U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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89–011 2001

107th Congress, 1st Session – – – – – – – – – – – – House Document 107–121

PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO IRAN

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO IRAN THAT WAS DECLARED IN EXECUTIVE

ORDER 12957 OF MARCH 15, 1995, PURSUANT TO 50 U.S.C. 1641(c)

AND 1703(c); AND 22 U.S.C. 2349aa–9(c)

SEPTEMBER 20, 2001.—Message and accompanying papers referred to the

Committee on International Relations and ordered to be printed

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To the Congress of the United States:

As required by section 401(c) of the National Emergencies Act,

50 U.S.C. 1641(c), section 204(c) of the International Emergency

Economic Powers Act, 50 U.S.C. 1703(c), and section 505(c) of the

International Security and Development Cooperation Act of 1985,

22 U.S.C. 2349aa–9(c), I transmit herewith a 6-month periodic report on the national emergency with respect to Iran that was declared in Executive Order 12957 of March 15, 1995.

GEORGE W. BUSH.

THE WHITE HOUSE, September 19, 2001.

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PRESIDENT’S PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH

RESPECT TO IRAN

I hereby report to the Congress on developments over the course

of the past 6 months concerning the national emergency with respect to Iran that was declared in Executive Order 12957 of March

15, 1995, and matters relating to the measures in that order and

in Executive Order 12959 of May 6, 1995, and Executive Order

13059 of August 19, 1997. This report is submitted pursuant to section 204(c) of the International Emergency Economic Powers Act,

50 U.S.C. 1703(c) (‘‘IEEPA’’), section 401(c) of the National Emergencies Act, 50 U.S.C. 1641(c), and section 505(c) of the International Security and Development Cooperation Act of 1985, 22

U.S.C. 2349aa–9(c). This report discusses only matters concerning

the national emergency with respect to Iran that was declared in

Executive Order 12957 and does not deal with those relating to the

emergency declared on November 14, 1979, in connection with the

hostage crisis.

1. In light of the recent passage of the Trade Sanctions Reform

and Export Enhancement Act of 2000, Title IX of Public Law 106–

387 (October 28, 2000) (the ‘‘TSRA’’), conforming amendments were

promulgated to the Iranian Transaction Regulations, 31 CFR Part

560 (the ‘‘Regulations’’) (66 FR 36683, July 12, 2001). The TSRA requires the President to terminate unilateral sanctions on the exportation of most agricultural commodities, medicine and medical devices and imposes the requirement, with certain exceptions, that

exports of such products to the government of countries, such as

Iran, designated by the Secretary of State to have repeatedly provided support for acts of international terrorism, and any other entity within such countries, only be made available pursuant to oneyear licenses. The TSRA requires that procedures be put in place

to deny licenses for exports to any entity in such country promoting

international terrorism. A copy of the Regulations is attached to

this report.

2. During this period, the Office of Foreign Assets Control

(OFAC) made numerous decisions with respect to applications for

licenses to engage in transactions under the Regulations. Of those

applications for licenses that were denied, the majority were for requests to authorize commercial exports to Iran—particularly of machinery and equipment for various industries—and the importation

of Iranian-origin goods. One hundred eighteen licenses were issued,

of which 61 authorized commercial sales and exportation to Iran of

bulk agricultural commodities. In addition, licenses were also

issued authorizing 45 sales of medicines or medical equipment.

Other licenses issued authorized certain licensable transactions involving air and marine safety, cultural exchanges, journalistic,

legal and financial activities, and the importation of art objects for

public exhibition. Pursuant to Sections 3 and 4 of Executive Order

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12959 and Executive Order 13059 and consistent with statutory restrictions concerning certain goods and technology, including those

involved in air safety cases, Treasury continues to consult with the

Departments of State and Commerce in the issuance of licenses.

3. For the period March 15 through September 14, 2001, on

OFAC’s instructions, U.S. banks refused to process approximately

1,300 commercial transactions, the majority involving foreign financial institutions. The completion of these transactions by U.S.

banks would have been contrary to U.S. foreign policy with respect

to Iran. The rejected transactions caused a disruption of approximately $160 million in financial dealings involving Iran by virtue

of U.S. economic sanctions.

4. Since my last report, OFAC has collected 44 civil monetary

penalties, settlements and installment payments totaling nearly

$210,000 for violations of IEEPA and the Regulations. The violators included 11 companies, three U.S. financial institutions, one

law firm, and 11 individuals. An additional 172 cases are undergoing penalty action for violations of IEEPA and the Regulations.

Various enforcement actions carried over from previous reporting

periods are continuing and new reports of violations are being aggressively pursued.

5. The expenses incurred by the Federal Government in the 6-

month period from March 15 through September 14, 2001, that are

directly attributable to the exercise of powers and authorities conferred by the declaration of a national emergency with respect to

Iran are reported to be approximately $1.4 million, most of which

represent wage and salary costs for Federal personnel. Personnel

costs were largely centered in the Department of the Treasury (particularly in the Office of Foreign Assets Control, the U.S. Customs

Service, the Office of the Under Secretary for Enforcement, and the

Office of the General Counsel), the Department of State (particularly the Bureau of Economic and Business Affairs, the Bureau of

Near Eastern Affairs, the Bureau of Intelligence and Research and

the Office of the Legal Adviser), and the Department of Commerce

(the Bureau of Export Administration and the Chief Counsel’s Office).

6. The situation reviewed above continues to present an extraordinary and unusual threat to the national security, foreign policy,

and economy of the United States. The declaration of the national

emergency with respect to Iran contained in Executive Order 12957

and the comprehensive economic sanctions imposed by Executive

Order 12959 underscore the United States Government’s opposition

to the actions and policies of the Government of Iran, particularly

its support of international terrorism and its efforts to acquire

weapons of mass destruction and the means to deliver them. The

Iranian Transactions Regulations, issued pursuant to Executive

Orders 12957, 12959, and 13059, continue to advance important objectives in furthering the nonproliferation and anti-terrorism policies of the United States. I shall exercise the powers at my disposal

to deal with these problems and will report periodically to the Congress, as required by statute, on significant developments.

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