I

106TH CONGRESS

1ST SESSION H. R. 1883

To provide for the application of measures to foreign persons who transfer

to Iran certain goods, services, or technology, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 20, 1999

Mr. GILMAN (for himself, Mr. GEJDENSON, Mr. SENSENBRENNER, and Mr.

BERMAN) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on

Science, for a period to be subsequently determined by the Speaker, in

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide for the application of measures to foreign persons

who transfer to Iran certain goods, services, or technology, 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. SHORT TITLE.

4 This Act may be cited as the ‘‘Iran Nonproliferation

5 Act of 1999’’.

6 SEC. 2. REPORTS ON PROLIFERATION TO IRAN.

7 (a) REPORTS.—The President shall, at the times

8 specified in subsection (b), submit to the Committee on
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1 International Relations of the House of Representatives

2 and the Committee on Foreign Relations of the Senate

3 a report identifying every foreign person with respect to

4 whom there is credible information indicating that that

5 person, on or after January 22, 1998, transferred to

6 Iran—

7 (1) goods, services, or technology listed on—

8 (A) the Nuclear Suppliers Group Guide9 lines for the Export of Nuclear Material, Equip10 ment and Technology (published by the Inter11 national Atomic Energy Agency as Information

12 Circular INFCIRC/254/Rev.3/Part 1) and

13 Guidelines for Transfers of Nuclear-Related

14 Dual-Use Equipment, Material, and Related

15 Technology (published by the International

16 Atomic Energy Agency as Information Circular

17 INFCIRC/254/Rev.3/Part 2);

18 (B) the Missile Technology Control Regime

19 Equipment and Technology Annex;

20 (C) the lists of items and substances relat21 ing to biological and chemical weapons the ex22 port of which is controlled by the Australia

23 Group;

24 (D) the list of items and substances the ex25 port of which is controlled pursuant to the Con-
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1 vention on the Prohibition of the Development,

2 Production, Stockpiling and Use of Chemical

3 Weapons and on Their Destruction; or

4 (E) the Wassenaar Arrangement list of

5 Dual Use Goods and Technologies and Muni6 tions list; or

7 (2) goods, services, or technology not listed on

8 any list identified in paragraph (1) but which never9 theless would be, if they were United States goods,

10 services, or technology, prohibited for export to Iran

11 because of their potential contribution to the devel12 opment of nuclear, biological, or chemical weapons,

13 or of ballistic missile systems.

14 (b) TIMING OF REPORTS.—The reports under sub15 section (a) shall be submitted not later than 30 days after

16 the date of the enactment of this Act, not later than 6

17 months after such date of enactment, and not later than

18 the end of each 6-month period thereafter.

19 (c) EXCEPTIONS.—Any foreign person who—

20 (1) was identified in a previous report sub21 mitted under subsection (a) on account of a par22 ticular transfer, or

23 (2) has engaged in a transfer on behalf of, or

24 in concert with, the Government of the United

25 States,
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1 is not required to be identified on account of that same

2 transfer in any report submitted thereafter under this sec3 tion, except to the degree that new information has

4 emerged indicating that the particular transfer may have

5 continued, or been larger, more significant, or different

6 in nature than previously reported under this section.

7 (d) SUBMISSION IN CLASSIFIED FORM.—When the

8 President considers it appropriate, reports submitted

9 under subsection (a), or appropriate parts thereof, may

10 be submitted in classified form.

11 SEC. 3. APPLICATION OF MEASURES TO CERTAIN FOREIGN

12 PERSONS.

13 (a) APPLICATION OF MEASURES.—Subject to sec14 tions 4 and 5, the President is authorized to apply with

15 respect to each foreign person identified in a report sub16 mitted pursuant to section 2(a), for such period of time

17 as he may determine, any or all of the measures described

18 in subsection (b).

19 (b) DESCRIPTION OF MEASURES.—The measures re20 ferred to in subsections (a) are the following:

21 (1) EXECUTIVE ORDER 12938 PROHIBITIONS.—

22 The measures set forth in subsections (b) and (c) of

23 section 4 of Executive Order 12938 shall be applied

24 with respect to that person.
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1 (2) ARMS EXPORT PROHIBITION.—The United

2 States Government shall not sell to that foreign per3 son any item on the United States Munitions List

4 as in effect on August 8, 1995, and shall terminate

5 sales to that person of any defense articles, defense

6 services, or design and construction services under

7 the Arms Export Control Act.

