Letter to the Speaker of
the House of Representatives and the President of the Senate Reporting on the
National Emergency With Respect to Libya
January 12, 1988
Mr. Speaker: (Dear Mr. President:)
I hereby report on developments since my last report of July
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); and section 505(c) of the International Security and
Development Cooperation Act of 1985, 22 U.S.C. 2349aa - 9(c).
Since my last report on July 10, 1987, there have been two amendments to the
Libyan Sanctions Regulations, 31 C.F.R. Part 550 (the ``Regulations''),
administered by the Office of Foreign Assets Control of the Department of the
Treasury. These amendments, comprising sections 550.630 and 550.635 of the
Regulations and published in the Federal Register at 52 FR 35548 (September 22,
1987), provide for a census of blocked assets held by U.S. persons and a census
of claims of U.S. nationals against the Government of Libya and any Libyan
entity. Reporting under these sections is mandatory. The submission of a report
on a claim against Libya, however, does not
constitute the filing with the United States Government of a formal claim for
compensation, since no formal claims adjudication program currently exists.
There have been no amendments or changes since July 10, 1987, to orders of the
Department of Commerce or the Department of Transportation implementing aspects
of Executive Order No. 12543 that relate to exports of U.S.-origin commodities
and technical data and air transportation, respectively.
The major licensing action occurring during the past 6 months under the
Regulations involved blocked assets of the Libyan Arab Foreign Bank, held by the
London branch of Bankers Trust
Company. The Libyan bank had sued in London for release of the
funds, and the Commercial Court issued a ruling in
Libyan Arab Foreign Bank v. Bankers Trust, finding no basis under British law
for withholding payment of funds held in London and New York under the British
deposit contract. In October, after completion of interagency consultation, the
Treasury Department licensed Bankers Trust to comply with the London judgment by authorizing
the release of approximately $292 million to the Libyan bank, in addition to
interest for pre-sanctions breach of contract damages. This licensing action
affected only the funds involved in this particular lawsuit.
licensing actions included extending one license authorizing a service
contractor that had been operating in Libya to sell certain of its
equipment in Libya to a Libyan purchaser.
Three immediate family members of Libyan nationals registered their eligibility
to enter into transactions related to travel to, and residence within, Libya. Two licenses were
issued authorizing U.S. persons to obtain
services in connection with Libyan patent, trademark, copyright, and other
intellectual property protection.
Various enforcement actions mentioned in my last report are being pursued, and
one case has been brought to trial involving prosecution of persons who
allegedly exported petroleum equipment from the United States to Libya through a European
The expenses incurred by the Federal Government in the 6-month period from July
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 $623,554. 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.
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, pursuant to 50 U.S.C. 1703(c).
Note: Identical letters
were sent to Jim Wright, Speaker of the House of Representatives, and George
Bush, President of the Senate.