[House Document 104-70]
[From the U.S. Government Publishing Office]





                                     

        104th Congress, 1st Session - - - - - - - - - - - - - House 
Document 104-70


 
        DECLARATION OF A NATIONAL EMERGENCY WITH RESPECT TO IRAN

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

HIS DECLARATION OF A NATIONAL EMERGENCY WITH RESPECT TO IRAN, PURSUANT 
                TO 50 U.S.C. 1703(b) AND 50 U.S.C. 1631




May 9, 1995.--Referred to the Committee on International Relations and 
                         ordered to be printed
                                           The White House,
                                           Washington, May 6, 1995.
Hon. Albert Gore, Jr.,
President of the Senate,
Washington, DC.
    Dear Mr. Speaker: On March 15, 1995, I reported to the 
Congress that, pursuant to section 204(b) of the International 
Emergency Economic Powers Act (50 U.S.C. 1703(b)), and section 
301 of the National Emergencies Act (50 U.S.C. 1631), I 
exercised my statutory authority to declare a national 
emergency to respond to the actions and policies of the 
Government of Iran and to issue an Executive order that 
prohibited United States persons from entering into contracts 
for the financing or the overall management or supervision of 
the development of petroleum resources located in Iran or over 
which Iran claims jurisdiction.
    Following the imposition of these restrictions with regard 
to the development of Iranian petroleum resources, Iran has 
continued to engage in activities that represent a threat to 
the peace and security of all nations. I have now taken 
additional measures to respond to Iran's continuing support for 
international terrorism, including support for acts that 
undermine the Middle East peace process, as well as its 
intensified efforts to acquire weapons of mass destruction. I 
have issued a new Executive order and hereby report to the 
Congress pursuant to the above authorities and section 505(c) 
of the International Security and Development Cooperations Act 
of 1985 (22 U.S.C. 2349aa 9(c)).
    The new order I have issued with respect to Iran:
          Prohibits exportation from the United States to Iran 
        or to the Government of Iran of goods, technology or 
        services, including trade financing by U.S. banks;
          Prohibits the reexportation of certain U.S. goods and 
        technology to Iran from third countries;
          Prohibits transactions such as brokering and other 
        dealing by United States persons in Iranian goods and 
        services;
          Prohibits new investments by United States persons in 
        Iran or in property owned or controlled by the 
        Government of Iran;
          Prohibits U.S. companies from approving or 
        facilitating their subsidiaries' performance of 
        transactions that they themselves are prohibited from 
        performing;
          Continues the 1987 prohibition on the importation 
        into the United States of goods and services of Iranian 
        origin; and
          Allows U.S. companies a 30-day period in which to 
        perform trade transactions pursuant to contracts 
        predating this order that are now prohibited.
    With the exception of the trade noted above, all 
prohibitions contained in the Executive order are effective as 
of 12:01 a.m., eastern daylight time, on May 7, 1995.
    This new order provides that the Secretary of the Treasury, 
in consultation with the Secretary of State, is authorized to 
take such actions, including the promulgation of rules and 
regulations, as may be necessary to carry out the purposes of 
the order. The order also authorizes the Secretary of the 
Treasury to require reports, including reports on foreign 
affiliates' oil trading with Iran. There are certain 
transactions subject to the prohibitions contained in the 
Executive order that I have directed the Secretary of the 
Treasury to authorize through licensing, including transactions 
by United States persons related to the Iran-United States 
Claims Tribunal in The Hague, established pursuant to the 
Algiers Accords, and other international obligations and United 
States Government functions. Such transactions also include the 
export of agricultural commodities consistent with section 
5712(c) of title 7, United States Code. In addition, United 
States persons may be licensed 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, Turkmenistan, 
and Kazakhstan.
    This order revokes sections 1 and 2 of Executive Order No. 
12613 of October 29, 1987, and sections 1 and 2 of Executive 
Order No. 12957 of March 15, 1995, to the extent they are 
inconsistent with this order. The declaration of national 
emergency made by Executive Order No. 12957 remains in effect 
and is not affected by this order.
            Sincerely,
                                                William J. Clinton.
                           [EXECUTIVE ORDER]

