Regan v. Wald

468 U.S. 222, 104 S. Ct. 3026, 82 L. Ed. 2d 171, 1984 U.S. LEXIS 134
Supreme Court of the United States·Decided October 9, 1984·No. 83-436·Published·Cited by 249 cases

Opinions

Justice Rehnquist

delivered the opinion of the Court.

Respondents are American citizens who want to travel to Cuba. They are inhibited from doing so by a Treasury Department regulation, first promulgated in 1963, which prohibits any transaction involving property in which Cuba, or any national thereof, has “any interest of any nature whatsoever, direct or indirect.” 31 CPR § 515.201(b) (1983) (Regulation 201(b)). For a period of about five years, “transactions ordinarily incident to” travel to and from as well as within Cuba were, with some limitations, exempted from the broad prohibition of Regulation 201(b) by a general license. See 31 CFR §515.560 (1983). But this general license was amended in 1982, and the scope of permissible economic transactions in connection with travel to Cuba was significantly narrowed. 47 Fed. Reg. 17030 (1982).

Respondents challenged the amendment to the general license on constitutional and statutory grounds and sought a preliminary injunction against its enforcement. The District Court for the District of Massachusetts concluded that respondents had not demonstrated a substantial likelihood of [225]*225success on the merits and refused to issue the injunction. App. to Pet. for Cert. 22a. On appeal taken by respondents, the Court of Appeals for the First Circuit, concluding that the challenged amendment lacked statutory authority, vacated the District Court’s order and remanded with instructions to issue the preliminary injunction. 708 F. 2d 794 (1983). We granted the Government’s application for a stay of the mandate, 463 U. S. 1223 (1983), as well as the petition for certiorari, 464 U. S. 990 (1983), and now reverse the judgment of the Court of Appeals.

H

Regulation 201(b) was promulgated in 1963 as part of the Cuban Assets Control Regulations, 31 CFR pt. 515 (1963), implemented under the Trading With the Enemy Act of 1917 (TWEA), 40 Stat. 411, as amended, 50 U. S. C. App. §1 et seq. See 28 Fed. Reg. 6974 (1963).1 At that time, §5(b) of TWEA gave the President broad authority to impose comprehensive embargoes on foreign countries as one means of [226]*226dealing with both peacetime emergencies and times of war.2 The Cuban Assets Control Regulations constitute such an embargo.3 They were originally adopted to deal with the peacetime emergency created by Cuban attempts to destabilize governments throughout Latin America. See Presidential Proclamation No. 3447, 3 CFR 157 (1959-1963 Comp.).4 [227]*227“[E]xcept as specifically authorized by the Secretary of the Treasury,” Regulation 201(b) prohibits all “transactions in-volv[ing] property in which [Cuba], or any national thereof, has . . . any interest of any nature whatsoever, direct or indirect_” 31 CFR § 515.201(b) (1983).

In 1977, Regulation 560 was added to the Cuban Assets Control Regulations. See 31 CFR §515.560 (1977).5 Regulation 560 embodied a general license permitting “persons who visit Cuba to pay for their transportation and maintenance expenditures (meals, hotel bills, taxis, etc.) while in Cuba.” 42 Fed. Reg. 16621 (1977). Thus, travel-related economic transactions with Cuba were, for the most part, exempted from the complete embargo of Regulation 201(b).6 All persons engaging in travel-related transactions, however, were required to make “a full and accurate record of' each such transaction” and to keep those records available for inspection for at least two years. §515.601. And the general license contained in Regulation 560 was subject to revocation or modification “at any time.” § 515.805.

Later in 1977, § 5(b) of TWEA was amended to limit the President’s power to act pursuant to that statute solely to times of war.7 In the same bill, a new law was enacted to [228]*228cover the President’s exercise of emergency economic powers in response to peacetime crises. International Emergency Economic Powers Act (IEEPA), Title II, Pub. L. 95-223, 91 Stat. 1626 et seq., codified at 50 U. S. C. § 1701 et seq. The authorities granted to the President by § 203 of IEEPA are essentially the same as those in § 5(b) of TWEA,8 but the conditions and procedures for their exercise are different.

Section 202(a) of IEEPA provides that the authorities granted the President by §203 “may be exercised to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States, if the President declares a national emergency with respect to such threat.” 50 U. S. C. § 1701(a). The President is also required, “in every possible instance,” to consult with Congress prior to exercising his IEEPA authorities and, once such authorities have been exercised, to report to Congress every six months on the actions taken and any changes in the underlying circumstances. § 1703.9

However, rather than requiring the President to declare a new national emergency in order to continue existing economic embargoes, such as that against Cuba, Congress decided to grandfather existing exercises of the President’s “national emergency” authorities. Section 101(b) of Public Law 95-223 provides:

“Notwithstanding the amendment made by subsection (a), the authorities conferred upon the President by section 5(b) of the Trading With the Enemy Act, which [229]*229were being exercised with respect to a country on July 1, 1977, as a result of a national emergency declared by the President before such date, may continue to be exercised with respect to such country . . . 91 Stat. 1625, note following 50 U. S. C. App. § 5.

This grandfather provision also provided that “[t]he President may extend the exercise of such authorities for one-year periods upon a determination for each such extension that the exercise of such authorities with respect to such country for another year is in the national interest of the United States.” Ibid. Presidents Carter and Reagan, in each of the years since TWE A was amended, have determined that the continued exercise of § 5(b) authorities with respect to Cuba is in the national interest.10

In 1982, in order to “reduce Cuba’s hard currency earnings from travel by U. S. persons to and within Cuba,” Regulation 560 was amended to curtail the general license permitting travel-related economic transactions. 47 Fed. Reg. 17030 (1982).11 As amended, Regulation 560 only licenses travel-related economic transactions in connection with certain types of travel, such as official visits, news gathering, professional research, and visits to close relatives.

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Regan v. Wald, 468 U.S. 222, 104 S. Ct. 3026, 82 L. Ed. 2d 171, 1984 U.S. LEXIS 134 (1984).

468 U.S. 222 (Regan v. Wald) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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