[House Document 107-252]
[From the U.S. Government Publishing Office]




107th Congress, 2d Session - - - - - - - - - - - - House Document 107-252


 
    PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO IRAQ

                               __________

                             COMMUNICATION

                                  FROM

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

 A SIX-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
  IRAQ THAT WAS DECLARED IN EXECUTIVE ORDER 12722 OF AUGUST 2, 1990, 
          PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C. 1703(c)




    September 4, 2002.--Referred to the Committee on International 
                  Relations and ordered to be printed.
                                           The White House,
                                         Washington, July 30, 2002.
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, 50 U.S.C. 
1703(c), I transmit herewith a 6-month periodic report prepared 
by my Administration on the national emergency with respect to 
Iraq that was declared in Executive Order 12722 of August 2, 
1990.
            Sincerely,
                                                    George W. Bush.
     Periodic Report on the National Emergency With Respect to Iraq

    This report to the Congress covers developments over the 
course of the past 6 months concerning the national emergency 
with respect to Iraq that was declared in Executive Order 12722 
of August 2, 1990, and matters relating to Executive Order 
12724 of August 9, 1990, and Executive Order 12817 of October 
23, 1992. This report is submitted pursuant to section 204(c) 
of the International Emergency Economic Powers Act, 50 U.S.C. 
1703(c), and section 401(c) of the National Emergencies Act, 50 
U.S.C. 1641(c).
    1. There have been no amendments to the Iraqi Sanctions 
Regulations, 31 C.F.R. Part 575 (the ``Regulations''), during 
the current reporting period.
    2. Since December 10, 1996, OFAC has issued specific 
licenses authorizing participation by U.S. persons in 
commercial sales of humanitarian goods to Iraq funded by Iraqi 
oil sales, and imports of Iraqi petroleum products, pursuant to 
United Nations Security Council Resolution (``UNSCR'') 986 and 
succeeding resolutions. The total value of humanitarian sales 
since 1996 is approximately $756 million. Of this amount, OFAC 
licenses have authorized sales of about $521 million in basic 
foodstuffs, nearly $81 million for medicines and medical 
supplies, nearly $139 million for water testing and treatment 
equipment, irrigation systems, and other infrastructures 
components essential to the delivery to the Iraqi people of 
food, medicine, and other necessities of life, and 
approximately $15 million to fund a variety of United Nations 
activities in Iraq. During the current reporting period, as of 
June 3, 2002, OFAC-authorized humanitarian sales were valued at 
nearly $88 million, an increase of approximately $66 million 
from the prior reporting period.
    Sales of oil infrastructure merchandise authorized since 
November 10, 1998, in conformity with UNSCRs 1153 and 1175, 
were valued at nearly $163 million. OFAC issued 61 licenses 
during the reporting period for the sale of oilfield parts and 
equipment to the Government of Iraq.
    Finally, an additional six licenses were issued authorizing 
the provision of legal services, sample equipment, and software 
for use by the United Nations within Iraq.
    3. As of June 4, 2002, 21 transactions totaling 
approximately $590,000 were blocked during the reporting 
period. Forty-eight transactions, not involving blockable 
interests, were rejected by U.S. banks causing a disruption of 
more than $20 million in business for Iraq.
    4. Since my last report, OFAC has collected civil monetary 
penalties totaling nearly $172,000 from one individual and one 
U.S. company for violations of the sanctions. An additional 25 
cases are undergoing agency penalty or debt collection action 
for violations of the Regulations.
    5. The expenses incurred by the Federal Government in the 
6-month period from February 2 through August 1, 2002, that are 
directly attributable to the exercise of powers and authorities 
conferred by the declaration of a national emergency with 
respect to Iraq, are reported to be about $1.5 million, most of 
which represent wage and salary costs for Federal personnel. 
Personnel costs were largely centered in the Department of the 
Treasury (particularly in the Office of Foreign Assets Control, 
the U.S. Customs Service, the Office of the Under Secretary for 
Enforcement, and the Office of the General Counsel), and the 
Department of State.
    6. The United States imposed economic sanctions on Iraq in 
response to Iraq's illegal invasion and occupation of Kuwait, a 
clear act of brutal aggression. The United States, together 
with the international community, is maintaining economic 
sanctions against Iraq because the Iraqi regime has failed to 
comply fully with relevant United Nations Security Council 
resolutions. Iraqi compliance with these resolutions is 
necessary before the United States will consider lifting 
economic sanctions.
    The policies and actions of the Saddam Hussein regime 
continue to pose an unusual and extraordinary threat to the 
national security and foreign policy of the United States, as 
well as to regional peace and security. The United Nations 
Security Council resolutions affirm that the Security Council 
will review Iraq's policies and practices in judging Iraq's 
compliance with those resolutions. Because of Iraq's failure to 
comply fully with these resolutions, the United States will 
continue to apply economic sanctions to deter it from 
threatening peace and stability in the region.

                                
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