[Weekly Compilation of Presidential Documents Volume 37, Number 39 (Monday, October 1, 2001)]
[Pages 1364-1368]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Remarks on United States Financial Sanctions Against Foreign Terrorists
and Their Supporters and an Exchange With Reporters
September 24, 2001
The President. Good morning. At 12:01 this morning, a major thrust
of our war on terrorism began with the stroke of a pen. Today we have
launched a strike on the financial foundation of the global terror
network.
Make no mistake about it, I've asked our military to be ready for a
reason. But the American people must understand this war on terrorism
will be fought on a variety of fronts, in different ways. The frontlines
will look different from the wars of the past.
So I told the American people we will direct every resource at our
command to win the war against terrorists, every means of diplomacy,
every tool of intelligence, every instrument of law enforcement, every
financial influence. We will starve the terrorists of funding, turn them
against each other, rout them out of their safe hiding places, and bring
them to justice.
I've signed an Executive order that immediately freezes United
States financial assets of and prohibits United States transactions with
27 different entities. They include terrorist organizations, individual
terrorist leaders, a corporation that serves as a front for terrorism,
and several nonprofit organizations.
Just to show you how insidious these terrorists are, they oftentimes
use nice-sounding, non-governmental organizations as fronts for their
activities. We have targeted three such NGOs. We intend to deal with
them, just like we intend to deal with others who aid and abet terrorist
organizations. This Executive order means that United States banks that
have assets of these groups or individuals must freeze their accounts.
And United States citizens or businesses are prohibited from doing
business with them.
We know that many of these individuals and groups operate primarily
overseas, and they don't have much money in the United States. So we've
developed a strategy to deal with that. We're putting banks and
financial institutions around the world on notice. We will work with
their governments, ask them to freeze or block terrorists' ability to
access funds in foreign accounts. If they fail to help us by sharing
information or freezing accounts, the Department of the Treasury now has
the authority to freeze their banks' assets and transactions in the
United States.
We have developed the international financial equivalent of law
enforcement's ``Most Wanted'' list. And it puts the financial world on
notice. If you do business with terrorists, if you support or sponsor
them, you will not do business with the United States of America.
I want to assure the world that we will exercise this power
responsibly. But make no mistake about it, we intend to, and we will,
disrupt terrorist networks. I want to assure the American people that in
taking this action and publishing this list, we're acting based
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on clear evidence, much of which is classified, so it will not be
disclosed. It's important as this war progresses that the American
people understand we make decisions based upon classified information,
and we will not jeopardize the sources; we will not make the war more
difficult to win by publicly disclosing classified information.
And by the way, this list is just a beginning. We will continue to
add more names to the list. We will freeze the assets of others as we
find that they aid and abet terrorist organizations around the world.
We've established a foreign terrorist asset tracking center at the
Department of the Treasury to identify and investigate the financial
infrastructure of the international terrorist networks. It will bring
together representatives of the intelligence, law enforcement, and
financial regulatory agencies to accomplish two goals: to follow the
money as a trail to the terrorists--to follow their money so we can find
out where they are--and to freeze the money to disrupt their actions.
We're also working with the friends and allies throughout the world
to share information. We're working closely with the United Nations, the
EU, and through the G-7/G-8 structure to limit the ability of terrorist
organizations to take advantage of the international financial systems.
The United States has signed, but not yet ratified, two
international conventions, one of which is designed to set international
standards for freezing financial assets. I'll be asking Members of the
U.S. Senate to approve the U.N. Convention on Suppression of Terrorist
Financing and a related convention on terrorist bombings and to work
with me on implementing the legislation.
We will lead by example. We will work with the world against
terrorism. Money is the lifeblood of terrorist operations. Today, we're
asking the world to stop payment.
Now, the Secretary of Treasury would like to say a few remarks,
followed by Secretary Powell, then I'll answer a few questions.
[At this point, Treasury Secretary Paul H. O'Neill and Secretary of
State Colin L. Powell made brief remarks.]
The President. Bill [Bill Plante, CBS News].
Usama bin Laden
Q. Mr. President, when will you publish the paper which Secretary
Powell mentioned yesterday, outlining some of the proof that you have of
the involvement of bin Laden and Al Qaida and others?
The President. The Secretary said that he'd be glad to talk about
the paper. Let me first tell you that I gave a speech to the Nation last
Thursday in which I spent a great deal of time talking about the Al
Qaida organization as the first terrorist organization that we're going
to deal with. And the reason I did is there is a lot of classified
information that leads to one person, as well as one global terrorist
organization.
But for those of you looking for a legal peg, we've already indicted
Usama bin Laden. He's under indictment for terrorist activity. Our war
is against terrorism--those who would conduct terrorist acts against the
United States, those who sponsor them, those who harbor them, those who
challenge freedom wherever it may exist.
And Mr. Secretary, if you'd like to make a comment on that.
Secretary Powell. I just might point out that he has been under
indictment for the bombings of our Embassy. And as we gather information
and as we talk to our friends and allies around the world and as we get
more cooperation, more information is coming in with respect to his
activities and the activities of this network. Most of it is classified,
and as we look through it, and we can find areas that are unclassified,
and it will allow us to share this information with the public, we will
do so. That would be our intent. But most of it is classified.
