Document: 468 U.S. 222 104 S.Ct. 3026 82 L.Ed.2d 171 Donald REGAN, Secretary of the Treasury, et al., Petitionersv.Ruth WALD al. No. 83-436. Supreme Court United States Argued April 24, 1984. Decided June 28, Rehearing Denied Oct. 9, Syllabus Treasury Department Regulation 201(b), first promulgated in 1963 as part Cuban Assets Control Regulations, prohibits any transaction involving property which Cuba, or national thereof, has "any interest nature whatsoever, direct indirect." 560, was added to Regulations 1977, embodied a general license permitting, for most part, travel-related economic transactions with thus exempting such from 201(b)'s broad prohibition. But 1982, 560 amended curtail by permitting only certain types travel, official visits, news gathering, and visits close relatives, excluding tourist business travel. At time 201(b) promulgated, § 5(b) Trading With Enemy Act (TWEA) gave President authority impose comprehensive embargoes on foreign countries one means dealing both peacetime emergencies times war. The constitute an embargo. Section 1977 limit President's power under TWEA war, but at same International Emergency Economic Powers (IEEPA) enacted cover exercise emergency powers response crises, 203 that granting essentially authorities those TWEA. However, rather than requiring declare new order continue existing embargoes, against Congress grandfather clause providing notwithstanding amendment TWEA, "authorities conferred upon President" 5(b), were being exercised respect country July 1, result declared before date, "may be exercised." Respondents, American citizens who are inhibited traveling Cuba brought action Federal District Court, challenging 1982 seeking preliminary injunction its enforcement. refused issue ground respondents had not demonstrated substantial likelihood success merits. Appeals, holding challenged lacked statutory authority, vacated Court's remanded instructions injunction. Held: 1. grandfathered provide adequate basis 560. Pp. 232-240. (a) language clause, read conjunction supports conclusion that, relevant sense, "authority" regulate all including transactions, was, therefore preserved. Since among "being exercised" it follows natural reading after date. And since licenses includes "prevent prohibit" well "direct compel," also constitutes practical effect prevent travel Cuba. 232-236. (b) Neither legislative history nor purpose keeping IEEPA amendments too controversial view meant restrictions actually place 1977. Eliminating modify heightened tensions would have sparked just sort controversy designed avoid. 236-240. 2. imposed do violate freedom protected Due Process Clause Fifth Amendment. Cf. Zemel v. Rusk, 381 85 1271, 14 179. Given traditional deference executive judgment realm policy, there is sustain decision curtail, restricting flow hard currency could used support adventurism. 240-243. 708 F.2d 794, reversed. Paul M. Bator, Cambridge, Mass., petitioners. Leonard B. Boudin, New York City, respondents. Justice REHNQUIST delivered opinion Court. 1 Respondents want They doing so regulation, 1963, 31 CFR 515.201(b) (1983) (Regulation 201(b)). For period about five years, "transactions ordinarily incident to" within were, some limitations, exempted prohibition license. See 515.560 (1983). this scope permissible connection significantly narrowed. 47 Fed.Reg. 17030 (1982). 2 constitutional grounds sought Massachusetts concluded merits App. Pet. Cert. 22a. On appeal taken respondents, Appeals First Circuit, concluding 794 We granted Government's application stay mandate, 463 1223, 103 3567, 77 1407 (1983), petition certiorari, 464 990, 479, 78 678 now reverse Appeals. 3 * pt. 515 (1963), implemented 1917 (TWEA), 40 Stat. 411, amended, 50 U.S.C.App. seq. 28 6974 (1963).1 time, war.2 embargo.3 originally adopted deal created attempts destabilize governments throughout Latin America. Presidential Proclamation 3447, 157 (1959-1963 Comp.).4 "[E]xcept specifically authorized Treasury," involv[ing] [Cuba], . indirect. ." 4 In Regulations. (1977).5 "persons visit pay their transportation maintenance expenditures (meals, hotel bills, taxis, etc.) while Cuba." 42 16621 (1977). Thus, complete embargo 201(b).6 All persons engaging however, required make "a full accurate record each transaction" keep records available inspection least two years. 