[House Document 106-20]
[From the U.S. Government Publishing Office]





106th Congress, 1st Session - - - - - - - - - - - - - House Document 
106-20


 
  A REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO THE MIDDLE EAST 
                             PEACE PROCESS

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  A SIX MONTH PERIODIC 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. 1703(c)




    February 23, 1999.--Referred to the Committee on International 
                  Relations and ordered to be printed

                         ____________

                  U.S. GOVERNMENT PRINTING OFFICE
69-011                    WASHINGTON : 1999


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                                           The White House,
                                      Washington, January 27, 1999.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: 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.
            Sincerely,
                                                William J. Clinton.
 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 No. 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 interests 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 Federal Register, 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 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 
withsection 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 Hafa al-Masri and Rifa'i 
Ahmad Taha Musa, and the Islamic Army to the Annex of Executive 
Order 12947 as terrorists who threaten to disrupt the Middle 
East peace process. 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. There 
have been no amendments to the TSR, 31 C.F.R. Part 595 
administered by the Office of Foreign Assets Control (``OFAC'') 
of the Department of the Treasury, since my report of July 21, 
1998.
    4. Since the signing of Executive Order 12947 in January 
1995 through June 1998, more than $650,000 in assets in which 
SDTs have an interest 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 having 
an interest in them. In June 1998, assets totaling $1.2 
million, including a large portion of the assets previously 
blocked, were seized pursuant to civil forfeiture statutes.
    Following the issuance of Executive Order 13099, several 
million dollars in SDT-related funds were blocked in aid of 
investigation. Federal agencies will continue to work closely 
to identify and block assets in which SDTs have an interest and 
will vigorously implement Executive Orders 12947 and 13099 
against Usama bin Ladin and other Middle East terrorists.
    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 
of individuals designated pursuant to Executive Order 12947, 
the employment, receipt of salary and payment of educational 
expenses for a Specially Designated Terrorist, for secure 
storage of tangible assets of SDTs, and certain administrative 
transactions.
    6. The expenses incurred by the Federal Government in the 
six-month period from July 23, 1998, through January 22, 1999, 
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 $4.2 million. 
This amount reflects additional personnel costs not previously 
identified as being directly associated with the administration 
of this program.
    7. Executive Orders 12947 and 13099 provide 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 orders make 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.
    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).