[House Document 106-259]
[From the U.S. Government Publishing Office]



106th Congress, 2d Session - - - - - - - - - - - House Document 106-259


 
      NATIONAL EMERGENCY REGARDING RUSSIAN FEDERATION NUCLEAR WEAPONS

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

A REPORT BLOCKING PROPERTY OF THE GOVERNMENT OF THE RUSSIAN FEDERATION 
  RELATING TO THE DISPOSITION OF HIGHLY ENRICHED URANIUM EXTRACTED FROM 
  NUCLEAR WEAPONS, PURSUANT TO 50 U.S.C. 1703(b) 50 U.S.C. 1601




    June 22, 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:
    Pursuant to section 204(b) of the International Emergency 
Economic Powers Act (IEEPA), 50 U.S.C. 1703(b) and section 301 
of the National Emergencies Act, 50 U.S.C. 1631, I hereby 
report that I have exercised my authority to declare a national 
emergency to deal with the threat posed to the United States by 
the risk of nuclear proliferation created by the accumulation 
in the Russian Federation of a large volume of weapons-usable 
fissile material. The United States and the Russian Federation 
have entered into a series of agreements that provide for the 
conversion of highly enriched uranium (HEU) extracted from 
Russian nuclear weapons into low enriched uranium (LEU) for use 
in commercial nuclear reactors. The Russian Federation recently 
suspended its performance under these agreements because of 
concerns that payments due to it under these agreements may be 
subject to attachment, garnishment, or other judicial process, 
in the United States. Accordingly, I have issued an Executive 
Order to address the unusual and extraordinary risk of nuclear 
proliferation created by this situation.
    A major national security goal of the United States is to 
ensure that fissile material removed from Russian nuclear 
weapons pursuant to various arms control and disarmament 
agreements is dedicated to peaceful uses, subject to 
transparency measures, and protected from diversion to 
activities of proliferation concern. The United States and the 
Russian Federation entered into an international agreement in 
February 1993 to deal with these issues as they relate to the 
disposition of HEU extracted from Russian nuclear weapons (the 
``HEU Agreement''). Under the HEU Agreement, 500 metric tons of 
HEU will be converted to LEU over a 20-year period. This is the 
equivalent of 20,000 nuclear warheads.
    Additional agreements were put in place to effectuate the 
HEU Agreement, including agreements and contracts on 
transparency, on the appointment of executive agents to assist 
in implementing the agreements, and on the disposition of LEU 
delivered to the United States (collectively, the ``HEU 
Agreements''). Under the HEU Agreements, the Russian Federation 
extracts HEU metal from nuclear weapons. That HEU is oxidized 
and blended down to LEU in the Russian Federation. The 
resulting LEU is shipped to the United States for fabrication 
into fuel for commercial reactors. The United States monitors 
this conversion process through the Department of Energy's 
Warhead and Fissile Material Transparency Program.
    The HEU Agreements provide for the Russian Federation to 
receive money and uranium hexafluoride in payment for each 
shipment of LEU converted from the Russian nuclear weapons. The 
money and uranium hexafluoride are transferred to the Russian 
Federation executive agent in the United States.
    The Russian Federation recently suspended its performance 
under the HEU Agreements because of concerns over possible 
attachment, garnishment, or other judicial process with respect 
to the payments due to it as a result of litigation currently 
pending against the Russian Federation. In response to this 
concern, the Minister of Atomic Energy of the Russian 
Federation, Minister Adamov, notified Secretary Richardson on 
May 5, 2000, of the decision of the Russian Federation to halt 
shipment of LEU pending resolution of this problem. This 
suspension presents an unusual and extraordinary threat to U.S. 
national security goals due to the risk of nuclear 
proliferation caused by the accumulation of weapons-usable 
fissile material in the Russian Federation.
    The executive branch and the Congress have previously 
recognized and continue to recognize the threat posed to the 
United States national security from the risk of nuclear 
proliferation created by the accumulation of weapons-
usablefissile material in the Russian Federation. This threat is the 
basis for significant programs aimed at Cooperative Threat Reduction 
and at controlling excess fissile material. The HEU Agreements are 
essential tools to accomplish these overall national security goals. 
Congress demonstrated support for these agreements when it authorized 
the purchase of Russian uranium in 1998, Public Law 105-277, and also 
enacted legislation to enable Russian uranium to be sold in this 
country pursuant to the USEC Privatization Act, 42 U.S.C. 2297h-10.
    Payments made to the Russian Federation pursuant to the HEU 
Agreements are integral to the operation of this key national 
security program. Uncertainty surrounding litigation involving 
these payments could lead to a long-term suspension of the HEU 
Agreements, which creates the risk of nuclear proliferation. 
This is an unacceptable threat to the national security and 
foreign policy of the United States.
    Accordingly, I have concluded that all property and 
interests in property of the government of the Russian 
Federation directly related to the implementation of the HEU 
Agreements should be protected from the threat of attachment, 
garnishment, or other judicial process. I have, therefore, 
exercised my authority and issued an Executive Order that 
provides:
           except to the extent provided in 
        regulations, orders, directives, or licenses that may 
        be issued pursuant to the order, all property and 
        interests in property of the Government of the Russian 
        Federation directly related to the implementation of 
        the HEU Agreements that are in the United States, that 
        hereafter come within the United States, or hereafter 
        come within the possession or control of United States 
        person, including their overseas branches, are blocked 
        and may not be transferred, paid, exported, withdrawn, 
        or otherwise dealt in;
           unless licensed or authorized pursuant to 
        the order, any attachment, judgment, decree, lien, 
        execution, garnishment, or other judicial process is 
        null and void with respect to any property or interest 
        in property blocked pursuant to the order; and
           that all heads of departments and agencies 
        of the United States Government shall continue to take 
        all appropriate measures within their authority to 
        further the full implementation of the HEU Agreements.
    The effect of this Executive Order is limited to property 
that is directly related to the implementation of the HEU 
Agreements. Such property will be clearly defined by the 
regulations, orders, directives, or licenses that will be 
issued pursuant to this Executive Order.
    I am enclosing a copy of the Executive Order I have issued. 
The order is effective at 12:01 a.m. eastern daylight time on 
June 22, 2000.

