[House Document 107-252]
[From the U.S. Government Publishing Office]
107th Congress, 2d Session - - - - - - - - - - - - House Document 107-252
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO IRAQ
__________
COMMUNICATION
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)
September 4, 2002.--Referred to the Committee on International
Relations and ordered to be printed.
The White House,
Washington, July 30, 2002.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: 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 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.
Sincerely,
George W. Bush.
Periodic Report on the National Emergency With Respect to Iraq
This report to the Congress covers 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), 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 $756 million. Of this amount, OFAC
licenses have authorized sales of about $521 million in basic
foodstuffs, nearly $81 million for medicines and medical
supplies, nearly $139 million for water testing and treatment
equipment, irrigation systems, and other infrastructures
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 3, 2002, OFAC-authorized humanitarian sales were valued at
nearly $88 million, an increase of approximately $66 million
from the prior reporting period.
Sales of oil infrastructure merchandise authorized since
November 10, 1998, in conformity with UNSCRs 1153 and 1175,
were valued at nearly $163 million. OFAC issued 61 licenses
during the reporting period for the sale of oilfield parts and
equipment to the Government of Iraq.
Finally, an additional six licenses were issued authorizing
the provision of legal services, sample equipment, and software
for use by the United Nations within Iraq.
3. As of June 4, 2002, 21 transactions totaling
approximately $590,000 were blocked during the reporting
period. Forty-eight transactions, not involving blockable
interests, were rejected by U.S. banks causing a disruption of
more than $20 million in business for Iraq.
4. Since my last report, OFAC has collected civil monetary
penalties totaling nearly $172,000 from one individual and one
U.S. company for violations of the sanctions. An additional 25
cases are undergoing agency penalty or debt collection action
for violations of the Regulations.
5. The expenses incurred by the Federal Government in the
6-month period from February 2 through August 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 $1.5 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), 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 United Nations
Security Council resolutions affirm that the Security Council
will 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.