[House Document 106-190]
[From the U.S. Government Publishing Office]





106th Congress, 2d Session - - - - - - - - - - - House Document 106-190
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               SIX MONTH PERIODIC REPORTS ON TERRORISTS
              WHO THREATEN 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)




  February 7, 2000.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed

                                -------                                

                    U.S. GOVERNMENT PRINTING OFFICE
79-011                     WASHINGTON : 2000       





To the Congress of the United States:
    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 (IEEPA), 50 U.S.C. 1703(c), I 
transmit herewith a 6-month periodic report on 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.

                                                William J. Clinton.
    The White House, February 7, 2000.


 President's Periodic Report on the National Emergency With Respect to 
    Terrorists Who Threaten To Disrupt the Middle East Peace Process

    I hereby report to the Congress on the 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. 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 Terrorists'' or ``SDTs'').
    The Order further prohibits any transaction or dealing by a 
United States person or within the United States in property or 
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 Fed. Reg., or upon 
prior actual notice.
    Because terrorists' activities continue to threaten the 
Middle East peace process and vital interests of the United 
States in the Middle East, on January 20, 2000, 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 nine (9) name variations or pseudonyms used by the 18 
individuals identified. The list identifies blocked persons who 
have been found 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 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).
    On August 20, 1998, I signed Executive Order 13099 (63 Fed. 
Reg. 45167, August 20, 1998) amending Executive Order 12947 by 
adding Usama bin Muhammad bin Awad bin Ladin (a.k.a. Usama bin 
Ladin) and two of his associates, Abu Hafs al-Masri and Rifa'i 
Ahmad Taha Musa, and the Islamic Army (a.k.a. Al-Qaida, Islamic 
Salvation Foundation, The Islamic Army for the Liberation of 
the Holy Places, The World Islamic Front for Jihad Against Jews 
and Crusaders, and The Group for the Preservation of the Holy 
Sites) to the Annex of Executive Order 12947 as terrorists who 
threaten to disrupt the Middle East peace process. The Order 
further provides Executive Order 13099 does not limit or 
otherwise affect the other provisions of Executive Order 12947.
    3. On February 2, 1996, OFAC issued the Terrorism Sanctions 
Regulations (the ``TSR'' or the ``Regulations'') (61 Fed. Reg 
3805, February 2, 1996). The TSR 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. Pursuant 
to Executive Order 13099 of August 20, 1998, ``Prohibiting 
Transactions with Terrorists Who threaten to Disrupt the Middle 
East Peace Process'', (63 Fed. Reg. 45167, 3 C.F.R., 1998 
Comp., p. 208) and the Regulations, on June 28, 1999, OFAC 
amended appendix A to 31 C.F.R. chapter V by adding 3 
individuals and 1 organization as persons who have been 
designated in the Executive order as terrorists who threaten to 
disrupt the Middle East peace process or SDTs (64 Fed. Reg. 
35575, 31 C.F.R., July 1, 1999). Any property subject to the 
jurisdiction of the United States in which an SDT has an 
interest is blocked and U.S. persons are prohibited from 
engaging in any transactions or in dealing in any property in 
which an SDT has an interest.
    4. Since the signing of Executive Order 12947 in January 
1995 through December 1999, more than $650,000 in assets were 
blocked. The blocking of these assets, consisting of funds and 
real property, stopped their conversion or other disposal for 
the benefit of the SDTs. Some assets blocked in aid of 
investigation have been released. In June 1998, a large portion 
of the assets previously blocked were seized by the Department 
of Justice as assets subject to civil forfeiture action based 
on the criminal money laundering statutes.
    Federal agencies will continue to work closely to identify 
and block assets in which SDTs have an interest and will 
vigorously enforce Executive Orders 12947 and 13099 against 
Usama bin Ladin and other terrorists who threaten the Middle 
East peace process.
    5. Since January 25, 1995, OFAC has issued nine licenses 
pursuant to the Regulations. These licenses authorize payment 
of legal expenses of individuals and the disbursement of funds 
for normal expenditures for the maintenance of family members, 
the employment, receipt of salary and payment of educational 
expenses for an SDT, secure storage of tangible assets of SDTs, 
the release of assets blocked pending investigation, and 
certain administrative transactions of individuals designated 
pursuant to Executive Order 12947.
    6. The expenses incurred by the Federal Government in the 
six-month period from July 23, 1999 through January 22, 2000 
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 $200,000. 
These data do not reflect certain costs of operations by the 
intelligence and law enforcement communities.
    7. Executive Orders 12947 and 13099 provide this 
Administration with a tool to combat fundraising in this 
country on behalf of organizations that use terror to undermine 
the Middle East peace process. The orders make it harder for 
such groups to finance these criminal activities by impeding 
their access to sources of support in the United States and to 
U.S. financial facilities. They are also intended to reach 
charitable contributions to designated organizations and 
individuals to preclude diversion of such donations to 
terrorist activities.
    The Executive orders demonstrate the United States' 
determination 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).