    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [August 5, 1997]
    [Pages 1059-1060]
    [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 5, 1997

    Dear Mr. Speaker:  (Dear Mr. President:)
        I hereby report to the Congress on the developments concerning the
    national emergency with respect to terrorists who 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 Emergencies Economic Powers Act (IEEPA), 50 U.S.C.
    1703(c).
        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 the 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 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 her
    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.
        Because terrorist activities continue to threaten the Middle East
    peace process and vital interests of the United States in the Middle
    East, on January 21, 1997, I continued for another year the national
    emergency declared on January 23, 1995, and the measures took effect on
    January 24, 1995, to deal with that emergency. This action was taken in
    accordance with section 202(d) of the National Emergencies Act (50
    U.S.C. 1622(d)).
        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

    [[Page 1060]]

    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, 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,
    August 11, 1995; 60 Fed. Reg. 44932, August 29, 1995; and 60 Fed. Reg.
    58435, November 27, 1995). The OFAC, in coordination with the Secretary
    of State and the Attorney General, is continuing to expand the List of
    (SDTs), including both organizations and individuals as additional
    information is developed.
        On February 2, 1996, OFAC issued the Terrorism Sanctions Regulations
    (the ``TSRs'') (61 Fed. Reg. 3805, 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.
        The expenses incurred by the Federal Government in the 6-month
    period from January 23 through July 22, 1997, 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
    $3.2 million. These data do not reflect certain costs of operations by
    the intelligence and law enforcement communities.
        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 counter-terrorism 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 demonstrates 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. This
    letter was released by the Office of the Press Secretary on August 6.