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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ Circular No. 10364 August 3, 1990 BLOCKING OF IRAQI AND KUWAITI GOVERNM ENT PROPERTY AND PROHIBITION OF TRANSACTIONS W ITH IRAQ To All Banks, and Other Concerned, in the Second Federal Reserve District: O n A u g u s t 2 , 1990, th e P re s id e n t issu e d an E x e c u tiv e O rd e r b lo c k in g all p ro p e rty an d in te re sts in p ro p e rty o f th e G o v e rn m e n t o f Ira q in th e U n ite d S ta te s, an d p ro h ib itin g tra n s a c tio n s w ith th e G o v e rn m e n t o f Ira q . In a d d itio n , th e P re s id e n t issu e d an E x e c u tiv e O rd e r b lo c k in g all p ro p e rty an d in te re s ts in p r o p e rty o f th e G o v e rn m e n t o f K u w a it in th e U n ite d S tates. P rin te d on th e fo llo w in g p a g e s is th e tex t o f th e E x e c u tiv e O rd e rs. In c lu d e d a lso is th e te x t o f a G e n e ra l L ic e n se issu e d b y th e O ffic e o f F o re ig n A sse ts C o n tro l o f th e D e p a rtm e n t o f th e T reasu ry , a n d a c o p y o f a le tte r fro m th e O ffic e o f F o re ig n A sse ts C o n tro l d ire c te d to th is B an k . Q u e stio n s re g a rd in g th is m a tte r sh o u ld b e d ire c te d to B rad ley K . S a b e l, C o u n sel (Tel. No. 2 1 2 -7 2 0 -5 0 4 1 ). E. G erald C o r r ig a n , President. ~| EXECUTIVE ORDER BLOCKING IRAQI GOVERNM ENT PROPERTY AND PROHIBITING TRANSACTIONS W ITH IRAQ B y th e a u th o rity v e ste d in m e as P re s id e n t b y th e C o n s titu tio n a n d law s o f th e U n ite d S tates o f A m e ric a , in c lu d in g th e In te rn a tio n a l E m e rg e n c y E c o n o m ic P o w ers A c t (5 0 U .S .C . 1701 e t se q .), th e N a tio n a l E m e rg e n c ie s A c t (5 0 U .S .C . 1601 e t se q .), an d s e c tio n 301 o f title 3 o f th e U n ite d S tates C ode. I, G E O R G E B U S H , P re sid e n t o f th e U n ite d S tates o f A m e ric a , fin d th a t th e p o lic ie s a n d a c tio n s o f th e G o v e rn m e n t o f Ira q c o n s titu te an u n u su a l an d e x tra o rd in a ry th re a t to th e n a tio n a l s e c u rity a n d fo re ig n p o lic y o f th e U n ite d S tates an d h e re b y d e c la re a n a tio n a l e m e rg e n c y to d e a l w ith th a t th re a t. I h e re b y o rd e r: S e c tio n 1. A ll p ro p e rty an d in te re sts in p ro p e rty o f th e G o v e rn m e n t o f Ira q , its a g e n c ie s, in s tru m e n ta litie s a n d c o n tro lle d e n titie s an d th e C e n tra l B an k o f Ira q th a t a re in th e U n ite d S tates, th a t h e r e a f te r c o m e w ith in th e U n ite d S tates o r th a t are o r h e re a fte r c o m e w ith in th e p o s se ssio n o r c o n tro l o f U n ite d S tates p e rso n s, in c lu d in g th e ir o v e rse a s b ra n c h e s , are h e re b y b lo c k e d . S e c tio n 2. T h e fo llo w in g a re p ro h ib ite d , ex c e p t to th e ex te n t p ro v id e d in re g u la tio n s w h ic h m ay h e re a fte r b e issu e d p u rs u a n t to th is O rd e r: (a) T h e im p o rt in to th e U n ite d S tates o f any g o o d s o r se rv ic e s o f Ira q i o r ig in , o th e r th a n p u b lic a tio n s a n d o th e r in fo rm a tio n a l m a te ria ls; (b) T h e e x p o rt to Ira q o f any g o o d s, te c h n o lo g y (in c lu d in g te c h n ic a l d a ta o r o th e r in fo rm a tio n c o n tro lle d fo r e x p o rt p u rs u a n t to S e c tio n 5 o f th e E x p o rt A d m in istra tio n A c t (5 0 U .S .C . A p p . 