[Weekly Compilation of Presidential Documents Volume 33, Number 34 (Monday, August 25, 1997)]
[Pages 1262-1263]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Letter to Congressional Leaders on Iran
August 19, 1997
Dear Mr. Speaker: (Dear Mr. President:)
On March 15, 1995, I reported to the Congress that, pursuant to
section 203(a) of the International Emergency Economic Powers Act (50
U.S.C. 1702(a)) (``IEEPA'') and section 201(a) of the National
Emergencies Act (50 U.S.C. 1621(a)) (``NEA''), I had exercised my
statutory authority to declare a national emergency to respond to the
actions and policies of the Government of Iran and to issue Executive
Order 12957, which 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. On May 6, 1995, I exercised my authority under
these statutes and under section 505(a) of the International Security
and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9(a))
(``ISDCA'') to issue Executive Order 12959, which imposed additional
measures to respond to Iran's intensified efforts to acquire weapons of
mass destruction and to its continuing support for international
terrorism, including support for acts that undermine the Middle East
peace process. Executive Order 12959 imposed a comprehensive trade and
investment embargo on Iran.
Following the imposition of these restrictions, Iran has continued
to engage in activities that represent a threat to the peace and
security of all nations. I have found it necessary to take additional
measures to confirm that the embargo on Iran prohibits all trade and
investment activities by United States persons, wherever located, and to
consolidate in one order the various prohibitions previously imposed to
deal with the national emergency declared on March 15, 1995. I have
issued a new Executive order and hereby report to the Congress pursuant
to section 204(b) of IEEPA (50 U.S.C. 1703(b)), section 301 of the NEA
(50 U.S.C. 1631), and section 505(c) of the ISDCA (22 U.S.C. 2349aa-
9(c)).
The new order I have issued with respect to Iran confirms the
prohibition of the following transactions:
-- importation into the United States of any goods or services
of Iranian origin or owned or controlled by the Government
of Iran, except information or informational material;
-- exportation, reexportation, sale, or supply from the United
States or by a United States person, wherever located, of
goods, technology, or services to Iran or the Government of
Iran, including knowing transfers to a third country for
direct or indirect supply, transshipment, or reexportation
to Iran or the Government of Iran, or specifically for use
in the production of, commingling with, or incorporation
into goods, technology, or services to be supplied,
transshipped, or reexported exclusively or predominantly to
Iran or the Government of Iran;
-- reexportation from a third country by a person other than a
United States person of certain U.S. origin goods, services,
or technology that are subject to export license application
requirements under any United States regulations imposed
independently of this embargo;
-- purchase, sale, transport, swap, brokerage, approval,
financing, facilitation, guarantee, or other transactions or
dealings by United States persons, wherever located, related
to direct or indirect trade with Iran or the Government of
Iran or to goods or services of Iranian origin or owned or
controlled by the Government of Iran;
[[Page 1263]]
-- new investment by United States persons in Iran or in
property or entities owned or controlled by the Government
of Iran, making clear that the applicable dates under the
prior orders continue to govern for purposes of defining
``new'' investments;
-- approval, financing, facilitation, or guarantee by a United
States person of any transaction by a foreign person that a
United States person would be prohibited from performing
under the embargo; and
-- any evasion, avoidance, or attempt to violate a prohibition
under the order.
By confirming that United States persons are prohibited from
engaging in any trade- or investment-related activities with Iran, I
want to make clear that this means all direct or indirect involvement in
such activities wherever those activities occur.
This new Executive 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. There are
certain transactions subject to prohibition under this 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 U.S. Government
functions. In addition, under appropriate conditions, 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
projects in Azerbaijan, Turkmenistan, and Kazakstan.
The new Executive order takes effect at 12:01 a.m. eastern daylight
time on August 20, 1997. Revocation of corresponding provisions in prior
Executive orders does not affect the applicability of those provisions,
or of regulations, licenses or other administrative actions taken
pursuant to those provisions, with respect to any transaction or
violation occurring before the new Executive order takes effect.
Specific licenses issued pursuant to prior Executive orders continue in
effect, unless revoked or amended by the Secretary of the Treasury.
General licenses, regulations, orders, and directives issued pursuant to
prior orders continue in effect, except to the extent inconsistent with
this order or otherwise revoked or modified by the Secretary of the
Treasury.
The declaration of national emergency made by Executive Order 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.