But there's no question that this network, with this gentleman at
the head--if one can call a terrorist a gentleman, just for purposes of
illustration--this guy at the head of this network, the chairman of this
holding company of terrorism, is the one who is responsible.
And as we are able to provide information that is not sensitive or
classified, I think we will try to do that in every way.
The President. Yes, Helen [Helen Thomas, Hearst Newspapers].
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Russia/Saudi Arabia
Q. How much cooperation are you getting from Russia? And is Saudi
Arabia going to allow us to use its airbase, or aren't you allowed to
talk about it?
The President. Well, first, I had an hour-long discussion--nearly an
hour-long discussion with President Putin on Saturday. He was very
forthcoming in his willingness to work closely with the United States in
our efforts to battle terrorism. I was very pleased with my discussion,
Helen. I found him to be a person who--first of all, understands the
vision that we've entered into a new conflict in the 21st century.
You need to know that when I was on Air Force One and ordered
alerts--increased alert status for our troops, President Putin was the
first call I got. And he made it clear that he would stand down their
troops. In other words, to me it was a moment where it clearly said to
me, he understands the cold war is over. In the past, as you well know,
that had the President put the--raised the DEFCON levels of our troops,
Russia would have responded accordingly. There would have been
inevitable tension.
Along those--the reason I bring that up is that Vladimir Putin
clearly understands that the cold war is over and that the United States
and Russia can cooperate. We can cooperate with a new strategic
arrangement. We can cooperate in the battle against terrorism. We talked
about a lot of areas of the world. We talked about the Central Asian
republics. And as you know, they have been forthcoming in their
statements about their understanding of a potential campaign. And I told
him I appreciated his willingness to work with us in that area.
And so it was a very constructive dialog. He also understands that
terrorist activity is going to require a--to fight terrorist activity is
going to require a broad front, and that his nation, like ours, is
subject to terrorist attack.
As far as the Saudi Arabians go--and again, the Secretary can
comment on this; he's had more recent contact with them than I have--but
they've been nothing but cooperative. Our dialog has been one of--as you
would expect friends to be able to discuss issues. And my discussion
with the Foreign Minister, as well as the Ambassador, have been very
positive. And there's been no indication, as far as I'm concerned, that
the Saudis won't cooperate once they understand exactly our mission.
Secretary Powell. That's exactly right, Mr. President. They have not
turned down any requests that we have presented to them.
Waiver of Sanctions
Q. Mr. President, are you asking Congress for the power to waive
military restrictions on countries--on all countries that help us,
including those we've considered as rogue nations? And if so, why?
The President. No, you're--I think you're referring to--first of
all, we've waived the sanctions on Pakistan and India, as related to the
Glenn act. But I think you're referring to a report that we were going
to ask for a blanket--blanket exceptions or blanket waivers for--and the
answer is no, we're not. That's an erroneous report.
Q. [Inaudible]--just case-by-case now, is that idea, like----
The President. Well, where given the--where the law allows, I will
do it case-by-case. But we don't intend to ask Congress for a blanket
waiver, as reported in one of the journals.
Afghanistan
Q. Mr. President, last week you condemned the Taliban regime, and
said that if they did not comply with your demands, they would share the
fate of the terrorists. That raises the question, what is your
administration, and other coalition members, planning to do to maintain
stability and order in Central Asia? Are we supporting this exiled King,
the northern insurgence, some U.N. administration? What are our goals
there, if the Taliban are to be removed?
The President. Terry [Terry Moran, ABC News], I--first of all, we
were mindful that every action could have a consequence. And as you
know, we have spent a lot of time and effort and focus on Pakistan. I
just talked about the waiving of sanctions with Pakistan and India. We
believe that will bring stability to that part of the world. We have
talked to other friends about how to make sure that
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the Musharraf Presidency is a stable presence in that part of the world.
In terms of activities within Afghanistan, I'm not going to talk
about those. I will not jeopardize our mission in any way by talking
about military or in-country plans. We have a responsibility as an
administration to speak as candidly as we can to the American people but
without jeopardizing life. And so, therefore, we will be willing to
discuss that very important question at an appropriate time, and now is
not the appropriate time.
U.S. Financial Sanctions Against Terrorist Assets
Q. Mr. President, to put some perspective into all of this, how
much--can you tell us a rough estimate of how much the Al Qaida network
is worth domestically, and perhaps and/or worldwide?
The President. Well, I think in my statement I made it clear that we
don't anticipate many assets to be frozen here in the United States and
that most of the assets will be overseas. And one of the jobs that the
Secretary of Treasury is going to do is to help us identify the size of
the organization's balance sheet.
I can't give you a rough estimate right now.
Q. [Inaudible]--tens of millions? Hundreds of millions?
The President. But let's put it this way--enough to fund terrorist
activity that threatens freedom. And there are--take, for example, the
non-governmental organizations. They run a fair amount of money through
their organizations--and we're beginning, as you can tell from the list
we've laid out, or will be able to tell from the list, that we're
beginning to set priorities of those most egregious--and they're serving
as fronts for terrorist activities. I don't know the full amount of
their cash flows, but one dime of money into a terrorist activity is one
dime too much.