2 4 0 4 )) o r se rv ic e s fro m th e U n ite d S tates, e x cep t p u b lic a tio n s a n d o th e r in fo rm a tio n a l m a te ria ls , a n d d o n a tio n s o f a rtic le s in te n d e d to reliev e h u m a n s u ffe rin g , su ch as fo o d , c lo th in g , m e d ic in e a n d m e d ic a l su p p lie s in te n d e d stric tly fo r m e d ic a l p u rp o se s; (c) A n y tra n s a c tio n by a U n ite d S tates p e rso n re la tin g to tra n s p o rta tio n to o r fro m Ira q ; th e p ro v isio n o f tra n s p o rta tio n to o r fro m th e U n ite d S tates b y an y Ira q i p e rs o n o r an y v e sse l o r a irc ra ft o f Ira q i re g istra tio n ; o r th e sale in th e U n ite d S tates b y an y p e rso n h o ld in g a u th o rity u n d e r th e F e d e ra l A viation A ct o f 1 9 5 8 , as a m e n d e d (4 9 U .S .C . 1514), o f any tra n s p o rta tio n b y a ir w h ic h in c lu d e s any sto p in Iraq ; (d) T h e p u rc h a se by any U n ite d S tates p e rs o n o f g o o d s fo r e x p o rt fro m Ira q to an y c o u n try ; (e) T h e p e rfo rm a n c e b y any U n ite d S tates p e rso n o f an y c o n tra c t in s u p p o rt o f an in d u s tria l o r o th e r c o m m e rc ia l o r g o v e rn m e n ta l p ro je c t in Iraq ; (f) T h e g ra n t o r e x te n sio n o f c re d its o r lo a n s b y any U n ite d S tates p e rso n to th e G o v e rn m e n t o f Ira q , its in s tru m e n ta litie s an d c o n tro lle d e n titie s; (g) A ny tra n s a c tio n b y a U n ite d S tates p e rso n re la tin g to tra v e l b y any U n ite d S tates c itiz e n o r p e rm a n e n t re s id e n t a lie n to Ira q , o r to a c tiv itie s b y any su ch p e rso n w ith in Ira q , a fte r th e d ate o f th is O rd er, o th e r th a n tra n s a c tio n s n e c e s s a ry to e ffe c t su c h p e rso n ’s d e p a rtu re fro m Ira q , o r tra v e l fo r jo u r n a lis tic a c tiv ity by p e rso n s re g u la rly em p lo y e d in su ch c a p a c ity b y a n e w sg a th e rin g o rg a n iz a tio n ; an d (h) A ny tra n s a c tio n b y an y U n ite d S tates p e rso n w h ic h e v a d e s o r av o id s, o r h a s th e p u rp o s e o f e v a d in g o r a v o id in g , any o f th e p ro h ib itio n s set fo rth in th is O rd er. F o r p u rp o s e s o f th is O rd er, th e te rm “ U n ite d S tates p e rs o n ’’ m e a n s an y U n ite d S tates c itiz e n , p e rm a n e n t re s id e n t a lie n , ju rid ic a l p e rso n o rg a n iz e d u n d e r th e law s o f th e U n ite d S ta te s, o r an y p e r so n in th e U n ite d S tates. S e c tio n 3. T h is O rd e r is e ffe c tiv e im m ed iately . S e c tio n 4 . T h e S e c re ta ry o f th e T reasu ry , in c o n su lta tio n w ith th e S e c re ta ry o f S tate, is h e re b y a u th o riz e d to ta k e su ch a c tio n s, in c lu d in g th e p ro m u lg a tio n o f ru le s a n d re g u la tio n s , as m ay b e n e c e s s a ry to c a r r y o u t th e p u rp o se s o f th is O rd er. S u ch a c tio n s m ay in c lu d e p ro h ib itin g o r re g u la tin g p a y m e n ts o r tra n s fe rs o f any p ro p e rty o r an y tra n s a c tio n