II

104TH CONGRESS

1ST SESSION S. 726

To amend the Iran-Iraq Arms Non-Proliferation Act of 1992 to revise the

sanctions applicable to violations of that Act, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 26 (legislative day, APRIL 24), 1995

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 Iran-Iraq Arms Non-Proliferation Act of 1992

to revise the sanctions applicable to violations of that

Act, and for other purposes.

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

3 SECTION 1. REVISIONS OF IRAN-IRAQ ARMS NON-PRO4 LIFERATION ACT OF 1992.

5 (a) CLARIFICATION OF POLICY.—Section 1602(a) of

6 the Iran-Iraq Arms Non-Proliferation Act of 1992 (title

7 XVI of Public Law 102–484; 50 U.S.C. 1701 note) is

8 amended by striking out ‘‘chemical, biological, nuclear,’’

9 and inserting in lieu thereof ‘‘weapons of mass destruc10 tion’’.
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1 (b) SANCTIONS AGAINST IRAN.—Section 1603 of

2 such Act is amended by striking out ‘‘paragraphs (1)

3 through (4)’’ and inserting in lieu thereof ‘‘paragraphs (1)

4 through (8)’’.

5 (c) SANCTIONS AGAINST CERTAIN PERSONS.—

6 (1) ACTIVITIES PROSCRIBED.—Subsection (a)

7 of section 1604 of such Act is amended by inserting

8 ‘‘to acquire weapons of mass destruction, or the

9 means of their delivery, or’’ before ‘‘to acquire’’.

10 (2) ADDITIONAL SANCTIONS.—Subsection (b) of

11 such section 1604 is amended—

12 (A) in paragraph (1), ‘‘, and shall provide

13 for the expeditious termination of any current

14 contract for goods or services,’’ after ‘‘goods or

15 services’’;

16 (B) in paragraph (2), by inserting ‘‘, and

17 shall revoke any license issued,’’ after ‘‘shall not

18 issue’’; and

19 (C) by adding at the end the following new

20 paragraphs:

21 ‘‘(3) MIGRATION SANCTION.—

22 ‘‘(A) INDIVIDUALS.—The sanctioned per23 son shall be ineligible to receive a visa for entry

24 into the United States and shall be excluded

25 from admission into the United States.
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1 ‘‘(B) CORPORATIONS.—In the case of a

2 sanctioned person that is a corporation, part3 nership, or other form of association, the offi4 cers, directors, employees, and agents of the

5 corporation, partnership, or association shall be

6 ineligible to receive a visa for entry into the

7 United States and shall be excluded from ad8 mission into the United States.

9 ‘‘(4) FINANCIAL INSTITUTIONS.—The President

10 shall by order prohibit any depository institution

11 that is chartered by, or that has its principal place

12 of business within, a State, the District of Columbia,

13 or the United States from making any loan or pro14 viding any credit to the sanctioned person, except

15 for loans or credits for the purpose of purchasing

16 food or other agricultural commodities.

17 ‘‘(5) TRANSITING UNITED STATES TERRI18 TORY.—(A) Notwithstanding any other provision of

19 law (other than a treaty or other international

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

21 the product or manufacture of the sanctioned per22 son, and no technology developed by the sanctioned

23 person may transit any territory subject to the juris24 diction of the United States.
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1 ‘‘(B) The Secretary of Transportation may pro2 vide for such exceptions from this paragraph as the

3 Secretary considers necessary to provide for emer4 gencies in which the safety of an aircraft or a vessel,

5 or its crew or passengers, is threatened.’’.

6 (3) EXCEPTIONS.—Such section 1604 is further

7 amended by adding at the end the following new

8 subsection:

9 ‘‘(c) EXCEPTIONS.—The sanction described in sub10 section (b)(1) shall not apply in the case of procurement

11 of defense articles or defense services—

12 ‘‘(1) under existing contracts or subcontracts,

13 including the exercise of options for production

14 quantities to satisfy operational military require15 ments essential to the national security of the Unit16 ed States;

17 ‘‘(2) if the President determines that the person

18 or other entity to which the sanctions would other19 wise be applied is a sole source supplier of the de20 fense articles or services, that the defense articles or

21 services are essential, and that alternative sources

22 are not readily or reasonably available; or

23 ‘‘(3) if the President determines that such arti24 cles or services are essential to the national security

25 under defense coproduction agreements.’’.
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1 (d) SANCTIONS AGAINST FOREIGN COUNTRIES.—

2 (1) PROSCRIBED ACTIVITIES.—Subsection (a)

3 of section 1605 of such Act is amended by inserting

4 ‘‘to acquire weapons of mass destruction, or the

5 means of their delivery, or’’ before ‘‘to acquire’’.