8 (3) DUAL USE EXPORT PROHIBITION.—The au9 thorities of section 6 of the Export Administration

10 Act of 1979 shall be used to prohibit the export to

11 that person of any goods or technology on the con12 trol list established under section 5(c)(1) of that

13 Act.

14 (c) EFFECTIVE DATE OF MEASURES.—Measures ap15 plied pursuant to subsection (a) shall be effective with re16 spect to a foreign person—

17 (1) 30 days after the report identifying the for18 eign person is submitted, if the report is submitted

19 on or before the date required by section 2(b);

20 (2) 30 days after the date required by section

21 2(b) for submitting the report, if the report identi22 fying the foreign person is submitted within 30 days

23 after that date; or

24 (3) on the date that the report identifying the

25 foreign person is submitted, if that report is sub-
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1 mitted more than 30 days after the date required by

2 section 2(b).

3 (d) PUBLICATION IN FEDERAL REGISTER.—The ap4 plication of measures to a foreign person pursuant to sub5 section (a) shall be announced by notice published in the

6 Federal Register.

7 SEC. 4. PROCEDURES IF MEASURES ARE NOT APPLIED.

8 (a) REQUIREMENT TO NOTIFY CONGRESS.—Should

9 the President not exercise the authority of section 3(a)

10 to apply any or all of the measures described in section

11 3(b) with respect to a foreign person identified in a report

12 submitted pursuant to section 2(a), he shall so notify the

13 Committee on International Relations of the House of

14 Representatives and the Committee on Foreign Relations

15 of the Senate no later than the effective date under section

16 3(c) for measures with respect to that person.

17 (b) WRITTEN JUSTIFICATION.—Any notification sub18 mitted by the President under subsection (a) shall include

19 a written justification describing in detail the facts and

20 circumstances relating specifically to the foreign person

21 identified in a report submitted pursuant to section 2(a)

22 that support the President’s decision not to exercise the

23 authority of section 3(a) with respect to that person.

24 (c) SUBMISSION IN CLASSIFIED FORM.—When the

25 President considers it appropriate, the notification of the
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1 President under subsection (a), and the written justifica2 tion under subsection (b), or appropriate parts thereof,

3 may be submitted in classified form.

4 SEC. 5. DETERMINATION EXEMPTING FOREIGN PERSON

5 FROM SECTIONS 3 AND 4.

6 (a) IN GENERAL.—Sections 3 and 4 shall not apply

7 to a foreign person 15 days after the President determines

8 and reports to the Committee on International Relations

9 of the House of Representatives and the Committee on

10 Foreign Relations of the Senate that, on the basis of infor11 mation provided by that person, or otherwise obtained by

12 the President, the President is persuaded that—

13 (1) the person did not, on or after January 22,

14 1998, knowingly transfer to Iran the goods, services,

15 or technology the apparent transfer of which caused

16 that person to be identified in a report submitted

17 pursuant to section 2(a); or

18 (2) the goods, services, or technology the trans19 fer of which caused that person to be identified in

20 a report submitted pursuant to section 2(a) did not

21 materially contribute to Iran’s efforts to develop nu22 clear, biological, or chemical weapons, or ballistic

23 missile systems.
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1 (b) WRITTEN JUSTIFICATION.—Any determination

2 and report of the President under subsection (a) shall in3 clude a written justification describing in detail—

4 (1) the credible information indicating that the

5 person, on or after January 22, 1998, transferred to

6 Iran goods, services, or technology the apparent

7 transfer of which caused that person to be identified

8 in a report submitted pursuant to section 2(a);

9 (2) the additional information which persuaded

10 the President that the person did not, on or after

11 January 22, 1998, knowingly transfer to Iran goods,

12 services, or technology the apparent transfer of

13 which caused that person to be identified in a report

14 submitted pursuant to section 2(a); and

15 (3) the analysis of the information supporting

16 the President’s conclusion.

