[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Pages 11930-11931]
[From the U.S. Government Publishing Office, www.gpo.gov]



 REPORT OF THE EXECUTIVE ORDER BLOCKING PROPERTY OF THE GOVERNMENT OF 
 THE RUSSIAN FEDERATION RELATING TO THE DISPOSITION OF HIGHLY ENRICHED 
URANIUM EXTRACTED FROM NUCLEAR WEAPONS--MESSAGE FROM THE PRESIDENT--PM 
                                  117

  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:
  Pursuant to section 204(b) of the International Emergency Economic 
Powers Act (IEEPA), 50 U.S.C. 1703(b) and section 301 of the National 
Emergencies Act, 50 U.S.C. 1631, I hereby report that I have exercised 
my authority to declare a national emergency to deal with the threat 
posed to the United States by the risk of nuclear proliferation created 
by the accumulation in the Russian Federation of a large volume of 
weapons-usable fissile material. The United States and the Russian 
Federation have entered into a series of agreements that provide for 
the conversion of highly enriched uranium (HEU) extracted from Russian 
nuclear weapons into low enriched uranium (LEU) for use in commercial 
nuclear reactors. The Russian Federation recently suspended its 
performance under these agreements because of concerns that payments 
due to it under these agreements may be subject to attachment, 
garnishment, or other judicial process, in the United States. 
Accordingly, I have issued an Executive Order to address the unusual 
and extraordinary risk of nuclear proliferation created by this 
situation.
  A major national security goal of the United States is to ensure that 
fissile material removed from Russian nuclear weapons pursuant to 
various arms control and disarmament agreements is dedicated to 
peaceful uses, subject to transparency measures, and protected from 
diversion to activities of proliferation concern. The United States and 
the Russian Federation entered into an international agreement in 
February 1993 to deal with these issues as they relate to the 
disposition of HEU extracted from Russian nuclear weapons (the ``HEU 
Agreement''). Under the HEU Agreement, 500 metric tons of HEU will be 
converted to LEU over a 20-year period. This is the equivalent of 
20,000 nuclear warheads.
  Additional agreements were put in place to effectuate the HEU 
Agreement, including agreements and contracts on transparency, on the 
appointment of executive agents to assist in implementing the 
agreements, and on the disposition of LEU delivered to the United 
States (collectively, the ``HEU Agreements''). Under the HEU 
Agreements, the Russian Federation extracts HEU metal from nuclear 
weapons. That HEU is oxidized and blended down to LEU in the Russian 
Federation. The resulting LEU is shipped to the United States for 
fabrication into fuel for commercial reactors. The United States 
monitors this conversion process through the Department of Energy's 
Warhead and Fissile Material Transparency Program.
  The HEU Agreements provide for the Russian Federation to receive 
money and uranium hexafluoride in payment for each shipment of LEU 
converted from the Russian nuclear weapons. The money and uranium 
hexafluoride are transferred to the Russian Federation executive agent 
in the United States.
  The Russian Federation recently suspended its performance under the 
HEU Agreements because of concerns over possible attachment, 
garnishment, or other judicial process with respect to the payments due 
to it as a result of litigation currently pending against the Russian 
Federation. In response to this concern, the Minister of Atomic Energy 
of the Russian Federation, Minister Adamov, notified Secretary 
Richardson on May 5, 2000, of the decision of the Russian Federation to 
halt shipment of LEU pending resolution of this problem. This 
suspension presents an unusual and extraordinary threat to U.S. 
national security goals due to the risk of nuclear proliferation caused 
by the accumulation of weapons-usable fissile material in the Russian 
Federation.
  The executive branch and the Congress have previously recognized and 
continue to recognize the threat posed to the United States national 
security from the risk of nuclear proliferation created by the 
accumulation of weapons-usable fissile material in the Russian 
Federation. This threat is the basis for significant programs aimed at 
Cooperative Threat Reduction and at controlling excess fissile 
material. The HEU Agreements are essential tools to accomplish these 
overall national security goals. Congress demonstrated support for 
these agreements when it authorized the purchase of Russian uranium in 
1998, Public Law 105-277, and also enacted legislation to enable 
Russian uranium to be sold in this country pursuant to the USEC 
Privatization Act, 42 U.S.C. 2297h-10.

[[Page 11931]]

  Payments made to the Russian Federation pursuant to the HEU 
Agreements are integral to the operation of this key national security 
program. Uncertainty surrounding litigation involving these payments 
could lead to a long-term suspension of the HEU Agreements, which 
creates the risk of nuclear proliferation. This is an unacceptable 
threat to the national security and foreign policy of the United 
States.
  Accordingly, I have concluded that all property and interests in 
property of the government of the Russian Federation directly related 
to the implementation of the HEU Agreements should be protected from 
the threat of attachment, garnishment, or other judicial process. I 
have, therefore, exercised my authority and issued an Executive Order 
that provides:
  --except to the extent provided in regulations, orders, directives, 
    or licenses that may be issued pursuant to the order, all property 
    and interests in property of the Government of the Russian 
    Federation directly related to the implementation of the HEU 
    Agreements that are in the United States, that hereafter come 
    within the United States, or hereafter come within the possession 
    or control of United States persons, including their overseas 
    branches, are blocked and may not be transferred, paid, exported, 
    withdrawn, or otherwise dealt in;
  --unless licensed or authorized pursuant to the order, any 
    attachment, judgment, decree, lien, execution, garnishment, or 
    other judicial process is null and void with respect to any 
    property or interest in property blocked pursuant to the order; and
  --that all heads of departments and agencies of the United States 
    Government shall continue to take all appropriate measures within 
    their authority to further the full implementation of the HEU 
    Agreements.
  The effect of this Executive Order is limited to property that is 
directly related to the implementation of the HEU Agreements. Such 
property will be clearly defined by the regulations, orders, 
directives, or licenses that will be issued pursuant to this Executive 
Order.
  I am enclosing a copy of the Executive Order I have issued. The order 
is effective at 12:01 a.m. eastern daylight time on June 22, 2000.
                                                  William J. Clinton.  
The White House, June 21, 2000.

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