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take certain trade, financial and other measures against Iran and its nationals.

1. On November 14, 1979, I took the step of blocking certain property or interests in property of the Government of Iran, its instrumentalities and controlled entities and the Central Bank of Iran. At that time the United States Embassy in Tehran was occupied and American personnel were being held hostage there in flagrant violation of international law. In addition, Iran had threatened suddenly to withdraw its assets from United States banks, to refuse to accept payment in dollars for oil, and to repudiate obligations owed to the United States and to United States nationals. Iran's actions attacked the foundations of the international legal order as well as the stability of the world economy and the international monetary system.

2. The extraordinary threat to the national security, foreign policy, and economy of the United States, which I determined existed on November 14, continues today. The United States has used every diplomatic and legal means available to it to end this extraordinary threat, but without avail. Iran has ignored or rebuffed a decision by the International Court of Justice, resolutions by the Security Council of the United Nations and efforts by the Secretary General of the United Nations and others to resolve the underlying problems.

5. The above measures are being taken in furtherance of the objectives of Resolution 461 adopted by the Security Council of the United Nations on December 31, 1979, and would have been specifically mandated by the Security Council on January 13, 1980, but for a veto by the Soviet Union.

6. This action is taken with respect to Iran and its nationals for the reasons described in this report.

Weekly Comp. of Pres. Docs., Vol. 16, No. 15, Apr. 14, 1980, pp. 614-615. The President transmitted a copy of Exec. Order 12205 to the Congress, in accordance with the provisions of sec. 401(b) of the National Emergencies Act, P.L. 94-412, Sept. 14, 1976, 90 Stat. 1255, 1257, 50 U.S.C. 1641(b).

For amendments to the Iranian Assets Control Regulations (31 CFR, Part 535), implementing Exec. Order 12205, which the Department of the Treasury (Office of Foreign Assets Control) issued on Apr. 7, 1980, see Fed. Reg., Vol. 45, No. 70, Apr. 9, 1980, pp. 24432-24434.

President Carter issued Exec. Order 12205 in conjunction with the breakoff of diplomatic relations between the United States and Iran, in regard to which, see, further, this Digest, Ch. 4, §1, ante. When announcing the measures that he had ordered to be taken, the President stated, also, that the Secretary of the Treasury was to make an inventory of the frozen (blocked) Iranian Government assets and of the outstanding claims of American citizens and corporations against Iran, with a view to preparing a claims program against Iran for the American Embassy "hostages", their families, and other U.S. claimants.

For amendments to the Iranian Assets Control Regulations, ante, issued by the Department of the Treasury (Office of Foreign Assets Control) to accomplish a census of blocked Iranian assets held by any person subject to the jurisdiction of the United States between Nov. 14, 1979, and Mar. 31, 1980, as well as of claims by U.S. nationals against Iran and Iranian entities, see ibid., pp. 24407-24430.

Subsequently, the President declared a (further) national emergency on April 17, and announced at a news conference the same day that he was ordering an additional set of actions (the latest of a "series of nonviolent but punitive steps designed to bring about the release of our hostages"). The text of Executive Order 12211, "Further Prohibitions on Transactions with Iran," signed by the President on April 17, read:

By the authority vested in me as President by the Constitution and statutes of the United States, including Section 203 of the International Emergency Economic Powers Act (50 U.S.C. 1702), Section 301 of Title 3 of the United States Code, Sections 1732 and 2656 of Title 22 of the United States Code, and Section 301 of the National Emergencies Act (50 U.S.C. 1631), in order to take steps additional to those set forth in Executive Order No. 12170 of November 14, 1979, and Executive Order No. 12205 of April 7, 1980, to deal with the threat to the national security, foreign policy and economy of the United States referred to in those Orders, and the added unusual and extraordinary threat to the national security, foreign policy and economy of the United States created by subsequent events in Iran and neighboring countries, including the Soviet invasion of Afghanistan, with respect to which I hereby declare a national emergency, and to carry out the policy of the United States to deny the use of its resources to aid, encourage or give sanctuary to those persons involved in directing, supporting or participating in acts of international terrorism, it is hereby ordered as follows:

1-101. Paragraph 1-101(d) of Executive Order No. 12205 is hereby amended by the addition of a new subparagraph (v) as follows:

(v) Make any payment, transfer of credit, or other transfer of funds or other property or interests therein, except for purposes of family remittances.

