To the Congress of the United States:

Pursuant to section 204(b) of the International Emergency Economic Powers Act, 50 U.S.C. 1703, I hereby report to the Congress that I have today declared a further national emergency and exercised the authority granted by this Act to impose further prohibitions on transactions with Iran.

I am enclosing a copy of an Executive Order I have issued today making this declaration and exercising these authorities pursuant to 50 U.S.C. 1641 (b).

1. The circumstances necessitating the exercise of this authority are the continuing events in Iran, including the actions and omissions of the Government of Iran in violation of its obligations under international law, which caused me to declare a national emergency on November 14, 1979, and to take the action set forth in Executive Order No. 12170 of November 14, 1979, and Executive Order No. 12205 of April 7, 1980, and the additional unusual and extraordinary threat to the national security, foreign policy and economy of the United States created by events subsequent to November 14, 1979, in Iran and neighboring countries, including the Soviet invasion of Afghanistan.

2. The events in Iran and neighboring countries threaten the strategic and vital interests of the United States. The occupation of the United States Embassy in Tehran and the taking and holding of American citizens hostage there and the Soviet occupation of Afghanistan are flagrant violations of the international order upon which the security of all nations and international peace are based. Such actions in a region of such vital importance to the United States, and most of the world, constitute a grave threat to the national security, foreign policy and economy of the United States.

3. For these reasons, I find it necessary to prohibit the following:

(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 transaction 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 today. (I am simultaneously authorizing the Secretary of State to institute passport and departure controls to restrict travel to Iran by citizens and permanent residents of the United States.)

(c) Effective seven days from today, 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) will not apply to a person who is also a citizen of Iran or 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.

4. Effective immediately, I have also amended Executive Order No. 12205 to prohibit payments, transfers of credit or other transfers of funds or other property or interests therein to any person in Iran, except for purposes of family remittances. This prohibition also does not apply to news gathering activities.

5. I have also directed the Secretary of the Treasury, effective fourteen days from today, 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. This will have the effect of closing down the offices in the United States of those entities.

6. In addition, I have ordered that all undelivered military equipment and spare parts purchased by Iran through the Department of Defense under the Arms Export Control Act now be distributed to our own Armed Forces or transferred to other buyers. The delivery of these defense articles was suspended in November 1979, and they are presently in storage or in the procurement pipeline.

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