[House Document 107-121]
[From the U.S. Government Publishing Office]
107th Congress, 1st Session - - - - - - - - - - - House Document 107-121
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO IRAN
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
IRAN THAT WAS DECLARED IN EXECUTIVE ORDER 12957 OF MARCH 15, 1995,
PURSUANT TO 50 U.S.C. 1641(c) AND 1703(c); AND 22 U.S.C. 2349aa-9(c)
September 20, 2001.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
89-011 WASHINGTON : 2001
To the Congress of the United States:
As required by section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c), section 204(c) of the International
Emergency Economic Powers Act, 50 U.S.C. 1703(c), and section
505(c) of the International Security and Development
Cooperation Act of 1985, 22 U.S.C. 2349aa-9(c), I transmit
herewith a 6-month periodic report on the national emergency
with respect to Iran that was declared in Executive Order 12957
of March 15, 1995.
George W. Bush.
The White House, September 19, 2001.
President's Periodic Report on the National Emergency With Respect to
Iran
I hereby report to the Congress on developments over the
course of the past 6 months 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
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. In light of the recent passage of the Trade Sanctions
Reform and Export Enhancement Act of 2000, Title IX of Public
Law 106-387 (October 28, 2000) (the ``TSRA''), conforming
amendments were promulgated to the Iranian Transaction
Regulations, 31 CFR Part 560 (the ``Regulations'') (66 FR
36683, July 12, 2001). The TSRA requires the President to
terminate unilateral sanctions on the exportation of most
agricultural commodities, medicine and medical devices and
imposes the requirement, with certain exceptions, that exports
of such products to the government of countries, such as Iran,
designated by the Secretary of State to have repeatedly
provided support for acts of international terrorism, and any
other entity within such countries, only be made available
pursuant to one-year licenses. The TSRA requires that
procedures be put in place to deny licenses for exports to any
entity in such country promoting international terrorism. A
copy of the Regulations is attached to this report.
2. During this period, the Office of Foreign Assets Control
(OFAC) made numerous decisions with respect to applications for
licenses to engage in transactions under the Regulations. Of
those applications for licenses that were denied, the majority
were for requests to authorize commercial exports to Iran--
particularly of machinery and equipment for various
industries--and the importation of Iranian-origin goods. One
hundred eighteen licenses were issued, of which 61 authorized
commercial sales and exportation to Iran of bulkagricultural
commodities. In addition, licenses were also issued authorizing 45
sales of medicines or medical equipment. Other licenses issued
authorized certain licensable transactions involving air and marine
safety, cultural exchanges, journalistic, legal and financial
activities, and the importation of art objects for public exhibition.
Pursuant to Sections 3 and 4 of Executive Order 12959 and Executive
Order 13059 and consistent with statutory restrictions concerning
certain goods and technology, including those involved in air safety
cases, Treasury continues to consult with the Departments of State and
Commerce in the issuance of licenses.
3. For the period March 15 through September 14, 2001, on
OFAC's instructions, U.S. banks refused to process
approximately 1,300 commercial transactions, the majority
involving foreign financial institutions. The completion of
these transactions by U.S. banks would have been contrary to
U.S. foreign policy with respect to Iran. The rejected
transactions caused a disruption of approximately $160 million
in financial dealings involving Iran by virtue of U.S. economic
sanctions.
4. Since my last report, OFAC has collected 44 civil
monetary penalties, settlements and installment payments
totaling nearly $210,000 for violations of IEEPA and the
Regulations. The violators included 11 companies, three U.S.
financial institutions, one law firm, and 11 individuals. An
additional 172 cases are undergoing penalty action for
violations of IEEPA and the Regulations. Various enforcement
actions carried over from previous reporting periods are
continuing and new reports of violations are being aggressively
pursued.
5. The expenses incurred by the Federal Government in the
6-month period from March 15 through September 14, 2001, 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
$1.4 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 Chief
Counsel's Office).
6. 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 furthering 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, as required by statute, on
significant developments.