U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–011 2002

107th Congress, 2d Session – – – – – – – – – – – – House Document 107–168

PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO TERRORISTS WHO THREATEN TO

DISRUPT THE MIDDLE EAST PEACE PROCESS

COMMUNICATION

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY,

DECLARED IN EXECUTIVE ORDER 12947 OF JANUARY 23, 1995,

WITH RESPECT TO TERRORISTS WHO THREATEN TO DISRUPT

THE MIDDLE EAST PEACE PROCESS, PURSUANT TO 50 U.S.C.

1641(c) AND 50 U.S.C. 1703(c)

JANUARY 23, 2002.—Referred to the Committee on International Relations

and ordered to be printed

(1)

THE WHITE HOUSE,

Washington, January 18, 2002.

Hon. J. DENNIS HASTERT,

Speaker of the House of Representatives,

Washington, DC.

DEAR MR. SPEAKER: As required by 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, 50 U.S.C. 1703(c), I

transmit herewith a 6-month periodic report on the national emergency, declared in Executive Order 12947 of January 23, 1995, with

respect to terrorists who threaten to disrupt the Middle East peace

process.

Sincerely,

GEORGE W. BUSH.

(3)

PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO

TERRORISTS WHO THREATEN TO DISRUPT THE MIDDLE EAST

PEACE PROCESS

I hereby report to the Congress on the developments over the

course of the past 6 months 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, as expanded in scope by Executive Order 13099 of

August 20, 1998. This report, based upon information provided, is

submitted pursuant to section 204(c) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(c) (‘‘IEEPA’’), and section 401(c) of the National Emergencies Act, 50 U.S.C. 1641(c).

1. There have been no amendments to the Terrorism Sanctions

Regulations, 31 CFR Part 595 (the ‘‘Regulations’’), during the current reporting period.

2. The Department of the Treasury’s Office of Foreign Assets

Control (‘‘OFAC’’) has issued no licenses pursuant to the Regulations during the current reporting period.

3. On December 4, 2001, OFAC added the Holy Land Foundation

(HLF), a Texas-based organization with branches in several other

U.S. cities, along with Al-Aqsa Islamic Bank and Beit El-Mal Holdings to its list of Specially Designated Terrorists. These entities

were also simultaneously blocked pursuant to Executive Order

13224 of September 24, 2001, (‘‘Blocking Property and Prohibiting

Transactions With Persons Who Commit, Threaten To Commit, or

Support Terrorism’’). All of their assets in the United States and

all assets coming into the possession or control of U.S. persons are

blocked. A preliminary accounting indicates that OFAC has blocked

approximately $6 million of the newly targeted assets subject to

U.S. jurisdiction. In addition, on September 5, 2001, OFAC issued

an order to a Texas-based Internet service provider blocking the financial interest of a Specially Designated Terrorist (‘‘SDT’’) in the

company. A total of $102,000 in the company’s bank account has

been blocked and OFAC continues to investigate the nature and extent of that interest. One additional transaction totaling approximately $3,000 was blocked during this reporting period. This

brings the total blocked assets being reported to OFAC to more

than $6,150,000 as of December 4, 2001. The blocking of these

funds prevents their conversion or other disposal for the benefit of

the SDT. Federal agencies will continue to work closely to identify

and block assets in which SDTs have an interest.

4. Since my last report, OFAC has one civil penalty case underway against a U.S. financial entity for violation of IEEPA and the

Regulations by dealing in property in which an SDT has an interest.

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

month period from July 23, 2001, through January 22, 2002, that

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are directly attributable to the exercise of powers and authorities

conferred by the declaration of the national emergency with respect

to terrorists who threaten to disrupt the Middle East peace process

are estimated at approximately $450,000. These data do not reflect

certain costs of operations by the intelligence and law enforcement

communities.

6. Executive Orders 12947 and 13099 provide 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 orders make it harder for such groups to finance

these criminal activities by impeding their access to sources of support in the United States and to U.S. financial facilities. They are

also intended to reach charitable contributions to designated organizations and individuals to preclude diversion of such donations to

terrorist activities.

The Executive orders demonstrate 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.

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