II

103D CONGRESS

1ST SESSION S. 1625

To prohibit the sale of defense articles and defense services to countries

that participate in the secondary and tertiary boycott of Israel.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 4 (legislative day, NOVEMBER 2), 1993

Mr. BROWN (for himself and Mr. MOYNIHAN) introduced the following bill;

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

A BILL

To prohibit the sale of defense articles and defense services

to countries that participate in the secondary and tertiary boycott of Israel.

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.

4 This Act may be cited as the ‘‘Anti-Economic Dis5 crimination Act of 1993’’.

6 SEC. 2. CONGRESSIONAL FINDINGS.

7 The Congress finds that—

8 (1) certain countries maintain an economic boy9 cott of Israel, including a secondary boycott of com10 panies that have investments in or trade with Israel;
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1 (2) the secondary boycott has caused economic

2 damage to the countries that maintain the boycott

3 as well as to Israel;

4 (3) the secondary boycott causes great difficul5 ties for United States firms that trade with Israel,

6 depriving them of trade opportunities and violating

7 internationally accepted principles of free trade;

8 (4) the United States has a longstanding policy

9 opposing the Arab League boycott and United

10 States law prohibits American firms from providing

11 information to Arab countries to demonstrate com12 pliance with the boycott;

13 (5) many American companies may be denied

14 contracts in the West Bank and Gaza for infrastruc15 ture development because they conduct business with

16 Israel; and

17 (6) many American companies may be denied

18 contracts by the Kuwaiti Government for the recon19 struction of Kuwait because they conduct business

20 with Israel.

21 SEC. 3. PROHIBITION ON CERTAIN SALES AND LEASES.

22 (a) PROHIBITION.—No defense article or defense

23 service may be sold or leased by the United States Govern24 ment to any country or international organization that,

25 as a matter of policy or practice, is known to have sent
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1 letters to United States firms requesting compliance with,

2 or soliciting information regarding compliance with, the

3 secondary or tertiary Arab boycott, unless the President

4 determines, and so certifies to the appropriate congres5 sional committees, that that country or organization does

6 not currently maintain a policy or practice of making such

7 requests or solicitations.

8 (b) WAIVER.—

9 (1) 1-YEAR WAIVER.—On or after the effective

10 date of this section, the President may waive, for a

11 period of 1 year, the application of subsection (a)

12 with respect to any country or organization if the

13 President determines, and reports to the appropriate

14 congressional committees, that—

15 (A) such waiver is in the national interest

16 of the United States, and such waiver will pro17 mote the objectives of this section to eliminate

18 the Arab boycott; or

19 (B) such waiver is in the national security

20 interest of the United States.

21 (2) EXTENSION OF WAIVER.—If the President

22 determines that the further extension of a waiver

23 will promote the objectives of this section, the Presi24 dent, upon notification of the appropriate congres-
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1 sional committees, may grant further extensions of

2 such waiver for successive 12-month periods.

3 (3) TERMINATION OF WAIVER.—The President

4 may, at any time, terminate any waiver granted

5 under this subsection.

6 (c) DEFINITIONS.—As used in this section—

7 (1) the term ‘‘appropriate congressional com8 mittees’’ means the Committee on Foreign Relations

9 of the Senate and the Committee on Foreign Affairs

10 of the House of Representatives; and

11 (2) the terms ‘‘defense article’’ and ‘‘defense

12 service’’ have the meanings given to such terms by

13 paragraphs (3) and (4), respectively, of section 47 of

14 the Arms Export Control Act.

15 (d) EFFECTIVE DATE.—This section shall take effect

16 1 year after the date of enactment of this Act.

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