Continuation of economic sanctions against Haiti

Material Information

Continuation of economic sanctions against Haiti message from the President of the United States transmitting notification that he shall continue to exercise the powers at his disposal to apply economic sanctions against Haiti as long as these measures are appropriate, pursuant to 50 U.S.C. 1703(c)
Series Title:
House document / 102d Congress, 2d session ;
United States -- President (1989-1993 : Bush)
Bush, George, 1924-
United States -- Congress. -- House. -- Committee on Foreign Affairs
Place of Publication:
U.S. G.P.O.
Publication Date:
Physical Description:
1 online resource (4 p.) : ;


Subjects / Keywords:
Economic sanctions, American -- Haiti ( lcsh )
Sanctions économiques américaines -- Haïti ( ram )
Foreign economic relations -- United States -- Haiti ( lcsh )
Foreign economic relations -- Haiti -- United States ( lcsh )
Relations économiques extérieures -- Haïti -- États-Unis ( ram )
Relations économiques extérieures -- États-Unis -- Haïti ( ram )
federal government publication ( marcgt )
non-fiction ( marcgt )


General Note:
Title from PDF cover (LLMC Digital, viewed on Sept. 29, 2010)
General Note:
"Referred to the Committees on Foreign Affairs."
General Note:
"September 30, 1992."

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- - House Document 102-401






ATE, PURSUANT TO 50 U.S.C. 1703(c)

SEPTEMBER 30, 1992.-Message and accompanying papers referred to the
Committee on Foreign Affairs and ordered to be printed


102d Congress, 2d Session



To the Congress of the United States:
1. On October 4, 1991, in Executive Order No. 12775, I declared a
national emergency to deal with the threat to the national securi-
ty, 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 FR 50641). In that order, I 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. I 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 or any entity organized under the laws of Haiti
and owned or controlled by a U.S. person.
Subsequently, on October 28, 1991, I issued Executive Order No.
12779 adding trade sanctions against Haiti to the sanctions im-
posed on October 4, 1991 (56 FR 55975). Under this order, I prohib-
ited exportation from the United States of goods, technology, and
services, and importation into the United States of Haitian-origin
goods and services, after November 5, 1991, with certain limited ex-
ceptions. The order exempts trade in publications and other infor-
mational materials from the import, export, and payment prohibi-
tions, and permits the exportation to Haiti of donations to relieve
human suffering as well as commercial sales of five food commod-
ities: rice, beans, sugar, wheat flour, and cooking 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 con-
tained parts or materials previously exported to Haiti from the
United States. On February 5, 1992, it was announced that this ex-
ception 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.
2. The declaration of the national emergency on October 4, 1991,
was made pursuant to the authority vested in me as President by
the Constitution and laws of the United States, including the Inter-
national Emergency Economic Powers Act (50 U.S.C. 1701 et seq.),
the National Emergencies Act (50 U.S.C. 1601 et seq.), and section
301 of title 3 of the United States Code. I reported the emergency
declaration to the Congress on October 4, 1991, pursuant to section
204(b) of the International Emergency Economic Powers Act (50
U.S.C. 1703(b)). The additional sanctions set forth in my order of
October 28, 1991, were imposed pursuant to the authority vested in
me by the Constitution and laws of the United States, including
the statutes cited above, and implemented in the United States

