II

105TH CONGRESS

1ST SESSION S. 1311

To impose certain sanctions on foreign persons who transfer items

contributing to Iran’s efforts to acquire, develop, or produce ballistic missiles.

IN THE SENATE OF THE UNITED STATES

OCTOBER 23, 1997

Mr. LOTT (for himself, Mr. LIEBERMAN, Mr. MCCONNELL, Mr. REID, Mr.

D’AMATO, Mrs. BOXER, Mr. COVERDELL, Mr. HELMS, Mr. DURBIN, Mr.

MCCAIN, Mr. BROWNBACK, Mr. BENNETT, Mr. CAMPBELL, Mr.

FEINGOLD, Mr. MACK, Mr. SHELBY, Mr. WYDEN, Mr. HUTCHINSON,

Mrs. FEINSTEIN, Mr. HOLLINGS, Ms. MIKULSKI, Mr. NICKLES, Mr.

CLELAND, Mr. INOUYE, Mr. DORGAN, Mr. BRYAN, Mr. ABRAHAM, and

Mr. REED) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To impose certain sanctions on foreign persons who transfer

items contributing to Iran’s efforts to acquire, develop,

or produce ballistic missiles.

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 ‘‘Iran Missile Prolifera5 tion Sanctions Act of 1997’’.
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1 SEC. 2. REPORTS ON MISSILE PROLIFERATION TO IRAN.

2 (a) REPORTS.—Except as provided in subsection (c),

3 at the times specified in subsection (b), the President shall

4 submit to the Committee on International Relations of the

5 House of Representatives and the Committee on Foreign

6 Relations of the Senate a report identifying every foreign

7 person with respect to whom there is credible evidence in8 dicating that that person, on or after August 8, 1995—

9 (1) transferred goods or technology, or provided

10 technical assistance or facilities, that contributed to

11 Iran’s efforts to acquire, develop, or produce ballistic

12 missiles; or

13 (2) attempted to transfer goods or technology,

14 or attempted to provide technical assistance or facili15 ties, that would have contributed to Iran’s efforts to

16 acquire, develop, or produce ballistic missiles.

17 (b) TIMING OF REPORTS.—The reports under sub18 section (a) shall be submitted not later than 30 days after

19 the date of the enactment of this Act, not later than 180

20 days after such date of enactment, not later than 360 days

21 after such date of enactment, and annually thereafter.

22 (c) EXCEPTION FOR PERSONS PREVIOUSLY IDENTI23 FIED OR SANCTIONED OR SUBJECT TO WAIVER.—Any

24 person who—

25 (1) was identified in a previous report submit26 ted pursuant to subsection (a);
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1 (2) has engaged in a transfer or transaction

2 that was the basis for the imposition of sanctions

3 with respect to that person pursuant to section 73

4 of the Arms Export Control Act or section 1604 of

5 the Iran-Iraq Arms Non-Proliferation Act of 1992;

6 or

7 (3) may have engaged in a transfer or trans8 action, or made an attempt, that was the subject of

9 a waiver pursuant to section 4,

10 is not required to be identified on account of that same

11 transfer, transaction, or attempt, in any report thereafter

12 submitted pursuant to this section.

13 SEC. 3. IMPOSITION OF SANCTIONS.

14 (a) REQUIREMENT TO IMPOSE SANCTIONS.—

15 (1) REQUIREMENT TO IMPOSE SANCTIONS.—

16 The sanctions described in subsection (b) shall be

17 imposed on—

18 (A) any foreign person identified under

19 subsection (a)(1) of section 2 in a report sub20 mitted pursuant to that section; and

21 (B) any foreign person identified under

22 subsection (a)(2) of section 2 in a report sub23 mitted pursuant to that section, if that person

24 has been identified in that report or a previous
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1 report as having made at least 1 other attempt

2 described in subsection (a)(2) of that section.