6 (2) MANDATORY SANCTIONS.—Subsection (b)

7 of such section 1605 is amended by adding at the

8 end the following new paragraph:

9 ‘‘(6) ADDITIONAL SANCTIONS.—The sanctions

10 against Iraq specified in paragraphs (1), (3), (4),

11 (6), and (7) of section 586G(a) of the Iraq Sanc12 tions Act of 1990 (50 U.S.C. 1701 note) shall be ap13 plied to the same extent and in the same manner

14 with respect to a sanctioned country.’’.

15 (3) DISCRETIONARY SANCTIONS.—Such section

16 1605 is further amended—

17 (A) in subsection (a)(2), by striking out

18 ‘‘the sanction’’ and inserting in lieu thereof

19 ‘‘the sanctions’’; and

20 (B) by striking out subsection (c) and in21 serting in lieu thereof the following new sub22 section (c):

23 ‘‘(c) DISCRETIONARY SANCTIONS.—The sanctions re24 ferred to in subsection (a)(2) are as follows:
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1 ‘‘(1) USE OF AUTHORITIES OF INTERNATIONAL

2 EMERGENCY ECONOMIC POWERS ACT.—

3 ‘‘(A) IN GENERAL.—Except as provided in

4 subparagraph (B), the President may exercise,

5 in accordance with the provisions of that Act,

6 the authorities of the International Emergency

7 Economic Powers Act (50 U.S.C. 1701 et seq.)

8 with respect to the sanctioned country.

9 ‘‘(B) EXCEPTION.—Subparagraph (A)

10 does not apply with respect to urgent humani11 tarian assistance.

12 ‘‘(2) PROHIBITION ON VESSELS THAT ENTER

13 PORTS OF SANCTIONED COUNTRIES TO ENGAGE IN

14 TRADE.—

15 ‘‘(A) IN GENERAL.—Beginning on the

16 10th day after a sanction is imposed under this

17 title against a country, a vessel which enters a

18 port or place in the sanctioned country to en19 gage in the trade of goods or services may not,

20 if the President so requires, within 180 days

21 after departure from such port or place in the

22 sanctioned country, load or unload any freight

23 at any place in the United States.

24 ‘‘(B) DEFINITION.—As used in this para25 graph, the term ‘vessel’ includes every descrip-
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1 tion of water craft or other contrivance used, or

2 capable of being used, as a means of transpor3 tation in water, but does not include aircraft.

4 ‘‘(3) PRESIDENTIAL ACTION REGARDING AVIA5 TION.—(A)(i) The President may notify the govern6 ment of the sanctioned country of his intention to

7 suspend the authority of foreign air carriers owned

8 or controlled by the government of that country to

9 engage in foreign air transportation to or from the

10 United States.

11 ‘‘(ii) The President may direct the Secretary of

12 Transportation to suspend at the earliest possible

13 date the authority of any foreign air carrier owned

14 or controlled, directly or indirectly, by that govern15 ment to engage in foreign air transportation to or

16 from the United States, notwithstanding any agree17 ment relating to air services.

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

19 of State to terminate any air service agreement be20 tween the United States and the sanctioned country

21 in accordance with the provisions of that agreement.

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

23 this subparagraph, the Secretary of Transportation

24 shall take such steps as may be necessary to revoke

25 at the earliest possible date the right of any foreign
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1 air carrier owned, or controlled, directly or indi2 rectly, by the government of that country to engage

3 in foreign air transportation to or from the United

4 States.

5 ‘‘(C) The President shall direct the Secretary of

6 Transportation to provide for such exceptions from

7 this paragraph as the President considers necessary

8 to provide for emergencies in which the safety of an

9 aircraft or its crew or passengers is threatened.

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

11 ‘air carrier’, ‘air transportation’, ‘aircraft’, and ‘for12 eign air carrier’ have the meanings given such terms

13 in paragraphs (2), (5), (6), and (21) of section

14 40102 of title 49, United States Code, respec15 tively.’’.

16 (4) ADDITIONAL SANCTION.—Such section

17 1605 is further amended by adding at the end the

18 following new subsection:

19 ‘‘(d) SANCTION FOR ASSISTING IRAN IN IMPROVING

20 ROCKET OR OTHER WEAPONS CAPABILITY.—The sanc21 tion set forth in section 586I(a) of the Iraq Sanctions Act

22 of 1990 (50 U.S.C. 1701 note) against governments that

23 assist Iraq in improving its rocket technology or weapons

24 of mass destruction capability shall be applied to the same
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1 extent and in the same manner with respect to govern2 ments that so assist Iran.’’.

