    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book II)]
    [August 8, 1996]
    [Pages 1280-1281]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders Reporting on Terrorists Who Threaten
    To Disrupt the Middle East Peace Process
    August 8, 1996

    Dear Mr. Speaker:    (Dear Mr. President:)
        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 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 (OFAC)
    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 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
    12947,

    [[Page 1281]]

    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). The OFAC, in coordination with the
    Secretary of State and the Attorney General, is continuing to expand the
    list of Specially Designated Terrorists, including both organizations
    and individuals, as additional information is developed.
        3. On February 2, 1996, OFAC issued the Terrorism Sanctions
    Regulations (the ``TSRs'') (61 Fed. Reg. 3805-13, February 2, 1996). The
    TSRs implement the President's declaration of a national emergency and
    imposition of sanctions against certain persons whose acts of violence
    have the purpose or effect of disrupting the Middle East peace process.
        4. During the reporting period, OFAC issued two licenses pursuant to
    the TSRs. One license authorized the disbursement of funds from a
    blocked account for the legal defense of an identified terrorist. The
    second authorized the release of certain funds from the blocked account
    of the same SDT for maintenance in the United States of his dependents.
        5. The expenses incurred by the Federal Government in the 6-month
    period from January 23 through July 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 $1
    million.
        6. Executive Order 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, comprehensive counterterrorism legislation was enacted
    on April 24, 1996, 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 12947 and the Antiterrorism
    and Effective Death Penalty Act of 1996; Public Law 104-132, demonstrate
    the United States 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).
            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.