s in v o lv in g th e tra n s fe r o f a n y th in g o f e c o n o m ic v alu e by any U n ite d S tates p e rso n to th e G o v e rn m e n t o f Ira q , its in s tru m e n ta litie s a n d c o n tro lle d e n titie s , o r to any Iraq i n a tio n a l o r e n tity o w n e d o r c o n tro lle d , d ire c tly o r in d ire c tly , b y Ira q o r Ira q i n a tio n a ls. T h e S e c re ta ry m ay re d e le g a te any o f th e se fu n c tio n s to o th e r o ffic e rs a n d a g e n c ie s o f th e F e d e ra l g o v e rn m e n t. A ll a g e n c ie s o f th e U n ite d S tates g o v e rn m e n t a re d ire c te d to ta k e all a p p ro p ria te m e a su re s w ith in th e ir a u th o rity to c a rry o u t th e p ro v isio n s o f th is O rd e r, in c lu d in g th e su sp e n sio n o r te rm in a tio n o f lic e n se s o r o th e r a u th o riz a tio n s in e ffe c t as o f th e d a te o f th is O rd er. T h is O rd e r sh all b e tra n s m itte d to th e C o n g re ss a n d p u b lish e d in th e G eorge B ush T h e W h ite H o u se A u g u s t 2 , 1990 Federal Register. EXECUTIVE ORDER BLOCKING KUWAITI GOVERNM ENT PROPERTY B y th e a u th o rity v e ste d in m e as P re s id e n t b y th e C o n s titu tio n a n d la w s o f th e U n ite d S tates o f A m e ric a , in c lu d in g th e In te rn a tio n a l E m e rg e n c y E c o n o m ic P o w ers A c t (5 0 U .S .C . 1701 e t se q .), th e N a tio n a l E m e rg e n c ie s A ct (5 0 U .S .C . 1601 e t se q .), a n d 3 U .S .C . 3 0 1 . I, G E O R G E B U S H , P re s id e n t o f th e U n ite d S tates, fin d th a t th e situ a tio n c a u se d b y th e in v asio n o f K u w a it b y Ira q c o n s titu te s an u n u su a l a n d e x tra o rd in a ry th re a t to th e n a tio n a l se c u rity , fo re ig n p o lic y a n d e c o n o m y o f th e U n ite d S tates a n d h av e d e c la re d a n a tio n a l e m e rg e n c y to d e a l w ith th a t th re a t. I h e re b y o rd e r b lo c k e d all p r o p e rty a n d in te re sts in p r o p e rty o f th e G o v e rn m e n t o f K u w a it o r any e n tity p u rp o rtin g to b e th e G o v e rn m e n t o f K u w a it, its a g e n c ie s, in s tru m e n ta litie s a n d c o n tro lle d e n titie s a n d th e C e n tra l B a n k o f K u w a it th a t a re in th e U n ite d S tates, th a t h e re a fte r c o m e w ith in th e U n ite d S tates o r th a t a re o r h e re a fte r c o m e w ith in th e p o sse ssio n o r c o n tro l o f U n ite d S tates p e r so n s, in c lu d in g th e ir o v e rse a s b ra n c h e s. F o r p u rp o s e s o f th is O rd er, th e te rm “ U n ite d S tates p e rs o n ” m e a n s an y U n ite d S tates c itiz e n , p e rm a n e n t re s id e n t a lie n , ju rid ic a l p e rso n o rg a n iz e d u n d e r th e law s o f th e U n ite d S tates o r an y p e r so n in th e U n ite d S tates. T h e S e c re ta ry o f th e T re a su ry is a u th o riz e d to e m p lo y all p o w e rs g ra n te d to m e b y th e In te r n a tio n a l E m e rg e n c y E c o n o m ic P o w ers A ct to c a r r y o u t th e p ro v isio n s o f th is O rd er. T h is O rd e r is e ffe c tiv e im m e d ia te ly a n d sh all b e tra n s m itte d to th e C o n g re ss a n d p u b lis h e d in th e Federal Register. G eorge B ush T h e W h ite H o u se A u g u s t 2 , 1990 GENERAL LICENSE Completion