3 (e) TERMINATION OF SANCTIONS AGAINST CERTAIN

4 PERSONS.—Such Act is further amended—

5 (1) in section 1604(b)—

6 (A) by striking out ‘‘The sanctions’’ in the

7 matter preceding paragraph (1) and inserting

8 in lieu thereof ‘‘Subject to section 1606A, the

9 sanctions’’; and

10 (B) by striking out ‘‘For a period of two

11 years, the United States’’ in paragraphs (1)

12 and (2) and inserting in lieu thereof ‘‘The Unit13 ed States’’;

14 (2) in section 1605—

15 (A) by striking out ‘‘If’’ in subsection (a)

16 and inserting in lieu thereof ‘‘Subject to section

17 1606A, if’’; and

18 (B) in subsection (b)—

19 (i) by striking out ‘‘, for a period of

20 one year,’’ in paragraphs (1), (3), and (4);

21 (ii) by striking out ‘‘for a period of

22 one year,’’ in paragraph (2);

23 (iii) by striking out ‘‘during that pe24 riod’’ in paragraph (4); and
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1 (iv) by striking out ‘‘for a period of

2 one year’’ in paragraph (5); and

3 (3) by inserting after section 1606 the following

4 new section:

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

6 ‘‘Except as otherwise provided in this title, the sanc7 tions imposed pursuant to section 1604(a) or 1605(a)

8 shall cease to apply to a sanctioned person or government

9 30 days after the President certifies to the Congress that

10 reliable information indicates that the sanctioned person

11 or government, as the case may be, has ceased to violate

12 this title.’’.

13 (f) RULES AND REGULATIONS.—Such Act is further

14 amended by adding after section 1607 the following new

15 section:

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

17 ‘‘The President may prescribe such rules and regula18 tions as the President requires to carry out this title.’’.

19 (g) DEFINITIONS.—Section 1608 of such Act is

20 amended—

21 (1) in paragraph (1)—

22 (A) by inserting ‘‘naval vessels with offen23 sive capabilities,’’ after ‘‘advanced military air24 craft,’’ in subparagraph (A); and
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1 (B) by striking out ‘‘or enhance offensive

2 capabilities in destabilizing ways’’ each place it

3 appears and inserting in lieu thereof ‘‘, enhance

4 offensive capabilities in destabilizing ways, or

5 threaten international shipping’’; and

6 (2) by striking out paragraph (7) and inserting

7 in lieu thereof the following new paragraphs:

8 ‘‘(7) The term ‘United States assistance’ means

9 any assistance under the Foreign Assistance Act of

10 1961 (22 U.S.C. 2151 et seq.), other than urgent

11 humanitarian assistance or medicine.

12 ‘‘(8) The term ‘goods or technology’ includes

13 any item of the type that is listed on the Nuclear

14 Referral List under section 309(c) of the Nuclear

15 Non-Proliferation Act of 1978, the United States

16 Munitions List (established in section 38 of the

17 Arms Export Control Act), or the MTCR Annex (as

18 defined in section 74(4) of the Arms Export Control

19 Act) or any item that is subject to licensing by the

20 Nuclear Regulatory Commission.

21 ‘‘(9) The term ‘United States’ includes terri22 tories and possessions of the United States and the

23 customs waters of the United States, as defined in

24 section 401 of the Tariff Act of 1930 (19 U.S.C.

25 1401).
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1 ‘‘(10) The term ‘weapons of mass destruction’

2 includes nuclear, chemical, and biological weapons.’’.

3 (h) CONFORMING AMENDMENTS.—Such Act is fur4 ther amended—

5 (1) in section 1606, by striking out ‘‘the Com6 mittees on Armed Services and Foreign Affairs of

7 the House of Representatives’’ and inserting in lieu

8 thereof ‘‘the Committees on National Security and

9 International Relations of the House of Representa10 tives ’’; and

11 (2) in section 1607, by striking out ‘‘the Com12 mittees on Armed Services and Foreign Affairs of

13 the House of Representatives’’ each place it appears

14 in subsections (a) and (b) and inserting in lieu

15 thereof ‘‘the Committees on National Security and

16 International Relations of the House of Representa17 tives’’.

18 SEC. 2. REVISIONS OF FOREIGN ASSISTANCE ACT OF 1961.

19 Section 498A(b)(3) of the Foreign Assistance Act of

20 1961 (22 U.S.C. 2295a(b)(3)) is amended by inserting

21 ‘‘and notwithstanding the compliance of such state with

22 international agreements relating to weapons of mass de23 struction,’’ before ‘‘knowingly transferred’’ in the matter

24 preceding subparagraph (A).
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1 SEC. 3. REVISION OF IRAQ SANCTIONS ACT OF 1990.

2 Section 586I(a) of the Iraq Sanctions Act of 1990

3 (50 U.S.C. 1701 note) is amended by striking out ‘‘or

4 chemical, biological, or nuclear weapons capability’’ and

5 inserting in lieu thereof ‘‘its chemical, biological, or nu6 clear weapons capability, or its acquisition of destabilizing

7 numbers and types of advanced conventional weapons’’.

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