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[House Document 107-121]
[From the U.S. Government Publishing Office]

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
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-011                     WASHINGTON : 2001

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.
 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 one-year 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 bulkagricultural 
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 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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