Index

June 22, 2000

TO THE CONGRESS OF THE UNITED STATES:

                              THE WHITE HOUSE

                       Office of the Press Secretary
____________________________________________________________

For Immediate Release                           June 22, 2000


TO THE CONGRESS OF THE UNITED STATES:


     Pursuant to section 204(b) of the International Emergency Economic
Powers Act (IEEPA), 50 U.S.C. 1703(b) and section 301 of the National
Emergencies Act, 50 U.S.C. 1631, I hereby report that I have exercised my
authority to declare a national emergency to deal with the threat posed to
the United States by the risk of nuclear proliferation created by the
accumulation in the Russian Federation of a large volume of weapons-usable
fissile material.  The United States and the Russian Federation have
entered into a series of agreements that provide for the conversion of
highly enriched uranium (HEU) extracted from Russian nuclear weapons into
low enriched uranium (LEU) for use in commercial nuclear reactors.  The
Russian Federation recently suspended its performance under these
agreements because of concerns that payments due to it under these
agreements may be subject to attachment, garnishment, or other judicial
process, in the United States.  Accordingly, I have issued an Executive
Order to address the unusual and extraordinary risk of nuclear
proliferation created by this situation.

     A major national security goal of the United States is to ensure that
fissile material removed from Russian nuclear weapons pursuant to various
arms control and disarmament agreements is dedicated to peaceful uses,
subject to transparency measures, and protected from diversion to
activities of proliferation concern.  The United States and the Russian
Federation entered into an international agreement in February 1993 to deal
with these issues as they relate to the disposition of HEU extracted from
Russian nuclear weapons (the "HEU Agreement").  Under the HEU Agreement,
500 metric tons of HEU will be converted to LEU over a 20-year period.
This is the equivalent of 20,000 nuclear warheads.

     Additional agreements were put in place to effectuate the HEU
Agreement, including agreements and contracts on transparency, on the
appointment of executive agents to assist in implementing the agreements,
and on the disposition of LEU delivered to the United States (collectively,
the "HEU Agree-ments").  Under the HEU Agreements, the Russian Federation
extracts HEU metal from nuclear weapons.  That HEU is oxidized and blended
down to LEU in the Russian Federation.  The resulting LEU is shipped to the
United States for fabrication into fuel for commercial reactors.  The
United States monitors this conversion process through the Department of
Energy?s Warhead and Fissile Material Transparency Program.

     The HEU Agreements provide for the Russian Federation to receive money
and uranium hexafluoride in payment for each shipment of LEU converted from
the Russian nuclear weapons.  The money and uranium hexafluoride are
transferred to the Russian Federation executive agent in the United States.

     The Russian Federation recently suspended its performance under the
HEU Agreements because of concerns over possible attachment, garnishment,
or other judicial process with respect to the payments due to it as a
result of litigation currently pending against the Russian Federation.  In
response to this concern, the Minister of Atomic Energy of the Russian
Federation, Minister Adamov, notified Secretary Richardson on May 5, 2000,
of the decision of the Russian Federation to halt shipment of LEU pending
resolution of this problem.  This suspension presents an unusual and
extraordinary threat to U.S. national security goals due to the risk of
nuclear proliferation caused by the accumulation of weapons-usable fissile
material in the Russian Federation.

     The executive branch and the Congress have previously recognized and
continue to recognize the threat posed to the United States national
security from the risk of nuclear proliferation created by the accumulation
of weapons-usable fissile material in the Russian Federation.  This threat
is the basis for significant programs aimed at Cooperative Threat Reduction
and at controlling excess fissile material.  The HEU Agreements are
essential tools to accomplish these overall national security goals.
Congress demonstrated support for these agreements when it authorized the
purchase of Russian uranium in 1998, Public Law 105-277, and also enacted
legislation to enable Russian uranium to be sold in this country pursuant
to the USEC Privatization Act, 42 U.S.C. 2297h-10.

     Payments made to the Russian Federation pursuant to the HEU Agreements
are integral to the operation of this key national security program.
Uncertainty surrounding
litigation involving these payments could lead to a long-term suspension of
the HEU Agreements, which creates the risk of nuclear proliferation.  This
is an unacceptable threat to the national security and foreign policy of
the United States.

     Accordingly, I have concluded that all property and interests in
property of the government of the Russian Federation directly related to
the implementation of the HEU Agreements should be protected from the
threat of attachment, garnishment, or other judicial process.  I have,
therefore, exercised my authority and issued an Executive Order that
provides:

?    except to the extent provided in regulations, orders, directives, or
licenses that may be issued pursuant to the order, all property and
interests in property of the Government of the Russian Federation directly
related to the implementation of the HEU Agreements that are in the United
States, that hereafter come within the United States, or hereafter come
within the possession or control of United States persons, including their
overseas branches, are blocked and may not be transferred, paid, exported,
withdrawn, or otherwise dealt in;

?    unless licensed or authorized pursuant to the order, any attachment,
judgment, decree, lien, execution, garnishment, or other judicial process
is null and void with respect to any property or interest in property
blocked pursuant to the order; and

?    that all heads of departments and agencies of the United States
Government shall continue to take all appropriate measures within their
authority to further the full implementation of the HEU Agreements.

     The effect of this Executive Order is limited to property that is
directly related to the implementation of the HEU Agreements.  Such
property will be clearly defined by the regulations, orders, directives, or
licenses that will be issued pursuant to this Executive Order.

     I am enclosing a copy of the Executive Order I have issued.  The order
is effective at 12:01 a.m. eastern daylight time on June 22, 2000.
                                   WILLIAM J. CLINTON
THE WHITE HOUSE,
    June 21, 2000.
                                   # # #




[Footer icon]

[White House icon] [Briefing Room icon] [Help Desk icon]


To comment on this service, send feedback to the Web Development Team