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Message to the Congress Reporting on the National Emergency with Respect to Iraq February 8, 1995

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Message to the Congress Reporting on the National Emergency with Respect to Iraq February 8, 1995 Feb. 8 / Administration of William J. Clinton, 1995 Message to the Congress Reporting on the National Emergency With Respect to Iraq February 8, 1995 To the Congress of the United States: ties of the U.N. Compensation Commission in I hereby report to the Congress on the devel- Geneva, which will handle claims from victims opments since my last report of August 2, 1994, of the Iraqi invasion of Kuwait. Member States concerning the national emergency with respect also may make voluntary contributions to the to Iraq that was declared in Executive Order account. The funds placed in the escrow account No. 12722 of August 2, 1990. This report is are to be returned, with interest, to the Member submitted pursuant to section 401(c) of the Na- States that transferred them to the United Na- tional Emergencies Act, 50 U.S.C. 1641(c), and tions, as funds are received from future sales section 204(c) of the International Emergency of Iraqi oil authorized by the U.N. Security Economic Powers Act, 50 U.S.C. 1703(c). Council. No Member State is required to fund Executive Order No. 12722 ordered the im- more than half of the total transfers or contribu- mediate blocking of all property and interests tions to the escrow account. in property of the Government of Iraq (includ- This report discusses only matters concerning ing the Central Bank of Iraq), then or thereafter the national emergency with respect to Iraq that located in the United States or within the pos- was declared in Executive Order No. 12722 and session or control of a United States person. matters relating to Executive Orders Nos. 12724 That order also prohibited the importation into and 12817 (the ``Executive orders''). The report the United States of goods and services of Iraqi covers events from August 2, 1994, through origin, as well as the exportation of goods, serv- February 1, 1995. ices, and technology from the United States to 1. There has been one action affecting the Iraq. The order prohibited travel-related trans- Iraqi Sanctions Regulations, 31 C.F.R. Part 575 actions to or from Iraq and the performance (the ``Regulations''), administered by the Office of any contract in support of any industrial, com- of Foreign Assets Control (FAC) of the Depart- mercial, or governmental project in Iraq. United ment of the Treasury, since my last report on States persons were also prohibited from grant- August 2, 1994. On February 1, 1995 (60 Fed. ing or extending credit or loans to the Govern- Reg. 6376), FAC amended the Regulations by ment of Iraq. adding to the list of Specially Designated Na- The foregoing prohibitions (as well as the tionals (SDNs) of Iraq set forth in Appendices blocking of Government of Iraq property) were A (``entities and individuals'') and B (``merchant continued and augmented on August 9, 1990, vessels''), the names of 24 cabinet ministers and by Executive Order No. 12724, which was issued 6 other senior officials of the Iraqi government, in order to align the sanctions imposed by the as well as 4 Iraqi state-owned banks, not pre- United States with United Nations Security viously identified as SDNs. Also added to the Council Resolution 661 of August 6, 1990. Appendices were the names of 15 entities, 11 Executive Order No. 12817 was issued on Oc- individuals, and 1 vessel that were newly identi- tober 21, 1992, to implement in the United fied as Iraqi SDNs in the comprehensive list States measures adopted in United Nations Se- of SDNs for all sanctions programs administered curity Council Resolution 778 of October 2, by FAC that was published in the Federal Reg- 1992. Resolution No. 778 requires U.N. Mem- ister (59 Fed. Reg. 59460) on November 17, ber States temporarily to transfer to a U.N. es- 1994. In the same document, FAC also provided crow account up to $200 million apiece in Iraqi additional addresses and aliases for 6 previously oil sale proceeds paid by purchasers after the identified Iraqi SDNs. This Federal Register imposition of U.N. sanctions on Iraq, to finance publication brings the total number of listed Iraqi's obligations for U.N. activities with respect Iraqi SDNs to 66 entities, 82 individuals, and to Iraq, such as expenses to verify Iraqi weapons 161 vessels. destruction, and to provide humanitarian assist- Pursuant to section 575.306 of the Regula- ance in Iraq on a nonpartisan basis. A portion tions, FAC has determined that these entities of the escrowed funds will also fund the activi- and individuals designated as SDNs are owned 176 VerDate 27-APR-2000 12:22 May 04, 2000 Jkt 010199 PO 00001 Frm 00176 Fmt 1240 Sfmt 1240 C:\95PAP1\95PAP1.025 txed01 PsN: txed01 Administration