The White House Briefing Room
September 17, 1999
FACT SHEET
THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________
For Immediate Release September 17, 1999
FACT SHEET
Easing Sanctions Against North Korea
On September 17, 1999, the President announced his decision to ease some of
the sanctions in place against the Democratic Peoples Republic of Korea
(North Korea) that are administered under the Trading with the Enemy Act,
the Defense Production Act, and the Department of Commerce?s Export
Administration Regulations. The Departments of Commerce, Transportation
and Treasury have begun the process of modifying regulations to implement
the President?s decision. That process may take several months. Examples
of activities on which restrictions will be eased are:
? the importation of most North Korean-origin goods and raw materials;
? the export and re-export of most non-sensitive goods and services of
U.S. companies and their foreign subsidiaries, such as most consumer
goods, most financial services, non-sensitive inputs for investment in
non-sensitive industrial sectors;
? investment in such sectors as agriculture, mining, petroleum, timber,
cement, transportation, infrastructure (roads, ports, airports),
travel/tourism;
? remittances from U.S. nationals to North Koreans;
? the transport of approved (i.e., non-sensitive) cargo to and from
North Korea by commercial U.S. ships and aircraft, subject to normal
regulatory requirements;
? commercial flights between the U.S. and North Korea, subject to normal
regulatory requirements.
Restrictions associated with North Korea?s designation as a
terrorist-supporting state will remain in place. These restrictions affect
trade and/or financial transactions with certain North Korean entities.
Examples of activities that still will not be permitted due to these
restrictions are:
? the export of United States Munitions List goods or technology;
? the export of dual-use goods or technology on the Commerce Control
List without a license;
? any assistance under the Foreign Assistance Act, the Agricultural
Trade and Development Act, the Peace Corps Act, and the Export-Import
Bank Act;
? support for loans to North Korea by international financial
institutions;
? the transfer of spoils of war;
? the duty free treatment of exports to the United States;
? financial transactions between U.S. persons and the North Korean
government unless authorized by regulation by the Secretary of the
Treasury; and
? claiming foreign tax credits on corporate or individual income in
North Korea.
In addition, statutory restrictions such as U.S. missile technology
sanctions remain in place, as do restrictions based on multilateral
arrangements and nonproliferation controls. An illustrative list of the
restrictions that will continue are:
? no new individual licenses for exports of items controlled pursuant to
the Export Administration regulations or to the Arms Export Control
Act to certain North Korean entities;
? no U.S. government contracts involving certain North Korean entities;
? no import into the United States of products produced by certain North
Korean entities;
? no new individual licenses for exports of items controlled pursuant to
the Arms Export Control Act to any activity of the North Korean
government relating to the development or production of missile
equipment or technology, and all activities of the North Korean
government affecting the development or production of electronics,
space systems or equipment, and military aircraft;
? no U.S. Government contracts with any activity of the North Korean
government relating to the development or production of missile
equipment or technology and all activities of the DPRK government
affecting the development or production of electronics, space systems
or equipment and military aircraft;
? no import to the United States of products produced by any activity of
the North Korean government relating to the development or production
of missile equipment or technology and all activities of the North
Korean government affecting the development or production of
electronics, space systems or equipment, and military aircraft; and
? no export of items for proliferation activities.
Finally, assets currently blocked under the Trading With the Enemy Act
remain frozen, and claims settlements issues are not addressed by this
initiative.
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