    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [February 9, 1996]
    [Pages 201-202]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 201]]

    Message to the Congress Reporting on Terrorists Who Threaten To Disrupt
    the Middle East Peace Process
    February 9, 1996

    To the Congress of the United States:
        I hereby report to the Congress on the developments concerning the
    national emergency with respect to organizations that threaten to
    disrupt the Middle East peace process that was declared in Executive
    Order No. 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 his
    delegate, or the Director of the Office of Foreign Assets Control (FAC)
    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.
        2. On January 25, 1995, the Department of the Treasury issued a
    notice listing persons blocked pursuant to Executive Order No. 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 No.
    12947, as well as 18 individuals who are leaders or representatives of
    these groups. In addition the notice provides 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 risk
    of committing, acts of violence that have the purpose of disrupting the
    Middle East peace process or to have assisted in, sponsored, or provided
    financial, material or technological support for, or service in support
    of, such acts of violence, or are owned or controlled by, or to 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. 41152-53,
    August 11, 1995; 60 Fed. Reg. 44932-33, August 29, 1995; and 60 Fed.
    Reg. 58435-36, November 27, 1995). Copies of the notices are attached to
    this report. The FAC, in coordination with the Secretary of State and
    the Attorney General, is continuing to expand the list of Specially
    Designated Terrorists, including both organizations

    [[Page 202]]

    and individuals, as additional information is developed.
        3. The expenses incurred by the Federal Government in the 6-month
    period from July 23, 1995, through January 22, 1996, 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
    $2.6 million. (The expenses for the previous period, incorrectly stated
    in the report of July 27, 1995, to be approximately $55,000, were about
    $2.5 million.) Personnel costs were largely centered in the Department
    of the Treasury (particularly in the Office of Foreign Assets Control,
    the Office of the General Counsel, and the U.S. Customs Service), the
    Department of State, and the Department of Justice.
        4. Executive Order No. 12947 provides this Administration with a new
    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.
        In addition, the Congress has pending before it comprehensive
    counterterrorism legislation proposed by the Administration that would
    strengthen our ability to prevent terrorist acts, identify those who
    carry them out, and bring them to justice. The combination of Executive
    Order No. 12947 and the proposed legislation demonstrate the U.S.
    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,

    February 9, 1996.