of William J. Clinton, 1995 / Feb. 8 or controlled by, or are acting or purporting York was directed to transfer a corresponding to act directly or indirectly on behalf of, the amount of $3,114,965.36 from the blocked ac- Government of Iraq, or are agencies, instrumen- count it holds to the United Nations-controlled talities or entities of that government. By virtue account. Similarly, on December 16, 1994, fol- of this determination, all property and interests lowing the payment of $721,217.97 by the Gov- in property of these entities or persons that are ernment of the Netherlands, $3,000,891.06 by in the United States or in the possession or the European Community, $4,936,808.84 by the control of United States persons are blocked. Government of the United Kingdom, Further, United States persons are prohibited $190,476.19 by the Government of France, and from engaging in transactions with these individ- $5,565,913.29 by the Government of Sweden, uals or entities unless the transactions are li- the Federal Reserve Bank of New York was censed by FAC. The designations were made directed to transfer a corresponding amount of in consultation with the Department of State. $14,415,307.35 to the United Nations-controlled A copy of the amendment is attached to this account. Again, on December 28, 1994, fol- report. lowing the payment of $853,372.95 by the Gov- 2. Investigations of possible violations of the ernment of Denmark, $1,049,719.82 by the Eu- Iraqi sanctions continue to be pursued and ap- ropean Community, $70,716.52 by the Govern- propriate enforcement actions taken. The FAC ment of France, $625,390.86 by the Government continues its involvement in lawsuits, seeking of Germany, $1,151,742.01 by the Government to prevent the unauthorized transfer of blocked of the Netherlands, and $1,062,500.00 by the Iraqi assets. There are currently 38 enforcement Government of the United Kingdom, the Fed- actions pending, including nine cases referred eral Reserve Bank of New York was directed by FAC to the U.S. Customs Service for joint to transfer a corresponding amount of investigation. Additional FAC civil penalty no- $4,813,442.16 to the United Nations controlled tices were prepared during the reporting period account. Finally, on January 13, 1995, following for violations of the International Emergency the payment of $796,167.00 by the Government Economic Powers Act and the Regulations with of the Netherlands, $810,949.24 by the Govern- respect to transactions involving Iraq. Four pen- ment of Denmark, $613,030.61 by the Govern- alties totaling $26,043 were collected from two ment of Finland, and $2,049,600.12 by the Eu- banks, one company, and one individual for vio- ropean Community, the Federal Reserve Bank lations of the prohibitions against transactions of New York was directed to transfer a cor- involving Iraq. responding amount of $4,269,746.97 to the 3. Investigation also continues into the roles United Nations-controlled account. Cumulative played by various individuals and firms outside transfers from the blocked Federal Reserve Iraq in the Iraqi government procurement net- Bank of New York account since issuance of work. These investigations may lead to additions Executive Order No. 12817 have amounted to to FAC's listing of individuals and organizations $157,542,187.88 of the up to $200 million that determined to be SDNs of the Government of the United States is obligated to match from Iraq. blocked Iraqi oil payments, pursuant to United 4. Pursuant to Executive Order No. 12817 Nations Security Council Resolution 778. implementing United Nations Security Council 5. The Office of Foreign Assets Control has Resolution No. 778, on October 26, 1992, FAC issued a total of 533 specific licenses regarding directed the Federal Reserve Bank of New York transactions pertaining to Iraq or Iraqi assets to establish a blocked account for receipt of since August 1990. Since my last report, 37 spe- certain post August 6, 1990, Iraqi oil sales pro- cific licenses have been issued. Licenses were ceeds, and to hold, invest, and transfer these issued for transactions such as the filing of legal funds as required by the order. On October actions against Iraqi governmental entities, legal 5, 1994, following payments by the Governments representation of Iraq, and the exportation to of Canada ($677,756.99), the United Kingdom Iraq of donated medicine, medical supplies, food ($1,740,152.44), and the European Community intended for humanitarian relief purposes, the ($697,055.93), respectively, to the special United execution of powers of attorney relating to the Nations-controlled account, entitled ``United Na- administration of personal assets and decedents' tions Security Council Resolution 778 Escrow estates in Iraq, and the protection of preexistent Account,'' the Federal Reserve Bank of New intellectual property rights in Iraq.
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