[Journal of the House of Representatives, 1994]
[Tuesday, April, 26, 1994 (39), Para 39.9 National Emergency with Respect to Haiti]
[Pages 705-707]
[From the U.S. Government Publishing Office, www.gpo.gov]
Para. 39.9 national emergency with respect to haiti
The Clerk then read the message from the President, as follows:
To the Congress of the United States:
1. In December 1990, the Haitian people elected Jean-Bertrand Aristide
as their President by an overwhelming margin in a free and fair
election. The United States praised Haiti's success in peacefully
implementing its democratic constitutional system and provided
significant political and economic support to the new government. The
Haitian military abruptly interrupted the consolidation of Haiti's new
democracy when in September 1991, it illegally and violently ousted
President Aristide from office and drove him into exile.
2. The United States, on its own and with the Organization of American
States (OAS), immediately imposed sanctions against the illegal regime.
The United States has also actively supported the efforts of the OAS and
the United Nations to restore democracy to Haiti and to bring about
President Aristide's return by encouraging and facilitating a political
process involving all the legitimate Haitian parties. The United States
and the international community also offered material assistance within
the context of an eventual settlement of the Haitian crisis to support
the return to democracy, build constitutional structures, and foster
economic well-being.
In furtherance of these twin objectives--restoration of constitutional
democracy and fostering economic recovery--as discussed in section 10
below, the United States has taken additional measures to block the
U.S.-located assets of persons (civilian as well as military) whose
conduct, or material or financial support, has assisted the illegal
maintenance of the illegitimate regime in Haiti, including persons
obstructing the U.N. Mission in Haiti or the implementation of the
Governors Island Agreement, and persons perpetuating or contributing to
the violence in Haiti. In addition, in an effort to stabilize employment
and minimize economic hardship for the local populace in Haiti, U.S.
persons currently licensed to deal with the vital Haitian assembly
sector have received reauthorization through May 31, 1994.
3. This report is submitted to the Congress pursuant to 50 U.S.C.
1641(c) and 1703(c), and discusses Administration actions and expenses
since my last report (November 13, 1993) that are directly related to
the national emergency with respect to Haiti declared in Executive Order
No. 12775, as implemented pursuant to that order and Executive Orders
Nos. 12779, 12853, and 12872.
4. Economic sanctions against the de facto regime in Haiti were first
imposed in October 1991. On October 4, 1991, in Executive Order No.
12775, President Bush declared a national emergency to deal with the
threat to the national security, foreign policy, and economy of the
United States caused by events that had occurred in Haiti to disrupt the
legitimate exercise of power by the democratically elected government of
that country (56 Fed. Reg. 50641). In that order, the President ordered
the immediate blocking of all property and interests in property of the
Government of Haiti (including the Banque de la Republique d'Haiti) then
or thereafter located in the United States or within the possession or
control of a U.S. person, including its overseas branches. The Executive
Order also prohibited any direct or indirect payments or transfers to
the de facto regime in Haiti of funds or other financial or investment
assets or credits by any U.S. person, including its overseas branches,
or by any entity organized under the laws of Haiti and owned or
controlled by a U.S. person.
Subsequently, On October 28, 1991, President Bush issued Executive
Order No. 12779, adding trade sanctions against Haiti to the sanctions
imposed on October 4 (56 Fed. Reg. 55975). This order prohibited
exportation from the United States of goods, technology, services, and
importation into the United States of Haitian-origin goods and services,
after November 5, 1991, with certain limited exceptions. The order
exempted trade in publications and other informational materials from
the import, export, and payment prohibitions and permitted the
exportation to Haiti of donations to relieve human suffering as well as
commercial sales of five food commodities: rice, beans, sugar, wheat
flour, and cooking
[[Page 706]]
oil. In order to permit the return to the United States of goods being
prepared for U.S. customers by Haiti's substantial ``assembly sector,''
the order also permitted, through December 5, 1991, the importation into
the United States of goods assembled or processed in Haiti that
contained parts or materials previously exported to Haiti from the
United States. On February 5, 1992, it was announced that specific
licenses could be applied for on a case-by-case basis by U.S. persons
wishing to resume a pre-embargo import/export relationship with the
assembly sector in Haiti.