515.601. contained subject revocation modification "at time." 515.805. 5 Later act pursuant statute solely war.7 bill, law crises. (IEEPA), Title II, Pub.L. 95-223, 91 1626 seq., codified U.S.C. 1701 TWEA,8 conditions procedures different. 6 202(a) provides unusual extraordinary threat, source whole outside States, security, economy if declares threat." 1701(a). required, "in every possible instance," consult prior exercising his and, once been exercised, report six months actions changes underlying circumstances. 1703.9 7 decided exercises "national emergency" authorities. 101(b) Public Law 95-223 provides: 8 "Notwithstanding made subsection (a), section Act, may country. 1625, note following 5. 9 This provision provided "[t]he extend one-year periods determination extension another year States." Ibid. Presidents Carter Reagan, years determined continued interest.10 10 "reduce Cuba's earnings Cuba," transactions. (1982).11 As professional research, relatives. 515.560(a)(1) "[F]ully sponsored hosted travel," does involve benefit permitted. 515.560(j). General excluded authorization 515.560(a)(3).12 11 noted, number grounds. Most important these contentions, passed court below, claim invalid because accordance mandated IEEPA.13 Government agrees did follow set out when relies preserved argues regulation 201(b). even though prohibited license, contends prohibit them 12 three reasons rejecting argument based, turn, plain language, history, TWEA.14 First, "as matter common sense English," stated, commodity purchases seem very different "exercises" authority—"different enough count authority." F.2d, 796. "the government Cuba" grandfathered. Second, thought showed intended narrowly interpreted allow specific "restrictions" "It existence restriction serve justification imposing one." Id., 798. 13 Finally, behind preserve current bargaining chips negotiations affected countries. To require announce publicly declaration might undesirable ramifications. other hand, simply abandon without quid pro quo equally undesirable. allowed remain place. But, concluded, go beyond purposes permit augment adding restrictions. 799-800.15 II find reasoning ultimately unconvincing counts. contention "exercised" therefore, neither apparent sufficiently contrary what intended, despite freeze restrictions, adjustment pending IEEPA. 15 refers Act." Among "regulate thereof interest." 5(b). draws no distinction between over clear merely transactions.16 Appeals' conclusion, drawn reference actual must based separate governing property. fact, they authority.17 16 It Cubans force continues today, explicitly prohibits, except nationals absent explicit times, prohibited. 17 permitted change fact states therein "by instructions, licenses, otherwise." categorical 18 still record-keeping requirements 515.601 Other imposed. n. 6, supra. expressly revocation, amendment, "were subordinate further take. Dames & Moore Regan, 453 654, 673, 101 2972, 2983, 69 918 (1981). longer authorized, automatically became subject, again, 201(b).18 "which seems us 101(b), 1625. 5(b)(1)(B), 19 A contrary, more constricted undue violence words chosen Congress. "authorities" "prohibitions" If wished easily done explicitly. so, instead generic term "authorities," indicates retain flexibility adjust embargoes. 20 felt comported surrounding enactment 95-223. certainly agree colloquy Representative Cavanaugh Assistant Bergsten, administration's spokesman narrow clause: 21 MR. CAVANAUGH. all, Mr. your understanding [the clause] strictly restrict grandfathering currently [of TWEA] uses employed 22 "MR. BERGSTEN. Yes, sir. 23 preclude expansion included 24 That right."19 25 construction appears supported Bingham's objections to, subsequent elimination of, Subcommittee staff draft presently unused long "set circumstances" already dealt authority.20 26 indications congressional intent apart enacted, we grave doubts sufficient overcome clear, meaning word "authorities." Oral testimony witnesses individual Congressmen, unless precisely directed particular statute, can seldom expected precise itself. regard materially altered colloquies, often take bill achieved final form, open door inadvertent, perhaps planned, undermining voted signed into President. our opinion, examination history—the hearings, markup sessions, floor debates, House Senate Reports—does grandfathered.21 crucial point discussion, Bingham excerpts, consistently carried terms "powers" "prohibitions."22 countenance suggestion really wrote 27 reject There statements hearings should abandoned exacting negotiated quo.23 prime reason H.R.7738—which TWEA—from becoming controversial. Members feared implicated bog down partisan disputes, thereby delaying implementation IEEPA.24 Report point. 