[House Document 105-293]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-293


 
            RESPONSE TO THREAT OF WEAPONS OF MASS DESTRUCTION

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

  HIS REPORT ON EXERCISING STATUTORY AUTHORITY TO ISSUE AN EXECUTIVE 
   ORDER TO AMEND EXECUTIVE ORDER 12938 IN ORDER TO MORE EFFECTIVELY 
    RESPOND TO THE WORLDWIDE THREAT OF WEAPONS OF MASS DESTRUCTION 
                        PROLIFERATION ACTIVITIES





    July 29, 1998.--Message and accompanying papers referred to the 
Committee on International Relations and ordered to be printed July 29, 
                                  1998


To the Congress of the United States:
    On November 14, 1994, in light of the danger of the 
proliferation of nuclear, biological, and chemical weapons 
(weapons of mass destruction) and of the means of delivering 
such weapons, using my authority under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), I 
declared a national emergency and issued Executive Order 12938. 
Because the proliferation of weapons of mass destruction 
continues to pose an unusual and extraordinary threat to the 
national security, foreign policy, and economy of the United 
States, I have renewed the national emergency declared in 
Executive Order 12938 annually, most recently on November 14, 
1997. Pursuant to section 204(b) of the International Emergency 
Economic Powers Act (50 U.S.C. 1703(b)), I hereby report to the 
Congress that I have exercised my statutory authority to issue 
an Executive Order to amend Executive Order 12938 in order to 
more effectively to respond to the worldwide threat of weapons 
of mass destruction proliferation activities.
    The amendment of section 4 of Executive Order 12938 
strengthens the original Executive order in several significant 
ways.
    First, the amendment broadens the type of proliferation 
activity that is subject to potential penalties. Executive 
Order 12938 covers contributions to the efforts of any foreign 
country, project, or entity to use, acquire, design, produce, 
or stockpile chemical or biological weapons (CBW). This 
amendment adds potential penalties for contributions to foreign 
programs for nuclear weapons and missiles capable of delivering 
weapons of mass destruction. For example, the new amendment 
authorizes the imposition of measures against foreign entities 
that materially assist Iran's missile program.
    Second, the amendment lowers the requirements for imposing 
penalties. Executive Order 12938 required a finding that a 
foreign person ``knowingly and materially'' contributed to 
aforeign CBW program. The amendment removes the ``knowing'' requirement 
as a basis for determining potential penalties. Therefore, the 
Secretary of State need only determine that the foreign person made a 
``material'' contribution to a weapons of mass destruction or missile 
program to apply the specified sanctions. At the same time, the 
Secretary of State will have discretion regarding the scope of 
sanctions so that a truly unwitting party will not be unfairly 
punished.
    Third, the amendment expands the original Executive order 
to include ``attempts'' to contribute to foreign proliferation 
activities, as well as actual contributions. This will allow 
imposition of penalties even in cases where foreign persons 
make an unsuccessful effort to contribute to weapons of mass 
destruction and missile programs or where authorities block a 
transaction before it is consummated
    Fourth, the amendment expressly expands the range of 
potential penalties to include the prohibition of United States 
Government assistance to the foreign person, as well as United 
States Government assistance to the foreign person, as well as 
United States Government procurement and imports into the 
United States, which were specified by the original Executive 
order. Moreover, section 4(b) broadens the scope of the United 
States Government procurement limitations to include a bar on 
the procurement of technology, as well as goods or services 
from any foreign person described in section 4(a). Section 4(d) 
broadens the scope of import limitation to include a bar on 
imports of any technology or services produced or provided by 
any foreign person described in section 4(a).
    Finally, this amendment gives the United States Government 
greater flexibility and discretion in deciding how and to what 
extent to impose penalties against foreign persons that assist 
proliferation programs. This provision authorizes the Secretary 
of State, who will act in consultation with the heads of other 
interested agencies, to determine the extent to which these 
measures should be imposed against entities contributing to 
foreign weapons of mass destruction or missile programs. The 
Secretary of State will act to further the national security 
and foreign policy interests of the United States, including 
principally our nonproliferation objectives. Prior to imposing 
measures pursuant to this provision, the Secretary of State 
will take into account the likely effectiveness of such 
measures in furthering the interests of the United States and 
the costs and benefits of such measures. This approach provides 
the necessary flexibility to tailor our responses to specific 
situations.
    I have authorized these actions in view of the danger posed 
to the national security and foreign policy of the United 
States by the continuing proliferation of weapons of mass 
destruction and their means of delivery. I am enclosing a copy 
of the Executive order that I have issued exercising these 
authorities.

