.--Message and accompanying papers referred to the Committee
on International Relations and ordered to be printed
To the Congress of the United States:
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 (IEEPA), 50 U.S.C. 1703(c), I am
providing herewith a 6-month periodic report prepared by my
Administration on the national emergency with respect to Sudan
that was declared in Executive Order 13067 of November 3, 1997.
George W. Bush.
The White House, May 2, 2003.
Periodic Report on the National Emergency With Respect to Sudan
This report to the Congress covers developments over the
course of the past 6 months concerning the national emergency
with respect to Sudan that was declared in Executive Order
13067 of November 3, 1997. 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).
On October 21, 2002, the Department of the Treasury's
Office of Foreign Assets Control (``OFAC'') designated seven
entities as Specially Designated Nationals of Sudan.
As of February 28, 2003, OFAC had issued 36 licenses during
the current reporting period. Fifteen of the licenses were
issued authorizing commercial sales and exportation to Sudan of
bulk agricultural commodities, agricutlrual products, and
medicine. Twelve licenses were issued releasing blocked funds
after it was determined that there was no Sudanese Government
property interest in the funds. Two licenses were issued
authorizing the receipt of legal fees, two licenses were issued
releasing blocked funds in support of certain diplomatic
activities, three licenses were issued authorizing certain
administrative transactions, one license was issued authorizing
the transfer of a Sudanese trademark, and one license was
issued authorizing the provision of certain humanitarian
assistance to Sudan. Twenty-three license applications were
denied, the overwhelming majority involving blocked funds that,
after review, were determined to involve a Sudanese Government
property interest.
As of February 27, 2003, OFAC had blocked 26 transactions
totaling more than $500,000 during this reporting period. Under
the Sudanese Sanctions Regulations, 31 C.F.R. Part 538 (the
``Regulations''), transactions in violation of the sanctions
where there is no blockable interest of the Government of Sudan
must be returned to remitters (``rejected''). During this
reporting period, 195 such transactions were rejected by U.S.
banks resulting in a disruption of at least $28.1 million in
business for Sudan. In addition, as of February 27, 2003, OFAC
had authorized an additional 19 non-governmental organizations
(``NGOs'') to conduct humanitarian relief operations in Sudan,
bringing the total number of NGOs licensed to 154.
Since the last report, OFAC has collected 10 civil monetary
penalties or settlements totaling nearly $117,000 for
violations, or allegations thereof, of IEEPA and the
Regulations. The payments originated from five U.S. companies,
four U.S. financial institutions, and one individual. One
defaulted assessed penalty totaling $5,500 from one U.S.
company has been referred to the Financial Management Division
for debt collection or installment payment plan arrangement. An
additional 41 cases are undergoing penalty action for
violations of the Regulations and IEEPA.
The expenses incurred by the Federal Government in the 6-
month period from November 3, 2002, through May 2, 2003, 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 $310,000, 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, and the
Department of Commerce.
The situation in Sudan continues to present an unusual and
extraordinary 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 U.S. Government's opposition to the
actions and policies of the Government of Sudan, particularly
its support of certain terrorist organizations, including Hamas
and Palestinian Islamic Jihad, and its failure to respect basic
human rights, including its restrictions on religious freedom.
The prohibitions contained in Executive Order 13067 advance
important objectives in promoting the anti-terrorism and human
rights policies of the United States. I shall exercise the
powers at my disposal to deal with this unusual and
extraordinary threat and will continue to report periodically
to the Congress on significant developments as required by law.