5. On June 30, 1993, I issued Executive Order No. 12853 that expanded
the blocking of assets of the de facto regime to include assets of
Haitian nationals identified by the Secretary of the Treasury as
providing substantial financial or material contributions to the regime,
or doing substantial business with the regime. That Executive order also
implemented United Nations Security Council Resolution (``UNSC
Resolution'') 841 of June 16, 1993, by prohibiting the sale or supply by
U.S. persons or from the United States, or using U.S.-registered vessels
or aircraft, of petroleum or petroleum products or arms and related
materiel of all types to any person or entity in Haiti, or for the
purpose of any business carried on in or operated from Haiti, or
promoting or calculated to promote such sale or supply. Carriage of such
goods to Haiti on U.S.-registered vessels is prohibited, as is any
transaction for the evasion or avoidance of, or attempt to evade or
avoid, any prohibition in the order.
6. As noted in my previous report, apparent steady progress toward
achieving the firm goal of restoring democracy in Haiti permitted the
United States and the world community to suspend economic sanctions
against Haiti in August 1993. With strong support from the United
States, the United Nations Security Council adopted Resolution 861 on
August 27, 1993, suspending the petroleum, arms, and financial sanctions
imposed under UNSC Resolution 841. On the same day, the Secretary
General of the OAS announced that the OAS was urging member states to
suspend their trade embargoes. In concert with these U.N. and OAS
actions, U.S. trade and financial restrictions against Haiti were
suspended, effective at 9:35 a.m. e.d.t., on August 31, 1993.
These steps demonstrated my determination and that of the
international community to see that Haiti and the Haitian people resume
their rightful place in our hemispheric community of democracies. Our
work to reach a solution to the Haitian crisis through the Governors
Island Agreement was however seriously threatened by accelerating
violence in Haiti sponsored or tolerated by the de facto regime. The
violence culminated on October 11, 1993, with the obstruction by armed
``attaches,'' supported by the Haitian military and police, of the
deployment of U.S. military trainers and engineers sent to Haiti as part
of the United Nations Mission in Haiti. The Haitian military's decision
to dishonor its commitments made in the Governors Island Agreement was
apparent. On October 13, 1993, the United Nations Security Council
issued Resolution 873, which terminated the suspension of sanctions
effective at 11:59 p.m. e.d.t., October 18, 1993.
As a result, effective at 11:59 p.m. e.d.t., October 18, 1993, the
Department of the Treasury revoked the suspension of those trade and
financial sanctions that had been suspended, so that the full scope of
prior prohibitions was reinstated (58 Fed. Reg. 54024, October 19,
1993). In addition to the actions I took in Executive Order No. 12853,
the reinstated sanctions in the Haitian Transactions Regulations, 31
C.F.R. Part 580 (the ``HTR''), prohibit most unlicensed trade with
Haiti, and block the assets of the de facto regime in Haiti and the
Government of Haiti. Restrictions on the entry into U.S. ports of
vessels whose Haitian calls would violate U.S. or OAS sanctions had they
been made by U.S. persons were also reinstated.
Also effective at 11:59 p.m. e.d.t., October 18, 1993, I issued
Executive Order No. 12872 (58 Fed. Reg. 54029), authorizing the
Department of the Treasury to block assets of persons who have: (1)
contributed to the obstruction of UNSC resolutions 841 and 873, the
Governors Island Agreement, or the activities of the U.N. Mission in
Haiti; (2) perpetuated or contributed to the violence in Haiti; or (3)
materially or financially supported either the obstruction or the
violence referred to above. This authority is in addition to the
blocking authority provided for in the original sanctions and in
Executive Order No. 12853 of June 30, 1993, and ensures adequate
authority to reach assets subject to U.S. jurisdiction of military and
police officials, civilian ``attaches'' and their financial patrons
meeting these criteria. A list of 41 such individuals was published on
November 1, 1993, by the Office of Foreign Assets Control (FAC) of the
Department of the Treasury (58 Fed. Reg. 58480).
On October 18, I ordered the deployment of six U.S. Navy vessels off
Haiti's shores. To improve compliance with the ban on petroleum and
munitions shipments to Haiti contained in UNSC resolutions 841 and 873,
my Administration succeeded in securing the passage of UNSC Resolution
No. 875. UNSC Resolution 875 calls upon the United Nations Member States
acting either nationally or through regional agencies or arrangements to
halt inward maritime shipping for Haiti in order to inspect and verify
that the Haiti-bound cargo does not contain UNSC-prohibited petroleum
or arms. A multinational Maritime Interdiction Force that includes
elements of the U.S. Navy and the U.S. Coast Guard has been established
and now patrols the waters off Haiti.
