[Weekly Compilation of Presidential Documents Volume 44, Number 4 (Monday, February 4, 2008)]
[Pages 116-117]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Memorandum on Waiver of Section 1083 of the National Defense 
Authorization Act for Fiscal Year 2008

January 28, 2008

 Presidential Determination No. 2008-9

Memorandum for the Secretary of State

Subject: Waiver of Section 1083 of the National Defense Authorization 
Act for Fiscal Year 2008

    By the authority vested in me as President by the Constitution and 
the laws of the United States, including section 301 of title 3, United 
States Code, and section 1083(d) of the National Defense Authorization 
Act for Fiscal Year 2008 (the ``Act''), I hereby determine that:
 <bullet>    All provisions of section 1083 of the Act, if applied to 
            Iraq or any agency or instrumentality thereof, may affect 
            Iraq or its agencies or instrumentalities, by exposing Iraq 
            or its agencies or instrumentalities to liability in United 
            States courts and by entangling their assets in litigation.
 <bullet>    The economic security and successful reconstruction of Iraq 
            continue to be top national security priorities of the 
            United States. Section 1083 of the Act threatens those key 
            priorities. If permitted to apply to Iraq, section 1083 
            would risk the entanglement of substantial Iraqi assets in 
            litigation in the United States--including those of the 
            Development Fund for Iraq, the Central Bank of Iraq, and 
            commercial entities in the United States in which Iraq has 
            an interest. Section 1083 also would expose Iraq to new 
            liability of at least several billion dollars by undoing 
            judgments favorable to Iraq, by foreclosing available 
            defenses on which Iraq is relying in pending litigation, and 
            by creating a new Federal cause of action backed by the 
            prospect of punitive damages to support claims that may 
            previously have been foreclosed. If permitted to apply to 
            Iraq, section 1083 would have a significant financial impact 
            on Iraq and

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            would result in the redirection of financial resources from 
            the continued reconstruction of Iraq and the harming of 
            Iraq's stability, contrary to the interests of the United 
            States.
 <bullet>    A waiver of all provisions of section 1083 with respect to 
            Iraq and any agency or instrumentality of Iraq is therefore 
            in the national security interest of the United States and 
            will promote the reconstruction of, the consolidation of 
            democracy in, and the relations of the United States with, 
            Iraq.
 <bullet>   Iraq continues to be a reliable ally of the United States 
            and a partner in combating acts of international terrorism. 
            The November 26, 2007, Declaration of Principles for a Long-
            Term Relationship of Cooperation and Friendship between the 
            Republic of Iraq and the United States of America confirmed 
            the commitment of the United States and Iraq to build an 
            enduring relationship in the political, diplomatic, 
            economic, and security arenas and to work together to combat 
            all terrorist groups, including al-Qaida.
    Accordingly, I hereby waive all provisions of section 1083 of the 
Act with respect to Iraq and any agency or instrumentality thereof.
    You are authorized and directed to notify the Congress of this 
determination and waiver and the accompanying memorandum of 
justification, incorporated by reference herein, and to arrange for 
their publication in the Federal Register.
                                                George W. Bush

 [Filed with the Office of the Federal Register, 8:45 a.m., February 4, 
2008]

Note: This memorandum and its accompanying justification will be 
published in the Federal Register on February 5.