II

103D CONGRESS

1ST SESSION S. 1172

To amend the National Defense Authorization Act for Fiscal Year 1993,

to impose sanctions on certain transfers of equipment and technology

used in the manufacture or delivery of weapons of mass destruction

and to impose additional sanctions for violations of that Act.

IN THE SENATE OF THE UNITED STATES

JUNE 29 (legislative day, JUNE 22), 1993

Mr. MCCAIN (for himself and Mr. LIEBERMAN) introduced the following bill;

which was read twice and referred to the Committee on Foreign Relations

A BILL

To amend the National Defense Authorization Act for Fiscal

Year 1993, to impose sanctions on certain transfers of

equipment and technology used in the manufacture or

delivery of weapons of mass destruction and to impose

additional sanctions for violations of that Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; REFERENCES IN ACT.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Iran-Iraq Arms Non-Proliferation Amendments of

6 1993’’.
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1 (b) REFERENCES IN ACT.—Except as specifically

2 provided in this Act, whenever in this Act an amendment

3 or repeal is expressed as an amendment to or repeal of

4 a provision, the reference shall be deemed to be made to

5 the National Defense Authorization Act for Fiscal Year

6 1993.

7 SEC. 2. STATEMENT OF POLICY.

8 It is the policy of the United States—

9 (1) to halt the proliferation of weapons of mass

10 destruction within Iran and Iraq; and

11 (2) to halt the transfer from any foreign coun12 try or foreign person to Iran or Iraq of all weapons

13 of mass destruction and significant components or

14 technology or that can be used to manufacture or

15 deliver weapons of mass destruction.

16 SEC. 3. STATEMENT OF PURPOSE.

17 It is the purpose of this Act to impose additional

18 sanctions against those foreign countries and persons that

19 transfer weapons of mass destruction, destabilizing num20 bers and types of advanced conventional weapons, or

21 equipment and technology that assist in enhancing the ca22 pabilities of Iran or Iraq to manufacture and deliver such

23 weapons.

24 SEC. 4. SANCTIONS AGAINST PERSONS.

25 Section 1604 is amended to read as follows:
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1 ‘‘SEC. 1604. SANCTIONS AGAINST PERSONS.

2 ‘‘(a) PROHIBITION.—If the President determines that

3 any person has transferred or retransferred goods or tech4 nology so as to contribute knowingly and materially to the

5 efforts by Iran or Iraq (or any agency or instrumentality

6 of either such country) to acquire destabilizing numbers

7 and types of advanced conventional weapons or to acquire

8 weapons of mass destruction or the means of their deliv9 ery, then—

10 ‘‘(1) the sanctions described in subsection (b)

11 shall be imposed; and

12 ‘‘(2) the President may apply, in the discretion

13 of the President, the sanctions described in sub14 section (c).

15 ‘‘(b) MANDATORY SANCTIONS.—The sanctions to be

16 imposed pursuant to subsection (a)(1) are as follows:

17 ‘‘(1) PROCUREMENT SANCTION.—Except as

18 provided in subsection (d), the United States Gov19 ernment shall not procure directly or indirectly, or

20 enter into any contract for the procurement of, any

21 goods or services from the sanctioned person.

22 ‘‘(2) EXPORT SANCTION.—The United States

23 Government shall not issue any license for any ex24 port by or to the sanctioned person and shall revoke

25 any such license issued before the effective date of

26 the sanction.
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1 ‘‘(3) IMPORT SANCTION.—Notwithstanding any

2 other provision of law, no item which is the product

3 or manufacture of the sanctioned person, and no

4 technology developed by the sanctioned person, may

5 be imported into any territory subject to the juris6 diction of the United States.

7 ‘‘(4) TRANSITING UNITED STATES TERRI8 TORY.—(A) Notwithstanding any other provision of

9 law (other than a treaty or other international

10 agreement), no sanctioned person, no item which is

11 the product or manufacture of the sanctioned per12 son, and no technology developed by the sanctioned

13 person, may transit any territory subject to the ju14 risdiction of the United States.

15 ‘‘(B) The Secretary of Transportation may pro16 vide for such exceptions from this paragraph as the

17 Secretary considers necessary to provide for emer18 gencies in which the safety of a vessel or its crew or

19 passengers is threatened.

