[Weekly Compilation of Presidential Documents Volume 31, Number 19 (Monday, May 15, 1995)]
[Pages 786-787]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders on Iran

May 6, 1995

Dear Mr. Speaker:  (Dear Mr. President:)

    On March 15, 1995, I reported to the Congress that, pursuant to 
section 204(b) of the International Emergency Economic Powers Act (50 
U.S.C. 1703(b)), and section 301 of the National Emergencies Act (50 
U.S.C. 1631), I exercised my statutory authority to declare a national 
emergency to respond to the actions and policies of the Government of 
Iran and to issue an Executive order that 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.
    Following the imposition of these restrictions with regard to the 
development of Iranian petroleum resources, Iran has continued to engage 
in activities that represent a threat to the peace and security of all 
nations. I have now taken additional measures to respond to Iran's 
continuing support for international terrorism, including support for 
acts that undermine the Middle East peace process, as well as its 
intensified efforts to acquire weapons of mass destruction. I have 
issued a new Executive order and hereby report to the Congress pursuant 
to the above authorities and section 505(c) of the International 
Security and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-
9(c)).
    The new order I have issued with respect to Iran:
    --Prohibits exportation from the United States to Iran or to the 
      Government of Iran of goods, technology or services, including 
      trade financing by U.S. banks;
    --Prohibits the reexportation of certain U.S. goods and technology 
      to Iran from third countries;
    --Prohibits transactions such as brokering and other dealing by 
      United States persons in Iranian goods and services;
    --Prohibits new investments by United States persons in Iran or in 
      property owned or controlled by the Government of Iran;
    --Prohibits U.S. companies from approving or facilitating their 
      subsidiaries' performance of transactions that they themselves are 
      prohibited from performing;
    --Continues the 1987 prohibition on the importation into the United 
      States of goods and services of Iranian origin; and
    --Allows U.S. companies a 30-day period in which to perform trade 
      transactions pursuant to contracts predating this order that are 
      now prohibited.
    With the exception of the trade noted above, all prohibitions 
contained in the Executive order are effective as of 12:01 a.m., eastern 
daylight time, on May 7, 1995.
    This new 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. The order also 
authorizes the Secretary of the Treasury to require reports, including 
reports on foreign affiliates' oil trading with Iran. There are certain 
transactions subject to the prohibitions contained in the Executive 
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 United States Government functions. Such transactions 
also include the export of agricultural commodities consistent with 
section 5712(c) of title 7, United States Code. In addition, 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

[[Page 787]]

projects in Azerbaijan, Turkmenistan, and Kazakhstan.
    This order revokes 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, to the extent they are inconsistent with this order. The 
declaration of national emergency made by Executive Order No. 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. This 
letter was released by the Office of the Press Secretary on May 8.