    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [January 27, 1998]
    [Pages 121-123]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on the National Emergency With Respect
    to Terrorists Who Threaten To Disrupt the Middle East Peace Process
    January 27, 1998

    To the Congress of the United States:
        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 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.

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        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, 1998, I continued for another year the national
    emergency declared on January 23, 1995, and the measures that 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)).
        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, as well as 18 individuals who are leaders or representatives of
    these groups. In addition, the notice provided 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
    significant risk of committing, acts of violence that have the purpose
    or effect of disrupting the Middle East peace process or to have
    assisted in, sponsored, or provided financial, material, or
    technological support for, or services in support of, such acts of
    violence, or are owned or controlled by, or 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).
        3. On February 2, 1996, OFAC issued the Terrorism Sanctions
    Regulations (the ``TSRs'' or the ``Regulations'') (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. There has been one amendment to the TSRs, 31
    C.F.R. Part 595 administered by the Office of Foreign Assets Control of
    the Department of the Treasury, since my report of August 5, 1997. The
    Regulations were amended on August 25, 1997. General reporting,
    recordkeeping, licensing, and other procedural regulations were moved
    from the Regulations to a separate part (31 C.F.R. Part 501) dealing
    solely with such procedural matters (62 Fed. Reg. 45098, August 25,
    1997). A copy of the amendment is attached.
        4. Since January 25, 1995, OFAC has issued three licenses pursuant
    to the Regulations. These licenses authorize payment of legal expenses
    of individuals and the disbursement of funds for normal expenditures for
    the maintenance of family members of individuals designated pursuant to
    Executive Order 12947, and for secure storage of tangible assets of
    Specially Designated Terrorists.
        5. The expenses incurred by the Federal Government in the 6-month
    period from July 22, 1997, through January 22, 1998, 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
    $165,000. These data do not reflect certain costs of operations by the
    intelligence and law enforcement communities.
        6. Executive Order 12947 provides this Administration with a 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.
        Executive Order 12947 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

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    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,

    January 27, 1998.

    Note: This message was released by the Office of the Press Secretary on
    January 28.