29 "Certain H.R.7738 controversial—particularly total trade Vietnam. committee considered carefully whether revise, encourage international controls, policies reflect, legislation. revise uses, improve will govern future single difficult divisive. Committee members improved use precedence changing uses. By 'grandfathering' powers, either endorsing disclaiming them, adheres committee's try assure remedy past abuses." H.R.Rep. 95-459, pp. 9-10 30 Hewing noncontroversial approach, Bingham, Chairman responsible Subcommittee, assured "this legislation grandfathers Vietnam, Cambodia, Laos, way legislation." 123 Cong.Rec. 38166 (1977) (emphasis added). Our consistent effect. Controls Hearings, 207 (summary draft); id., 210 (remarks Rep. Bingham). III finally urge enforce regulations here question, enforcement violates respondents' right guaranteed rely decisions recognized right, beginning 1958 Kent Dulles, 357 116, 1113, 1204. Respondents' counsel undoubtedly speaks cases, he represented would-be travelers them. 32 Kent, held State inquire passport applicants affiliation Communist Party. noted "is 'liberty' citizen cannot deprived due process law," id. 125, S.Ct., 1118, stated "construe delegated dilute" right. 129, 1120.25 Subsequently, Aptheker State, 378 500, 514, 84 1659, 1668, 992 (1964), Subversive Activities 1950, 64 993, forbidding issuance member Party, "sweeps widely indiscriminately across liberty Amendment." 33 Both Aptheker, qualified Term 179 (1965). case, sustained attack refusal validate passports Zemel, here, effort selectively deny political belief affiliation, ban break diplomatic consular relations 1961. distinguished applicable Aptheker. 34 remembered involved denied beliefs associations. appellant's characteristic peculiar appellant, policy considerations affecting citizens." U.S., 13, 1278. 35 went although question effectively prevented diminished gather information countries, Amendment rights controlled across-the-board Zemel. found standing alone, insufficient justifications supporting restriction. 36 "That case weightiest security best pointed up recalling missile crisis October 1962 preceded filing complaint less months." 16, 1280. 37 see differentiate present preventing citizens, justified weighty concerns policy.26 38 apparently feel offing area constitutional. argue "emergency" "only 'normal' inherent contemporary affairs." Brief 55. tied independent analysis. Matters relating "to conduct exclusively entrusted branches largely immune judicial inquiry interference." Harisiades Shaughnessy, 342 580, 589, 72 512, 519, 96 L.Ed. 586 (1952). example classical matters policy. 39 during administration Kennedy. retained, alternately loosened tightened circumstances, ever since. then Reagan interest. 10, acting legal requirement proclaim absence proclamation detract evidence presented "normal" last quarter century, deteriorated recent increased efforts Western Hemisphere. Enders Declaration ¶ 5, 172. Department, political, economic, military backing Soviet Union, widespread armed terrorism maintains 40,000 troops various Africa Middle East objectives inimical interests. Frechette 4, 107. "[i]n vast external realm," Curtiss-Wright Export Corp., 299 304, 319, 57 216, 220, 81 255 (1936), think Cuba—currency adventurism—by supra, 14-15, 1279-1280; Haig Agee, 280, 306-307, 2766, 2781-2782, 640 IV 41 sum, conclude, analysis nationals. conclude Reversed. 43 BLACKMUN, whom BRENNAN, MARSHALL, POWELL join, dissenting. 44 parties concede (1982), conformity procedural 1626, §§ 1701-1706 (IEEPA). Because I encompasses affirm Circuit. 45 address problems unforeseen drafters 1917, (TWEA). several statutes reflected Congress' war respond situations coordinated alacrity require. Accordingly, range emergency." 