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<DOC> [Weekly Compilation of Presidential Documents] [frwais.access.gpo.gov] [Page i-ii] Monday, March 24, 1997 Volume 33--Number 12 Pages 373-397 Contents [[Page i]] Weekly Compilation of Presidential Documents [[Page ii]] Addresses and Remarks See also Appointments and Nominations National Center on Addiction and Substance Abuse, dinner--381 Appointments and Nominations Director of Central Intelligence Nomination of George Tenet, remarks--382 Withdrawal of Anthony Lake, remarks--377 Bill Signings Victim Rights Clarification Act of 1997, statement--386 Communications to Congress Albania, letter reporting--375 Budget rescission, message transmitting--386 Environmental quality, message transmitting report--385 Iran, message reporting--373 ``Working Families Flexibility Act of 1997,'' letter on proposed legislation--385 Communications to Federal Agencies Certification of North Korea, memorandum--382 Interviews With the News Media Exchanges with reporters Helsinki, Finland--386-389 Red Room--382 Residence--377 South Lawn--376 Joint Statements Anti-Ballistic Missile Treaty--390 Chemical Weapons--391 European Security--392 Parameters on Future Reduction in Nuclear Forces--389 U.S.-Russia Economic Initiative--393 Meetings With Foreign Leaders Finland, President Ahtisaari--386, 388 Russia, President Yeltsin--388-393 Statements by the President See also Bill Signings American Airlines and Allied Pilots Association dispute, tentative agreement--387 Export-Import Bank and the Overseas Private Investment Corporation, reauthorization--380 Japan, anniversary of sarin gas attack in Tokyo--387 Mexico, Senate action on certification--387 Northern Ireland, murder of John Slane--377 Supplementary Materials Acts approved by the President--397 Checklist of White House press releases--396 Digest of other White House announcements--395 Nominations submitted to the Senate--396 Editor's Note: The President was in Helsinki, Finland, on March 21, the closing date of this issue. Releases and announcements issued by the Office of the Press Secretary but not received in time for inclusion in this issue will be printed next week. WEEKLY COMPILATION OF ------------------------------ PRESIDENTIAL DOCUMENTS Published every Monday by the Office of the Federal Register, National Archives and Records Administration, Washington, DC 20408, the Weekly Compilation of Presidential Documents contains statements, messages, and other Presidential materials released by the White House during the preceding week. The Weekly Compilation of Presidential Documents is published pursuant to the authority contained in the Federal Register Act (49 Stat. 500, as amended; 44 U.S.C. Ch. 15), under regulations prescribed by the Administrative Committee of the Federal Register, approved by the President (37 FR 23607; 1 CFR Part 10). Distribution is made only by the Superintendent of Documents, Government Printing Office, Washington, DC 20402. The Weekly Compilation of Presidential Documents will be furnished by mail to domestic subscribers for $80.00 per year ($137.00 for mailing first class) and to foreign subscribers for $93.75 per year, payable to the Superintendent of Documents, Government Printing Office, Washington, DC 20402. The charge for a single copy is $3.00 ($3.75 for foreign mailing). There are no restrictions on the republication of material appearing in the Weekly Compilation of Presidential Documents. [[Page 373]] <DOC> [Weekly Compilation of Presidential Documents] [frwais.access.gpo.gov] [Page 373-375] Monday, March 24, 1997 Volume 33--Number 12 Pages 373-397 Week Ending Friday, March 21, 1997 Message to the Congress on Iran March 14, 1997 To the Congress of the United States: I hereby report to the Congress on developments 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. 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 Corporation 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. On March 15, 1995, I issued Executive Order 12957 (60 Fed. Reg. 14615, March 17, 1995) to declare a national emergency with respect to Iran pursuant to IEEPA, and to prohibit the financing, management, or supervision by United States persons of the development of Iranian petroleum resources. This action was in response to actions and policies of the Government of Iran, including support for international terrorism, efforts to undermine the Middle East peace process, and the acquisition of weapons of mass destruction and the means to deliver them. A copy of the order was provided to the Speaker of the House and the President of the Senate by letter dated March 15, 1995. Following the imposition of these restrictions with regard to the development of Iranian petroleum resources, Iran continued to engage in activities that represent a threat to the peace and security of all nations, including Iran's continuing support for international terrorism, its support for acts that undermine the Middle East peace process, and its intensified efforts to acquire weapons of mass destruction. On May 6, 1995, I issued Executive Order 12959 to further respond to the Iranian threat to the national security, foreign policy, and economy of the United States. Executive Order 12959 (60 Fed. Reg. 24757, May 9, 1995) (1) prohibits exportation from the United States to Iran or to the Government of Iran of goods, technology, or services; (2) prohibits the reexportation of certain U.S. goods and technology to Iran from third countries; (3) prohibits dealings by United States persons in goods and services of Iranian origin or owned or controlled by the Government of Iran; (4) prohibits new investments by United States persons in Iran or in property owned or controlled by the Government of Iran; (5) prohibits U.S. companies and other United States persons from approving, facilitating, or financing performance by a foreign subsidiary or other entity owned or controlled by a United States person of certain reexport, investment, and trade