[Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
[Rules and Regulations]
[Pages 62942-62943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30125]



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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 575


Iraqi Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: The Office of Foreign Assets Control is amending the Iraqi 
Sanctions Regulations to permit U.S. persons to enter into executory 
contracts for the sale of oilfield parts and equipment to the 
Government of Iraq in conformity with United Nations Security Council 
Resolutions No. 1153 and 1175.

EFFECTIVE DATE: November 10, 1998.

FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief, Licensing 
(tel.: 202/622-2480) or William B. Hoffman, Chief Counsel (tel.: 202/
622-2410), Office of Foreign Assets Control, Department of the 
Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    This document is available as an electronic file on  The Federal 
Bulletin Board the day of publication in the  Federal Register. By 
modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for 
disk or paper copies. This file is available for downloading without 
charge in ASCII and Adobe AcrobatR readable (*.PDF) formats. 
For Internet access, the address for use with the World Wide Web (Home 
Page), Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The document 
is also accessible for downloading in ASCII format without charge from 
Treasury's Electronic Library (``TEL'') in the ``Research Mall'' of the 
FedWorld bulletin board. By modem, dial 703/321-3339, and select self-
expanding file ``T11FR00.EXE'' in TEL. For Internet access, use one of 
the following protocols: Telnet = fedworld.gov (192.239.93.3); World 
Wide Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov 
(192.239.92.205). Additional information concerning the programs of the 
Office of Foreign Assets Control is available for downloading from the 
Office's Internet Home Page: http://www.treas.gov/ofac, or in fax form 
through the Office's 24-hour fax-on-demand service: call 202/622-0077 
using a fax machine, fax modem, or (within the United States) a touch-
tone telephone.

Background

    United Nations Security Council Resolution (``UNSCR'') No. 1153 of 
February 20, 1998, authorizes the exportation from Iraq of $5.256 
billion in petroleum and petroleum products within a 180-day period. 
UNSCR No. 1175 of June 19, 1998, authorizes the exportation to Iraq of 
the necessary parts and equipment to enable Iraq to achieve the level 
of exports authorized in Resolution No. 1153. Pursuant to Executive 
Orders 12722 of August 2, 1990 (55 FR 31803, 3 CFR, 1990 Comp., p. 
294), and 12724 of August 9, 1990 (55 FR 33089, 3 CFR, 1990 Comp., p. 
297), and in accordance with UNSCRs No. 1153 and 1175, the Office of 
Foreign Assets Control is amending Sec. 575.522 of the Iraqi Sanctions 
Regulations, 31 CFR Part 575 (the ``Regulations''), to authorize United 
States persons to enter into executory contracts with the Government of 
Iraq for the sale and exportation to Iraq of parts and equipment 
necessary to enable Iraq to export petroleum and petroleum products in 
accordance with UNSCRs No. 1153 and 1175.
    Since the Regulations involve a foreign affairs function, Executive 
Order 12866 and the provisions of the Administrative Procedure Act (5 
U.S.C. 553)(the ``APA'') requiring notice of proposed rulemaking, 
opportunity for public participation, and delay in effective date, are 
inapplicable. Because no notice of proposed rulemaking is required for 
this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not 
apply. This final rule imposes no paperwork burden.

List of Subjects in 31 CFR Part 575

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Exports, Foreign trade, Humanitarian aid, Imports, Iraq, Oil 
imports, Penalties, Petroleum, Petroleum products, Reporting and 
recordkeeping requirements, Specially designated nationals, Terrorism, 
Travel restrictions.
    For the reasons set forth in the preamble, 31 CFR part 575 is 
amended as follows:

PART 575--IRAQI SANCTIONS REGULATIONS

    1. The authority citation for part 575 is revised to read as 
follows:
    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c; Pub. 
L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 31 U.S.C. 321(b); 
50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-513, 104 Stat. 2047-2055 
(50 U.S.C. 1701 note); E.O. 12722, 55 FR 31803, 3 CFR, 1990 Comp., 
p. 294; E.O. 12724, 55 FR 33089, 3 CFR, 1990 Comp., p. 297; E.O. 
12817, 57 FR 48433, 3 CFR, 1992 Comp., p. 317.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

    2. Section 575.522 is amended by revising the section heading, 
removing the word ``and'' from the end of paragraph (a)(2), removing 
the period at the end of paragraph (a)(3) and adding ``; and'', and 
adding a new paragraph (a)(4) to read as follows:


Sec. 575.522  Executory contracts with the Government of Iraq for trade 
in petroleum, pipeline parts and equipment, humanitarian goods, and oil 
field equipment authorized.

    (a) * * *

    (4) The sale and exportation to Iraq of oilfield parts and 
equipment to the extent necessary to enable Iraq to export petroleum 
and petroleum products in accordance with United Nations Security 
Council Resolutions No. 1153

[[Page 62943]]

and 1175 and other relevant UNSC Resolutions.

* * * * *

    Dated: October 20, 1998.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: October 27, 1998.
Elisabeth A. Bresee
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 98-30125 Filed 11-5-98; 3:43 pm]
BILLING CODE 4810-25-F