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Office of the Press Secretary

For Immediate Release May 8, 1995
                         TEXT OF A LETTER FROM
                      THE PRESIDENT OF THE SENATE

May 6, 1995

Dear Mr. Speaker: (Dear Mr. President:)

On March 15, 1995, I reported to the Congress that, pursuant to section 204(b) of the International Emergency Economic Powers Act (50 U.S.C. 1703(b)), and section 301 of the National Emergencies Act (50 U.S.C. 1631), I exercised my statutory authority to declare a national emergency to respond to the actions and policies of the Government of Iran and to issue an Executive order that prohibited United States persons from entering into contracts for the financing or the overall management or supervision of the development of petroleum resources located in Iran or over which Iran claims jurisdiction.

Following the imposition of these restrictions with regard to the development of Iranian petroleum resources, Iran has continued to engage in activities that represent a threat to the peace and security of all nations. I have now taken additional measures to respond to Iran's continuing support for international terrorism, including support for acts that undermine the Middle East peace process, as well as its intensified efforts to acquire weapons of mass destruction. I have issued a new Executive order and hereby report to the Congress pursuant to the above authorities and section 505(c) of the International Security and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9(c)).

The new order I have issued with respect to Iran:

            Prohibits exportation from the United States to Iran
          or to the Government of Iran of goods, technology or
          services, including trade financing by U.S. banks;

            Prohibits the reexportation of certain U.S. goods and
          technology to Iran from third countries;

            Prohibits transactions such as brokering and other
          dealing by United States persons in Iranian goods and

            Prohibits new investments by United States persons
          in Iran or in property owned or controlled by the
          Government of Iran;
            Prohibits U.S. companies from approving or
          facilitating their subsidiaries' performance of
          transactions that they themselves are prohibited
          from performing;

            Continues the 1987 prohibition on the importation into
          the United States of goods and services of Iranian
          origin; and

            Allows U.S. companies a 30-day period in which to
          perform trade transactions pursuant to contracts
          predating this order that are now prohibited.

With the exception of the trade noted above, all prohibitions contained in the Executive order are effective as of 12:01 a.m., eastern daylight time, on May 7, 1995.

This new order provides that the Secretary of the Treasury, in consultation with the Secretary of State, is authorized to take such actions, including the promulgation of rules and regulations, as may be necessary to carry out the purposes of the order. The order also authorizes the Secretary of the Treasury to require reports, including reports on foreign affiliates' oil trading with Iran. There are certain transactions subject to the prohibitions contained in the Executive order that I have directed the Secretary of the Treasury to authorize through licensing, including transactions by United States persons related to the Iran-United States Claims Tribunal in The Hague, established pursuant to the Algiers Accords, and other international obligations and United States Government functions. Such transactions also include the export of agricultural commodities consistent with section 5712(c) of title 7, United States Code. In addition, United States persons may be licensed 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, Turkmenistan, and Kazakhstan.

This order revokes sections 1 and 2 of Executive Order No. 12613 of October 29, 1987, and sections 1 and 2 of Executive Order No. 12957 of March 15, 1995, to the extent they are inconsistent with this order. The declaration of national emergency made by Executive Order No. 12957 remains in effect and is not affected by this order.



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