20 ‘‘(c) DISCRETIONARY SANCTIONS.—The sanctions re21 ferred to in subsection (a)(2) are as follows:

22 ‘‘(1) FINANCIAL INSTITUTIONS.—(A) The

23 President may by order prohibit any depository in24 stitution that is chartered by, or that has its prin25 cipal place of business within, a State or the United
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1 States from making any loan or providing any credit

2 to the sanctioned person, except for loans or credits

3 for the purpose of purchasing food or other agricul4 tural commodities.

5 ‘‘(B) As used in this paragraph, the term ‘de6 pository institution’ means a bank or savings asso7 ciation, as defined in section 3 of the Federal De8 posit Insurance Act.

9 ‘‘(2) USE OF AUTHORITIES OF THE INTER10 NATIONAL EMERGENCY ECONOMIC POWERS ACT.—

11 The President may exercise the authorities of the

12 International Emergency Economics Powers Act to

13 prohibit any transaction involving any property in

14 which the sanctioned person has any interest what15 soever except for transactions involving the provision

16 of humanitarian assistance.

17 ‘‘(3) PROHIBITION ON VESSELS THAT ENTER

18 PORTS OF SANCTIONED COUNTRIES TO ENGAGE IN

19 TRADE.—

20 ‘‘(A) IN GENERAL.—Beginning on the

21 10th day after a sanction is imposed under this

22 Act against a country, a vessel which enters a

23 port or place in the sanctioned country to en24 gage in the trade of goods or services may not,

25 if the President so requires, within 180 days
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1 after departure from such port or place in the

2 sanctioned country, load or unload any freight

3 at any place in the United States.

4 ‘‘(B) DEFINITIONS.—As used in this para5 graph, the term ‘vessel’ includes every descrip6 tion of water craft or other contrivance used, or

7 capable of being used, as a means of transpor8 tation in water, but does not include aircraft.

9 ‘‘(d) EXCEPTIONS.—The sanction described in sub10 section (b)(1) shall not apply—

11 ‘‘(1) in the case of procurement of defense arti12 cles or defense services—

13 ‘‘(A) under existing contracts or sub14 contracts, including the exercise of options for

15 production quantities to satisfy operational mili16 tary requirements essential to the national secu17 rity of the United States;

18 ‘‘(B) if the President determines that the

19 person or other entity to which the sanctions

20 would otherwise be applied is a sole source sup21 plier of the defense articles or services, that the

22 defense articles or services are essential, and

23 that alternative sources are not readily or rea24 sonably available; or
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1 ‘‘(C) if the President determines that such

2 articles or services are essential to the national

3 security under defense coproduction agree4 ments;

5 ‘‘(2) to products or services provided under con6 tracts entered into before the date on which the

7 President makes a determination under subsection

8 (a);

9 ‘‘(3) in the case of contracts entered into before

10 the date on which the President makes a determina11 tion under subsection (a), with respect to—

12 ‘‘(A) spare parts which are essential to

13 United States products or production;

14 ‘‘(B) component parts, but not finished

15 products, essential to United States products or

16 production; or

17 ‘‘(C) routine servicing and maintenance of

18 products, to the extent that alternative sources

19 are not readily or reasonably available;

20 ‘‘(4) to information and technology essential to

21 United States products or production; or

22 ‘‘(5) to medical or other humanitarian items.

23 ‘‘(e) CONSULTATION WITH AND ACTIONS BY FOR24 EIGN GOVERNMENT OF JURISDICTION.—
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1 ‘‘(1) CONSULTATIONS.—Whenever the Presi2 dent makes a determination under subsection (a)

3 with respect to a foreign person, the Congress urges

4 the President—

5 ‘‘(A) to initiate consultations immediately

6 with the government with primary jurisdiction

7 over that foreign person with respect to the im8 position of sanctions pursuant to this section;

9 and

10 ‘‘(B) to take steps in the United Nations

11 and other multilateral groups to negotiate com12 prehensive multilateral sanctions pursuant to

13 the provisions of chapter 7 of the United Na14 tions Charter, including a partial or complete

15 embargo, against the government of the foreign

16 country of primary jurisdiction over that sanc17 tioned person, as long as that government has

18 not taken specific and effective actions, includ19 ing appropriate penalties, to terminate the in20 volvement of the sanctioned person or firm in

21 the activities described in section 1604(a).