3 (2) EFFECTIVE DATE OF SANCTIONS.—The

4 sanctions shall be effective—

5 (A) 30 days after the date on which the re6 port triggering the sanction is submitted, if the

7 report is submitted on or before the date re8 quired by section 2(b);

9 (B) 30 days after the date required by sec10 tion 2(b) for submitting the report, if the report

11 triggering the sanction is submitted within 30

12 days after that date; and

13 (C) immediately after the report triggering

14 the sanction is submitted, if that report is sub15 mitted more than 30 days after the date re16 quired by section 2(b).

17 (b) DESCRIPTION OF SANCTIONS.—The sanctions re18 ferred to in subsection (a) that are to be imposed on a

19 foreign person described in that subsection are the follow20 ing:

21 (1) ARMS EXPORT SANCTION.—For a period of

22 not less than 2 years, the United States Government

23 shall not sell to that person any item on the United

24 States Munitions List as of August 8, 1995, and

25 shall terminate sales to that person of any defense
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1 articles, defense services, or design and construction

2 services under the Arms Export Control Act.

3 (2) DUAL USE SANCTION.—For a period of not

4 less than 2 years, the authorities of section 6 of the

5 Export Administration Act of 1979 shall be used to

6 prohibit the export of any goods or technology on

7 the control list established pursuant to section

8 5(c)(1) of that Act to that person.

9 (3) UNITED STATES ASSISTANCE.—For a pe10 riod of not less than 2 years, the United States Gov11 ernment shall not provide any assistance in the form

12 of grants, loans, credits, guarantees, or otherwise, to

13 that person.

14 SEC. 4. WAIVER.

15 The President may waive the imposition of any sanc16 tion that otherwise would be required to be imposed pursu17 ant to section 3 on any foreign person 15 days after the

18 President determines and reports to the Committee on

19 International Relations of the House of Representatives

20 and the Committee on Foreign Relations of the Senate

21 that, on the basis of information provided by the person,

22 or otherwise obtained by the President, the President is

23 persuaded that the person did not, on or after August 8,

24 1995—
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1 (1) transfer goods or technology, or provide

2 technical assistance or facilities, that contributed to

3 Iran’s efforts to acquire, develop, or produce ballistic

4 missiles; or

5 (2) attempt on more than one occasion to

6 transfer goods or technology, or to provide technical

7 assistance or facilities, that would have contributed

8 to Iran’s efforts to acquire, develop, or produce bal9 listic missiles.

10 SEC. 5. ADDITIONAL INFORMATION REGARDING ACTIONS

11 BY GOVERNMENT OF PRIMARY JURISDIC12 TION.

13 As part of each report submitted pursuant to section

14 2, the President shall include the following information

15 with respect to each person identified in that report:

16 (1) A statement regarding whether the govern17 ment of primary jurisdiction over that person was

18 aware of the activities that were the basis for the

19 identification of that individual in the report.

20 (2) If the government of primary jurisdiction

21 was not aware of the activities that were the basis

22 for the identification of that individual in the report,

23 an explanation of the reasons why the United States

24 Government did not inform that government of those

25 activities.
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1 (3) If the government of primary jurisdiction

2 was aware of the activities that were the basis for

3 the identification of that individual in the report, a

4 description of the efforts, if any, undertaken by that

5 government to prevent those activities, and an as6 sessment of the effectiveness of those efforts, includ7 ing an explanation of why those efforts failed.

8 (4) If the government of primary jurisdiction

9 was aware of the activities that were the basis for

10 the identification of that individual in the report and

11 failed to undertake effective efforts to prevent those

12 activities, a description of any sanctions that have

13 been imposed on that government by the United

14 States Government because of such failure.

15 SEC. 6. DEFINITIONS.

16 In this Act:

17 (1) GOVERNMENT OF PRIMARY JURISDIC18 TION.—The term ‘‘government of primary jurisdic19 tion’’ means the government under whose laws a for20 eign person is organized, or the government of the

21 place where a foreign person is headquartered or ha22 bitually resides.

23 (2) FOREIGN PERSON.—The term ‘‘foreign per24 son’’ means a natural person as well as a corpora25 tion, business association, partnership, society, trust,
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1 any other nongovernmental entity, organization, or

2 group, and any governmental entity operating as a

3 business enterprise, and any successor or subsidiary

4 of any such entity that is organized, headquartered,

5 or habitually resides outside the United States.

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