Embargo Regulations Under the Trading With the Enemy Act Letter to the Speaker of the House and the President of the Senate.
Dear Mr. Speaker: (Dear Mr. President:)
Today I issued a determination that the extension for one year of the authorities currently exercised under Section 5 (b) of the Trading with the Enemy Act, 50 U.S.C. App. 5(b), with respect to the countries indicated below, is in the national interest. This determination was issued pursuant to Section 101 (b) of Public Law 95-223, December 28, 1977, 91 Stat. 1625.
The Foreign Assets Control Regulations, 31 CFR Part 500, prohibit persons subject to the jurisdiction of the United States from engaging in unlicensed commercial or financial transactions with North Korea, Vietnam, Cambodia or nationals of these countries. The Regulations prohibit importation or dealing in merchandise of these countries or transactions in blocked assets of these countries or their nationals absent a license from the Office of Foreign Assets Control, Department of the Treasury. Current commercial or financial transactions with the People's Republic of China are authorized as long as strategic goods are not involved. However, Chinese assets remain subject to the statute and the Regulations.
The Transaction Control Regulations, 31 CFR Part 505, are Treasury regulations which prohibit U.S. persons from engaging in unlicensed sales of strategic goods located abroad to almost all Communist countries.
The Cuban Assets Control Regulations, 31 CFR Part 515, are parallel to the Foreign Assets Control Regulations in content. However, foreign subsidiaries of U.S. firms may engage in certain non-strategic types of trade with Cuba under Treasury license.
The Foreign Funds Control Regulations, 31 CFR Part 520, continue to block the property of Czechoslovakia and the German Democratic Republic pending a claims settlement program with those countries for the illegal expropriation of private American property following World War II. The Regulations also continue to block such assets of Estonia, Latvia, and Lithuania as a reflection of the U.S. policy of nonrecognition of the forcible incorporation of those countries into the U.S.S.R.
I have determined that these four regulatory programs should be extended because the results attendant upon the lapse of these authorities would be unacceptable in light of present U.S. foreign policy objectives. Their extension would be in the national interest of the United States for the following reasons:
(1) Current trade and financial embargoes against Cuba, North Korea, Vietnam, and Cambodia should be continued until appropriate political changes occur with respect to our relations with those countries.
(2) The Transaction Control Regulations are needed to support controls to which we have agreed with our allies with respect to the export of strategic goods to Communist countries.
(3) Freezing of Chinese, Vietnamese, and Cuban assets and controls over the remaining World War II assets of the German Democratic Republic and Czechoslovakia should continue until American claims against these countries are settled. Controls over the remaining World War II assets of the Baltic States should continue as a reflection of the U.S. policy of nonrecognition of the forcible incorporation of these countries into the U.S.S.R.
In light of these considerations, pursuant to Public Law 95-223, I have extended the exercise of these authorities for another year, until September 14, 1979.
Note: This is the text of identical letters addressed to Thomas P. O'Neill, Jr., Speaker of the House of Representatives, and Walter F. Mondale, President of the Senate.
Jimmy Carter, Embargo Regulations Under the Trading With the Enemy Act Letter to the Speaker of the House and the President of the Senate. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/247673