1-102. The following transactions are prohibited, notwithstanding any contracts entered into or licenses granted before the date of this Order:

(a) Effective immediately, the direct or indirect import from Iran into the United States of Iranian goods or services, other than materials imported for news publication or news broadcast dissemination.

(b) Effective immediately, any transactions with a foreign person or foreign entity by any citizen or permanent resident of the United States relating to that person's travel to Iran after the date of this Order.

(c) Effective seven days from the date of this Order, the payment by or on behalf of any citizen or permanent resident of the United States who is within Iran of any expenses for transactions within Iran.

The prohibitions in paragraphs (b) and (c) of this section shall not apply to a person who is also a citizen of Iran and those prohibitions and the prohibitions in section 1-101 shall not apply to a journalist or other person who is regularly employed by a news

gathering or transmitting organization and who travels to Iran or is within Iran for the purpose of gathering or transmitting news, making news or documentary films, or similar activities.

1-103. The Secretary of the Treasury is hereby directed, effective fourteen days from the date of this Order, to revoke existing licenses for transactions by persons subject to the jurisdiction of the United States with Iran Air, the National Iranian Oil Company, and the National Iranian Gas Company previously issued pursuant to regulations under Executive Order No. 12170 or Executive Order No. 12205.

1-104. The Secretary of the Treasury is delegated, and authorized to exercise, all functions vested in the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to carry out the purposes of this Order. The Secretary may redelegate any of these functions to other officers and agencies of the Federal government.

1-105. The Secretary of the Treasury shall ensure that actions taken by him pursuant to the above provisions of this Order, Executive Order No. 12170 and Executive Order No. 12205 are accounted for as required by Section 401 of the National Emergencies Act (50 U.S.C. 1641).

3 CFR, 1980 Comp. (1981), pp. 253-255.

For the President's message to the Congress, transmitting a copy of Exec. Order 12211, pursuant to 50 U.S.C. 1641 (b), see Weekly Comp. of Pres. Docs., Vol. 16, No. 16, Apr. 21, 1980, pp. 716-717.

In implementation of Executive Order No. 12211, the Department of the Treasury (Office of Foreign Assets Control) issued further amendments to the Iranian Assets Control Regulations (31 CFR, Part 535) on April 17, effective the same day. Their effect was to prohibit: (1) imports of goods from Iran or of merchandise of Iranian origin; (2) payments or transfers of funds or other property to any person in Iran (except for certain family remittances, 31 CFR 535.563); and (3) payments and transactions in support of travel to and maintenance within Iran of U.S. citizens and U.S. permanent resident aliens (except for journalists and news correspondents, 31 CFR 535.562).

Fed. Reg., Vol. 45, No. 78, Apr. 21, 1980, pp. 26940-26941.
See, also, this Chapter, §5, ante.

Chapter 11

ENVIRONMENTAL AND HEALTH AFFAIRS

Environmental Affairs

Transfrontier Air Pollution

U.S.-Canadian Memorandum of Intent

On August 5, 1980, the United States and Canada signed a Memorandum of Intent Concerning Transboundary Air Pollution, in which each Government confirmed its intent: (1) to develop a bilateral agreement reflecting and furthering development of effective domestic control programs and other measures to combat transboundary air pollution; (2) to facilitate conclusion of such an agreement as soon as possible; and (3) pending its conclusion, to take interim actions available under current authority to combat transboundary air pollution.

The interim actions included: (1) establishment of a United States/ Canada Coordinating Committee for preparatory discussions, utilizing five working groups whose responsibilities were detailed in an Annex to the Memorandum of Intent, with formal negotiation of a cooperative agreement on transboundary air pollution to begin no later than June 1, 1981; (2) development of domestic air pollution control policies and strategies, including legislation or other support to give them effect, and promotion of vigorous enforcement of laws and regulations as they require emission limitation from new, substantially modified, and existing facilities, with sharing of information and consultation on actions in regard to such control policies and strategies and law enforcement; (3) continuation and expansion of the practice of advance notification and consultation on proposed actions that involve a significant or potential risk of causing or increasing transboundary air pollution.

