U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

89–011 2001

107th Congress, 1st Session – – – – – – – – – – – – – House Document 107–87

PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO THE RUSSIAN FEDERATION

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO THE RISK OF NUCLEAR PROLIFERATION

CREATED BY THE ACCUMULATION OF WEAPONS-USABLE

FISSILE MATERIAL IN THE TERRITORY OF THE RUSSIAN FEDERATION THAT WAS DECLARED IN EXECUTIVE ORDER 13159 OF

JUNE 21, 2000, PURSUANT TO 50 U.S.C. 1641(c)

JUNE 12, 2001.—Message and accompanying papers referred to the

Committee on International Relations and ordered to be printed

(1)

To the Congress of the United States:

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 with respect

to the risk of nuclear proliferation created by the accumulation of

weapons-usable fissile material in the territory of the Russian Federation that was declared in Executive Order 13159 of June 21,

2000.

GEORGE W. BUSH.

THE WHITE HOUSE, June 11, 2001.

(3)

PRESIDENT’S PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH

RESPECT TO THE RISK OF NUCLEAR PROLIFERATION CREATED BY

THE ACCUMULATION OF WEAPONS-USABLE FISSILE MATERIAL IN

THE TERRITORY OF THE RUSSIAN FEDERATION

I hereby report to the Congress on developments over the past

six months concerning the national emergency with respect to the

risk of nuclear proliferation created by the accumulation of weapons-usable fissile material (‘‘Highly Enriched Uranium’’) in the territory of the Russian Federation that was declared in Executive

Order 13159 of June 21, 2000, (the ‘‘Order’’). This report is submitted pursuant to 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).

1. On January 12, 2001, the Department of the Treasury’s Office

of Foreign Assets Control (‘‘OFAC’’) issued the HEU Agreement Assets Control Regulations, 31 CFR Part 540 (66 Fed. Reg. 3304, January 12, 2001) (the ‘‘Regulations’’), as an interim rule with request

for public comment to implement Executive Order 13159. A copy of

the Regulations is attached.

2. The Regulations have been disseminated by OFAC through

both conventional and electronic means and affected parties have

been notified. Federal agencies will continue to work closely to

identify and block those assets directly related to the implementation of the HEU Agreements in which the Government of the Russian Federation has an interest and will vigorously enforce the

Order to protect these assets while ensuring the continued effective

operation of the HEU Agreements.

3. During the current reporting period, as of May 15, 2001, 17

licenses have been issued in furtherance of the Order’s goals of protecting the blocked assets and ensuring full implementation of the

HEU Regulations. These licenses authorize the importation of and

payment for low enriched uranium, as well as the sale and exportation of and payment for natural uranium.

4. The expenses incurred by the Federal Government in the sixmonth period from December 21, 2000 through June 20, 2001 that

are directly attributable to the exercise of powers and authorities

conferred by the declaration of the national emergency with respect

to the risk of nuclear proliferation created by the accumulation of

weapons-usable fissile material in the territory of the Russian Federation are estimated at approximately $2,000, 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 Offices 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 Nonproliferation, and

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

4

(particularly in the Office of the General Counsel, and the Office

of Nuclear Energy).

5. The Order provides a tool for protecting from attachment,

judgment, decree, lien, execution, garnishment, or other judicial

process the property and interests in property of the Government

of the Russian Federation that are directly related to the implementation of the HEU Agreements and subject to U.S. jurisdiction.

I shall continue to exercise the powers at my disposal and will continue to report periodically to the Congress on significant developments pursuant to 50 U.S.C. 1703(c).

5

6

7

8

9

10

11

12

13