[Congressional Record Volume 144, Number 2 (Wednesday, January 28, 1998)]
[Senate]
[Pages S112-S113]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPORT CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO TERRORISTS WHO 
  THREATEN TO DISRUPT THE MIDDLE EAST PEACE PROCESS--MESSAGE FROM THE 
                            PRESIDENT--PM 87

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Banking, Housing, and 
Urban Affairs.

To the Congress of the United States:
  I hereby report to the Congress on the developments concerning the 
national emergency with respect to terrorists who threaten to disrupt 
the Middle East peace process that was declared in Executive Order 
12947 of January 23, 1995. This report is submitted pursuant to 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 (IEEPA), 50 
U.S.C. 1703(c).
  1. On January 23, 1995, I signed Executive Order 12947, ``Prohibiting 
Transactions with Terrorists Who Threaten to Disrupt the Middle East 
Peace Process'' (the ``Order'') (60 Fed. Reg. 5079, January 25, 1995). 
The Order blocks all property subject to U.S. jurisdiction in which 
there is any interest of 12 terrorist organizations that threaten the 
Middle East peace process as identified in an Annex to the Order. The 
Order also blocks the property and interests in property subject to 
U.S. jurisdiction of persons designated by the Secretary of State, in 
coordination with the Secretary of the Treasury and the Attorney 
General, who are found (1) to have committed, or to pose a significant 
risk of committing, acts of violence that have the purpose or effect of 
disrupting the Middle East peace process, or (2) to assist in, sponsor, 
or provide financial, material, or technological support for, or 
services in support of, such acts of violence. In addition, the Order 
blocks all property and interests in property subject to U.S. 
jurisdiction in which there is any interest of persons determined by 
the Secretary of the Treasury, in coordination with the Secretary of 
State and the Attorney General, to be owned or controlled by, or to act 
for or on behalf of, any other person designated pursuant to the Order 
(collectively ``Specially Designated Terrorists'' or ``SDTs'').
  The Order further prohibits any transaction or dealing by a United 
States person or within the United States in property or interests in 
property of SDTs, including the making or receiving of any contribution 
of funds, goods, or services to or for the benefit of such persons. 
This prohibition includes donations that are intended to relieve human 
suffering.
  Designations of persons blocked pursuant to the Order are effective 
upon the date of determination by the Secretary of State or her 
delegate, or the Director of the Office of Foreign Assets Control 
(OFAC) acting under authority delegated by the Secretary of the 
Treasury. Public notice of blocking is effective upon the date of 
filing with the Federal Register, or upon prior actual notice.
  Because terrorist activities continue to threaten the Middle East 
peace process and vital interests of the United States in the Middle 
East, on January 21, 1998, I continued for another year

[[Page S113]]

the national emergency declared on January 23, 1995, and the measures 
that took effect on January 24, 1995, to deal with that emergency. This 
action was taken in accordance with section 202(d) of the National 
Emergencies Act (50 U.S.C. 1622(d)).
  2. On January 25, 1995, the Department of the Treasury issued a 
notice listing persons blocked pursuant to Executive Order 12947 who 
have been designated by the President as terrorist organizations 
threatening the Middle East peace process or who have been found to be 
owned or controlled by, or to be acting for or on behalf of, these 
terrorist organizations (60 Fed. Reg. 5084, January 25, 1995). The 
notice identified 31 entities that act for or on behalf of the 12 
Middle East terrorist organizations listed in the Annex to Executive 
Order 12947, as well as 18 individuals who are leaders or 
representatives of these groups. In addition, the notice provided 9 
name variations or pseudonyms used by the 18 individuals identified. 
The list identifies blocked persons who have been found to have 
committed, or to pose a significant risk of committing, acts of 
violence that have the purpose or effect of disrupting the Middle East 
peace process or to have assisted in, sponsored, or provided financial, 
material, or technological support for, or services in support of, such 
acts of violence, or are owned or controlled by, or act for or on 
behalf of other blocked persons. The Department of the Treasury issued 
three additional notices adding the names of three individuals, as well 
as their pseudonyms, to the List of SDTs (60 Fed. Reg. 41152, August 
11, 1995; 60 Fed. Reg. 44932, August 29, 1995; and 60 Fed. Reg. 58435, 
November 27, 1995).
  3. On February 2, 1996, OFAC issued the Terrorism Sanctions 
Regulations (the ``TSRs'' or the ``Regulations'') (61 Fed. Reg. 3805, 
February 2, 1996). The TSRs implement the President's declaration of a 
national emergency and imposition of sanctions against certain persons 
whose acts of violence have the purpose or effect of disrupting the 
Middle East peace process. There has been one amendment to the TSRs, 31 
C.F.R. Part 595 administered by the Office of Foreign Assets Control of 
the Department of the Treasury, since my report of August 5, 1997. The 
Regulations were amended on August 25, 1997. General reporting, 
recordkeeping, licensing, and other procedural regulations were moved 
from the Regulations to a separate part (31 C.F.R. Part 501) dealing 
solely with such procedural matters (62 Fed. Reg. 45098, August 25, 
1997). A copy of the amendment is attached.
  4. Since January 25, 1995, OFAC has issued three licenses pursuant to 
the Regulations. These licenses authorize payment of legal expenses of 
individuals and the disbursement of funds for normal expenditures for 
the maintenance of family members of individuals designated pursuant to 
Executive Order 12947, and for secure storage of tangible assets of 
Specially Designated Terrorists.
  5. The expenses incurred by the Federal Government in the 6-month 
period from July 22, 1997, through January 22, 1998, that are directly 
attributable to the exercise of powers and authorities conferred by the 
declaration of the national emergency with respect to organizations 
that disrupt the Middle East peace process are estimated at 
approximately $165,000. These data do not reflect certain costs of 
operations by the intelligence and law enforcement communities.
  6. Executive Order 12947 provides this administration with a tool for 
combating fundraising in this country on behalf of organizations that 
use terror to undermine the Middle East peace process. The order makes 
it harder for such groups to finance these criminal activities by 
cutting off their access to sources of support in the United States and 
to U.S. financial facilities. It is also intended to reach charitable 
contributions to designated organizations and individuals to preclude 
diversion of such donations to terrorist activities.
  Executive Order 12947 demonstrates the United States determination to 
confront and combat those who would seek to destroy the Middle East 
peace process, and our commitment to the global fight against 
terrorism. I shall continue to exercise the powers at my disposal to 
apply economic sanctions against extremists seeking to destroy the 
hopes of peaceful coexistence between Arabs and Israelis as long as 
these measures are appropriate, and will continue to report 
periodically to the Congress on significant developments pursuant to 50 
U.S.C. 1703(c).
                                                  William J. Clinton.  
  The White House, January 27, 1998.

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