                                                William J. Clinton.
    The White House, June 21, 2000.
                            Executive Order

                              ----------                              


Blocking Property of the Government of the Russian Federation Relating 
 to the Disposition of Highly Enriched Uranium Extracted From Nuclear 
                                Weapons

    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 
(IEEPA) (50 U.S.C. 1701 et seq.), the National Emergencies Act 
(50 U.S.C. 1601 et seq.), and section 301 of title 3, United 
States Code.
    I, WILLIAM J. CLINTON, President of the United States of 
America, in view of the policies underlying Executive Order 
12938 of November 14, 1994, and Executive Order 13085 of May 
26, 1998, find that the risk of nuclear proliferation created 
by the accumulation of a large volume of weapons-usable fissile 
material in the territory of the Russian Federation constitutes 
an unusual and Extraordinary threat to the national security 
and foreign policy of the United States, and hereby declare a 
national emergency to deal with that threat.
    I hereby order:
    Section 1. A major national security goal of the United 
States is to ensure that fissile material removed from Russian 
nuclear weapons pursuant to various arms control and 
disarmament agreements is dedicated to peaceful uses, subject 
to transparency measures, and protected from diversion to 
activities of proliferation concern. As reflected in executive 
Order 13085, the full implementation of the Agreement Between 
the Government of the United States of America and the 
Government of the Russian Federation Concerning the Disposition 
of Highly Enriched Uranium Extracted from Nuclear Weapons, 
dated February 18, 1993, and related contracts and agreements 
(collectively, the ``HEU Agreements'') is essential to the 
attainment of this goal. The HEU Agreements provide for the 
conversion of approximately 500 metric tons of highly enriched 
uranium contained in Russian nuclear weapons into low-enriched 
uranium for use as fuel in commercial nuclear reactors. In 
furtherance of our national security goals, all heads of 
departments and agencies of the United States Government shall 
continue to take all appropriate measures within their 
authority to further the full implementation of the HEU 
Agreements.
    Sec. 2. Government of the Russian Federation assets 
directly related to the implementation of the HEU Agreements 
currently may be subject to attachment, judgment, decree, lien, 
execution, garnishment, or other judicial process, thereby 
jeopardizing the full implementation of the HEU Agreements to 
the detriment of U.S. foreign policy. In order to ensure the 
preservation and proper and complete transfer to the Government 
of the Russian Federation of all payments due to it under the 
HEU Agreements, and except to the extent provided in 
regulations, orders, directives, or licenses that may hereafter 
be issued pursuant to this order, all property and interests in 
property of the Government of the Russian Federation directly 
related to the implementation of the HEU Agreements that are in 
the United States, that hereafter come within the United 
States, or that are or hereafter come within the possession or 
control of United States persons, including their overseas, 
branches, are hereby blocked and may not be transferred, paid 
exported, withdrawn, or otherwise dealt in. Unless licensed or 
authorized pursuant to this order, any attachment, judgment, 
decree, lien, execution, garnishment, or other judicial process 
is null and void with respect to any property or interest in 
property blocked pursuant to this order.
    Sec. 3. 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; juridical person 
organized under the laws of the United States or any 
jurisdiction within the United States, including foreign 
branches; or any person in the United States; and
    (d) The term ``Government of the Russian Federation'' means 
the Government of the Russian Federation, any political 
subdivision, agency, or instrumentality thereof, and any person 
owned or controlled by, or acting for or on behalf of, the 
Government of the Russian Federation.
    Sec. 4. (a) The Secretary of the Treasury, in consultation 
with the Secretary of State, the Secretary of Energy, and, as 
appropriate, other agencies, is hereby authorized to take such 
actions, including the promulgation of rules and regulations, 
and to employ all powers to me by IEEPA, 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 statutory authority 
to carry out the provisions of this order.
    (b) Nothing contained in this order shall relieve a person 
from any requirement to obtain a license or other authorization 
from any department of agency of the United States Government 
in compliance with applicable laws and regulations subject to 
the jurisdiction of the department or agency.
    Sec. 5. This order is not intended to create, nor does it 
create, any right, benefit, or privilege, substantive or 
procedural, enforceable at law by a party against the United 
States, its agencies, officers, or any other person.
    Sec. 6. (a) This order is effective at 12:01 a.m. eastern 
daylight time on June 22, 2000.
    (b) This order shall be transmitted to the Congress and 
published in the Federal Register.

                                                William J. Clinton.
    The White House, June 21, 2000.

                                  
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