It seems to me that there are a few caveats that may explain this.
The first is that the blurb covers _furnishing_ the archival/photocopy, not creating the copy itself. This is more akin to whether I can give a friend a copy of a book I purchased, as opposed to the act of photocopying it myself. That is to say, it is okay to provide a photocopied version of a copyrighted document, but only under certain usage circumstances as defined by fair use doctrine.
The other aspect may simply be laziness. Perhaps it could be read as:
> [institutions such as] libraries and archives are authorized to furnish a photocopy or other reproduction
Either way, I think "requires libraries to lie" is a bit sensationalist.