[House Document 105-288]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-288


 
DEVELOPMENTS CONCERNING NATIONAL EMERGENCY WITH RESPECT TO TERRORISTS 
         WHO THREATEN TO DISRUPT THE MIDDLE EAST PEACE PROCESS

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT 
  TO TERRORISTS WHO THREATEN TO DISRUPT THE MIDDLE EAST PEACE PROCESS 
    THAT WAS DECLARED IN EXECUTIVE ORDER 12947 OF JANUARY 23, 1995, 
                     PURSUANT TO 50 U.S.C. 1641(c)





    July 21, 1998.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed


To the Congress of the United States:
    I hereby report to the Congress on the developments 
concerning the national emergency with respect to terrorists 
who threaten to disrupt the Middle East Pease process that was 
declared in Executive Order 12947 of January 23, 1995. This 
report is submitted pursuant to 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 (IEEPA), 50 U.S.C. 
1703(c).
    1. On January 23, 1995, I signed Executive Order 12947, 
``Prohibiting Transactions with Terrorists Who Threaten To 
Disrupt the Middle East Peace Process'' (the ``Order'') (60 
Fed. Reg. 5079, January 25, 1995). The Order blocks all 
property subject to U.S. jurisdiction in which there is any 
interest of 12 terrorist organizations that threaten the Middle 
East peace process as identified in an Annex to the Order. The 
Order also blocks the property and interests in property 
subject to U.S. jurisdiction of persons designated by the 
Secretary of State, in coordination with the Secretary of the 
Treasury and the Attorney General, who are found (1) to have 
committed, or to pose a significant risk of committing, acts of 
violence that have the purpose or effect of disrupting the 
Middle East peace process, or (2) to assist in, sponsor, or 
provide financial, material, or technological support for, or 
services in support of, such acts of violence. In addition, the 
Order blocks all property and interests in property subject to 
U.S. jurisdiction in which there is any interest of persons 
determined by the Secretary of the Treasury, in coordination 
with the Secretary of State and the Attorney General, to be 
owned or controlled by, or to act for or on behalf of, any 
other person designated pursuant to the Order (collectively 
``Specially Designated Terrorities'' or ``SDTs'').
    The Order further prohibits any transaction or dealing by a 
United States person or within the United States in property 
for interests in property of SDTs, including the making or 
receiving of any contribution of funds, goods, or services to 
or for the benefit of such persons. This prohibition includes 
donations that are intended to relieve human suffering.
    Designations of persons blocked pursuant to the Order are 
effective upon the date of determination by the Secretary of 
State or her delegate, or the Director of the Office of Foreign 
Assets Control (OFAC) acting under authority delegated by the 
Secretary of the Treasury. Public notice of blocking is 
effective upon the date of filing with the Federal Register, or 
upon prior actual notice.
    Because terrorists activities continue to threaten the 
Middle East peace process and vital interest of the United 
States in the Middle East, on January 21, 1998, I continued for 
another year the national emergency declared on January 23, 
1995, and the measures that took effect on January 24, 1995, to 
deal with that emergency. This action was taken in accordance 
with section 202(d) of the National Emergencies Act (50 U.S.C. 
1622(d)).
    2. On January 25, 1995, the Department of the Treasury 
issued a notice listing persons blocked pursuant to Executive 
Order 12947 who have been designated by the President as 
terrorist organizations threatening the Middle East peace 
process or who have been found to be owned or controlled by, or 
to be acting for or on behalf of, these terrorist organizations 
(60 Fed. Reg. 5084, January 25, 1995). The notice identified 31 
entities that act for or on behalf of the 12 Middle East 
terrorist organizations listed in the Annex to Executive Order 
12947, as well as 18 individuals who are leaders or 
representatives of these groups. In addition, the notice 
provided 9 name variations or pseudonyms used by the 18 
individuals identified. The last identifies blocked persons who 
have been found to have committed or to pose a significantrisk 
of committing, acts of violence that have the purpose or effect of 
disrupting the Middle East peace process or to have assisted in, 
sponsored, or provided financial, material or technological support 
for, or services in support of, such acts of violence, or are owned or 
controlled by, or act for or on behalf of other blocked persons. The 
Department of the Treasury issued three additional notices adding the 
names of three individuals, as well as their pseudonyms, to the List of 
SDTs (60 Fed. Reg. 41152, August 11, 1995; 60 Fed. Reg. 44932, August 
29, 1995; and 60 Fed. Reg. 58435, November 27, 1995).
    3. On February 2, 1996, OFAC issued the Terrorism Sanctions 
Regulations (the ``TSRs'' or the ``Regulations'') (61 Fed. Reg. 
3805, February 2, 1996). The TSRs implement the President's 
declaration of a national emergency and imposition of sanctions 
against certain persons whose acts of violence have the purpose 
or effect of disrupting the Middle East peace process. There 
have been no amendments to the TSRs, 31 C.F.R. Part 595, 
administered by the Office of Foreign Assets Control of the 
Department of the Treasury, since my report of January 28, 
1998.
    4. Since January 25, 1995, OFAC has issued six licenses 
pursuant to the Regulations. These licenses authorize payment 
of legal expenses and the disbursement of funds for normal 
expenditures for the maintenance of family members, the 
employment and payment of salary and educational expenses, 
payment for secure storage of tangible assets, and payment of 
certain administrative transactions, to or for individuals 
designated pursuant to Executive Order 12947.
    5. The expenses incurred by the Federal Government in the 
6-month period from January 23 through July 22, 1998, that are 
directly attributable to the exercise of powers and authorities 
conferred by the declaration of the national emergency with 
respect to organizations that disrupt the Middle East peace 
process, are estimated at approximately $165,000. These data do 
not reflect certain costs of operations by the intelligence and 
law enforcement communities.
    6. Executive Order 12947 provides this Administration with 
a tool for combating fundraising in this country on behalf of 
organizations that use terror to undermine the Middle East 
peace process. The Order makes it harder for such groups to 
finance these criminal activities by cutting off their access 
to sources of support in the United States and to U.S. 
financial facilities. It is also intended to reach charitable 
contributions to designated organizations and individuals to 
preclude diversion of such donations to terrorist activities.
    Executive Order 12947 demonstrates the determination of the 
United States to confront and combat those who would seek to 
destroy the Middle East peace process, and our commitment to 
the global fight against terrorism. I shall continue to 
exercise the powers at my disposal to apply economic sanctions 
against extremists seeking to destroy the hopes of peaceful 
coexistence between Arabs and Israelis as long as these 
measures are appropriate, and will continue to report 
periodically to the Congress on significant developments 
pursuant to 50 U.S.C. 1703(c).

                                                William J. Clinton.
    The White House, July 21, 1998.

                                
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