[House Document 107-179]
[From the U.S. Government Publishing Office]
107th Congress, 2d Session - - - - - - - - - - - - House Document 107-179
PERIODIC REPORT ON THE
NATIONAL EMERGENCY WITH RESPECT TO IRAQ
__________
MESSAGE
From
THE PRESIDENT OF THE UNITED STATES
transmitting
A SIX MONTH PERIODIC 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. 1641(c) AND 50 U.S.C. 1703(c)
February 5, 2002.--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 am
providing a 6-month periodic report prepared by my
Administration 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, February 4, 2002.
Periodic Report on the National Emergency With Respect to Iraq
This report to the Congress covers the developments over
the course of the past 6 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 204(c) of the International Emergency Economic Powers
Act, 50 U.S.C. 1703(c) (``IEEPA''), and section 401(c) of the
National Emergencies Act, 50 U.S.C. 1641(c).
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, 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 $669 million. Of this amount, OFAC
licenses have authorized sales of about $462 million in basic
foodstuffs, nearly $68 million for medicines and medical
supplies, more than $123 million for water testing and
treatment equipment, irrigation systems, and other
infrastructure components essential to the delivery to the
Iraqi people of food, medicine, 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
December 3, 2001, OFAC-authorized humanitarian sales were
valued at nearly $22 million, a decrease of $38 million from
the prior reporting period.
In the period from February 2 to November 27, 2001,
importations of Iraqi crude oil, authorized by OFAC pursuant to
UNSCR 1153, were valued at approximately $203 million. In
addition, sales of oil infrastructure merchandise authorized
since November 10, 1998, in conformity with UNSCRs 1153 and
1175, were valued at nearly $140 million. OFAC issued 58
licenses during the reporting period for the sale of oilfield
parts and equipment to the Government of Iraq.
Finally, an additional 24 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 December 5, 2001, 29 transactions totaling more
than $1 million were blocked during the reporting period.
Forty-one transactions, not involving blockable interests, were
rejected by U.S. banks causing a disruption of more than $5
million in business for Iraq.
4. Since my last report, OFAC has collected 4 civil
monetary penalties totaling nearly $280,000 for violations of
the sanctions. Two U.S. companies and three individuals paid
the penalties for violations involving exports and an attempted
export of goods to Iraq. An additional twenty cases are
undergoing agency penalty or debt collection action for
violation of the Regulations.
On November 23, 2001, OFAC issued an order to a U.S.
company to place into a blocked account funds reflecting a
contract price for approximately 1.075 million barrels of
Iraqi-origin oil that were excluded from OFAC's general license
authorizing the importation of oil from Iraq under the oil for
food program. The unlicensed oil was part of a larger shipment
of oil purchased from Iraq by a non-U.S. entity that is
believed to have exceeded the exportation authorization granted
to it by the U.N. 661 Committee. An investigation of this
matter is continuing.
5. The expenses incurred by the Federal Government in the 6
month period from August 2, 2001, through February 1, 2002,
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
$195,000, 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.
6. 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 fully with
these resolutions, the United States will continue to apply
economic sanctions to deter it from threatening peace and
stability in the region.