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Weapons of Mass Destruction (WMD)

USIS Washington File

17 March 1998

TEXT: CLINTON REPORT TO CONGRESS ON IRAN NATIONAL EMERGENCY

(Iran's policies, actions present threat to US security) (1960)
Washington -- President Clinton reported to Congress March 16 that the
actions and policies of the Government of Iran "continue to present an
extraordinary and unusual threat to the national security, foreign
policy, and economy of the United States."
The President noted in particular Iran's support of international
terrorism, its support for acts that undermine the Middle East peace
process and its efforts to acquire weapons of mass destruction and the
means to deliver them.
The declaration of the national emergency with respect to Iran
contained in Executive Order 12957 and the comprehensive economic
sanctions imposed by Executive Order 12959, "underscore the United
States Government's opposition to Iran's actions and policies,"
Clinton said.
Following is the text of the President's report:
(Begin text)
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
March 16, 1998
TO THE CONGRESS OF THE UNITED STATES:
I hereby report to the Congress on developments concerning the
national emergency with respect to Iran that was declared in Executive
order 12957 of March 15, 1995, and matters relating to the measures in
that order and in Executive Order 12959 of May 6, 1995, and in
Executive Order 13059 of August 19, 1997. This report is submitted
pursuant to section 204(c) of the International Emergency Economic
Powers Act, 50 U.S.C. 1703(c) (IEEPA), section 401(c) of the National
Emergencies Act, 50 U.S.C. 1641(c), and section 505(c) of the
International Security and Development Cooperation Act of 1985, 22
U.S.C. 2349aa-9(c). This report discusses only matters concerning the
national emergency with respect to Iran that was declared in Executive
Order 12957 and does not deal with those relating to the emergency
declared on November 14, 1979, in connection with the hostage crisis.
1. On March 15, 1995, 1 issued Executive Order 12957 (60 Fed. Reg.
14615, March 17, 1995) to declare a national emergency with respect to
Iran pursuant to IEEPA, and to prohibit the financing, management, or
supervision by United States persons of the development of Iranian
petroleum resources. This action was in response to actions and
policies of the Government of Iran, including support for
international terrorism, efforts to undermine the Middle East peace
process, and the acquisition of weapons of mass destruction and the
means to deliver them. A copy of the order was provided to the Speaker
of the House and the President of the Senate by letter dated March 15,
1995.
Following the imposition of these restrictions with regard to the
development of Iranian petroleum resources, Iran continued to engage
in activities that represent a threat to the peace and security of all
nations, including Iran's continuing support for international
terrorism, its support for acts that undermine the Middle East peace
process, and its intensified efforts to acquire weapons of mass
destruction. On May 6, 1995, 1 issued Executive Order 12959 (60 Fed.
Reg. 24757, May 9, 1995) to further respond to the Iranian threat to
the national security, foreign policy, and economy of the United
States. The terms of that order and an earlier order imposing an
import ban on Iranian-origin goods and services (Executive Order 12613
of October 29, 1987) were consolidated and clarified in Executive
order 13059 of August 19, 1997.
At the time of signing Executive order 12959, I directed the Secretary
of the Treasury to authorize through specific licensing certain
transactions, including transactions by United States persons related
to the Iran-United States Claims Tribunal in The Hague, established
pursuant to the Algiers Accords, and related to other international
obligations and U.S. Government functions, and transactions related to
the export of agricultural commodities pursuant to preexisting
contracts consistent with section 5712(c) of title 7, United States
Code. I also directed the Secretary of the Treasury, in consultation
with the Secretary of State, to consider authorizing United States
persons through specific licensing to participate in market-based
swaps of crude oil from the Caspian Sea area for Iranian crude oil in
support of energy projects in Azerbaijan, Kazakhstan, and
Turkmenistan.
Executive Order 12959 revoked sections I and 2 of Executive Order
12613 of October 29, 1987, and sections 1 and 2 of Executive Order
12957 of March 15, 1995, to the extent they are inconsistent with it.
A copy of Executive Order 12959 was transmitted to the Congressional
leadership by letter dated May 6, 1995.
2. On August 19, 1997, I issued Executive Order 13059 in order to
clarify the steps taken in Executive Order 12957 and Executive order
12959, to confirm that the embargo on Iran prohibits all trade and
investment activities by United States persons, wherever located, and
to consolidate in one order the various prohibitions previously
imposed to deal with the national emergency declared on March 15,
1995. A copy of the order was transmitted to the Speaker of the House
and the President of the Senate by letter dated August 19, 1997.
The Order prohibits (1) the importation into the United States of any
goods or services of Iranian origin or owned or controlled by the
Government of Iran except information or informational material; (2)
the exportation, reexportation, sale, or supply from the United States
or by a United States person, wherever located, of goods, technology,
or services to Iran or the Government of Iran, including knowing
transfers to a third country for direct or indirect supply,
transshipment, or reexportation to Iran or the Government of Iran, or
specifically for use in the production, commingling with, or
incorporation into goods, technology, or services to be supplied,
transshipped, or reexported exclusively or predominantly to Iran or
the Government of Iran; (3) knowing reexportation from a third country
to Iran or the Government of Iran of certain controlled U.S.-origin