And we know that these organizations cannot function if we're able
to--the way they want to--if we're able to chop off their monies. And we
intend to do so. And we've got a big task ahead. In Europe, for example,
there are probably going to need to be some laws changed in order for
those governments to react the way we expect them to. That's why I said
in my comment, while we now--while the Secretary of Treasury now has the
option of providing some draconian measure, we will look at it on a
case-by-case basis. We expect there to be a complete and full effort to
join us in affecting terrorist organizations in all ways, shapes, and
forms.
The reason why we held this statement in the Rose Garden is it helps
the American people understand we are waging a different kind of war. It
is a war that is going to take a while. It is a war that will have many
fronts. It is a war that will require the United States to use our
influence in a variety of areas in order to win it. And one area is
financial.
We know there are some banks, for example, that provide easy access
money for terrorist organizations. We will deal with them. And if we
can't deal with them individually, we will call upon our friends to deal
with them.
One of the interesting things that the Secretary can tell you--both
Secretaries will tell you--is a lot of nations and their representatives
have asked, ``How can we help? What can we do to join the effort?'' Some
nations will feel comfortable providing troops. Some nations will feel
comfortable providing intelligence. Some nations will only feel
comfortable helping us wage the battle on the financial front; and
that's fine by us, because we understand how important it is to stop the
flow of funds.
National Economy
Q. Mr. President, one question on the economy. How concerned are you
about consumer confidence right now? People are afraid to fly; they're
not traveling. And are you, at this point, concerned that the economy
has already dipped into a recession?
The President. Well, I'm--I haven't seen--I'm not a statistician,
but I've got enough anecdotal evidence to tell you there are people
hurting, and there are a little too many layoffs. And any time somebody
loses a job in America, I'm concerned.
And I'm concerned about the shock this has had on our economy, and
I'm concerned about, obviously, the effect of the airlines, for example,
the weakness in the airline sector has had on the economy. That's why I
signed the bill as soon as Congress passed it, to provide some non-
recourse loans to the
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airlines, to keep them up and running right now.
But I want to assure the American people that the fundamentals for
growth are very strong. That which made us unique in the world existed
prior to September--that existed prior to September 11th exists today.
We're still a nation of entrepreneurs and small-business vitality. We're
still a nation of innovation. We've got a very good tax structure.
There is no question the attacks have affected America, but I think
when the investors sit back and take a hard look at the fundamentals of
the economy, they'll get back in the market. I think that consumers will
realize life is going on. I think people appreciate the fact that our
Government has come together to act in a very significant way, to
provide monies where necessary, for--whether it be to help rebuild New
York or whether it be to provide a financial basis for airlines to stay
in business. We'll come out of this, and we'll come out of it strong.
See, these terrorists thought they could affect the United States.
They thought they could diminish our soul. They just strengthened our
country. And while the numbers aren't going to look too good in the
short run, we'll be a stronger nation as a result of this. And they've
miscalculated. They made a terrible mistake. They thought somehow they
could affect the psyche of our country. They're wrong.
And not only that, we'll prove them wrong. They have roused the ire
of a great nation. And we're going to smoke them out of their caves and
get them running. And we're going to use every means at our disposal to
do so. And this is going to require patience and focus and discipline on
behalf of the--by the American people and by my administration.
No, I understand 6 months from now we'll be sitting around talking
about some statistic or something--maybe there will be an argument in
Congress about some issue or something like that. But the American
people have got to understand that when I held up that badge, I meant
it: This war on terrorism is my primary focus. Of course I'm concerned
about people being laid off. Of course I'm concerned about the pieces of
legislation that may be stalled.
But we are talking about a campaign against people who hate freedom.
And the legacy that this administration and this generation can leave
for future generations is a legacy that is so vital for the
underpinnings of this nation and others who love freedom.
And so I--we're a great nation, and the world has seen how great we
are. And you bet there are problems with our economy short run but not
long run. And you bet there's a concern about whether or not we'll be
able to wrap up every financial instrument used to fund terrorism.
But make no mistake about it, we're going after them all. And we'll
win; we're going to win. Terrorists are going to realize they can't face
down freedom. Terrorists are going to realize they made a big mistake;
they miscalculated America. And I think they miscalculate a lot of our
allies and friends, too. There is a determined will, and we accept the
challenge in this administration.
Thank you all.
Note: The President spoke at 9:35 a.m. in the Rose Garden at the White
House. In his remarks, he referred to President Vladimir Putin of
Russia; Minister of Foreign Affairs Prince Saud al-Faysal and Ambassador
to U.S. Prince Bandar bin Sultan bin Abd al-Aziz al of Saudi Arabia;
Muhammad Zahir Shah, former King of Afghanistan; and President Pervez
Musharraf of Pakistan. He also referred to Public Law 103-236, title
VIII, section 826, the ``Glenn amendment'' to the Arms Export Control
Act.