                                                William J. Clinton.
    The White House, July 28, 1998.



                            EXECUTIVE ORDER

                              ----------                              

              Proliferation of Weapons of Mass Destruction

    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.), the Arms Export Control Act (22 U.S.C. 
2751 et seq.) (AECA), and section 301 of title 3, United States 
Code,
    I, William J. Clinton, President of the United States of 
America, in order to take additional steps with respect to the 
proliferation of weapons of mass destruction and means of 
delivering them and the national emergency described and 
declared in Executive Order 12938 of November 14, 1994, hereby 
order:
Section 1. Amendment of Executive Order 12938
    (a) Section 4 of Executive Order 12938 of November 14, 
1994, is revised to read as follows:
    ``Sec. 4. Measures Against Foreign Persons.
    (a) Determination by Secretary of State; Imposition of 
Measures.--Except to the extent provided in section 203(b) of 
the International Emergency Economic Powers Act (50 U.S.C. 
1702(b)), where applicable, if the Secretary of State 
determines that a foreign person, on or after November 16, 
1990, the effective date of Executive Order 12735, the 
predecessor order to Executive Order 12938, has materially 
contributed or attempted to contribute materially to the 
efforts of any foreign country, project, or entity of 
proliferation concern to use, acquire, design, develop, 
produce, or stockpile weapons of mass destruction or missiles 
capable of delivering such weapons, the measures set forth in 
subsections (b), (c), and (d) of this section shall be imposed 
on that foreign person to the extent determined by the 
Secretary of State in consultation with the implementing agency 
and other relevant agencies. Nothing in this section is 
intended to preclude the imposition on that foreign person of 
other measures or sanctions available under this order or under 
other authorities.
    (b) Procurement Ban.--No department or agency of the United 
States Government may procure, or enter into any contract for 
the procurement of, any goods, technology, or services from any 
foreign person described in subsection (a) of this section.
    (c) Assistance Ban.--No department or agency of the United 
States Government may provide any assistance to any foreign 
person described in subsection (a) of this section, and no such 
foreign person shall be eligible to participate in any 
assistance program of the United States Government.
    (d) Import Ban.--The Secretary of the Treasury shall 
prohibit the importation into the United States of goods, 
technology, or services produced or provided by any foreign 
person described in subsection (a) of this section, other than 
information or informational materials within the meaning of 
section 203(b)(3) of the International Emergency Economic 
Powers Act (50 U.S.C. 1702(b)(3)).
    (e) Termination.--Measures pursuant to this section may be 
terminated against a foreign person if the Secretary of State 
determines that there is reliable evidence that such foreign 
person has ceased all activities referred to in subsection (a) 
of this section.
    (f) Exceptions.--Departments and agencies of the United 
States Government, acting in consultation withthe Secretary of 
State, may, by license, regulation, order, directive, exception, or 
otherwise, provide for:
    (i) Procurement contracts necessary to meet U.S. 
operational military requirements or requirements under defense 
production agreements; intelligence requirements; sole source 
suppliers, spare parts, components, routine servicing and 
maintenance of products for the United States Government; and 
medical and humanitarian items; and
    (ii) Performance pursuant to contracts in force on the 
effective date of this order under appropriate circumstances.''
    (b) Section 6 of Executive Order 12938 of November 14, 
1994, is amended by deleting ``4(c)'' and inserting ``4(e)'' in 
lieu thereof.
    Sec. 2. Preservation of Authorities.--Nothing in this order 
is intended to affect the continued effectiveness of any rules, 
regulations, orders, licenses, or other forms of administrative 
action issued, taken, or continued in effect heretofore or 
hereafter under the authority of IEEPA, AECA, the Nuclear Non-
Proliferation Act of 1978, the Nuclear Proliferation Prevention 
Act of 1994, the Atomic Energy Act, the Export Administration 
Act (50 U.S.C. App. 2401 et seq.), Executive Order 12730 of 
September 30, 1990, Executive Order 12735 of November 16, 1990, 
Executive Order 12924 of August 18, 1994, Executive Order 12930 
of September 29, 1994, or Executive Order 12938 of November 14, 
1994.
    Sec. 3. Judicial Review.--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. 4. Effective Date.
    (a) This order is effective at 12:01 a.m. eastern daylight 
time on July 29, 1998.
    (b) This order shall be transmitted to the Congress and 
published in the Federal Register.

                                                William J. Clinton.
    The White House, July 28, 1998.