o f Certain Securities Transactions. (a) C o m m e rc ia l b a n k in g o r in v e stm e n t b a n k in g in stitu tio n s w ith in th e U n ite d S tates a re h e r e b y a u th o riz e d to c o m p le te , o n o r b e fo re A u g u st 16, 1 9 9 0 , irre s p e c tiv e o f th e ir sta te d c o m p le tio n d a te , tra n s a c tio n s e n te re d in to p rio r to 5 :0 0 a .m . E a s te rn D a y lig h t T im e , A u g u s t 2 , 1 9 9 0 , in v o lv in g s e c u ritie s p u rc h a s e d , so ld , le n t, o r b o rro w e d fo r th e a c c o u n t o f th e G o v e rn m e n t o f K u w a it, its a g e n c ie s, in s tru m e n ta litie s , a n d c o n tro lle d e n titie s , an d th e C e n tra l B an k o f K u w a it (th e “ G o v e r n m e n t o f K u w a it” ), p ro v id e d th e fo llo w in g te rm s a n d c o n d itio n s a re c o m p lie d w ith , re sp e c tiv e ly : (1) T h e p ro c e e d s o f su c h sale by, o r re tu rn o f fu n d s to , th e G o v e rn m e n t o f K u w a it a re c re d ite d to a b lo c k e d a c c o u n t in a c o m m e rc ia l b a n k in g o r in v e stm e n t b a n k in g in s titu tio n w ith in th e U n ite d S tates in th e n a m e o f th e p e rso n fo r w h o se a c c o u n t su c h sa le o r r e tu rn w as m a d e ; and (2 ) T h e se c u ritie s so p u rc h a s e d by, o r len t o r r e tu r n e d to , th e G o v e rn m e n t o f K u w a it a re h e ld in a b lo c k e d a c c o u n t in a c o m m e rc ia l b a n k in g o r in v e stm e n t b a n k in g in s titu tio n w ith in th e U n ite d S tates in th e n a m e o f th e p e rso n fo r w h o se a c c o u n t th e p u rc h a se , b o rro w in g , o r lo a n w a s m ade. (b) T h is se c tio n d o e s n o t a u th o riz e th e c re d itin g o f th e p ro c e e d s of, o r fu n d s re c e iv e d w ith re s p e c t to , G o v e rn m e n t o f K u w a it se c u ritie s h e ld in a b lo c k e d a c c o u n t o r a s u b -a c c o u n t, o r s e c u ritie s re tu rn e d w ith re s p e c t to fu n d s h e ld in a b lo c k e d a c c o u n t o r s u b -a c c o u n t, to a b lo c k e d a c c o u n t o r s u b -a c c o u n t u n d e r any n a m e o r d e sig n a tio n w h ic h d iffe rs fro m th e n a m e o r d e sig n a tio n o f th e s p e c ific b lo c k e d a c c o u n t o r s u b -a c c o u n t in w h ic h su c h fu n d s o r s e c u ritie s w ere h eld . Issu e d : A u g u s t 2 , 1990 R . R ic h a r d N ew comb D ire c to r O ffic e o f F o re ig n A sse ts C o n tro l DEPARTMENT OF THE TREASURY WASHINGTON Dear Mr. Patrikis, The Office of Foreign Assets Control has information which indicates that the United Bank of Kuwait, the National Bank of Kuwait and the Com mercial Bank of Kuwait are all partially owned by entities which are instrum entalities or controlled entities of the Governm ent of Kuwait. This ownership may be substantial and suf ficient to cause the respective banks to be controlled entities of the Governm ent of Kuwait. Until it can be determ ined that these banks are not entities controlled by the Governm ent of Kuwait, they will be deemed to be such entities by the Office of Foreign Assets Control. Sincerely, R . R ic h a r d N ew com b Director Office of Foreign Assets Control Mr. Ernest T. Patrikis General Counsel Federal Reserve Bank of New York New York, New York
@FedFRASER