    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [August 19, 1997]
    [Pages 1113-1114]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Prohibiting Certain Transactions With
    Respect to Iran
    August 19, 1997

    Dear Mr. Speaker:  (Dear Mr. President:)
        On March 15, 1995, I reported to the Congress that, pursuant to
    section 203(a) of the International Emergency Economic Powers Act (50
    U.S.C. 1702(a)) (``IEEPA'') and section 201(a) of the National
    Emergencies Act (50 U.S.C. 1621(a)) (``NEA''), I had exercised my
    statutory authority to declare a national emergency to respond to the
    actions and policies of the Government of Iran and to issue Executive
    Order 12957, which 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. On May 6, 1995, I exercised my authority under
    these statutes and under section 505(a) of the International Security
    and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9(a))
    (``ISDCA'') to issue Executive Order 12959, which imposed additional
    measures to respond to Iran's intensified efforts to acquire weapons of
    mass destruction and to its continuing support for international
    terrorism, including support for acts that undermine the Middle East
    peace process. Executive Order 12959 imposed a comprehensive trade and
    investment embargo on Iran.
        Following the imposition of these restrictions, Iran has continued
    to engage in activities that represent a threat to the peace and
    security of all nations. I have found it necessary to take additional
    measures to confirm that the embargo on Iran prohibits all trade and
    investment activities by United States persons, wherever located, and to
    consolidate in one order the various prohibitions previously imposed to
    deal with the national emergency declared on March 15, 1995. I have
    issued a new Executive order and hereby report to the Congress pursuant
    to section 204(b) of IEEPA (50 U.S.C. 1703(b)), section 301 of the NEA
    (50 U.S.C. 1631), and section 505(c) of the ISDCA (22 U.S.C. 2349aa-
    9(c)).
        The new order I have issued with respect to Iran confirms the
    prohibition of the following transactions:

    [[Page 1114]]

            --  importation into the United States of any goods or services
                of Iranian origin or owned or controlled by the Government
                of Iran, except information or informational material;
            --  exportation, reexportation, sale, or supply from the United
                States or by a United States person, wherever located, of
                goods, technology, or services to Iran or the Government of
                Iran, including knowing transfers to a third country for
                direct or indirect supply, transshipment, or reexportation
                to Iran or the Government of Iran, or specifically for use
                in the production of, commingling with, or incorporation
                into goods, technology, or services to be supplied,
                transshipped, or reexported exclusively or predominantly to
                Iran or the Government of Iran;
            --  reexportation from a third country by a person other than a
                United States person of certain U.S. origin goods, services,
                or technology that are subject to export license application
                requirements under any United States regulations imposed
                independently of this embargo;
            --  purchase, sale, transport, swap, brokerage, approval,
                financing, facilitation, guarantee, or other transactions or
                dealings by United States persons, wherever located, related
                to direct or indirect trade with Iran or the Government of
                Iran or to goods or services of Iranian origin or owned or
                controlled by the Government of Iran;
            --  new investment by United States persons in Iran or in
                property or entities owned or controlled by the Government
                of Iran, making clear that the applicable dates under the
                prior orders continue to govern for purposes of defining
                ``new'' investments;
            --  approval, financing, facilitation, or guarantee by a United
                States person of any transaction by a foreign person that a
                United States person would be prohibited from performing
                under the embargo; and
            --  any evasion, avoidance, or attempt to violate a prohibition
                under the order.
        By confirming that United States persons are prohibited from
    engaging in any trade- or investment-related activities with Iran, I
    want to make clear that this means all direct or indirect involvement in
    such activities wherever those activities occur.
        This new Executive 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. There are
    certain transactions subject to prohibition under this 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 U.S. Government
    functions. In addition, under appropriate conditions, 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 Kazakstan.
        The new Executive order takes effect at 12:01 a.m. eastern daylight
    time on August 20, 1997. Revocation of corresponding provisions in prior
    Executive orders does not affect the applicability of those provisions,
    or of regulations, licenses or other administrative actions taken
    pursuant to those provisions, with respect to any transaction or
    violation occurring before the new Executive order takes effect.
    Specific licenses issued pursuant to prior Executive orders continue in
    effect, unless revoked or amended by the Secretary of the Treasury.
    General licenses, regulations, orders, and directives issued pursuant to
    prior orders continue in effect, except to the extent inconsistent with
    this order or otherwise revoked or modified by the Secretary of the
    Treasury.
        The declaration of national emergency made by Executive Order 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. The
    Executive order is listed in Appendix D at the end of this volume.