[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.