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Public Papers - 1990 - July

Message to the Congress Reporting on the Economic Sanctions Against Libya

1990-07-13

To the Congress of the United States:

1. I hereby report to the Congress on developments since my last report of January 25, 1990, 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 January 25, 1990, 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 January 25, 1990, 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, 15 individuals registered to travel to or remain in Libya with Libyan immediate family members. Fifteen licensing decisions were made authorizing or prohibiting transactions in connection with Libya. The most significant licensing activity since the last report was the authorization of U.S. involvement in a U.N. Food and Agriculture Organization program to eradicate the screw worm, an infestation that threatened both humans and animals in North Africa.

4. Various enforcement actions mentioned in previous reports continue to be pursued. In February 1990, in the U.S. District Court for the District of Minnesota, Sealed Air Corporation and two of its former corporate officers each received criminal sentences for engaging in shipments of rust inhibitor chemicals to Libya in violation of the Regulations. The corporation was fined 0,000, the maximum penalty permitted for a violation of IEEPA. A senior vice president of the firm was fined 0,000 and was ordered to perform 400 hours of community service. A general manager was fined ,000 and was ordered to perform 200 hours of community service.

In April 1990, FAC closed the offices of a Libyan student group for failure to abide by the terms of its FAC license. All tangible property of the organization and all bank accounts of the organization were blocked. The student group has since elected a new board of directors and has agreed to renew its licensed contractual arrangements for outside monitoring of financial transactions and to obtain funds from Libya in order to resume its operation in accordance with FAC licensing requirements.

5. The expenses incurred by the Federal Government in the period from January 25, 1990, through June 1, 1990, that are directly attributable to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at 2,541. 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,

July 13, 1990.

George Bush Presidential Library and Museum
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