22 July 1998
Source: http://www.usia.gov/current/news/latest/98072102.nlt.html?/products/washfile/newsitem.shtml


USIS Washington File
_________________________________

21 July 1998

TEXT: PRESIDENT REPORTS ON EMERGENCY WITH RESPECT TO TERRORISTS

(Reaffirms US commitment to fight terrorism in the Mideast) (1380)

Washington -- President Clinton reaffirmed the "determination of the
United States to confront and combat those who would seek to destroy
the Middle East peace process, and our commitment to the global fight
against terrorism" July 21.

In his report to Congress on the developments concerning the national
emergency with respect to terrorists who threaten to disrupt the
Middle East peace process that was declared in Executive Order 12947
of January 23, 1995, the President said: "I shall continue to exercise
the powers at my disposal to apply economic sanctions against
extremists seeking to destroy the hopes of peaceful coexistence
between Arabs and Israelis as long as these measures are appropriate.
..."

"Because terrorist activities continue to threaten the Middle East
peace process and vital interests of the United States in the Middle
East, on January 21, 1998, I continued for another year the national
emergency declared on January 23, 1995, and the measures that took
effect on January 24, 1995, to deal with that emergency," President
Clinton noted.

Following is the text of the President's report to Congress:

(begin text)

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release

July 21, 1998

TO THE CONGRESS OF THE UNITED STATES:

I hereby report to the Congress on the developments concerning the
national emergency with respect to terrorists who threaten to disrupt
the Middle East peace process that was declared in Executive Order
12947 of January 23, 1995. 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
(IEEPA), 50 U.S.C. 1703(c).

1. On January 23, 1995, I signed Executive Order 12947, "Prohibiting
Transactions with Terrorists Who Threaten To Disrupt the Middle East
Peace Process" (the "Order") (60 Fed. Reg. 5079, January 25, 1995).
The Order blocks all property subject to U.S. jurisdiction in which
there is any interest of 12 terrorist organizations that threaten the
Middle East peace process as identified in an Annex to the Order. The
Order also blocks the property and interests in property subject to
U.S. jurisdiction of persons designated by the Secretary of State, in
coordination with the Secretary of the Treasury and the Attorney
General, who are found (1) to have committed, or to pose a significant
risk of committing, acts of violence that have the purpose or effect
of disrupting the Middle East peace process, or (2) to assist in,
sponsor, or provide financial, material, or technological support for,
or services in support of, such acts of violence. In addition, the
Order blocks all property and interests in property subject to U.S.
jurisdiction in which there is any interest of persons determined by
the Secretary of the Treasury, in coordination with the Secretary of
State and the Attorney General, to be owned or controlled by, or to
act for or on behalf of, any other person designated pursuant to the
Order (collectively "Specially Designated Terrorists" or "SDTs").

The Order further prohibits any transaction or dealing by a United
States person or within the United States in property or interests in
property of SDTs, including the making or receiving of any
contribution of funds, goods, or services to or for the benefit of
such persons. This prohibition includes donations that are intended to
relieve human suffering.

Designations of persons blocked pursuant to the Order are effective
upon the date of determination by the Secretary of State or her
delegate, or the Director of the Office of Foreign Assets Control
(OFAC) acting under authority delegated by the Secretary of the
Treasury. Public notice of blocking is effective upon the date of
filing with the Federal Register, or upon prior actual notice.

Because terrorist activities continue to threaten the Middle East
peace process and vital interests of the United States in the Middle
East, on January 21, 1998, I continued for another year the national
emergency declared on January 23, 1995, and the measures that took
effect on January 24, 1995, to deal with that emergency. This action
was taken in accordance with section 202(d) of the National
Emergencies Act (50 U.S.C. 1622(d)).

2. On January 25, 1995, the Department of the Treasury issued a notice
listing persons blocked pursuant to Executive Order 12947 who have
been designated by the President as terrorist organizations
threatening the Middle East peace process or who have been found to be
owned or controlled by, or to be acting for or on behalf of, these
terrorist organizations (60 Fed. Reg. 5084, January 25, 1995). The
notice identified 31 entities that act for or on behalf of the 12
Middle East terrorist organizations listed in the Annex to Executive
Order 12947, as well as 18 individuals who are leaders or
representatives of these groups. In addition, the notice provided 9
name variations or pseudonyms used by the 18 individuals identified.
The list identifies blocked persons who have been found to have
committed, or to pose a significant risk of committing, acts of
violence that have the purpose or effect of disrupting the Middle East
peace process or to have assisted in, sponsored, or provided
financial, material or technological support for, or services in
support of, such acts of violence, or are owned or controlled by, or
act for or on behalf of other blocked persons. The Department of the
Treasury issued three additional notices adding the names of three
individuals, as well as their pseudonyms, to the List of SDTs (60 Fed.
Reg. 41152, August 11, 1995; 60 Fed. Reg. 44932, August 29, 1995; and
60 Fed. Reg. 58435, November 27, 1995).

3. On February 2, 1996, OFAC issued the Terrorism Sanctions
Regulations (the "TSRs" or the "Regulations") (61 Fed. Reg. 3805,
February 2, 1996). The TSRs implement the President's declaration of a
national emergency and imposition of sanctions against certain persons
whose acts of violence have the purpose or effect of disrupting the
Middle East peace process. There have been no amendments to the TSRs,
31 C.F.R. Part 595, administered by the Office of Foreign Assets
Control of the Department of the Treasury, since my report of January
28, 1998.

4. Since January 25, 1995, OFAC has issued six licenses pursuant to
the Regulations. These licenses authorize payment of legal expenses
and the disbursement of funds for normal expenditures for the
maintenance of family members, the employment and payment of salary
and educational expenses, payment for secure storage of tangible
assets, and payment of certain administrative transactions, to or for
individuals designated pursuant to Executive Order 12947.

5. The expenses incurred by the Federal Government in the 6-month
period from January 23 through July 22, 1998, that are directly
attributable to the exercise of powers and authorities conferred by
the declaration of the national emergency with respect to
organizations that disrupt the Middle East peace process, are
estimated at approximately $165,000. These data do not reflect certain
costs of operations by the intelligence and law enforcement
communities.

6. Executive Order 12947 provides this Administration with a tool for
combating fundraising in this country on behalf of organizations that
use terror to undermine the Middle East peace process. The Order makes
it harder for such groups to finance these criminal activities by
cutting off their access to sources of support in the United States
and to U.S. financial facilities. It is also intended to reach
charitable contributions to designated organizations and individuals
to preclude diversion of such donations to terrorist activities.

Executive Order 12947 demonstrates the determination of the United
States to confront and combat those who would seek to destroy the
Middle East peace process, and our commitment to the global fight
against terrorism. I shall continue to exercise the powers at my
disposal to apply economic sanctions against extremists seeking to
destroy the hopes of peaceful coexistence between Arabs and Israelis
as long as these measures are appropriate, and will continue to report
periodically to the Congress on significant developments pursuant to
50 U.S.C. 1703(c).

WILLIAM J. CLINTON

THE WHITE HOUSE,

July 21, 1998.

(end text)