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Bush orders seizure of funds frozen since Iraq's 1990 Kuwait invasion
President Bush March 20 issued an executive order to confiscate non-diplomatic Iraqi government assets in the United States that have been frozen since Iraq's 1990 invasion of Kuwait, and to use the assets for humanitarian assistance in postwar Iraq.
The U.S. Treasury Department will hold the funds for eventual use "for the benefit and welfare of the Iraqi people," according to a statement by Treasury Secretary John Snow.
The action is in accordance with the International Emergency Economic Powers Act and the National Emergencies Act, Bush said in a message to Congress.
The United States is also calling on other countries to identify and freeze all assets of Saddam Hussein, his regime and their "cronies," Snow said.
"The success of economic sanctions requires international cooperation and effective enforcement," Snow said. The United States reserves the right to take countermeasures and sanctions against any institution that does not comply, he said.
"I have exercised these authorities ... with respect to the unusual and extraordinary threat to our national security and foreign policy posed by the policies and actions of the government of Iraq, Bush said.
Following are the texts of Snow's statement, Bush's executive order, and his message to Congress
(begin Snow text)
Prepared Statement of Treasury Secretary John Snow Returning Iraqi Funds to the Iraqi People
Today we launched a financial offensive against the regime of Saddam Hussein. First, the President today issued an Executive Order confiscating non-diplomatic Iraqi government assets in the United States. The Order authorizes Treasury to marshal the assets, and to use the funds for the benefit and welfare of the Iraqi people.
Second, the United States calls today upon the world to identify and freeze all assets of Saddam Hussein, the Iraqi regime, and their agents pursuant to established international obligations.
Third, we are directing a worldwide hunt for the blood money that Hussein and his cronies have stolen from the Iraqi people.
In 1990, the world community imposed economic sanctions on the Hussein regime to prevent the dictator from obtaining the means to threaten his neighbors and to develop weapons of mass destruction. The United States, the United Kingdom, and others took prompt action, freezing well in excess of two billion dollars and barring trade and commerce with the Hussein regime.
Now we call upon all nations to join us and to step forward to fulfill their obligations for the benefit of the Iraqi people.
The success of economic sanctions requires international cooperation and effective enforcement. The United States is committed to helping enforce these international obligations. For that reason, we reserve the right to take countermeasures and sanctions against any institution that does not comply with these international obligations including cutting off access to the U.S. financial system under provisions granted by the USA PATRIOT Act.
The world must find, freeze, and return Iraqi money for the Iraqi people and their future.
This effort will ensure that the assets and funds belonging to the Iraqi people are dedicated to the wellbeing and benefit of their nation.
(end Snow text)
(begin executive order text)
THE WHITE HOUSE
EXECUTIVE ORDER
CONFISCATING AND VESTING CERTAIN IRAQI PROPERTY
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code, and in order to take additional steps with respect to the national emergency declared in Executive Order 12722 of August 2, 1990,
I, GEORGE W. BUSH, President of the United States of America, hereby determine that the United States and Iraq are engaged in armed hostilities, that it is in the interest of the United States to confiscate certain property of the Government of Iraq and its agencies, instrumentalities, or controlled entities, and that all right, title, and interest in any property so confiscated should vest in the Department of the Treasury. I intend that such vested property should be used to assist the Iraqi people and to assist in the reconstruction of Iraq, and determine that such use would be in the interest of and for the benefit of the United States.
I hereby order:
Section 1. All blocked funds held in the United States in accounts in the name of the Government of Iraq, the Central Bank of Iraq, Rafidain Bank, Rasheed Bank, or the State Organization for Marketing Oil are hereby confiscated and vested in the Department of the Treasury, except for the following:
(a) any such funds that are subject to the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations, or that enjoy equivalent privileges and immunities under the laws of the United States, and are or have been used for diplomatic or consular purposes, and
(b) any such amounts that as of the date of this order are subject to post-judgment writs of execution or attachment in aid of execution of judgments pursuant to section 201 of the Terrorism Risk Insurance Act of 2002 (Public Law 107-297), provided that, upon satisfaction of the judgments on which such writs are based, any remainder of such excepted amounts shall, by virtue of this order and without further action, be confiscated and vested.
Sec. 2. The Secretary of the Treasury is authorized to perform, without further approval, ratification, or other action of the President, all functions of the President set forth in section 203(a)(1)(C) of IEEPA with respect to any and all property of the Government of Iraq, including its agencies, instrumentalities, or controlled entities, and to take additional steps, including the promulgation of rules and regulations as may be necessary, to carry out the purposes of this order. The Secretary of the Treasury may redelegate such functions in accordance with applicable law. The Secretary of the Treasury shall consult the Attorney General as appropriate in the implementation of this order.
Sec. 3. This order shall be transmitted to the Congress and published in the Federal Register.
GEORGE W. BUSH
THE WHITE HOUSE
March 20, 2003.
(end executive order text)
(begin message to Congress text)
Message to the Congress on Confiscating and Vesting Certain Iraqi Property
To the Congress of the United States
Pursuant to section 204(b) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(b) (IEEPA), and section 301 of the National Emergencies Act, 50 U.S.C. 1631, I hereby report that I have taken additional steps with respect to the national emergency declared in Executive Order 12722 of August 2, 1990 by exercising my statutory authority to confiscate and vest certain property of the Government of Iraq and its agencies, instrumentalities, or controlled entities.
Consistent with section 203 of IEEPA, 50 U.S.C. 1702(a)(1)(C), as added by section 106 of the USA Patriot Act, Pub. L. No. 107-56, I have ordered that certain blocked funds held in the United States in accounts in the name of the Government of Iraq, the Central Bank of Iraq, Rafidain Bank, Rasheed Bank, or the State Organization for Marketing Oil are hereby confiscated and vested in the United States Department of the Treasury. I have made exceptions for any such funds that are subject to the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations, or that enjoy equivalent privileges and immunities under the laws of the United States, and are or have been used for diplomatic or consular purposes. Any such amounts that, as of the date of the order, that are subject to post-judgment writs of execution or attachment in aid of execution of judgments pursuant to section 201 of the Terrorism Risk Insurance Act of 2002 (Pub. L. No. 107-297) are also not being vested, provided that, upon satisfaction of the judgments on which such writs are based, any remainder of such excepted amounts shall, without further action, be confiscated and vested.
I have also delegated to the Secretary of the Treasury authority to undertake all other action of the President and all functions of the President set forth in section 203(a)(1)(C) of IEEPA to carry out the purposes of my Order, including the promulgation of rules and regulations as may be necessary.
I am enclosing a copy of the Executive order I have issued. The order was effective at 12:01 a.m. Eastern Standard Time on __________, 2003.
I have exercised these authorities in furtherance of Executive Order 12722 and 12724 with respect to the unusual and extraordinary threat to our national security and foreign policy posed by the policies and actions of the Government of Iraq. I have determined that the vesting of this property and that the use of such vested property for the benefit of the Iraqi people would be in the interest of, and for the benefit of, the United States.
The power to vest assets of a foreign government with which the United States is engaged in armed hostilities is one that has been recognized for many decades. This power is being used here because it is clearly in the interests of the United States to have these funds available for use in rebuilding Iraq and launching that country on the path to speedy economic recovery. In addition, this authority is being invoked in a limited way, designed to minimize harm to third parties and to respect existing court orders as much as possible.
The White House
(end message to Congress text)
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