22 ‘‘(2) ACTIONS BY GOVERNMENT OF JURISDIC23 TION.—In order to pursue such consultations with

24 that government, the President may delay imposition

25 of sanctions pursuant to subsections (b) and (c) for
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1 up to 90 days. Following these consultations, the

2 President shall impose sanctions immediately unless

3 the President determines and certifies to the Con4 gress that that government has taken specific and

5 effective actions, including appropriate penalties, to

6 terminate the involvement of the foreign person in

7 the activities described in subsection (a). The Presi8 dent may delay the imposition of sanctions for up to

9 an additional 90 days if the President determines

10 and certifies to the Congress that that government

11 is in the process of taking the actions described in

12 the preceding sentence.

13 ‘‘(3) REPORT TO CONGRESS.—Not later than

14 90 days after the application of sanctions under this

15 section, the President shall submit to the Committee

16 on Foreign Relations and the Committee on Govern17 mental Affairs of the Senate and the Committee on

18 Foreign Affairs of the House of Representatives a

19 report on the status of consultations with the appro20 priate government under this subsection, and the

21 basis for any determination under paragraph (2) of

22 this subsection that such government has taken spe23 cific corrective actions.’’.
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1 SEC. 5. SANCTIONS AGAINST CERTAIN FOREIGN COUN2 TRIES.

3 Section 1605 is amended—

4 (1) in subsection (a)—

5 (A) by inserting ‘‘or to acquire weapons of

6 mass destruction or the means of their deliv7 ery’’ after ‘‘destabilizing numbers and types of

8 advanced conventional weapons’’; and

9 (B) in paragraph (2), by striking ‘‘sanc10 tion’’ and inserting ‘‘sanctions’’;

11 (2) in subsection (b), by adding at the end the

12 following new paragraph:

13 ‘‘(6) OTHER SANCTIONS.—The President shall

14 apply the same sanctions described in paragraphs

15 (1) through (4) of section 1604(b), together with the

16 exception described in subsection (d), with respect to

17 actions of a foreign government;’’; and

18 (3) in subsection (c)—

19 (A) by striking ‘‘SANCTION.—The sanction

20 referred to in subsection (a)(2) is’’ and insert21 ing ‘‘SANCTIONS.—The sanctions referred to in

22 subsection (a)(2) are’’; and

23 (B) by adding at the end the following new

24 paragraphs:

25 ‘‘(3) DENIAL OF MOST-FAVORED-NATION STA26 TUS.—Notwithstanding any other provision of law,
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1 the President may suspend the application of non2 discriminatory trade agreement (most-favored-nation

3 status) to the sanctioned country for such time as

4 the President so determines.

5 ‘‘(4) DIPLOMATIC RELATIONS.—The President

6 is urged to downgrade or suspend diplomatic rela7 tions between the United States and the government

8 of the sanctioned country.

9 ‘‘(5) SUSPENSION OF SPECIAL TRADE PRIVI10 LEGES.—The President is authorized to suspend

11 special trade privileges which were extended pursu12 ant to the Generalized Systems of Preferences or the

13 Caribbean Basin Initiative.

14 ‘‘(6) SUSPENSION OF TRADE AGREEMENTS.—

15 The President is authorized to suspend any trade

16 agreement with the sanctioned country.

17 ‘‘(7) REVOCATIONS OF LICENSES FOR EXPORT

18 OF NUCLEAR MATERIAL.—The Nuclear Regulatory

19 Commission is authorized to revoke any license for

20 the export of nuclear material pursuant to a nuclear

21 cooperation agreement with the sanctioned country.

22 ‘‘(8) PRESIDENTIAL ACTION REGARDING AVIA23 TION.—(A)(i) The President is authorized to notify

24 the government of a sanctioned country of his inten25 tion to suspend the authority of foreign air carriers
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1 owned or controlled by the government of that coun2 try to engage in foreign air transportation to or

3 from the United States.

