Message to the Congress Reporting on the Economic Sanctions Against Libya

To the Congress of the United States:

1. I hereby report to the Congress on developments since my last report of July 19, 1989, concerning the national emergency with respect to Libya that was declared in Executive Order No. 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, 50 U.S.C. 1703(c) ("IEEPA"); and section 505(c) of the International Security and Development Cooperation Act of 1985, 22 U.S.C. 2349aa - 9(c).

2. Since my last report on July 19, 1989, 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 ("FAC") of the Department of the Treasury. Additionally, since July 19, 1989, there have been no amendments or changes to orders of the Department of Commerce or the Department of Transportation implementing aspects of Executive Order No. 12543 relating to exports from the United States and air transportation, respectively.

3. During the current 6-month period, FAC has issued a limited number of specific licenses to individuals and corporations to permit them to engage in activities that would otherwise be prohibited by the Regulations. Under FAC licensing procedures, 23 individuals registered to travel to or remain in Libya with Libyan immediate family members. Fewer than 15 licensing actions were taken with respect to Libya.

4. Various enforcement actions mentioned in prior reports continue to be pursued. As reported previously, seven former officers of a Libyan student group operating under FAC license were convicted in November 1988 for the unauthorized use of student funds in violation of the Regulations. In May 1989, in the U.S. District Court for the Eastern District of Virginia, seven individuals associated with the student group were convicted of related charges of conspiracy, wire fraud, aiding and abetting, and credit card fraud. Their sentences ranged from 60 days' to 7 years' imprisonment with fines of up to $8,000.

In July 1989 the U.S. Customs Service seized a shipment of U.S.-origin electrical distribution and control equipment in Buffalo, New York, valued at $7,679 for an attempted illegal transshipment from Canada to Libya through the United States. In October 1989 the U.S. Customs Service seized a shipment of computer equipment valued at $7,500 for an attempted illegal transshipment to Libya through the Netherlands. Redelivery of the goods from the Netherlands to New York was effected prior to the seizure of the goods in New York.

In August 1989, in the U.S. District Court for the District of Minnesota, a Federal grand jury returned a four-count criminal indictment charging a U.S. firm and two of its corporate officers with unlicensed shipment of 43,400 pounds of chemicals to Libya in April 1986. Guilty pleas were entered by two corporate officers and on behalf of the corporation at a December 4, 1989, hearing. Sentencing is expected in January 1990.

During the current reporting period, FAC determined that the Government of Libya had illegally transferred certain of its physical assets in the United States to a Libyan student organization at the time the sanctions were imposed. In October 1989 FAC ordered the assets sold at auction with the proceeds deposited into a blocked account in the name of the Government of Libya.

5. The expenses incurred by the Federal Government in the 6-month period from July 19, 1989, through the present time that are directly attributable to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at $425,776. Personnel costs were largely centered in the Department of the Treasury (particularly in the Office of Foreign Assets Control, the Customs Service, the Office of the Assistant Secretary for Enforcement, the Office of the Assistant Secretary for International Affairs, and the Office of the General Counsel), the Department of State, the Department of Commerce, the Department of Justice, the Federal Reserve Board, and the National Security Council.

6. 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. I shall continue to exercise the powers at my disposal to apply economic sanctions against Libya as long as these measures are appropriate, and will continue to report periodically to the Congress on significant developments as required by law.

George Bush

The White House,

January 25, 1990.