Resolution MRE/RES. 2/91, adopted by the Ad Hoc Meeting of
Ministers of Foreign Affairs of the Organization of American
States ("OAS") on October 8, 1991, which called on Member States
to impose a trade embargo on Haiti and to freeze Government of
Haiti assets. The present report is submitted pursuant to 50 U.S.C.
1641(c) and 1703(c), and discusses Administration actions and ex-
penses directly related to the national emergency with respect to
Haiti declared in Executive Order No. 12775, as implemented pur-
suant to that order and Executive Order No. 12779.
3. On March 31, 1992, the Office of Foreign Assets Control of the
Department of the Treasury ("FAC"), after consultation with the
Department of State and other Federal agencies, issued the Haitian
Transactions Regulations ("HTR"), 31 C.F.R. Part 580 (57 FR 10820,
March 31, 1992), to implement the prohibitions set forth in Execu-
tive Orders No. 12775 and No. 12779. Since my last report, there
have been two amendments to the HTR.
On June 5, 1992, new section 580.211 was added (57 FR 23954,
June 5, 1992) prohibiting vessels calling in Haiti on or after that
date from entering the United States without authorization by
FAC. This amendment is explained more fully in section 6 of this
report. In addition, effective August 27, 1992, new section 580.516
(57 FR 39603, September 1, 1992) authorizes the exportation to
Haiti of certain additional food items (corn and corn flour, milk (in-
cluding powdered milk), and edible tallow), as well as the issuance
of specific licenses permitting, on a case-by-case basis, exports of
propane for noncommercial use. Copies of these amendments are
attached to this report.
4. The ouster of Jean-Bertrand Aristide, the democratically elect-
ed President of Haiti, in an illegal coup by elements of the Haitian
military on September 30, 1991, was immediately repudiated and
vigorously condemned by the OAS. The convening on September
30, 1991, of an emergency meeting of the OAS Permanent Council
to address this crisis reflected an important first use of a mecha-
nism approved at the 1991 OAS General Assembly in Santiago,
Chile, requiring the OAS to respond to a sudden or irregular inter-
ruption of the functioning of a democratic government anywhere in
the Western Hemisphere. As an OAS Member State, the United
States has participated actively in OAS diplomatic efforts to re-
store democracy in Haiti and has supported fully the OAS resolu-
tions adopted in response to the crisis, including Resolution MRE/
RES. 2/91 and MRE/RES. 3/92.
5. In the first year of the Haitian sanctions program, FAC has
made extensive use of its authority to specifically license transac-
tions with respect to Haiti in an effort to mitigate the effects of the
sanctions on the legitimate Government of Haiti and on the liveli-
hood of Haitian workers employed by Haiti's export assembly sec-
tion having established relationships with U.S. firms, 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 have been issued (1) permitting ex-
penditures 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 choose to withdraw from Haiti, to return to the
United States assembly equipment, machinery, and parts and ma-
terials previously exported to Haiti, (3) permitting U.S. companies
operating in Haiti to establish, under specified circumstances, in-
terest-bearing blocked reserve accounts in commercial or invest-
ment 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, and (5) authorizing commercial sales of agricul-
tural inputs such as fertilizer and foodcrop seeds.
6. The widespread supply of embargoed goods, particularly petro-
leum products, to Haiti by foreign-flag vessels led to the adoption
on May 17, 1992, by the Ad Hoc Meeting of Ministers of Foreign
Affairs of the OAS of Resolution MRE/RES. 3/92 urging, among
other things, a port ban on vessels engaged in trade with Haiti in
violation of the OAS embargo. There was broad consensus among
OAS member representatives, as well as European permanent ob-
server missions, on the importance of preventing oil shipments to
Haiti. Vessels from some non-OAS Caribbean ports and European
countries have been involved in trade, particularly oil supplies,
that undermines the embargo.
In response to Resolution MRE/RES. 3/92, section 580.211 was
added to the HTR on June 5, 1992, prohibiting vessels calling in
Haiti on or after that date from entering the United States without
FAC authorization. Vessels seeking such authorization must dem-
onstrate that all calls in Haiti on or after June 5 were (1) for trans-
actions exempted or excepted from the applicable prohibitions of
the HTR, (2) specifically licensed by FAC, or authorized by an OAS
Member State pursuant to Resolution MRE/RES. 3/92, or (3) made
under a contract of voyage that was fully completed prior to the
vessel's proposed entry into a U.S. port.
Strict enforcement of the new regulation has benefitted from the
close coordination between FAC, the U.S. Embassy at Port-auT
Prince, the U.S. Customs Service, the U.S. Navy, and the U.S.
Coast Guard in monitoring vessel traffic to and from Haiti.
7. Since the issuance of Executive Order No. 12779, FAC has
worked closely with the U.S. Customs Service to ensure both that
prohibited imports and exports (including those in which the Gov-
ernment of Haiti has an interest) are identified and interdicted and
that permitted imports and exports move to their intended destina-
tions without undue delay. Violations and suspected violations of
the embargo are being investigated, and appropriate enforcement
actions have been initiated.
Since my last report, penalties totalling more than $30,000 have
been collected from U.S. banks for violations involving unlicensed
transfers from blocked Government of Haiti accounts or the failure
to block payments to the de facto regime. Additional penalties to-
taling nearly $175,000 have been proposed for other violations of
the HTR, including penalties against the masters of vessels violat-
ing the new regulation, effective June 5, 1992, applicable to vessels
calling in Haiti on or after that date.
8. The expenses incurred by the Federal Government in the 6-
month period from April 4, 1992, through October 3, 1992, that are

directly attributable to the authorities conferred by the declaration
of a national emergency with respect to Haiti are estimated at $2.3
million, most of which represent wage and salary costs for Federal
personnel. Personnel costs were largely centered in the Depart-
ment of the Treasury (particularly in FAC, the U.S. Customs Serv-
ice, and the Office of the General Counsel), the Department of
State, the U.S. Coast Guard, and the Department of Commerce.
9. The assault on Haiti's democracy represented by the military's
forced exile of President Aristide continues to pose an unusual and
extraordinary threat to the national security, foreign policy, and
economy of the United States. The United States remains commit-
ted to a multilateral resolution of this crisis through its actions im-
plementing the resolutions of the OAS with respect to Haiti. I shall
continue to exercise the powers at my disposal to apply economic
sanctions against Haiti as long as these measures are appropriate,
and will continue to report periodically to the Congress on signifi-
cant developments pursuant to 50 U.S.C. 1703(c).
THE WHITE HOUSE, September 30, 1992.