[Weekly Compilation of Presidential Documents Volume 33, Number 32 (Monday, August 11, 1997)]
[Pages 1197-1198]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders Reporting on Terrorists Who Threaten the 
Middle East Peace Process

August 5, 1997

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

    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 Emergencies Economic Powers Act (IEEPA), 50 U.S.C. 
1703(c).
    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 the 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 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 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, 1997, I continued for another year the national 
emergency declared on January 23, 1995, and the measures 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)).
    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 pseudo

[[Page 1198]]

nyms, 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). 
The OFAC, in coordination with the Secretary of State and the Attorney 
General, is continuing to expand the List of (SDTs), including both 
organizations and individuals as additional information is developed.
    On February 2, 1996, OFAC issued the Terrorism Sanctions Regulations 
(the ``TSRs'') (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.
    The expenses incurred by the Federal Government in the 6-month 
period from January 23 through July 22, 1997, 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 
$3.2 million. These data do not reflect certain costs of operations by 
the intelligence and law enforcement communities.
    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 counter- terrorism 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 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 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. This 
letter was released by the Office of the Press Secretary on August 6.