[House Document 108-31]
[From the U.S. Government Publishing Office]




108th Congress, 1st Session - - - - - - - - - - - - - House Document 
108-31
 
    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)




February 4, 2003.--Referred to the Committee on International Relations 
                       and ordered to be printed
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, 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.

                                                    George W. Bush.
    The White House, January 29, 2003.
     Periodic Report on the National Emergency With Respect to Iraq

    This report to the Congress addresses 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, the Department of the 
Treasury's Office of Foreign Asserts Control (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 nearly $793 million. Of this amount, OFAC 
licenses have authorized the sale of $521 million in basic 
foodstuffs, about $94 million for medicines and medical 
supplies, nearly $148 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 
December 11, 2002, OFAC-authorized humanitarian sales were 
valued at nearly $37 million, a substantial decease from the 
prior reporting period.
    In addition, sales of oil infrastructure merchandise 
authorized since November 10, 1998, in conformity with UNSCRs 
1153 and 1175, were valued at approximately $183 million. OFAC 
issued 47 licenses during the reporting period for the sale of 
oilfield parts and equipment to the Government of Iraq. During 
the current reporting period, as of December 23, 2002, 
importations of Iraqi crude oil, authorized by OFAC pursuant to 
UNSCR 1153, totaled approximately 13.5 million barrels. During 
the prior period, U.S. imports included an additional 63 
million barrels not previously reported.
    3. As of December 3, 2002, eight transactions totaling 
approximately $420,000 blocked during the reporting period. 
Sixty-even transactions, not involving blockable interests, 
were rejected by U.S. banks causing a disruption of more than 
$3.7 million in business for Iraq.
    4. Since my last report, OFAC has assessed five civil 
monetary penalties totaling nearly $57,500 for violations of 
the sanctions. An additional 21 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 August 2, 2002, through February 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 $1.3 
million, most of which represent wage and salary costs for 
Federal personnel. Personnel costs are 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 resolution 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 if from 
threatening peace and stability in the region. I shall exercise 
the powers at my disposal to deal with this threat and will 
continue to report periodically to the Congress on significant 
developments as required by law.