[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.