In a fourth interim undertaking the United States and Canada agreed to: (a) exchange information from programs being undertaken in each country on the atmospheric aspects of the transport of air pollutants and on their effects on aquatic and terrestrial ecosystems and on human health and property; (b) maintain and further develop a coordinated program to monitor and evaluate the impacts of transboundary air pollution, including maintenance of a United

States/Canada sampling network and exchange of data on current and projected emissions of major air pollutants; and (c) continue to exchange information on research to develop improved technologies for reducing emissions of major air pollutants of concern.

TIAS 9856; 32 UST 2521; entered into force, Aug. 5, 1980.

See, also, Dept. of State Press Release No. 209, Aug. 5, 1980; Dept. of State Bulletin, Vol. 80, No. 2043, Oct. 1980, p. 21.

See, further, the 1979 Digest, pp. 1612-1616.

In a press release dated Dec. 24, 1980, the Department of State announced that U.S. Federal agencies were examining the terms of recent Canadian legislation dealing with air pollution that might affect the United States, saying:

By unanimous action on December 16 the Canadian House of Commons adopted a measure which would enable the Canadian Federal Government to take action in instances where there is reason to believe that Canadian emission sources contribute to air pollution in another country. The Canadian law is similar in purpose to Section 115 of the U.S. Clean Air Act. That section provides for action by the U.S. Federal Government to initiate revision of State implementation plans on air quality in those cases where there is reason to believe that pollution from U.S. sources endangers public health or welfare in a foreign country, so long as that country provides "essentially the same rights" to the United States.

In the coming period the U.S. Government will consider whether the Canadian legislation provides the reciprocity required under Section 115. Canada's action, taken in the context of the Memorandum of Intent on transboundary air pollution signed by Secretary Muskie and the Canadian Environment Minister [John Roberts, as well as by Douglas M. Costle, Administrator of the Environmental Protection Agency, and by Peter M. Towe, the Canadian Ambassador to the United States,] on August 5, 1980, is a positive step toward closer cooperation in dealing with transboundary air pollution issues.

Dept. of State Press Release No. 355, Dec. 24, 1980; Dept. of State Bulletin, Vol. 81, No. 2047, Feb. 1981, p. 33.

On Aug. 23, 1983, the United States and Canada signed at Ottawa a Memorandum of Understanding for Cooperation in [a] Tracer Experiment Concerning Air Pollution; TIAS 10771; entered into force, Aug. 23, 1983.

On the occasion of President Reagan's meeting with Canadian Prime Minister Brian Mulroney at Quebec City, Mar. 17-18, 1985, the President and the Prime Minister on Mar. 17 announced their appointments of Special Envoys to study the subject of acid rain (Drew Lewis, former Secretary of Transportation, and William G. Davis, former Prime Minister of Ontario, respectively).

On Jan. 8, 1986, Special Envoy Lewis submitted the Joint Report of the Special Envoys on Acid Rain to President Reagan, who on Mar. 19, 1986, on the occasion of Prime Minister Mulroney's visit to Washington, Mar. 18-19, announced that he fully endorsed the report. Weekly Comp. of Pres. Docs., Vol. 22, No. 12, Mar. 24, 1986, p. 388; Dept. of State Bulletin, Vol. 86, May 1986, No. 2110, p. 57. A White House press statement is at ibid., p. 58, and at Weekly Comp. of Pres. Docs., ante, p. 389. United States-Mexico

On March 11 and 12, 1980, representatives of the United States Environmental Protection Agency (EPA) and the Undersecretariat for Environmental Improvement (SMA) of the Mexican Secretariat of Public Health and Assistance (SSA) met at El Paso, Texas, for a third in a series of technical meetings to discuss border environmental problems. The two Commissioners of the International Boundary Waters Commission (United States and Mexico) also took part in the

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