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107th Congress, 2d Session - - - - - - - - - - - House Document 107-229 


 
   EMERGENCY REGARDING PROLIFERATION OF WEAPONS OF MASS DESTRUCTION

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO THE 
  PROLIFERATION OF WEAPONS OF MASS DESTRUCTION THAT WAS DECLARED IN 
  EXECUTIVE ORDER 12938 OF NOVEMBER 14, 1994, PURSUANT TO 50 U.S.C. 
  1703(c) AND 50 U.S.C. 1641(c)

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


    June 19, 2002.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-011                    WASHINGTON : 2002


To the Congress of the United States:
    As required by section 204(c) of the International 
Emergency Economic Powers Act, 50 U.S.C. 1703(c), and section 
401(c) of the National Emergencies Act, 50 U.S.C. 1641(c), I 
transmit herewith a 6-month periodic report prepared by my 
Administration on the national emergency with respect to the 
proliferation of weapons of mass destruction that was declared 
in Executive Order 12938 of November 14, 1994.

                                                    George W. Bush.
    The White House, June 18, 2002.
Report to Congress on the Emergency Regarding Proliferation of Weapons 
                          of Mass Destruction

    Weapons of mass destruction (WMD)--nuclear chemical, and 
biological weapons--and their missile delivery systems are 
among the top threats to U.S. security in the post-Cold War 
world. In the hands of countries like those on the U.S. list of 
terrorist-supporting states, these weapons would pose direct 
threats to the United States and its forces, friends, and 
allies. Some of these rogue states are already working on 
intercontinental-range missiles that would be able to deliver 
WMD against our territory directly.
    This Administration has given high priority to dealing the 
threat of WMD and missile proliferation. The September 11 
terrorist attacks in New York and Washington and subsequent 
anthrax crimes reinforce the importance of efforts to prevent 
the proliferation of these weapons, especially to terrorists 
and countries that harbor terrorists. This report describes WMD 
and missile nonproliferation measures undertaken by the United 
States between November 2001 and May 2002.
    To address the dangers posed by the proliferation of WMD 
and their delivery systems, on November 14, 1994, former 
President Clinton issued Executive Order No. 12938, declaring a 
national emergency under the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.). Under section 202(d) of 
the National Emergencies Act (50 U.S.C. 1622(d)), the national 
emergency terminates on the anniversary date of its declaration 
unless, within the ninety-day period prior to each anniversary 
date, the President publishes a Continuation of Emergency 
Regarding Weapons of Mass Destruction in the Federal Register 
and transmits the notice to the Congress. The national 
emergency was extended on November 14, 1995; November 12, 1996; 
November 13, 1997; November 12, 1998; November 10, 1999; 
November 12, 2000; and November 9, 2001.
    The following report is made pursuant to Section 204(c) of 
the International Emergency Economic Powers Act (50 U.S.C. 
1703(c)) and Section 401(c) of the National Emergencies Act (50 
U.S.C. 1641(c)). It reports actions taken and expenditures 
incurred pursuant to the emergency declaration during the 
period November 12, 2001 through May 15, 2002.
    Additional information on nuclear, missile, and/or chemical 
and biological weapons (CBW) nonproliferation efforts may be 
found in the following reports: (a) the most recent annual 
Report on the Proliferation of Missiles and Essential 
Components of Nuclear, Biological and Chemical Weapons, 
provided to Congress pursuant to Section 1097 of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190), also known as the ``Nonproliferation 
Report;'' (b) the most recent semi-annual Report to Congress on 
the Acquisition of Technology Relating to Weapons of Mass 
Destruction and Advanced Conventional Munitions, provided to 
Congress pursuant to Section 721 of the Intelligence 
Authorization Act for Fiscal Year 1997; (c) the most recent 
annual report entitled ``Adherence to and Compliance with Arms 
Control Agreements'', provided pursuant to section 403 of the 
Arms Control and Disarmament Act, 22 U.S.C. 2593a; (d) the most 
recent report on the Democratic People's Republic of Korea, 
provided pursuant to Section 585 of the Foreign Operations, 
Export, Financing, and Related Programs Appropriations Act of 
1997 (Public Law 104-208); (e) the most recent Report on 
Nuclear Nonproliferation Policy in South Asia, provided 
pursuant to Public Law 102-391, Section 585; (f) the most 
recent Report on Regional Nonproliferation in South Asia, 
submitted pursuant to Section 620F(c) of Foreign Assistance 
Act; (g) the most recent Nuclear Nonproliferation Report, known 
as the ``Section 601 Report,'' submitted pursuant to Section 
601 of the Nuclear Nonproliferation Act of 1978 (Public Law 95-
242), as amended by the Nuclear Proliferation Prevention Act of 
1994; (h) the most recent semiannual report on Proliferation-
Related Transfers to Iran, submitted pursuant to Iran 
Nonproliferation Act of 2000; (i) the most recent report on 
Iran-Iraq Arms Non-Proliferation Sanctions, submitted pursuant 
to the Iran-Iraq Non-Proliferation Act of 1992, sections 1604-
1608; and (j) the most recent report on Libya sanctions, 
provided pursuant to Iran and Libya Sanctions Act of 1996 
(ILSA), section 5(b).

