    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book I)]
    [June 21, 2000]
    [Pages 1206-1208]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress on the National Emergency With Respect to the
    Russian Federation
    June 21, 2000

    To the Congress of the United States:
        Pursuant to section 204(b) of the International Emergency Economic
    Powers Act (IEEPA), 50 U.S.C. 1703(b) and section 301 of the National
    Emergencies Act, 50 U.S.C. 1631, I hereby report that I have exercised
    my authority to declare a national emergency to deal with the threat
    posed to the United States by the risk of nuclear proliferation created
    by the accumulation in the Russian Federation of a large volume of
    weapons-usable fissile material. The United States and the Russian
    Federation have entered into a series of agreements that provide for the
    conversion of highly enriched uranium (HEU) extracted from Russian
    nuclear weapons into low enriched uranium (LEU) for use in commercial
    nuclear reactors. The Russian Federation recently suspended its
    performance under these agreements because of concerns that payments due
    to it under these agreements may be subject to attachment, garnishment,
    or other judicial process, in the United States. Accordingly, I have
    issued an Executive Order to address the unusual and extraordinary risk
    of nuclear proliferation created by this situation.

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        A major national security goal of the United States is to ensure
    that fissile material removed from Russian nuclear weapons pursuant to
    various arms control and disarmament agreements is dedicated to peaceful
    uses, subject to transparency measures, and protected from diversion to
    activities of proliferation concern. The United States and the Russian
    Federation entered into an international agreement in February 1993 to
    deal with these issues as they relate to the disposition of HEU
    extracted from Russian nuclear weapons (the ``HEU Agreement''). Under
    the HEU Agreement, 500 metric tons of HEU will be converted to LEU over
    a 20-year period. This is the equivalent of 20,000 nuclear warheads.
        Additional agreements were put in place to effectuate the HEU
    Agreement, including agreements and contracts on transparency, on the
    appointment of executive agents to assist in implementing the
    agreements, and on the disposition of LEU delivered to the United States
    (collectively, the ``HEU Agreements''). Under the HEU Agreements, the
    Russian Federation extracts HEU metal from nuclear weapons. That HEU is
    oxidized and blended down to LEU in the Russian Federation. The
    resulting LEU is shipped to the United States for fabrication into fuel
    for commercial reactors. The United States monitors this conversion
    process through the Department of Energy's Warhead and Fissile Material
    Transparency Program.
        The HEU Agreements provide for the Russian Federation to receive
    money and uranium hexafluoride in payment for each shipment of LEU
    converted from the Russian nuclear weapons. The money and uranium
    hexafluoride are transferred to the Russian Federation executive agent
    in the United States.
        The Russian Federation recently suspended its performance under the
    HEU Agreements because of concerns over possible attachment,
    garnishment, or other judicial process with respect to the payments due
    to it as a result of litigation currently pending against the Russian
    Federation. In response to this concern, the Minister of Atomic Energy
    of the Russian Federation, Minister Adamov, notified Secretary
    Richardson on May 5, 2000, of the decision of the Russian Federation to
    halt shipment of LEU pending resolution of this problem. This suspension
    presents an unusual and extraordinary threat to U.S. national security
    goals due to the risk of nuclear proliferation caused by the
    accumulation of weapons-usable fissile material in the Russian
    Federation.
        The executive branch and the Congress have previously recognized and
    continue to recognize the threat posed to the United States national
    security from the risk of nuclear proliferation created by the
    accumulation of weapons-usable fissile material in the Russian
    Federation. This threat is the basis for significant programs aimed at
    Cooperative Threat Reduction and at controlling excess fissile material.
    The HEU Agreements are essential tools to accomplish these overall
    national security goals. Congress demonstrated support for these
    agreements when it authorized the purchase of Russian uranium in 1998,
    Public Law 105-277, and also enacted legislation to enable Russian
    uranium to be sold in this country pursuant to the USEC Privatization
    Act, 42 U.S.C. 2297h-10.
        Payments made to the Russian Federation pursuant to the HEU
    Agreements are integral to the operation of this key national security
    program. Uncertainty surrounding litigation involving these payments
    could lead to a long-term suspension of the HEU Agreements, which
    creates the risk of nuclear proliferation. This is an unacceptable
    threat to the national security and foreign policy of the United States.
        Accordingly, I have concluded that all property and interests in
    property of the government of the Russian Federation directly related to
    the implementation of the HEU Agreements should be protected from the
    threat of attachment, garnishment, or other judicial process. I have,
    therefore, exercised my authority and issued an Executive Order that
    provides:
         except to the extent provided in regulations, orders,
                directives, or licenses that may be issued pursuant to the
                order, all property and interests in property of the
                Government of the Russian Federation directly related to the
                implementation of the HEU Agreements that are in the United
                States, that hereafter come within the United States, or
                hereafter come within the possession or control of United
                States persons, including their overseas branches, are
                blocked and may not be transferred, paid, exported,
                withdrawn, or otherwise dealt in;
         unless licensed or authorized pursuant to the order, any
                attachment, judgment, decree, lien, execution, garnishment,
                or other

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                judicial process is null and void with respect to any
                property or interest in property blocked pursuant to the
                order; and
         that all heads of departments and agencies of the United
                States Government shall continue to take all appropriate
                measures within their authority to further the full
                implementation of the HEU Agreements.
        The effect of this Executive Order is limited to property that is
    directly related to the implementation of the HEU Agreements. Such
    property will be clearly defined by the regulations, orders, directives,
    or licenses that will be issued pursuant to this Executive Order.
        I am enclosing a copy of the Executive Order I have issued. The
    order is effective at 12:01 a.m. eastern daylight time on June 22, 2000.

                                                          William J. Clinton

     The White House,

     June 21, 2000.

     Note:  This message was released by the Office of the Press Secretary
    on June 22. The Executive order of June 21 is listed in Appendix D at
    the end of this volume.