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Office of the Press Secretary

For Immediate Release May 8, 1995


President Clinton signed an Executive Order yesterday imposing significant new economic sanctions on Iran. Responding to that country's sponsorship of international terrorism and its active pursuit of weapons of mass destruction, the new sanctions prohibit trade with Iran, as well as trade financing, loans, and related financial services. New investment in Iran is also prohibited.

The new sanctions announced today go beyond the prohibitions on the import of goods and services of Iranian origin which have been in place since 1987, the export prohibitions in effect prior to this Executive Order, and the additional prohibitions imposed on March 15, 1995, with respect to the development of Iran's petroleum resources. Today's actions underscore our opposition to the actions and policies of the Government of Iran, particularly its support of international terrorism and its efforts to obtain materials and assistance critical to the development of nuclear weapons. The United States cannot remain idle in the face of this heightened threat posed by Iran.

U.S. persons are prohibited from trading in goods and services of Iranian origin, or from exporting goods, technology or services to Iran, or from providing financing for those transactions. The prohibition on trade financing includes the provision or use of other financial services with respect to such transactions. The reexportation to Iran from third countries of goods or technology heretofore controlled for export to Iran from the United States is also prohibited.

Effective immediately, new investment in Iran is prohibited. ?New investment? includes any commitment of funds or other assets, a loan, or any other extension of credit.

Under the order, U.S. companies are prohibited from approving or facilitating the performance of their affiliates' transactions with Iran that they themselves are precluded from performing. Any transaction that evades or avoids the prohibitions, or has the purpose of evading or avoiding the prohibitions, and any attempt to violate the order, is also prohibited.

The Executive order provides a 30-day delayed effective date to permit the completion of certain trade transactions with Iran covered by contracts which predate the order.

The prohibitions announced today will be implemented by the Treasury Department. In the case of trade transactions with Iran covered by contracts which predate the order, Treasury may allow, on a case-by-case basis, a delayed effective date beyond the 30 days granted by the Executive Order. Under the regulations, Treasury may require U.S. companies to furnish reports on oil trading with Iran by their foreign affiliates.

The new prohibitions apply to U.S. persons, wherever they may be, including the foreign branches of U.S. entities. The prohibitions also permit the identification and listing by the Treasury Department of persons acting on behalf of or as agents of the Government of Iran, as ?Specially Designated Nationals of Iran;? such persons will become subject to the same prohibitions that apply to the Government of Iran.

Today's actions were taken by President Clinton under the authority of the International Emergency Economic Powers Act, which provides for significant civil and criminal penalties for violations.

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