7. The declaration of the national emergency on October 4, 1991, was
made pursuant to the authority vested in the President by the
Constitution and laws of the United States, including the International
Emergency Economic Power Act (50 U.S.C. 1701 et seq.) (IEEPA), the
National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of
title 3 of the United States Code. The emergency declaration was
reported to the Congress on October 4, 1991, pursuant to section 204(b)
of IEEPA (50 U.S.C. 1703(b)). The additional sanctions set forth in
Executive Orders Nos. 12779, 12853, and 12872, were imposed pursuant to
the authority vested in the President by the Constitution and laws of
the United States, including the statutes cited above, as well as the
United Nations Participation Act of 1945 (22 U.S.C. 287c), and
represent the response by the United States to the United Nations
Security Council and OAS directives and recommendations discussed
above.
8. Since my report of November 13, 1993, FAC, in consultation with
the Department of State and other Federal agencies, has issued General
Notice No. 3, ``Notification of Blocked Individuals of Haiti.'' The
Notice, issued January 27, 1994, identifies 523 officers of the Haitian
Armed Forces who have been determined by the Department of the Treasury
to be Blocked Individuals of Haiti. General Notice No. 4, issued April
4, 1994, identifies an additional 27 individual officers of the Haitian
Armed Forces and one civilian who have been determined by the
Department of the Treasury to be Blocked Individuals of Haiti. These
are persons who are members of the de facto regime or are blocked
pursuant to Executive Orders Nos. 12853 or 12872. (A comprehensive list
of Blocked Individuals of Haiti was published on April 7, 1994 (59 Fed.
Reg. 15548)).
U.S. persons are prohibited from engaging in transactions with these
individuals and with all officers of the Haitian military (as members
of the de facto regime), whether or not named in General Notice No. 3
or No. 4, unless the transactions are licensed by FAC. Additionally,
all interests in property of these individuals that are in the United
States or in the possession or control of U.S. persons, including their
overseas branches, are blocked. U.S. persons are not prohibited,
however, from paying funds owed to these entities or individuals into
the appropriate blocked account in domestic U.S. financial
institutions. Copies of the comprehensive list and of General Notices
No. 3 and No. 4 are attached.
A policy statement, effective January 31, 1994 (59 Fed. Reg. 8134,
February 18, 1994), was published to extend until March 31, 1994, the
expiration date for all current assembly sector licenses issued by FAC
pursuant to the HTR, and a second policy notice, effective March 29,
1994, was published on April 1, 1994 (59 Fed. Reg. 15342), extending
these licenses through May 31, 1994. These licenses have provided an
exception to the comprehensive U.S. trade embargo on Haiti under which
the ``assembly
[[Page 707]]
sector'' has continued to receive parts and supplies from, and supply
finished products to, persons in the United States. Copies of the
policy statements are attached.
Assembly sector trade with the United States accounted for a
significant portion of Haiti's imports, and a substantial majority of
its exports, prior to the institution of the OAS-requested embargo in
November 1991. Although initially suspended due to the embargo,
assembly sector imports from and exports to the United States were
allowed to resume on a case-by-case basis beginning in February 1992 in
order to keep poorer segments of the Haitian population employed and to
reduce their incentive to attempt illegal and dangerous immigration by
sea to the United States and other countries. However, the continuing
uncertainties of the Haitian situation have led to a sharp decline in
assembly sector activity, where employment is now estimated to be no
more than 10 percent of pre-embargo levels.
9. In implementing the Haitian sanctions program, FAC has made
extensive use of its authority to specifically license transactions
with respect to Haiti in an effort to mitigate the effects of the
sanctions on the legitimate Government of Haiti and on the livelihood
of Haitian workers employed by Haiti's assembly sector, and to ensure
the availability of necessary medicines and medical supplies and the
undisrupted flow of humanitarian donations to Haiti's poor. For
example, specific licenses were issued: (1) permitting expenditures
from blocked assets for the operations of the legitimate Government of
Haiti; (2) permitting U.S. firms with pre-embargo relationships with
product assembly operations in Haiti to resume those relationships in
order to continue employment for their workers or, if they chose to
withdraw from Haiti, to return to the United States assembly equipment,
machinery, and parts and materials previously exported to Haiti; (3)
permitting U.S. companies operating in Haiti to establish, under
specified circumstances, interest-bearing blocked reserve accounts in
commercial or investment banking institutions in the United States for
deposit of amounts owed the de facto regime; (4) permitting the
continued material support of U.S. and international religious,
charitable, public health, and other humanitarian organizations and
projects operating in Haiti; (5) authorizing commercial sales of
agricultural inputs such as fertilizer and foodcrop seeds; and (6) in
order to combat deforestation, permitting the importation of
agricultural products grown on trees.