         Prohibiting Certain Transactions With Respect to Iran

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 
U.S.C. 1601 et seq.), section 505 of the International Security 
and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9) 
(ISDCA), and section 301 of title 3, United States Code,
    I, WILLIAM J. CLINTON, President of the United States of 
America, in order to take steps with respect to Iran in 
addition to those set forth in Executive Order No. 12957 of 
March 15, 1995, to deal with the unusual and extraordinary 
threat to the national security, foreign policy, and economy of 
the United States referred to in that order, hereby order:
    Section 1. The following are prohibited, except to the 
extent provided in regulations, orders, directives, or licenses 
that may be issued pursuant to this order, and notwithstanding 
any contract entered into or any license or permit granted 
prior to the effective date of this order: (a) the importation 
into the United States, or the financing of such importation, 
of any goods or services of Iranian origin, other than Iranian-
origin publications and materials imported for news 
publications or news broadcast dissemination;
    (b) except to the extent provided in section 203(b) of 
IEEPA (50 U.S.C. 1702(b)), the exportation from the United 
States to Iran, the Government of Iran, or to any entity owned 
or controlled by the Government of Iran, or the financing of 
such exportation, of any goods, technology (including technical 
data or other information subject to the Export Administration 
Regulations, 15 CFR Parts 768-799 (1994) (the ``EAR'')), or 
services;
    (c) the reexportation to Iran, the Government of Iran, or 
to any entity owned or controlled by the Government of Iran, of 
any goods or technology (including technical data or other 
information) exported from the United States, the exportation 
of which to Iran is subject to export license application 
requirements under any United States regulations in effect 
immediately prior to the issuance of this order, unless, for 
goods, they have been (i) substantially transformed outside the 
United States, or (ii) incorporated into another product 
outside the United States and constitute less than 10 percent 
by value of that product exported from a third country;
    (d) except to the extent provided in section 203(b) of 
IEEPA (50 U.S.C. 1702(b)), any transaction, including purchase, 
sale, transportation, swap, financing, or brokering 
transactions, by a United States person relating to goods or 
services of Iranian origin or owned or controlled by the 
Government of Iran;
    (e) any new investment by a United States person in Iran or 
in property (including entities) owned or controlled by the 
Government of Iran;
    (f) the approval or facilitation by a United States person 
of the entry into or performance by an entity owned or 
controlled by a United States person of a transaction or 
contract (i) prohibited as to United States persons by 
subsection (c), (d), or (e) above, or (ii) relating to the 
financing of activities prohibited as to United States persons 
by those subsections, or of a guaranty of another person's 
performance of such transaction or contract; and
    (g) any transaction by any United States person or within 
the United States that evades or avoids, or has the purpose of 
evading or avoiding, or attempts to violate, any of the 
prohibitions set forth in this order.
    Sec. 2. For the purposes of this order:
    (a) the term ``person'' means an individual or entity;
    (b) the term ``entity'' means a partnership, association, 
trust, joint venture, corporation, or other organization;
    (c) the term ``United States person'' means any United 
States citizen, permanent resident alien, entity organized 
under the laws of the United States (including foreign 
branches), or any person in the United States;
    (d) the term ``Iran'' means the territory of Iran and any 
other territory or marine area, including the exclusive 
economic zone and continental shelf, over which the Government 
of Iran claims sovereignty, sovereign rights or jurisdiction, 
provided that the Government of Iran exercises partial or total 
de facto control over the area or derives a benefit from 
economic activity in the area pursuant to international 
arrangements; and
    (e) the term ``new investment'' means (i) a commitment or 
contribution of funds or other assets, or (ii) a loan or other 
extension of credit.
    Sec. 3. The Secretary of the Treasury, in consultation with 
the Secretary of State, is hereby authorized to take such 
actions, including the promulgation of rules and regulations, 
the requirement of reports, including reports by United States 
persons on oil transactions engaged in by their foreign 
affiliates with Iran or the Government of Iran, and to employ 
all powers granted to the President by IEEPA and ISDCA as may 
be necessary to carry out the purposes of this order. The 
Secretary of the Treasury may redelegate any of these functions 
to other officers and agencies of the United States Government. 
All agencies of the United States Government are hereby 
directed to take all appropriate measures within their 
authority to carry out the provisions of this order.
    Sec. 4. The Secretary of the Treasury may not authorize the 
exportation or reexportation to Iran, the Government of Iran, 
or an entity owned or controlled by the Government of Iran of 
any goods, technology, or services subject to export license 
application requirements of another agency of the United States 
Government, if authorization of the exportation or 
reexportation by that agency would be prohibited by law.
    Sec. 5. Sections 1 and 2 of Executive Order No. 12613 of 
October 29, 1987, and sections 1 and 2 of Executive Order No. 
12957 of March 15, 1995, are hereby revoked to the extent 
inconsistent with this order. Otherwise, the provisions of this 
order supplement the provisions of Executive Orders No. 12613 
and 12957.
    Sec. 6. Nothing contained in this order shall create any 
right or benefit, substantive or procedural, enforceable by any 
party against the United States, its agencies or 
instrumentalities, its officers or employees, or any other 
person.
    Sec. 7. The measures taken pursuant to this order are in 
response to actions of the Government of Iran occurring after 
the conclusion of the 1981 Algiers Accords, and are intended 
solely as a response to those later actions.
    Sec. 8. (a) This order is effective at 12:01 a.m., eastern 
daylight time, on May 7, 1995, except that (i) section 1(b), 
(c), and (d) of this order shall not apply until 12:01 a.m., 
eastern daylight time, on June 6, 1995, to trade transactions 
under contracts in force as of the date of this order if such 
transactions are authorized pursuant to Federal regulations in 
force immediately prior to the date of this order (``existing 
trade contracts''), and (ii) letters of credit and other 
financing agreements with respect to existing trade contracts 
may be performed pursuant to their terms with respect to 
underlying trade transactions occurring prior to 12:01 a.m., 
eastern daylight time, on June 6, 1995.
    (b) This order shall be transmitted to the Congress and 
published in the Federal Register.

                                                William J. Clinton.
    The White House, May 6, 1995.