[House Document 108-117]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - - House Document 108-117
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 3, 2003.--Referred to the Committee on International
Relations and ordered to be printed
The White House,
Washington, July 31, 2003.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: Consistent with 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 am providing 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 addresses the 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 consistent
with 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. Since my last report, I have issued two new Executive
Orders dealing with the national emergency with respect to
Iraq. First, in Executive Order 13290 of March 20, 2003, I took
additional steps with respect to the national emergency
declared in Executive Order 12722 by ordering the confiscation
and vesting of all blocked funds held in the United States in
accounts in the name of the Government of Iraq, the Central
Bank of Iraq, Rafidain Bank, Rasheed Bank, or the State
Organization for Marketing Oil, except for diplomatic accounts
and any amounts that were subject to post-judgment writs of
execution or attachment in aid of execution of judgments
pursuant to section 201 of the Terrorism Risk Insurance Act of
2002 (Public Law 107-297). Executive Order 13290 resulted in
the confiscation and vesting of more than $1.7 billion, which
is being used to assist the Iraqi people and to assist in the
reconstruction of Iraq.
Second, in Executive Order 13303 of May 22, 2003, I
declared a new national emergency to deal with a threat to the
orderly reconstruction of Iraq, the restoration and maintenance
of peace and security in the country, and the development of
political, administrative, and economic institutions in Iraq.
Among other things, I ordered that previous Iraq-related
Executive Orders--specifically Executive Order 12722 of August
2, 1990, Executive Order 12724 of August 9, 1990, and Executive
Order 13290 of March 20, 2003--shall not apply to the
Development Fund for Iraq or to Iraqi petroleum and petroleum
products, and interests therein, and proceeds, obligations, or
any financial instruments of any nature whatsoever arising from
or related to the sale or marketing thereof, and interests
therein, in which any foreign country or a national thereof has
any interest, 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.
2. In Presidential Determination 2003-23 of May 7, 2003, I
took important steps toward lifting economic sanctions against
Iraq by exercising my statutory authority to suspend the
application of all of the provisions, other than section 586E,
of the Iraq Sanctions Act of 1990, Public Law 101-513, and to
make inapplicable with respect to Iraq section 620A of the
Foreign Assistance Act of 1961, Public Law 87-195, as amended,
and any other provision of law that applies to countries that
have supported terrorism.
3. There have been several substantive amendments to the
Iraqi Sanctions Regulations, 31 CFR Part 575 (the
``Regulations''), during the current reporting period. On March
12, 2003, the Department of the Treasury's Office of Foreign
Assets Control (``OFAC'') published new sections 575.527 and
575.528 of the Regulations. Section 575.527 provided for the
case-by-case authorization of nongovernmental organizations to
conduct certain defined humanitarian activities in the areas of
Iraq not controlled by the Government of Iraq. Section 575.528
authorized, by general license, more limited survey or
assessment missions in Iraq (including those areas controlled
by the Government of Iraq). A copy of new sections 575.527 and
575.528 to the Regulations is attached to this report.
On May 7, 2003, OFAC issued four more general licenses
authorizing the following activities involving Iraq: Non-
commercial funds transfers (including family remittances) and
related transactions, activities by the United States
Government and its contractors or grantees, privately financed
humanitarian transactions, and certain exports and re-exports
to Iraq. These four general licenses have been incorporated
into the Regulations as sections 575.529 through 575.532. A
copy of new sections 575.529 through 575.532 of the Regulations
is attached to this report.
Finally, on May 23, 2003, in light of the United Nations
Security Council Resolution No. 1483 of May 22, 2003, that
substantially lifted multilateral economic sanctions against
Iraq, OFAC issued a broad general license authorizing all
transactions otherwise prohibited by the Regulations, with four
exceptions: (1) All property and interests in property that
were blocked as of May 23 remain blocked, (2) certain exports
and re-exports continue to require an OFAC license, (3)
transactions with certain Iraqi persons remain prohibited,and
(4) transactions in certain Iraqi cultural properties remain
prohibited. This May 23 general license was incorporated into the
Regulations as section 575.533. A copy of the new section 575.533 of
the Regulations is attached to this report.
4. 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 more than $813 million. Of this amount, OFAC
licenses have authorized the sale of $521 million in basic
foodstuffs, about $113 million for medicines and medical
supplies, nearly $149 million for water testing and treatment
equipment, irrigation systems, and other infrastructure
components essential to the delivery to the Iraqi people of
food, medicine, and other necessities of life, and
approximately $30 million to fund a variety of United Nations
activities in Iraq. During the current reporting period, as of
June 3, 2003, OFAC-authorized humanitarian sales were valued at
approximately $20 million.
In addition, sales of oil infrastructure merchandise
authorized since November 10, 1998, in conformity with UNSCRs
1153 and 1175, were valued at approximately $190 million. OFAC
issued 18 licenses during the reporting period for the sale of
oilfield parts and equipment to the Government of Iraq.
5. As of May 28, 2003, 11 transactions totaling
approximately $320,000 were blocked during the reporting
period. Seventy-four transactions, not involving blockable
interests, were rejected by U.S. banks causing a disruption of
more than $2.8 million in business for the former regime.
During the current reporting period, while the Iraqi non-
governmental organization registration program was in effect,
31 non-governmental organizations were registered for
humanitarian activities in Iraq.
6. Since my last report, OFAC has collected three civil
monetary penalties or settlements totaling more than $25,000
for violations of the sanctions from one individual, one U.S.
financial institution, and one U.S. corporation. An additional
five cases have been completed, with a finding of a violation
or an agreed settlement of allegations with assessed penalties
or settlements totaling more than $33,000, and are either
awaiting payment or undergoing Departmental debt collection
efforts by the Financial Management Division. Fifteen other
cases are undergoing agency penalty enforcement action for
violations of the Regulations.
On February 26, 2003, a criminal indictment was filed
against two organizations and four individuals charging
conspiracy to send money to Iraq in violation of the
Regulations. One individual pleaded guilty to related charges
on April 23, 2003, and charges are still pending against the
organizations and the other individual. No trial date has been
set.
7. The expenses incurred by the Federal Government in the
6-month period from February 2 through August 1, 2003, 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, while it was a part of the Department
of the Treasury; the former Office of the Under Secretary for
Enforcement; and the Office of the General Counsel); the Bureau
of Customs and Border Protection at the Department of Homeland
Security; and the Department of State.
8. The United States, along with its coalition partners,
continues to work to stabilize Iraq, identify and dismantle
Iraq's weapons of mass destruction, capture former regime
leaders, and locate and return Iraqi assets overseas for the
benefit of the Iraqi people. As part of the Coalition
Provisional Authority, the United States is providing for the
temporary governance of Iraq, including the establishment of a
process to lead to a new internationally recognized government.