10. During this reporting period, U.S.-led OAS initiatives resulted
in even greater intensification and coordination of enforcement
activities. Continued close coordination with the U.S. Customs Service
in Miami sharply reduced the number of attempted exports of
unmanifested, unauthorized merchandise. New FAC initiatives are
expected to result in more effective coordination of Customs Service
and Department of Justice activities in prosecution of embargo
violations. During the reporting period, the multinational Maritime
Interdiction Force that contains elements of the U.S. Navy and U.S.
Coast Guard, continued to patrol offshore Haiti and to conduct ship
boardings, inspections of cargoes bound for Haiti, identification of
suspected violators, and referrals for investigation. The Maritime
Interdiction Force has boarded 612 ships and diverted 38 of these ships
for various reasons (inaccessibility of cargo for inspection, items
prohibited by the United Nations Security Council embargo on board)
from its inception to March 30, 1994. Actions have been taken to
counter embargo violations as they have developed. There have been
high-level discussions with the Government of the Dominican Republic to
encourage its stated desire to cooperate with the United Nations in
increasing the effectiveness of the enforcement of the sanctions on
that country's common border with Haiti across which fuel smuggling is
occurring. Other steps have been taken to control sales of bunker fuel
by ships in Haitian ports and smuggling of fuel in Haitian-Dominican
coastal waters.
The Department of the Treasury, in close coordination with Department
of State and the intelligence community, continues to designate
``Blocked Individuals of Haiti,'' blocking the assets of persons
(civilian as well as military) whose conduct meets the criteria of
Executive Orders Nos. 12755, 12853, and 12872, including persons
obstructing the U.N. Mission in Haiti or the implementation of the
Governors Island Agreement and persons perpetuating or contributing to
the violence in Haiti. The list was last expanded on January 27, when
the entire officer corps of the Haitian Armed Forces was blocked as
part of the de facto regime in Haiti, and on April 4, when one
additional civilian was added to the list. As others subverting
democracy in Haiti and additional members of the officer corps are
identified by name, these names will be incorporated into the list of
``Blocked Individuals of Haiti.''
Since the last report, 35 penalties, totaling in excess of $146,000,
have been collected from U.S. businesses and individuals for violations
of the Regulations. Eighteen violations involved unlicensed import- and
export-related activity. As of March 4, 1994, 12 payments of penalties
assessed against the masters of vessels for unauthorized trade
transactions or violations of entry restrictions totaled about $53,000.
A significant penalty collection during the reporting period was from
American Airlines for its direct payments of taxes and fees to the de
facto regime in Haiti.
11. The expenses incurred by the Federal Government in the 6-month
period from October 4, 1993, through April 3, 1994, that are directly
attributable to the authorities conferred by the declaration of a
national emergency with respect to Haiti are estimated at about $3.4
million, most of which represent wage and salary costs for Federal
personnel. Personnel costs were largely centered in the Department of
the Treasury (particularly in FAC, the U.S. Customs Service, and the
Office of the General Counsel), the Department of State, the U.S. Coast
Guard, and the Department of Commerce.
12. I am committed to the restoration of democracy in Haiti and
determined to see that Haiti and the Haitian people resume their
rightful place in our hemispheric community of democracies. Active U.S.
support for United Nations/OAS efforts to resolve the Haitian crisis
has led to the maintenance and enforcement of sweeping economic
sanctions. Our diplomatic efforts complementing these sanctions are
designed to encourage and facilitate participation by all legitimate
Haitian political elements in a broad-based political process that will
bring about the fulfillment of the undertakings they made in the
Governors Island Agreement so that Haitian democracy can be restored
and President Aristide can return to Haiti. Such a political process
will enable the lifting of sanctions and the start of Haiti's economic
reconstruction and national reconciliation. The United States will
continue to play a leadership role in the international community's
program of support and assistance for the restoration of democracy and
return of President Aristide to Haiti.
I will continue to report periodically to the Congress on significant
developments pursuant to 50 U.S.C. 1703(c).
William J. Clinton.
The White House, April 25, 1994.
The message, together with the accompanying papers, was referred to
the Committee on Foreign Affairs and ordered to be printed (H. Doc.
103-246).