SUBJECT: Waiver of Section 1083 of the National Defense Authorization
Act for Fiscal Year 2008
By the authority vested in me as President by the Constitution and the laws
of the United States, including section 301 of title 3, United States Code,
and section 1083(d) of the National Defense Authorization Act for Fiscal
Year 2008 (the "Act"), I hereby determine that:
All provisions of section 1083 of the Act, if applied to Iraq or
any agency or instrumentality thereof, may affect Iraq or its agencies or
instrumentalities, by exposing Iraq or its agencies or instrumentalities to
liability in United States courts and by entangling their assets in
The economic security and successful reconstruction of Iraq
continue to be top national security priorities of the United States.
Section 1083 of the Act threatens those key priorities. If permitted to
apply to Iraq, section 1083 would risk the entanglement of substantial
Iraqi assets in litigation in the United States -- including those of the
Development Fund for Iraq, the Central Bank of Iraq, and commercial
entities in the United States in which Iraq has an interest. Section 1083
also would expose Iraq to new liability of at least several billion dollars
by undoing judgments favorable to Iraq, by foreclosing available defenses
on which Iraq is relying in pending litigation, and by creating a new
Federal cause of action backed by the prospect of punitive damages to
support claims that may previously have been foreclosed. If permitted to
apply to Iraq, section 1083 would have a significant financial impact on
Iraq and would result in the redirection of financial resources from the
continued reconstruction of Iraq and the harming of Iraq's stability,
contrary to the interests of the United States.
A waiver of all provisions of section 1083 with respect to Iraq
and any agency or instrumentality of Iraq is therefore in the national
security interest of the United States and will promote the reconstruction
of, the consolidation of democracy in, and the relations of the United
States with, Iraq.
Iraq continues to be a reliable ally of the United States and a
partner in combating acts of international terrorism. The November 26,
2007, Declaration of Principles for a Long-Term Relationship of Cooperation
and Friendship between the Republic of Iraq and the United States of
America confirmed the commitment of the United States and Iraq to build an enduring relationship in the political, diplomatic, economic, and security
arenas and to work together to combat all terrorist groups, including
Accordingly, I hereby waive all provisions of section 1083 of the Act with
respect to Iraq and any agency or instrumentality thereof.
You are authorized and directed to notify the Congress of this
determination and waiver and the accompanying memorandum of justification, incorporated by reference herein, and to arrange for their publication in the Federal Register.