17 (c) SUBMISSION IN CLASSIFIED FORM.—When the

18 President considers it appropriate, the determination and

19 report of the President under subsection (a), and the writ20 ten justification under subsection (b), or appropriate parts

21 thereof, may be submitted in classified form.
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1 SEC. 6. RESTRICTION ON EXTRAORDINARY PAYMENTS IN

2 CONNECTION WITH THE INTERNATIONAL

3 SPACE STATION.

4 (a) RESTRICTION ON EXTRAORDINARY PAYMENTS IN

5 CONNECTION WITH THE INTERNATIONAL SPACE STA6 TION.—Notwithstanding any other provision of law, no

7 agency of the United States Government may make ex8 traordinary payments in connection with the International

9 Space Station to the Russian Space Agency, any organiza10 tion or entity under the jurisdiction of the Russian Space

11 Agency, or any other organization, entity, or element of

12 the Government of the Russian Federation, unless, during

13 the fiscal year in which the extraordinary payments in con14 nection with the International Space Station are to be

15 made, the President has made the determination described

16 in subsection (b), and reported such determination to the

17 Committee on International Relations and the Committee

18 on Science of the House of Representatives and the Com19 mittee on Foreign Relations and the Committee on Com20 merce, Science, and Transportation of the Senate.

21 (b) DETERMINATION REGARDING RUSSIAN CO22 OPERATION IN PREVENTING PROLIFERATION TO IRAN.—

23 The determination referred to in subsection (a) is a deter24 mination by the President that—

25 (1) it is the policy of the Government of the

26 Russian Federation to oppose the proliferation to
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1 Iran of weapons of mass destruction and missile sys2 tems capable of delivering such weapons;

3 (2) the Government of the Russian Federation

4 (including all law enforcement, export promotion, ex5 port control, and intelligence agencies of such gov6 ernment) is taking the necessary steps to prevent

7 the transfer from Russia to Iran of goods, services,

8 and technology useful in the development of weapons

9 of mass destruction and missile systems capable of

10 delivering such weapons; and

11 (3) neither the Russian Space Agency, nor any

12 organization or entity under the jurisdiction or con13 trol of the Russian Space Agency, has, during the 1-

14 year period prior to the date of the determination

15 pursuant to this subsection, made transfers to Iran

16 reportable under section 2(a) of this Act (other than

17 transfers with respect to which a determination pur18 suant to section 5 has been or will be made).

19 (c) PRIOR NOTIFICATION.—Not less than 30 days be20 fore making a determination under subsection (b), the

21 President shall notify the Committee on International Re22 lations and the Committee on Science of the House of

23 Representatives and the Committee on Foreign Relations

24 and the Committee on Commerce, Science, and Transpor-
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1 tation of the Senate of his intention to make such deter2 mination.

3 (d) WRITTEN JUSTIFICATION.—A determination of

4 the President under subsection (b) and a prior notification

5 under subsection (c) shall include a written justification

6 describing in detail the facts and circumstances sup7 porting the President’s conclusion.

8 (e) SUBMISSION IN CLASSIFIED FORM.—When the

9 President considers it appropriate, a determination of the

10 President under subsection (b), a prior notification under

11 subsection (c), and a written justification under subsection

12 (d), or appropriate parts thereof, may be submitted in

13 classified form.

14 SEC. 7. DEFINITIONS.

15 For purposes of this Act, the following terms have

16 the following meanings:

17 (1) EXTRAORDINARY PAYMENTS IN CONNEC18 TION WITH THE INTERNATIONAL SPACE STATION.—

19 The term ‘‘extraordinary payments in connection

20 with the International Space Station’’ means pay21 ments in cash or in kind made or to be made by the

22 United States Government—

23 (A) for work on the International Space

24 Station which the Russian Government pledged

25 at any time to provide at its expense; or
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1 (B) for work on the International Space

2 Station, or for the purchase of goods or services

3 relating to human space flight, that are not re4 quired to be made under the terms of a con5 tract or other agreement that was in effect on

6 January 1, 1999, as those terms were in effect

7 on such date.

8 (2) FOREIGN PERSON; PERSON.—The terms

9 ‘‘foreign person’’ and ‘‘person’’ mean—

10 (A) a natural person that is an alien;

11 (B) a corporation, business association,

12 partnership, society, trust, or any other non13 governmental entity, organization, or group,

14 that is organized under the laws of a foreign

15 country or has its principal place of business in

16 a foreign country;

17 (C) any foreign governmental entity oper18 ating as a business enterprise; and

19 (D) any successor or subsidiary of any en20 tity described in subparagraph (B) or (C).

21 (3) EXECUTIVE ORDER 12938.—The term ‘‘Ex22 ecutive Order 12938’’ means Executive Order 12938

23 as in effect on January 1, 1999.

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