46 Although enhancing arose, similar reduce normal subsided. Once state emergency, officially exist until ended. Until termination made, enjoyed him original emergency. historical shows slow terminate circumstances led said pose threat proportion Nation. generally Transactions: Hearings Policy Trade Relations, 95th Cong., 1st Sess., 16-19 (Subcommittee Hearings) (statement Prof. Andreas F. Lowenfeld); 27-31 Harold G. Maier). pattern behavior, operated one-way ratchet enhance greatly discretionary began consider technically faced four "emergency." Franklin D. Roosevelt's 1933 Bank Holiday Declaration, 2040, 48 1691; Nixon's 1970 concerning Post Office strike, 3972, 473 (1966-1970 Comp.); 1971 country's balance-of-payments problems, 4074, 60 (1971-1975 Comp.). invoked December Truman developing Korean conflict. 2914, A454. warned aggression. retained indefinite duration anything logically related spread Communism. feeling grant conflicted empower imminent immediate response.1 expert testified expressed consensus inappropriately flexible instrument nonemergency situations. See, e.g., 13-14, Lowenfeld) ("no constraint limiting measures emergency"); 22-23 Maier) ("combination permissiveness assertiveness significant shift functional allocations commerce"); Stanley Metzger) (suggesting necessary checks limitations powers); 83 Peter Weiss, Center Constitutional Rights) (TWEA unchecked proliferation totally creators power"). 49 heard convincing. p. (§ "has become unlimited authority"); Revision Markup (House Markup) Bingham) ("Section grab-bag able virtually authority"). believed Executive Branch had, most, shaky foundation exchange Julius L. Katz, voiced incredulity bases then-effective 5(b): BINGHAM. facing warrants [TWEA]? 51 KATZ. aggression 1950 Korea. 52 Are you serious? 53 Chairman, continues. 54 existed 1950? 55 terminated." 110.2 56 Dissatisfied responses spokesmen Branch, criticized lack cooperation amend He observed: "Now face facts, branch wants free enormous degree discretion exists, commonsense situation called 58 "The aggression, will, competition world, permanent situation. going define exists world today don't how justify term. 59 ..... "Up reaction subcommittee, quite incredible one, substantially conform reality principle." 113-114. 61 affairs accumulated "emergencies" fit conception accomplish goal, left intact removed substitute confer national-emergency substantive reach slightly narrower TWEA,3 placed consultation, review, termination. 62 prospective dilemma obviously issued forth considering expire. 167, 168-169, 198 Cavanaugh); Findley); 119 (colloquy Bergsten). Such approach evaluate determine need reinstitution Others review exigencies. 9-10. concerns, day. 63 desire position asset freezes. Testimony forced unilateral concessions targets words, many give "bargaining chips" receiving something return side negotiations. ("perhaps embargo] terminated quo"); 103, 113, (statements Bergsten) (unilateral "would severely undermine negotiating worldwide posture"); 22477 Whalen). second favor form first. Several reverberations own, inject tension sensitive decline. 191-192 Santos, attorney adviser). incongruous, avoid having end reasons, ended unilaterally. 65 proponents tailored concerns. early subparts, 101(b)(1) (2), read: 66 "(1) date enactment, circumstances; 67 "(2) circumstances." Working Draft 8, 68 101(b)(2), Staff Director R. Roger Majak explained provision: "[W]ith situation, using, others 70 "So using controls toward country, let say, nonetheless use, later desired, 71 "I boils themselves usage." 167. 73 opposition clause. 74 serious that. me cases where applied, know why expand done. grandfathering. 75 applies ample 76 101(b)(2) Committee.4 few sorts routinely histories clearer indication exercised.5 When viewed deleted, ascertain include effect: 79 80 right." Markup, 21. explaining Committee, stressed leave "specific authorities" emphasized "neither condones condemns policies." 7. emphasize reflect acknowledgment addressed true openly real (few responding situations). Responding sentiment, annual continuation entered power, thereunder, semi-annual 1622(b), 1641(c). authorities, requires 5; 208. way, avoided perpetuating "phony character" promulgated. 