    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [May 6, 1995]
    [Pages 653-654]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Additional Economic Sanctions Against
    Iran
    May 6, 1995

    Dear Mr. Speaker:  (Dear Mr. President:)
        On March 15, 1995, I reported to the Congress that, pursuant to
    section 204(b) of the International Emergency Economic Powers Act (50
    U.S.C. 1703(b)), and section 301 of the National Emergencies Act (50
    U.S.C. 1631), I exercised my statutory authority to declare a national
    emergency to respond to the actions and policies of the Government of
    Iran and to issue an Executive order that prohibited United States
    persons from entering into contracts for the financing or the overall
    management or supervision of the development of petroleum resources
    located in Iran or over which Iran claims jurisdiction.
        Following the imposition of these restrictions with regard to the
    development of Iranian petroleum resources, Iran has continued to engage
    in activities that represent a threat to the peace and security of all
    nations. I have now taken additional measures to respond to Iran's
    continuing support for international terrorism, including support for
    acts that undermine the Middle East peace process, as well as its
    intensified efforts to acquire weapons of mass destruction. I have
    issued a new Executive order and hereby report to the Congress pursuant
    to the above authorities and section 505(c) of the International
    Security and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-
    9(c)).

    [[Page 654]]

    I11The new order I have issued with respect to Iran:
        --Prohibits exportation from the United States to Iran or to the
            Government of Iran of goods, technology or services, including
            trade financing by U.S. banks;
        --Prohibits the reexportation of certain U.S. goods and technology
            to Iran from third countries;
        --Prohibits transactions such as brokering and other dealing by
            United States persons in Iranian goods and services;
        --Prohibits new investments by United States persons in Iran or in
            property owned or controlled by the Government of Iran;
        --Prohibits U.S. companies from approving or facilitating their
            subsidiaries' performance of transactions that they themselves
            are prohibited from performing;
        --Continues the 1987 prohibition on the importation into the United
            States of goods and services of Iranian origin; and
        --Allows U.S. companies a 30-day period in which to perform trade
            transactions pursuant to contracts predating this order that are
            now prohibited.
        With the exception of the trade noted above, all prohibitions
    contained in the Executive order are effective as of 12:01 a.m., eastern
    daylight time, on May 7, 1995.
        This new order provides that the Secretary of the Treasury, in
    consultation with the Secretary of State, is authorized to take such
    actions, including the promulgation of rules and regulations, as may be
    necessary to carry out the purposes of the order. The order also
    authorizes the Secretary of the Treasury to require reports, including
    reports on foreign affiliates' oil trading with Iran. There are certain
    transactions subject to the prohibitions contained in the Executive
    order that I have directed the Secretary of the Treasury to authorize
    through licensing, including transactions by United States persons
    related to the Iran-United States Claims Tribunal in The Hague,
    established pursuant to the Algiers Accords, and other international
    obligations and United States Government functions. Such transactions
    also include the export of agricultural commodities consistent with
    section 5712(c) of title 7, United States Code. In addition, United
    States persons may be licensed to participate in market-based swaps of
    crude oil from the Caspian Sea area for Iranian crude oil in support of
    energy projects in Azerbaijan, Turkmenistan, and Kazakhstan.
        This order revokes sections 1 and 2 of Executive Order No. 12613 of
    October 29, 1987, and sections 1 and 2 of Executive Order No. 12957 of
    March 15, 1995, to the extent they are inconsistent with this order. The
    declaration of national emergency made by Executive Order No. 12957
    remains in effect and is not affected by this order.
        Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to Newt Gingrich, Speaker of the House
    of Representatives, and Albert Gore, Jr., President of the Senate. This
    letter was released by the Office of the Press Secretary on May 8. The
    Executive order of May 6 is listed in Appendix D at the end of this
    volume.