[Weekly Compilation of Presidential Documents Volume 32, Number 32 (Monday, August 12, 1996)]
[Pages 1431-1432]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders on Organizations Which Threaten the 
Middle East Peace Process

August 8, 1996

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

    I hereby report to the Congress on the developments concerning the 
national emergency with respect to organizations that 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.
    Designations of persons blocked pursuant to the order are effective 
upon the date of determination by the Secretary of State or his 
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.
    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 provides 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 risk 
of committing, acts of violence that have the purpose of disrupting the 
Middle East peace process or to have assisted in, sponsored, or provided 
financial, material or technological support for, or service in support 
of, such acts of violence, or are owned or controlled by, or to 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. 41152-53, 
August 11, 1995; 60 Fed. Reg. 44932-33, August 29, 1995; and 60 Fed. 
Reg. 58435-36, November 27, 1995). The OFAC, in coordination with the 
Secretary of State and the Attorney General, is continuing to

[[Page 1432]]

expand the list of Specially Designated Terrorists, including both 
organizations and individuals, as additional information is developed.
    3. On February 2, 1996, OFAC issued the Terrorism Sanctions 
Regulations (the ``TSRs'') (61 Fed. Reg. 3805-13, 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.
    4. During the reporting period, OFAC issued two licenses pursuant to 
the TSRs. One license authorized the disbursement of funds from a 
blocked account for the legal defense of an identified terrorist. The 
second authorized the release of certain funds from the blocked account 
of the same SDT for maintenance in the United States of his dependents.
    5. The expenses incurred by the Federal Government in the 6-month 
period from January 23 through July 22, 1996, 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 $1 
million.
    6. Executive Order 12947 provides this Administration with a new 
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.
    In addition, comprehensive counterterrorism legislation was enacted 
on April 24, 1996, that would strengthen our ability to prevent 
terrorist acts, identify those who carry them out, and bring them to 
justice. The combination of Executive Order 12947 and the Antiterrorism 
and Effective Death Penalty Act of 1996; Public Law 104-132, demonstrate 
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 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).
    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.