[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.