                            NUCLEAR WEAPONS

    Nuclear Non-Proliferation Treaty: The Treaty on the Non-
Proliferation of Nuclear Weapons (NPT) is the cornerstone of 
the global effort to halt nuclear proliferation. The first 
meeting of the Preparatory Committee (PrepCom) for the 2005 NPT 
Review Conference (RevCon) took place April 8-19, 2002, at UN 
headquarters in New York. This meeting was preceded by 
extensive consultations among key NPT parties and the 
designated Chairman of the PrepCom, Ambassador Henrik Salander 
of Sweden.
    The PrepCom completed its work successfully by issuing the 
Chairman's report--a factual summary for transmission to 
PrepCom II, which will take place in Geneva from April 28-May 
9, 2003, under the Chairmanship of Hungarian Ambassador Laszlo 
Molnar. The PrepCom also decided that PrepCom III and the 2005 
NPT RevCon will be held in New York, and that representatives 
from the Nonaligned Movement (NAM) will chair PrepCom III and 
preside over the 2005 RevCon.
    On substantive issues, the participants agreed that 
preserving and strengthening the NPT is vital to peace and 
security. They expressed strong support for International 
Atomic Energy Agency (IAEA) safeguards. Many nations cited 
September 11 as reinforcing the need to strengthen measures 
against terrorist acquisition of nuclear material. India and 
Pakistan were urged to exercise restraint and to join the NPT 
as non-nuclear-weapon states. Many states expressed concern 
about NPT compliance by Iraq and North Korea. Israel's nuclear 
program was highlighted by other Middle East states. Some U.S. 
nuclear policies were criticized, but many states welcomed 
U.S.-Russian efforts to reduce nuclear weapons.
    International Atomic Energy Agency: The International 
Atomic Energy Agency (IAEA), inter alia, verifies the 
compliance of non-nuclear weapons states (NNWS) with their NPT 
safeguards obligations. The IAEA safeguards system helps deter 
diversion of nuclear materials and provides the means to detect 
such diversions in a timely manner should any occur. During 
this reporting period, the United States continued to provide 
significant technical and financial resources to the IAEA to 
support its safeguards activities.
    The discovery of Iraq's extensive covert nuclear activities 
led to strengthening the IAEA safeguards system's ability to 
detect undeclared nuclear material and activities. The United 
States and a large number of like-minded states negotiated in 
the mid-1990s substantial safeguards strengthening measures, 
including the use of environmental sampling techniques, 
expansion of the information on nuclear activities which states 
are required to declare, and expansion of IAEA access rights. 
Those measures requiring additional legal authority are 
embodied in a Model Additional Protocol, approved in 1997. With 
these tools, the IAEA's capability to address a state's 
undeclared nuclear activities has been substantially enhanced. 
This Protocol has now been signed by 61 states and has entered 
into force for 24 countries.
    On May 9, 2002, the President submitted the U.S.-IAEA 
Additional Protocol to the Senate for advice and consent to 
ratification. In doing so, he emphasized that entry into force 
of the U.S.-IAEA Additional Protocol will bolster U.S. efforts 
to strengthen nuclear safeguards and promote the 
nonproliferation of nuclear weapons, which is a cornerstone of 
U.S. foreign and national security policy.
    During the March 18-21, 2002 IAEA Board of Governors 
Meeting, the Director General presented his statement proposing 
Agency activities relevant to preventing acts of terrorism 
involving nuclear materials and other radioactive materials, 
with a view to strengthening the Agency's work in this area. 
The Board of Governors approved funding for such activities 
through voluntary contributions, as well as approved, in 
principle, the proposals advanced by the Director General for 
further enhancing nuclear security. A number of member states 
pledged specific sums of money in support of Agency activities, 
while others expressed hope to be able to provide financial 
and/or other support in the near future. Additionally, the 
Board also recognized that the IAEA's program for technical 
cooperation assistance could be important for implementing some 
of these activities. The Agency will report to the Board 
periodically on the progress made in implementing this 
proposal.
    Zangger Committee: The purpose of the 35-nation NPT 
Exporters (Zangger) Committee (ZC) is to harmonize 
implementation of the NPT's requirement to apply IAEA 
safeguards to nuclear exports. Article III.2 of the Treaty 
requires parties to ensure that IAEA safeguards are applied to 
exports to non-nuclear weapon states of (a) source or special 
fissionable material, or (b) equipment or material especially 
designed or prepared for the processing, use, or production of 
special fissionable material. The ZC maintains and updates a 
list of equipment and materials that may only be exported if 
safeguards are applied to the recipient facility (called the 
``Trigger List'' because such exports trigger the requirement 
