[Federal Register Volume 70, Number 177 (Wednesday, September 14, 2005)]
[Rules and Regulations]
[Pages 54258-54259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18245]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 575
Iraqi Debt Unblocked
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S.
Department of the Treasury is amending the Iraqi Sanctions Regulations,
31 CFR part 575, to unblock debt in which the Government of Iraq has an
interest.
DATES: This rule is effective September 9, 2005.
FOR FURTHER INFORMATION CONTACT: Chief of Policy Planning and Program
Management, tel. 202/622-2500, or Chief Counsel, tel.: 202/622-2410,
Office of Foreign Assets Control, Department of the Treasury,
Washington, DC 20220 (not toll free numbers).
SUPPLEMENTARY INFORMATION:
Background
On August 2, 1990, upon Iraq's invasion of Kuwait, the President
issued Executive Order 12722 declaring a national emergency with
respect to Iraq. This order, issued under the authority of, inter alia,
the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3 of the U.S. Code, imposed economic sanctions
against Iraq, including a complete trade embargo and a freeze of
Government of Iraq property and interests in property, including any
debt owed by the Government of Iraq (``Iraqi debt''). In keeping with
United Nations Security Council Resolution 661 of August 6, 1990, and
under the United Nations Participation Act (22 U.S.C. 287c), the
President also issued Executive Order 12724 of August 9, 1990, which
imposed additional restrictions. The Iraqi Sanctions Regulations, 31
CFR part 575 (the ``Regulations''), implement Executive Orders 12722
and 12724 and are administered by the Treasury Department's Office of
Foreign Assets Control (``OFAC'').
[[Page 54259]]
On May 22, 2003, the United Nations Security Council adopted
Resolution 1483, which substantially lifted the multilateral economic
sanctions with respect to Iraq. On July 29, 2004, the President issued
Executive Order 13350 terminating the national emergency declared in
Executive Order 12722 and revoking Executive Orders 12722 and 12724 and
all other Executive orders based on that national emergency.
Notwithstanding the termination of the national emergency, this new
Executive order, pursuant to the President's authority under section
207 of IEEPA (50 U.S.C. 1706), continues prohibitions with regard to
transactions involving any property blocked pursuant to Executive Order
12722 or Executive Order 12724 that remains blocked as of July 30,
2004. Moreover, the new Executive order indicates that the termination
``shall not affect any action taken or proceeding pending but not
finally concluded'' as of July 30, 2004, any action or proceeding based
on any act committed prior to such date, or ``any rights or duties that
had matured or penalties that were incurred'' prior to that date.
Because property blocked as of the termination of sanctions against
Iraq remains blocked pursuant to Executive Order 13350, any Iraqi debt
blocked pursuant to those sanctions has remained blocked. Because of
the lifting of multilateral and U.S. sanctions against Iraq, including
the resolution of issues relating to Iraqi debt, the Office of Foreign
Assets Control is today issuing a new general license unblocking debt
in which the Government of Iraq has an interest, subject to certain
conditions.
First, notwithstanding the new general license, transactions that
remained prohibited by paragraphs (b)(3) and (b)(5) of 31 CFR 575.533
continue to remain prohibited. Second, the general license does not
authorize the purchase, exchange or settlement of debt in which the
Government of Iraq has an interest utilizing funds or other property
that is blocked pursuant to this part.
Procedural Matters
Because the Iraqi Sanctions Regulations involve a foreign affairs
function of the United States, the provisions in the Administrative
Procedure Act (5 U.S.C. 553) requiring notice and public procedure and
a delayed effective date are inapplicable. Because no notice of
proposed rulemaking is required, the provisions of the Regulatory
Flexibility Act (5 U.S.C. Chapter 6) do not apply.
Electronic and Facsimile Availability
This file is available for download without charge in ASCII and
Adobe Acrobat readable (*.PDF) formats at GPO Access. GPO Access
supports HTTP, FTP, and Telnet at http://fedbbs.access.gpo.gov. It may
also be accessed by modem dialup at 202/512-1387 followed by typing ``/
GO/FAC.'' Paper copies of this document can be obtained by calling the
Government Printing Office at 202/512-1530. This document and
additional information concerning the programs of the Office of Foreign
Assets Control are available for downloading from the Office's Internet
Home Page: http://www.treas.gov/ofac, or via FTP at ofacftp.treas.gov.
Facsimiles of information are available 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.
Paperwork Reduction Act
The collections of information related to these regulations can be
found in 31 CFR part 501. Pursuant to the Paperwork Reduction Act of
1995 (44 U.S.C. 3507) those collections of information have been
previously approved by the Office of Management and Budget under
control number 1505-0164.
List of Subjects in 31 CFR Part 575
Administrative practice and procedure, Banks, banking, Blocking of
assets, Foreign trade, Iraq, Penalties, Sanctions.
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For the reasons set forth in the preamble, 31 CFR chapter V is amended
as follows:
PART 575--IRAQI SANCTIONS REGULATIONS
0
1. The authority citation for part 575 continues 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; E.O. 13350, 69 FR 46055,
July 29, 2004.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
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2. A new section 575.535 is added to read as follows:
Sec. 575.535 Iraqi Debt Unblocked.
(a) Except as provided in paragraph (b) of this section, all
transactions otherwise prohibited by this part that involve debts in
which the Government of Iraq has an interest are authorized.
(b) For purposes of this part:
(1) This section does not authorize transactions that remain
prohibited under the terms of paragraphs (b)(3) and (b)(5) of Sec.
575.533 of this part.
(2) This section does not authorize the purchase, exchange or
settlement of debt in which the Government of Iraq has an interest
utilizing funds or other property that is blocked pursuant to this
part.
Dated: September 6, 2005.
Robert W. Werner,
Director, Office of Foreign Assets Control.
Stuart A. Levey,
Under Secretary of the Treasury, Office of Terrorism and Financial
Intelligence, Department of the Treasury.
[FR Doc. 05-18245 Filed 9-9-05; 12:57 pm]
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