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Federal Reserve Bank
OF DALLAS
ROBERT

D. M c T E E R , J R .

president

AND

C H IE F

E X E C U T IV E

May 18 1995

O F F IC E R

’

d a lla s, t exa s
7 5 2 6 5 -5 9 0 6

Notice 95-51
TO:

The Chief Executive Officer of each
member bank and others concerned in
the Eleventh Federal Reserve District

SUBJECT
Office of Foreign Assets Control
DETAILS
The President’s Executive Order, effective 12:01 a.m. ED T, May 7, 1995,
prohibits new investment in and import, export, reexport trade with Iran, offshore trade
in Iranian goods, and related financial transactions. New investments include commit­
ments of funds, loans, and credit extensions to Iran or in property/entities owned or
controlled by the government of Iran.

ATTACHMENT
A copy of the President’s Executive Order as it appears on pages 24757-59,
Vol. 60, No. 89, of the Federal Register dated May 9, 1995, is attached.

MORE INFORMATION
For more information, please contact the Office of Foreign Assets Control at
(202) 622-2490. For additional copies of this Bank’s notice, please contact the Public
Affairs Department at (214) 922-5254.
Sincerely yours,

Fo r additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333 -4460; E l Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston
Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2 4 757
Federal Register

Presidential Documents

Vol. 60, No. 89
Tuesday, May 9, 1995

Title 3 —

Executive Order 12959 of May 6, 1995

The President

Prohibiting Certain Transactions With Respect to Iran
By the authority vested in me as President by the Constitution and the
laws of the United States of America, including the International Emergency
Econom ic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emer­
gencies Act (50 U.S.C. 1601 et seq.), section 505 of the International Security
and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9) (ISDCA),
and section 301 of title 3, United States Code,
I, WILLIAM J. CLINTON, President of the United States of America, in
order to take steps with respect to Iran in addition to those set forth in
Executive Order No. 12957 of March 15, 1995, to deal with the unusual
and extraordinary threat to the national security, foreign policy, and economy
of the United States referred to in that order, hereby order:
Section 1 . The following are prohibited, except to the extent provided in
regulations, orders, directives, or licenses that may be issued pursuant to
this order, and notwithstanding any contract entered into or any license
or permit granted prior to the effective date of this order: (a] the importation
into the United States, or the financing of such importation, of any goods
or services of Iranian origin, other than Iranian-origin publications and m ate­
rials imported for news publications or news broadcast dissemination;
(b) except to the extent provided in section 203(b) of IEEPA (50 U.S.C.
1702(b)), the exportation from the United States to Iran, the Government
of Iran, or to any entity owned or controlled by the Government of Iran,
or the financing of such exportation, of any goods, technology (including
technical data or other information subject to the Export Administration
Regulations, 15 CFR Parts 768—
799 (1994) (the “EAR”)), or services;
(c) the reexportation to Iran, the Government of Iran, or to any entity
owned or controlled by the Government of Iran, of any goods or technology
(including technical data or other information) exported from the United
States, the exportation of which to Iran is subject to export license application
requirements under any United States regulations in effect immediately prior
to the issuance of this order, unless, for goods, they have been (i) substantially
transformed outside the United States, or (ii) incorporated into another prod­
uct outside the United States and constitute less than 10 percent by value
of that product exported from a third country;
(d) except to the extent provided in section 203(b) of IEEPA (50 U.S.C.
1702(b)), any transaction, including purchase, sale, transportation, swap,
financing, or brokering transactions, by a United States person relating to
goods or services of Iranian origin or owned or controlled by the Government
of Iran;
(e) any new investment by a United States person in Iran or in property
(including entities) owned or controlled by the Government of Iran;
(f) the approval or facilitation by a United States person of the entry
into or performance by an entity owned or controlled by a United States
person of a transaction or contract (i) prohibited as to United States persons
by subsection (c), (d), or (e) above, or (ii) relating to the financing of activities
prohibited as to United States persons by those subsections, or of a guaranty
of another person’s performance of such transaction or contract; and

24758

Federal Register / Vol. 60, No. 89 / Tuesday, May 9, 1995 / Presidential Documents
(g)
any transaction by any United States person or w ithin the United
States that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in this order.
Sec. 2, For the purposes of this order:
(a) the term “ person” means an individual or entity;
(b) the term “entity” means a partnership, association, trust, joint venture,
corporation, or other organization;
(c) the term “United States person” means any United States citizen,
permanent resident alien, entity organized under the laws of the United
States (including foreign branches), or any person in the United States;
(d) the term “Iran” means the territory of Iran and any other territory
or marine area, including the exclusive econom ic zone and continental
shelf, over which the Government of Iran claim s sovereignty, sovereign
rights or jurisdiction, provided that the Government of Iran exercises partial
or total de facto control over the area or derives a benefit from econom ic
activity in the area pursuant to international arrangements; and
(e) the term “new investm ent” means (i) a comm itment or contribution
of funds or other assets, or (ii) a loan or other extension of credit.
Sec. 3. The Secretary of the Treasury, in consultation with the Secretary
of State, is hereby authorized to take such actions, including the promulgation
of rules and regulations, the requirement of reports, including reports by
United States persons on oil transactions engaged in by their foreign affiliates
with Iran or the Government of Iran, and to employ all powers granted
to the President by IEEPA and ISDCA as may be necessary to carry out
the purposes of this order. The Secretary of the Treasury may redelegate
any of these functions to other officers and agencies of the United States
Government. All agencies of the United States Government are hereby di­
rected to take all appropriate measures within their authority to carry out
the provisions of this order.
Sec. 4. The Secretary of the Treasury may not authorize the exportation
or reexportation to Iran, the Government of Iran, or an entity owned or
controlled by the Government of Iran of any goods, technology, or services
subject to export license application requirements of another agency of the
United States Government, if authorization of the exportation or reexportation
by that agency would be prohibited by law.
Sec. 5. 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, are hereby revoked to the extent inconsistent with this order. Other­
wise, the provisions of this order supplement the provisions of Executive
Orders No. 12613 and 12957.
Sec. 6. Nothing contained in this order shall create any right or benefit,
substantive or procedural, enforceable by any party against the United States,
its agencies or instrum entalities, its officers or employees, or any other
person.
Sec. 7. The measures taken pursuant to this order are in response to actions
of the Government of Iran occurring after the conclusion of the 1981 Algiers
Accords, and are intended solely as a response to those later actions.
Sec. 8. (a) This order is effective at 12:01 a.m., eastern daylight time, on
May 7, 1995, except that (i) section 1(b), (c), and (d) of this order shall
not apply until 12:01 a.m., eastern daylight tim e, on June 6, 1995, to trade
transactions under contracts in force as of the date of this order if such
transactions are authorized pursuant to Federal regulations in force imme­
diately prior to the date of this order (“existing trade contracts”), and (ii)
letters of credit and other financing agreements with respect to existing
trade contracts may be performed pursuant to their terms with respect to
underlying trade transactions occurring prior to 12:01 a.m., eastern d a y l i g h t
time, on June.6 ,1 9 9 5 .

Federal Register / Vol. 60, No. 89 / Tuesday, May 9, 1995 / Presidential Documents

24759

(b)
This order shall be transmitted to the Congress and published in
the Federal Register.

[FR Doc. 95-11694
Filed 5-8-95; 2:43 pm]
Billing code 3105-01-P

THE WHITE HOUSE,
M ay 6, 1995.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102