[Weekly Compilation of Presidential Documents Volume 31, Number 19 (Monday, May 15, 1995)]
[Pages 784-786]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 12959--Prohibiting Certain Transactions With Respect to 
Iran

May 6, 1995

    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, including the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
National Emergencies Act (50 U.S.C. 1601 et seq.), section 505 of the 
International Security and Development Cooperation Act of 1985 (22 
U.S.C. 2349aa-9) (ISDCA), and section 301 of title 3, United States 
Code,
    I, William J. Clinton, President of the United States of America, in 
order to take steps with respect to Iran in addition to those set forth 
in Executive Order No. 12957 of March 15, 1995, to deal with the unusual 
and extraordinary threat to the national security, foreign policy, and 
economy of the United States referred to in that order, hereby order:
    Section 1. The following are prohibited, except to the extent 
provided in regulations, orders, directives, or licenses that may be 
issued pursuant to this order, and notwithstanding any contract entered 
into or any license or permit granted prior to the effective date of 
this order: (a) the importation into the United States, or the financing 
of such importation, of any goods or services of Iranian origin, other 
than Iranian-origin publications and materials imported for news 
publications or news broadcast dissemination;
    (b) except to the extent provided in section 203(b) of IEEPA (50 
U.S.C. 1702(b)), the exportation from the United States to Iran, the 
Government of Iran, or to any entity owned or controlled by the 
Government of Iran, or the financing of such exportation, of any goods, 
technology (including technical data or other information subject to the 
Export Administration Regulations, 15 CFR Parts 768-799 (1994) (the 
``EAR'')), or services;
    (c) the reexportation to Iran, the Government of Iran, or to any 
entity owned or controlled by the Government of Iran, of any goods or 
technology (including technical data or other information) exported from 
the United States, the exportation of which to Iran is subject to export 
license application requirements under any United States regulations in 
effect immediately prior to the issuance of this order, unless, for 
goods, they have been (i) substantially transformed outside the United 
States, or (ii) incorporated into another product outside the United 
States and constitute less than 10 percent by value of that product 
exported from a third country;
    (d) except to the extent provided in section 203(b) of IEEPA (50 
U.S.C. 1702(b)), any transaction, including purchase, sale, 
transportation, swap, financing, or brokering transactions, by a United 
States person relating to goods or services of Iranian origin or owned 
or controlled by the Government of Iran;
    (e) any new investment by a United States person in Iran or in 
property (including entities) owned or controlled by the Government of 
Iran;
    (f) the approval or facilitation by a United States person of the 
entry into or perform- 

[[Page 785]]

ance by an entity owned or controlled by a United States person of a 
transaction or contract (i) prohibited as to United States persons by 
subsection (c), (d), or (e) above, or (ii) relating to the financing of 
activities prohibited as to United States persons by those subsections, 
or of a guaranty of another person's performance of such transaction or 
contract; and
    (g) any transaction by any United States person or within the United 
States that evades or avoids, or has the purpose of evading or avoiding, 
or attempts to violate, any of the prohibitions set forth in this order.
    Sec. 2. For the purposes of this order:
    (a) the term ``person'' means an individual or entity;
    (b) the term ``entity'' means a partnership, association, trust, 
joint venture, corporation, or other organization;
    (c) the term ``United States person'' means any United States 
citizen, permanent resident alien, entity organized under the laws of 
the United States (including foreign branches), or any person in the 
United States;
    (d) the term ``Iran'' means the territory of Iran and any other 
territory or marine area, including the exclusive economic zone and 
continental shelf, over which the Government of Iran claims sovereignty, 
sovereign rights or jurisdiction, provided that the Government of Iran 
exercises partial or total de facto control over the area or derives a 
benefit from economic activity in the area pursuant to international 
arrangements; and
    (e) the term ``new investment'' means (i) a commitment or 
contribution of funds or other assets, or (ii) a loan or other extension 
of credit.
    Sec. 3. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to take such actions, including 
the promulgation of rules and regulations, the requirement of reports, 
including reports by United States persons on oil transactions engaged 
in by their foreign affiliates with Iran or the Government of Iran, and 
to employ all powers granted to the President by IEEPA and ISDCA as may 
be necessary to carry out the purposes of this order. The Secretary of 
the Treasury may redelegate any of these functions to other officers and 
agencies of the United States Government. All agencies of the United 
States Government are hereby directed to take all appropriate measures 
within their authority to carry out the provisions of this order.
    Sec. 4. The Secretary of the Treasury may not authorize the 
exportation or reexportation to Iran, the Government of Iran, or an 
entity owned or controlled by the Government of Iran of any goods, 
technology, or services subject to export license application 
requirements of another agency of the United States Government, if 
authorization of the exportation or reexportation by that agency would 
be prohibited by law.
    Sec. 5. Sections 1 and 2 of Executive Order No. 12613 of October 29, 
1987, and sections 1 and 2 of Executive Order No. 12957 of March 15, 
1995, are hereby revoked to the extent inconsistent with this order. 
Otherwise, the provisions of this order supplement the provisions of 
Executive Orders No. 12613 and 12957.
    Sec. 6. Nothing contained in this order shall create any right or 
benefit, substantive or procedural, enforceable by any party against the 
United States, its agencies or instrumentalities, its officers or 
employees, or any other person.
    Sec. 7. The measures taken pursuant to this order are in response to 
actions of the Government of Iran occurring after the conclusion of the 
1981 Algiers Accords, and are intended solely as a response to those 
later actions.
    Sec. 8. (a) This order is effective at 12:01 a.m., eastern daylight 
time, on May 7, 1995, except that (i) section 1(b), (c), and (d) of this 
order shall not apply until 12:01 a.m., eastern daylight time, on June 
6, 1995, to trade transactions under contracts in force as of the date 
of this order if such transactions are authorized pursuant to Federal 
regulations in force immediately prior to the date of this order 
(``existing trade contracts''), and (ii) letters of credit and other 
financing agreements with respect to existing trade contracts may be 
performed pursuant to their terms with respect to underlying trade 
transactions occurring prior to 12:01 a.m., eastern daylight time, on 
June 6, 1995.

[[Page 786]]

    (b) This order shall be transmitted to the Congress and published in 
the Federal Register.
                                            William J. Clinton
The White House,
May 6, 1995.

[Filed with the Office of the Federal Register, 2:43 p.m., May 8, 1995]

Note: This Executive order was released by the Office of the Press 
Secretary on May 8, and it was published in the Federal Register on May 
9.