[House Document 107-110]
[From the U.S. Government Publishing Office]
107th Congress, 1st Session - - - - - - - - - - House Document 107-110
SIX MONTH PERIODIC REPORT ON THE
NATIONAL EMERGENCY WITH RESPECT TO IRAQ
__________
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
Transmitting
A 6-MONTH REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO IRAQ THAT
WAS DECLARED IN EXECUTIVE ORDER 12722 OF AUGUST 2, 1990, PURSUANT TO 50
U.S.C. 1622(d)
July 31, 2001.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
To the Congress of the United States:
As required by section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c), and section 204(c) of the International
Emergency Economic Powers Act, 50 U.S.C. 1703(c), I transmit
herewith a 6-month report on the national emergency with
respect to Iraq that was declared in Executive Order 12722 of
August 2, 1990.
George W. Bush.
The White House, July 31, 2001.
President's Periodic Report on the National Emergency With Respect to
Iraq
I hereby report to the Congress on the developments over
the course of the past six months concerning the national
emergency with respect to Iraq that was declared in Executive
Order 12722 of August 2, 1990, and matters relating to
Executive Order 12724 of August 9, 1990, and Executive Order
12817 of October 23, 1992. This report is submitted pursuant to
section 401(c) of the National Emergencies Act, 50 U.S.C.
1641(c), and section 204(c) of the International Emergency
Economic Powers Act, 50 U.S.C. 1703(c) (``IEEPA'').
1. There have been no amendments to the Iraqi Sanctions
Regulations, 31 C.F.R. Part 575 (the ``Regulations''), during
the current reporting period.
2. Since December 10, 1996, the Office of Foreign Assets
Control (OFAC) has issued specific licenses authorizing
participation by U.S. persons in commercial sales of
humanitarian goods to Iraq funded by Iraqi oil sales, and
imports of Iraqi petroleum products, pursuant to United Nations
Security Council Resolution (``UNSCR'') 986 and succeeding
resolutions. The total value of humanitarian sales since 1996
is approximately $647 million. Of this amount, OFAC licenses
have authorized sales of about $462 million in basic
foodstuffs, nearly $50 million for medicines and medical
supplies, more than $120 million for water testing and treating
equipment, irrigation systems, and other infrastructure
components essential to the delivery to the Iraqi people of
food, medicine and other necessities of life, and approximately
$15 million to fund a variety of United Nations activities in
Iraq. During the current reporting period, as of June 15, 2001,
OFAC-authorized humanitarian sales were valued at nearly $60
million.
In addition, sales of oil infrastructure merchandise
authorized since November 10, 1998, in conformity with UNSCRs
1153 and 1175, were valued at approximately $114 million. OFAC
issued 124 licenses during the reporting period for the sale of
oilfield parts and equipment to the Government of Iraq.
Finally, an additional 16 licenses were issued authorizing
certain diplomatic and travel transactions, the provision of
legal services (including the protection of intellectual
property), and the unblocking of wire transfer transactions
where it was determined that there was no interest of the
Government of Iraq.
3. As of June 13, 2001, 30 transactions totaling
approximately $3 million were blocked during the reporting
period. One hundred and thirty-five transactions, not involving
blockable interests, were rejected by U.S. banks causing a
disruption of more than $12 million in business for Iraq.
4. Since the last report, OFAC has collected two civil
monetary penalties totaling more than $9,500 for violations of
the sanctions. One U.S. financial institution and one
individual paid the penalties for violations involving a
payment relating to Iraq and an attempted export of goods to
Iraq. An additional twenty-three cases were undergoing agency
penalty or debt collection action for violation of the
Regulations.
5. On February 15, 2001, in the Southern District of
California, three foreign businessmen pleaded guilty to charges
resulting from their entry into the United States to complete
the unauthorized purchase of 160,000 metric tons of oil from
Iraq. Two defendants pleaded guilty to conspiracy to deal and
engage in activity promoting dealing in oil of Iraqi origin in
violation of IEEPA and the Regulations. The third defendant
pleaded guilty to illegally importing money into the United
States. All three have been sentenced and deported from the
United States.
6. The expenses incurred by the Federal Government in the
six-month period from February 2 through August 1, 2001, that
are directly attributable to the exercise of powers and
authorities conferred by the declaration of a national
emergency with respect to Iraq, are reported to be about
$1,100,000, 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), and the Department of State (particularly the
Bureau of Economic and Business Affairs, the Bureau of Near
Eastern Affairs, the Bureau of International Organization
Affairs, the Bureau of Political-Military Affairs, the Bureau
of Intelligence and Research, the U.S. Mission to the United
Nations, and the Office of the Legal Adviser).
7. The United States imposed economic sanctions on Iraq in
response to Iraq's illegal invasion and occupation of Kuwait, a
clear act of brutal aggression. The United States, together
with the international community, is maintaining economic
sanctions against Iraq because the Iraqi regime has failed to
comply fully with relevant United Nations Security Council
resolutions. Iraqi compliance with these resolutions is
necessary before the United States will consider lifting
economic sanctions.
The policies and actions of the Saddam Hussein regime
continue to pose an unusual and extraordinary threat to the
national security and foreign policy of the United States, as
well as to regional peace and security. The Security Council
resolutions affirm that the Security Council review Iraq's
policies and practices in judging Iraq's compliance with those
resolutions. Because of Iraq's failure to comply with these
resolutions, the United States will continue to apply economic
sanctions to deter it from threatening peace and stability in
the region.