Message to the Congress Reporting on the National Emergency With Respect to Libya

 

July 30, 1986

 

To the Congress of the United States:

 

1. On January 7, 1986, in Executive Order No. 12543, I declared a national emergency to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the policies and actions of the Government of Libya. In that order, I prohibited, with effect from February 1, 1986: (1) the import into the United States of any goods or services of Libyan origin, except publications and materials imported for news publications or news broadcast dissemination; (2) the export to Libya of any goods, technology (including technical data or other information), or services from the United States, except publications and donations of certain articles intended to relieve human suffering; (3) transactions by U.S. persons relating to transportation to or from Libya; transportation to or from the United States by any Libyan person or Libyan-registered vessel or aircraft; or the sale in the United States by U.S. or foreign air carriers of transportation by air that includes any stop in Libya; (4) the purchase by U.S. persons of goods for export from Libya to any country; and (5) the performance by U.S. persons of any contract in support of an industrial or other commercial or governmental project in Libya. I further prohibited, with immediate effect: (6) the grant or extension of credits or loans by U.S. persons to the Government of Libya (including government-controlled entities); (7) transactions by U.S. persons relating to travel by U.S. citizens or permanent resident aliens to Libya, or activities within Libya, other than for the propose of: (a) effecting such persons' departure from Libya, (b) performing acts listed in items (1) through (5) above prior to February 1, 1986, or (c) travel for journalistic activity by professional journalists. The prohibitions ordered on January 7, 1986, were in addition to existing prohibitions on the importation of Libyan crude oil and refined petroleum products imposed in Proclamation 4907 of March 10, 1982, and retained in Proclamation 5141 of December 22, 1983, and Executive Order No. 12538 of November 15, 1985, as well as existing export controls set forth in the Export Administration Regulations, 15 C.F.R. Part 368 et seq., issued pursuant to the Export Administration Act of 1979, as amended.

 

2. On January 8, 1986, in Executive Order No. 12544, I augmented the transactional prohibitions contained in Executive Order No. 12543 and ordered the immediate blocking of all property and interests in property of the Government of Libya (including the Central Bank of Libya and other government controlled entities) then or thereafter located in the United States, or then or thereafter coming within the possession or control of U.S. persons, including their overseas branches.

 

3. The actions were taken and the declaration of national emergency made pursuant to the authority vested in me as President by the Constitution and laws of the United States, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), sections 504 and 505 of the International Security and Development Cooperation Act of 1985 (22 U.S.C. 2349aa - 8 and 9), section 1114 of the Federal Aviation Act of 1958, as amended (49 U.S.C. 1514), and section 301 of title 3 of the United States Code. I submitted reports concerning my exercise of these authorities and transmitted copies of my Executive Orders to the Congress on January 7 and January 9, 1986, pursuant to section 204(b) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(b); section 505 of the International Security and Development Cooperation Act of 1985, 22 U.S.C. 2349aa - 9(c); and section 301 of the National Emergencies Act, 50 U.S.C. 1631. 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).

 

4. The Office of Foreign Assets Control of the Department of the Treasury, after consultation with the Secretary of State and other Federal agencies, issued the Libyan Sanctions Regulations, 31 C.F.R. Part 550, implementing the prohibitions in Executive Order No. 12543 on January 8, 1986 (51 Fed. Reg. 1354 (January 10, 1986)). Regulations implementing Executive Order No. 12544 and amending the Libyan Sanctions Regulations were issued by the Office of Foreign Assets Control on January 14, 1986 (51 Fed. Reg. 2462 (January 16, 1986)).

 

5. Further amendments to the Libyan Sanctions Regulations have been issued, as follows: (a) To avoid disruption to family units, a general license permitting dependents of Libyan nationals who are U.S. citizens or permanent resident aliens to travel to, from, and within Libya, and to incur normal living expenses within Libya, was issued by the Office of Foreign Assets Control on May 28, 1986, effective January 7, 1986 (51 Fed. Reg. 19751 (June 2, 1986)). (b) A prohibition against exports from the United States of goods and technology that the exporter knows or has reason to know are intended specifically for the manufacture of products in third countries to be used in the Libyan petroleum or petrochemical industry was issued by the Office of Foreign Assets Control on June 16, 1986, effective July 7, 1986 (51 Fed. Reg. 22802 (June 23, 1986)). (c) A regulation requiring U.S. persons with controlled foreign affiliates to report by August 15, 1986, on their affiliates' Libyan transactions was issued by the Office of Foreign Assets Control on July 11, 1986, to enable that office to monitor compliance with the regulations' prohibitions against U.S. persons transferring Libyan business to offshore entities (51 Fed. Reg. 25634 (July 15, 1986)).

 

6. On January 14, the Office of Export Administration within the Department of Commerce issued a General Order, effective February 1, 1986, revoking all authorizations contained in individual and special validated licenses for direct or indirect export from the United States to Libya if such export is prohibited by the Libyan Sanctions Regulations (51 Fed. Reg. 2353 (January 16, 1986)). The General Order also prevented possible dual licensing procedures for shipments from the United States to Libya by permitting a license issued by the Treasury Department to serve as authorization under the Export Administration Regulations for export from the United States. The Department of Transportation issued Order 86 - 2 - 23 on January 30, 1986, which prohibits U.S. and foreign air carriers from selling in the United States any transportation by air that includes a stop in Libya, and engaging in any transaction in the United States relating to transportation to or from Libya. The Order also prohibited U.S. air carriers from engaging in transactions anywhere in the world that relate to transportation services to Libya. The Order was served on all U.S. and foreign air carriers.

 

7. With this report, I am enclosing a copy of the Treasury Department's Libyan Sanctions Regulations, with amendments to date, the Commerce Department's General Order, and the Transportation Department's Order, as discussed above.

 

8. In the exercise of its licensing authority under the Libyan Sanctions Regulations, the Office of Foreign Assets Control issued specific licenses to five U.S. oil companies and 13 service companies, authorizing them to complete the winding down of their Libyan operations after the effective dates of the prohibitions in Executive Order No. 12543. In all cases, the specific licenses were issued to foster the orderly withdrawal of these companies from Libya in an attempt to avoid substantial economic windfalls to the Government of Libya through the outright forfeiture of U.S. assets located in Libya. Each specific license authorizing an extension of Libyan operations expired on or before June 30, 1986. Additional specific licenses have been issued on a one-time basis to authorize routine banking transactions commenced prior to the issuance of Executive Order No. 12543.

 

9. The expenses incurred by the Federal government in the 6-month period from January through June 1986 that are directly attributable to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at $1,264,562, of which approximately $1,109,979 represents wage and salary costs for Federal personnel, and approximately $154,583 represents out-of-pocket expenses for travel. 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.

 

10. 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).

 

Ronald Reagan

 

The White House,

 

July 30, 1986.