transactions that a United States person is prohibited from performing; (6) continues the 1987 prohibition on the importation into the United States of goods and services of Iranian origin; (7) prohibits any transaction by a United States person or within the United States that evades or avoids or attempts to violate any prohibition of the order; and (8) allowed U.S. companies a 30-day period in which to perform trade transactions pursuant to contracts predating the Executive order. At the time of signing Executive Order 12959, I directed the Secretary of the Treasury to authorize through specific licensing certain transactions, including transactions by United States persons related to the Iran-United States Claims Tribunal in The Hague, established pursuant to the Algiers Accords, and related to other international obligations [[Page 374]] and United States Government functions, and transactions related to the export of agricultural commodities pursuant to preexisting contracts consistent with section 5712(c) of title 7, United States Code. I also directed the Secretary of the Treasury, in consultation with the Secretary of State, to consider authorizing United States persons through specific licensing to participate in market-based swaps of crude oil from the Caspian Sea area for Iranian crude oil in support of energy projects in Azerbaijan, Kazakstan, and Turkmenistan. Executive Order 12959 revoked sections 1 and 2 of Executive Order 12613 of October 29, 1987, and sections 1 and 2 of Executive Order 12957 of March 15, 1995, to the extent they are inconsistent with it. A copy of Executive Order 12959 was transmitted to the Speaker of the House of Representatives and the President of the Senate by letter dated May 6, 1995. 2. On March 5, 1997, I renewed for another year the national emergency with respect to Iran pursuant to IEEPA. This renewal extended the authority for the current comprehensive trade embargo against Iran in effect since May 1995. Under these sanctions, virtually all trade with Iran is prohibited except for information and informational materials and certain other limited exceptions. 3. The Iranian Transactions Regulations (the ``Regulations'' or ITR), 31 CFR Part 560, were amended on October 21, 1996 (61 Fed. Reg. 54936, October 23, 1996), to implement section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, by adjusting for inflation the amount of the civil monetary penalties that may be assessed under the Regulations. The amendment increases the maximum civil monetary penalty provided in the Regulations from $10,000 to $11,000 per violation. The amended Regulations also reflect an amendment to 18 U.S.C. 1001 contained in section 330016(1)(L) of Public Law 103-322, September 13, 1994; 108 Stat. 2147. The amendment notes the availability of higher criminal fines pursuant to the formulas set forth in 18 U.S.C. 3571. A copy of the amendment is attached. Section 560.603 of the ITR was amended on November 15, 1996 (61 Fed. Reg. 58480), to clarify rules relating to reporting requirements imposed on United States persons with foreign affiliations. Initial reporting under the amended Regulation has been deferred until May 30, 1997, by a January 14, 1997, Federal Register notice (62 Fed. Reg. 1832). Copies of the amendment and the notice are attached. 4. During the current 6-month period, the Department of the Treasury's Office of Foreign Assets Control (OFAC) made numerous decisions with respect to applications for licenses to engage in transactions under the ITR, and issued 13 licenses. The majority of denials were in response to requests to authorize commercial exports to Iran--particularly of machinery and equipment for the petroleum and manufacturing industries--and the importation of Iranian-origin goods. The licenses issued authorized the export and reexport of goods, services, and technology essential to ensure the safety of civil aviation and safe operation of certain commercial passenger aircraft in Iran; certain financial and legal transactions; the importation of Iranian-origin artwork for public exhibition; and certain diplomatic transactions. Pursuant to sections 3 and 4 of Executive Order 12959 and in order to comply with the Iran-Iraq Arms Non-Proliferation Act of 1992 and other statutory restrictions applicable to certain goods and technology, including those involved in the air-safety cases, the Department of the Treasury continues to consult with the Departments of State and Commerce on these matters. The U.S. financial community continues to interdict transactions associated with Iran and to consult with OFAC about their appropriate handling. Many of these inquiries have resulted in investigations into the activities of U.S. parties and, where appropriate, the initiation of enforcement action. 5. The U.S. Customs Service has continued to effect numerous seizures of Iranian-origin merchandise, primarily carpets, for violations of the import prohibitions of the ITR. Various enforcement actions carried over from previous reporting periods are continuing and new reports of violations are being aggressively pursued. Since my last re [[Page 375]] port, OFAC has collected a civil monetary penalty in the amount of $5,000. The violation underlying this collection involves the unlicensed import of Iranian-origin goods for transshipment to a third country aboard a U.S.-flag vessel. Civil penalty action or review is pending against 21 companies, financial institutions, and individuals for possible violations of the Regulations. 6. The expenses incurred by the Federal Government in the 6-month period from September 15, 1996, through March 14, 1997, that are directly attributable to the exercise of powers and authorities conferred by the declaration of a national emergency with respect to Iran are approximately $800,000, most of which represent wage and salary costs for Federal personnel. Personnel costs were largely centered in
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