[Weekly Compilation of Presidential Documents Volume 34, Number 5 (Monday, February 2, 1998)]
[Pages 139-141]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress Reporting on Terrorists Who Threaten the Middle 
East Peace Process

January 27, 1998

To the Congress of the United States:

    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 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

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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, 1998, I continued for another year the national 
emergency declared on January 23, 1995, and the measures that 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)).
    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 provided 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 
significant risk of committing, acts of violence that have the purpose 
or effect of disrupting the Middle East peace process or to have 
assisted in, sponsored, or provided financial, material, or 
technological support for, or services in support of, such acts of 
violence, or are owned or controlled by, or 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, August 11, 
1995; 60 Fed. Reg. 44932, August 29, 1995; and 60 Fed. Reg. 58435, 
November 27, 1995).
    3. On February 2, 1996, OFAC issued the Terrorism Sanctions 
Regulations (the ``TSRs'' or the ``Regulations'') (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. There has been one amendment to the TSRs, 31 
C.F.R. Part 595 administered by the Office of Foreign Assets Control of 
the Department of the Treasury, since my report of August 5, 1997. The 
Regulations were amended on August 25, 1997. General reporting, 
recordkeeping, licensing, and other procedural regulations were moved 
from the Regulations to a separate part (31 C.F.R. Part 501) dealing 
solely with such procedural matters (62 Fed. Reg. 45098, August 25, 
1997). A copy of the amendment is attached.
    4. Since January 25, 1995, OFAC has issued three licenses pursuant 
to the Regulations. These licenses authorize payment of legal expenses 
of individuals and the disbursement of funds for normal expenditures for 
the maintenance of family members of individuals designated pursuant to 
Executive Order 12947, and for secure storage of tangible assets of 
Specially Designated Terrorists.
    5. The expenses incurred by the Federal Government in the 6-month 
period from July 22, 1997, through January 22, 1998, 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

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$165,000. These data do not reflect certain costs of operations by the 
intelligence and law enforcement communities.
    6. Executive Order 12947 provides this Administration with a 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.
    Executive Order 12947 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).
                                            William J. Clinton
The White House,
January 27, 1998.

Note: This message was released by the Office of the Press Secretary on 
January 28.