210. also, 193 adviser) (administration difficulty making good-faith Cuba); particularized placing awkward declaring none, existed. served fully through emergencies. rejects interpretation loses sight achieve labored result, invokes series platitudes interpretation, ignores case. Ironically, pieces cites clearly view. 86 Recognizing import begins discovering absolute clarity "plain language" statute. focuses "prohibitions." Finding what, view, difference latter two, concludes Ante, 236. 87 confident ambiguity pure ipse dixit. concedes referred wanted "restrictions," "controls," uses," "prohibitions," "existing drafted nothing indicate express history. likely much prohibitions, well. example, authorizes investigations activities "freeze" assets IEEPA, exercises. naturally hardly surprising short answer mere prohibitions. 88 suggest, increase procedures. makes exercised," situation—but more. principal drafter stated: "if done." 89 downplay hazards relying correctly states: "Oral President." 237. 90 disagreement generalities; relevance "colloquies" aimed getting problem Failing heed own advice, discern proposed interpretation. misapprehends aspects examine exigencies none obtaining quo. "controversy" hoped avert 92 displays utter confusion reliance quotation believes passage strong exactly rejects. reads: 93 (emphases 94 quote ante, 239-240, remarkable. terms, arise reflect." uses" "economic controls" "policies" "what date." 167 hesitation possessed yet exercised. mistakenly absolutely primary "future residual authority. 95 remarkable suggest protect "respon[d] 240. thing persuaded realities constituted 247-249, 254-255, somewhat incongruous greater developments events trouble spots around Afghanistan, East, Poland. places, "heightened tensions" declared. Nothing explains unevenness events; self-evident anomalous "controversial."6 incongruity unsupported inserted "flexibility embargoes," 236, China. China halted unlicensed Compare 500.201(b) (China) (Cuba). 1971, nullified enacting 8584. detailing chronicled follows: 97 "On May licensed China, continuing blocking Chinese hands lifting North Korea, continue." 98 No extant 108 Bergsten); eyes Congress, presumably envisioned assets, 99 arises like logic correct, reinstitute eliminating passed.7 imagine transform 3035, "does Congress," say intent, reimposition exercise" Surely, fits squarely contemplated apply. different, use" 100 coherent believe institute complying respectfully dissent. POWELL, 102 petitioners argue, States. upheld ability acquire currency, terrorism. role limited, ascertaining sustaining responsibility course Nation's affairs. canvassed BLACKMUN's dissenting unmistakably demonstrates bar expanding Contrary "clear," 237, my fair Alternative Foreign Assistance 1961, 87-195, 424. (1963). 620(a) force, "No assistance shall furnished chapter additional implementing carrying preceding sentence, establish maintain 2370(a). reasons. Petitioners 8. 2, infra, broader far reaches financial unrelated trade. criminal penalties violations it. provide. 16. part: During President, may, agency designate, otherwise, rules prescribe, otherwise— "(A) investigate, regulate, prohibit, exchange, transfers credit payments between, by, through, banking institution, importing, exporting, hoarding, melting, earmarking gold silver coin bullion, securities, "(B) compel, nullify, void, acquisition holding, withholding, transfer, withdrawal, transportation, importation exportation in, privilege involving, (1958 ed.). World War I. ch. 106, 411. expanded 1933. Mar. 1933, Exec.Order 9193, 1174, 1175 (1942), turn Control, Order 128 (Rev. 15, 1962). Similar Cambodia. 500 incorporated sanctions 1116 (1962) (complete imports Dept.State Bull. 715 (1960) (denial export industrial exports Cuba). statement precipitated imposition, Special Study Resolutions II.1 VIII Eighth Meeting Consultation Ministers Affairs, OEA/Ser. G/IV, 14-16 (1963); Dept. Pub. 7171, 25-36 (1961). 1279-1280, March 29, 16621. 18, relax 25499. Some remained. purchase merchandise market value excess $100. Moreover, purchased personal resold. 515.560(a)(3) Also, scheduled air sea prohibited, 515.560(a)(5), contracts domestic card issuers enterprises "for traveler purpose," 515.560(a)(7). I, 101, striking 'or President' text subparagraph (A)." 