for safeguards).
    All five of the nuclear weapon states are members of the 
ZC. However, China is the only ZC member that is not also a 
member of the Nuclear Suppliers Group (NSG), which requires 
full-scope safeguards (FSS) as a condition of nuclear supply to 
NNWS. China has not been willing to require FSS as a condition 
of nuclear supply in accordance with the NSG Guidelines--an 
important distinction from the ZC.
    The ZC held three meetings on November 26, 2001, in Vienna. 
The first meeting was the Technology Holders Working Group, 
under the chairmanship of Sweden, which focused on adding 
plutonium isotope separation equipment to the Trigger List. At 
the ZC Plenary meeting that afternoon, the Working Group Chair 
reported that Technology Holders were closer to consensus on 
new language, but that some members needed more time for 
consideration of the proposal.
    The second November 26 meeting was the Friends of the Chair 
to discuss; (1) outcomes of the 2000 NPT RevCon; (2) possible 
outreach activities with NPT Party non-members, including 
review of a UK non-paper on the subject; (3) review of ZC 
``understandings'' (guidelines) to determine if updating is 
needed; and (4) actions that might be taken in preparation for 
2002 or 2003 NPT PrepComs and recommendations that could be 
made to the 2005 NPT RevCon.
    The ZC's Austrian Chair outlined an ambitious program of 
possible future ZC activities, including serving as an NPT-wide 
technical resource, encouraging early ratification by states of 
the Additional Protocol to strengthen IAEA safeguards, and 
promoting outreach dialogue with non-member NPT Party states, 
particularly members of the NAM who have been critical of the 
nonproliferation regimes. The Chair also noted that in light of 
the events of September 11, the ZC should consider exploring 
new areas such as the combating of illicit trafficking.
    The third November 26 meeting was the ZC Plenary that 
reviewed the Friends of the Chair discussion on outreach. There 
was strong support for the UK outreach paper, which outlined 
various options for promoting dialogue with NPT Party non-
members. Most members, including the United States, supported 
pursuing several outreach approaches including ZC-NAM forums 
and roundtable discussions as well as ZC seminars and workshops 
for selected NAM countries. However, some members had 
reservations, suggesting that the ZC, as a technical body, 
needed to avoid political activities such as outreach programs. 
There was a general consensus that ZC outreach activities 
should be conducted on an informal basis and not duplicate NSG 
outreach activities nor involve non-NPT states such as India, 
Israel and Pakistan. Some members were concerned about limiting 
outreach dialogue to NPT Party critics of the nonproliferation 
regimes and suggested that it would be more useful to engage 
non-ZC NPT Party states supportive of nonproliferation regimes.
    The United States reported that it was not prepared to join 
in a consensus in ZC membership for Belarus owing to concerns 
about certain of the GOB's nonproliferation policies. The 
Russians questioned the U.S. position, given that Belarus was 
an NPT Party, a member of the NSG, and had enacted the 
necessary export control legislation to accord with NSG and ZC 
Guidelines. The United States suggested that Belarus be 
encouraged to cease questionable supply activities.
    Nuclear Suppliers Group: With 39 member states, the Nuclear 
Suppliers Group (NSG) is a widely accepted and effective export 
control arrangement, which contributes to the nonproliferation 
of nuclear weapons through implementation of guidelines for 
control of nuclear and nuclear-related exports. Members pursue 
the aims of the NSG through adherence to the Guidelines, which 
are adopted by consensus, and through exchanges of information 
on developments of nuclear proliferation concern.
    The first set of NSG Guidelines (Part 1) governs exports of 
nuclear materials and equipment that require the application of 
IAEA safeguards at the recipient facility, FSS in the recipient 
state, commitments for no nuclear explosive use, and retransfer 
controls. The second set of NSG Guidelines (Part 2) governs 
exports of nuclear-related dual-use equipment and materials. 
The NSG Guidelines also control technology related to both 
nuclear and nuclear-related dual-use exports.
    At the U.S.-hosted 2001 NSG Plenary meeting May 10-11, 2001 
in Aspen, Colorado, the United States achieved its main 
objectives on restructuring the regime's mechanisms and 
procedures and revising its Guidelines. Moreover, the Plenary 
strongly reaffirmed its support of full-scope IAEA safeguards 
as a condition of nuclear supply and rejected Russian proposals 
to broaden the safety exemption to the FSS policy and to confer 
``associate member'' status on India, Israel and Pakistan to 
permit nuclear cooperation with those countries. However, the 
Plenary did agree to consider possibilities for an 
``intensified dialogue'' with the three countries.
    The Plenary also agreed to the establishment of a new 

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