4 ‘‘(ii) The President is authorized to direct the

5 Secretary of Transportation to suspend at the earli6 est possible date the authority of any foreign air car7 rier owned or controlled, directly or indirectly, by

8 that government to engage in foreign air transpor9 tation to or from the United States, notwithstanding

10 any agreement relating to air services.

11 ‘‘(B)(i) The President may direct the Secretary

12 of State to terminate any air service agreement be13 tween the United States and a sanctioned country in

14 accordance with the provisions of that agreement.

15 ‘‘(ii) Upon termination of an agreement under

16 this subparagraph, the Secretary of Transportation

17 is authorized to take such steps as may be necessary

18 to revoke at the earliest possible date the right of

19 any foreign air carrier owned, or controlled, directly

20 or indirectly, by the government of that country to

21 engage in foreign air transportation to or from the

22 United States.

23 ‘‘(C) The President may direct the Secretary of

24 Transportation to provide for such exceptions from

25 this subsection as the President considers necessary
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1 to provide for emergencies in which the safety of an

2 aircraft or its crew or passengers is threatened.

3 ‘‘(D) For purposes of this paragraph, the terms

4 ‘aircraft’, ‘air carrier’, ‘air transportation’, and ‘for5 eign air carrier’ have the meanings given those

6 terms in section 101 of the Federal Aviation Act of

7 1958 (49 U.S.C. 1301).

8 ‘‘(9) OTHER SANCTIONS.—The President may

9 apply the sanctions described in section 1605(c) with

10 respect to actions of a foreign government.’’.

11 SEC. 6. WAIVER.

12 Section 1606 is amended—

13 (1) by striking ‘‘waiver’’ each place it appears

14 and inserting ‘‘termination, modification, and

15 waiver’’; and

16 (2) by striking ‘‘waive’’ each place it appears

17 and inserting ‘‘modify or waive’’.

18 SEC. 7. TERMINATION OF SANCTIONS.

19 The Act is amended by inserting after section 1606

20 the following new section:

21 ‘‘SEC. 1606A. TERMINATION OF SANCTIONS.

22 ‘‘Except as otherwise provided in this title, the sanc23 tions imposed pursuant to section 1604(a)(1) shall apply

24 for a period of at least 24 months following the imposition
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1 of sanctions and shall cease to apply thereafter only if the

2 President determines and certifies to the Congress that—

3 ‘‘(1) reliable information indicates that the

4 sanctioned person or government has ceased to vio5 late this Act; and

6 ‘‘(2) the President has received reliable assur7 ances from the sanctioned person or government

8 that such person or government will not, in the fu9 ture, violate this Act.’’.

10 SEC. 8. RULES AND REGULATIONS.

11 The Act is amended by inserting after section 1607

12 the following new section:

13 ‘‘SEC. 1607A. RULES AND REGULATIONS.

14 ‘‘The President is authorized to prescribe such rules

15 and regulations as the President may require to carry out

16 this Act.’’.

17 SEC. 9. DEFINITIONS.

18 Section 1608 is amended by adding at the end the

19 following new paragraphs:

20 ‘‘(8) The term ‘goods or technology’ includes any

21 item of the type that is listed on the Nuclear Referral List

22 under section 309(c) of the Nuclear Non-Proliferation Act

23 of 1978, the United States Munitions List (established in

24 section 38 of the Arms Export Control Act), or the MTCR

25 Annex (as defined in section 74(4) of the Arms Export
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1 Control Act) or any item that is subject to licensing by

2 the Nuclear Regulatory Commission.

3 ‘‘(9) The term ‘United States’ includes territories and

4 possessions of the United States and the customs waters

5 of the United States, as defined in section 401 of the

6 Tariff Act of 1930 (19 U.S.C. 1401).

7 ‘‘(10) The term ‘weapons of mass destruction’ in8 cludes nuclear, chemical, and biological weapons, bomber

9 aircraft with a range in excess of 600 nautical miles, mis10 siles, and missile equipment and technology.’’.

11 SEC. 10. CONFORMING AMENDMENT.

12 Section 1602(a) is amended by striking ‘‘chemical, bi13 ological, nuclear,’’ and inserting ‘‘weapons of mass de14 struction’’.

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