671, 2982, differences, however. vest (i.e., title to) purely seize records. 14-15 reserved itself concurrent resolution. 1622. 40695 (1983); 39797 (1982); 45321 (1981); 59549 (1980); 53153 (1979); 40449 (1978). again clarify 32060 amendments, Thomas O. Enders, Inter-American &Par; 5-14, 172-177; James H. Michel, Acting Affairs 3-7, 178-181; Myles R.R. Frechette, Director, 4-10, 107-108. 243. special appropriate desiring humanitarian public performances, exhibitions, activities." 515.560(b) claimed violated 1978 Passport 211a, exceeded IEEPA; rights, process, equal protection. Complaint 14, 9. Eleventh Circuit accepted third Frade, 709 1387, 1397-1402 (11th Cir.1983). bolstered considerations. 1120, 1204 (1958), "[t]hat principle here." 800. health safety 95-426, 124, 971. "To interpret 'savings clause' suggests, meaningless unilaterally 801. never encompassed 21-31. light sweeping borders frivolous. "any" Payments meals, lodging, fall control 672, 2982 ("both interpreting power"); Guessefeldt McGrath, 308, 338, 344, alternative, 10-20, eliminated whatever passports. with, mention repeals implication favored, TVA Hill, 437 153, 189-190, 2279, 2299-2300, 117 (1978); Morton Mancari, 417 535, 549, 2474, 2482, 290 (1974), rejected. similarly unpersuasive. Further proof distinguish 203(a) 203(a), delineates tracks confused paying 'transportation-related' expenses 'ordinarily Cuba' payment living goods consumption there.' (1982)." 795. course, anything. fails grants persons. matter, prevents next page "[a]lthough regulated repealed Again, "travel restrictions," reimposed 1982. continuously 1963. Properly understood, structure undercuts commodities "very different" Act: (hereinafter cited Markup). Before Hearings). Understood context, deleted ambiguous. request Santos unnecessary TWEA: "We reviewed draft. Frankly 188. "You said, understand it, [grandfathering powers], disturbed paragraph 2." surplusage. deletion phrase embraces erroneous wholly 232-233, 18. freely substituted drawing conclusions fastened onto isolated "uses" grandfathered, used, discussed flaws argument. becomes nationals, "used" One "uses somehow former parse concepts finely, remains phrase, former, law. 7, 12-13 (1977); S.Rep. 95-466, (1977), U.S.Code Cong. Admin.News 4540; Bingham); 147-148 Majak), 168 (prepared 22476 215 Santos); 197 Majak, Trade) ("[T]he media, objected subjected licensing embargoed authorities"). Lowenfeld). 7-8 Whalen); 190-191 126-127, 1118-1119, abroad treated indiscriminately. rejected cases. 306, 2781, (1981) ("the States"); Califano Aznavorian, 439 170, 176-177, 471, 474-475, 435 Laub, 385 475, 574, 526 (1967), rely, indictment properly charged crime laws sheds issues here. Congressional scrutiny larger powers. 1976, National Emergencies 94-412, 1255, 1601 which, 101(a), enactment. provisions 2-year afford opportunity thorough consideration provisions. 502(a)(1) (b), 1258, 1259; 1-2. 117, (referring Four Those are: (1) property; (2) transactions; (3) bullion; (4) am attempt minimize significance 101(b)(2). 20. (Treasury major concern i.e., careful entire 187-197, suggests points, another's questions comments. "meeting minds" Santos' comment [were being] [were] [being] Further, nonsensical assume meant, understood mean, participants conversation aware addition Transaction 505.10 "person States" purchasing strategic destined Funds 520.01 blocked Germany, Czechoslovakia, Latvia, Lithuania, Estonia II. party litigation ambiguous confusing, wise single, cast shadow doubt evinced suggestions ways convey intention tightly construed. 212 Findley). response, suggested reported made. Obviously sympathetic delimiting deleting encouraged Findley narrowing according Subcommittee's specifications. 212. Even manner avoiding idea [TWEA] extremely difficult, impossible, persuade time. refer Vietnam on. mistake personally Vietnam." Obviously, alternative reviewing deciding lift. 11; Findley) (arguing "easy way" resuming countries); (question "disturb" embargoes); Whalen) (grandfather gives effect). discount arguing reinstituted "moot," 1980. Reply While resurrect lapse, analysis,

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