goods, technology, or services by a person other than a United States
person; (4) the purchase, sale, transport, swap, brokerage, approval,
financing, facilitation, guarantee, or other transactions or dealings
by United States persons, wherever located, related to goods,
technology, or services for exportation, reexportation, sale or
supply, directly or indirectly, to Iran or the Government of Iran, or
to goods or services of Iranian origin or owned or controlled by the
Government of Iran; (5) new investment by United States persons in
Iran or in property or entities owned or controlled by the Government
of Iran; (6) approval, financing, facilitation, or guarantee by a
United States person of any transaction by a foreign person that a
United States person would be prohibited from performing under the
terms of the Order; and (7) any transaction that evades, avoids, or
attempts to violate a prohibition under the Order.
Executive Order 13059 became effective at 12:01 a.m., eastern daylight
time on August 20, 1997. Because the order consolidated and clarified
the provisions of prior orders, Executive Order 12613 and paragraphs
(a), (b), (c), (d), and (f) of section 1 of Executive Order 12959 were
revoked by Executive Order 13059. The revocation of corresponding
provisions in the prior Executive orders did not affect the
applicability of those provisions, or of regulations, licenses or
other administrative actions taken pursuant to those provisions, with
respect to any transaction or violation occurring before the effective
date of Executive order 13059. Specific licenses issued pursuant to
prior Executive orders continue in effect, unless revoked or amended
by the Secretary of the Treasury. General licenses, regulations,
orders, and directives issued pursuant to prior orders continue in
effect, except to the extent inconsistent with Executive order 13059
or otherwise revoked or modified by the Secretary of the Treasury.
The declaration of national emergency made by Executive Order 12957,
and renewed each year since, remains in effect and is not affected by
the order.
3. On March 4, 1998, I renewed for another year the national emergency
with respect to Iran pursuant to IEEPA. This renewal extended the
authority for the current comprehensive trade embargo against Iran in
effect since May 1995. Under these sanctions, virtually all trade with
Iran is prohibited except for trade in information and informational
materials and certain other limited exceptions.
4. There have been no amendments to the Iranian Transactions
Regulations, 31 C.F.R. Part 560 (the "ITR"), since my report of
September 17, 1997.
5. During the current 6-month period, the Department of the Treasury's
Office of Foreign Assets Control (OFAC) made numerous decisions with
respect to applications for licenses to engage in transactions under
the ITR, and issued seven licenses. The majority of denials were in
response to requests to authorize commercial exports to Iran
particularly of machinery and equipment for various industries and the
importation of Iranian-origin goods. The licenses issued authorized
certain financial transactions, transactions relating to air safety
policy, and to disposal of U.S.-owned goods located in Iran. Pursuant
to sections 3 and 4 of Executive Order 12959 and consistent with the
Iran-Iraq Arms Non-Proliferation Act of 1992 and other statutory
restrictions concerning certain goods and technology, including those
involved in air-safety cases, the Department of the Treasury continues
to consult with the Departments of State and Commerce on these
matters.
The U.S. financial community continues to scrutinize transactions
associated with Iran and to consult with OFAC about their appropriate
handling. Many of these inquiries have resulted in investigations into
the activities of U.S. parties and, where appropriate, the initiation
of enforcement action.
6. The U.S. Customs Service has continued to effect numerous seizures
of Iranian-origin merchandise, primarily carpets, for violation of the
import prohibitions of the ITR. Various enforcement actions carried
over from previous reporting periods are continuing and new reports of
violations are being aggressively pursued. Since my last report, OFAC
has collected six civil monetary penalties totaling nearly $84,000 for
violations of IEEPA and the ITR.
7. The expenses incurred by the Federal Government in the 6-month
period from September 15, 1997, through March 14, 1998, that are
directly attributable to the exercise of powers and authorities
conferred by the declaration of a national emergency with respect to
Iran are reported to be approximately $1.3 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 the office of Foreign Assets Control, the U.S. Customs Service, the
Office of the Under Secretary for Enforcement, and the Office of the
General Counsel), the Department of State (particularly the Bureau of
Economic and Business Affairs, the Bureau of Near Eastern Affairs, the
Bureau of intelligence and Research, and the Office of the Legal
Adviser), and the Department of Commerce (the Bureau of Export
Administration and the General Counsel's office).
8. The situation reviewed above continues to present an extraordinary
and unusual threat to the national security, foreign policy, and
economy of the United States. The declaration of the national
emergency with respect to Iran contained in Executive Order 12957 and
the comprehensive economic sanctions imposed by Executive Order 12959
underscore the United States Government's opposition to the actions
and policies of the Government of Iran, particularly its support of
international terrorism and its efforts to acquire weapons of mass
destruction and the means to deliver them. The Iranian Transactions
Regulations issued pursuant to Executive Orders 12957, 12959, and
13059 continue to advance important objectives in promoting the
nonproliferation and anti-terrorism policies of the United States. I
shall exercise the powers at my disposal to deal with these problems
and will report periodically to the Congress on significant
developments.
WILLIAM J. CLINTON
THE WHITE HOUSE,
March 16, 1998.
(End text)




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