I 

108TH CONGRESS 

2D SESSION H. R. 4965 

To impose sanctions on foreign entities that engage in certain nuclear 

proliferation activities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004 

Mr. LANTOS (for himself, Ms. ROS-LEHTINEN, Mr. BERMAN, Mr. ACKERMAN, 

and Mr. SHERMAN) introduced the following bill; which was referred to 

the Committee on International Relations 

A BILL 

To impose sanctions on foreign entities that engage in certain nuclear proliferation activities, 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 ‘‘Nuclear Black-Market 

5 Elimination Act’’. 
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1 TITLE I—SANCTIONS FOR NU2 CLEAR ENRICHMENT AND RE3 PROCESSING TRANSFERS BY 

4 FOREIGN PERSONS 

5 SEC. 101. AUTHORITY TO IMPOSE SANCTIONS. 

6 Notwithstanding any other provision of law, the 

7 President is authorized to prohibit, for a period of not less 

8 than three years, any transaction or dealing by a United 

9 States person or within the United States with any foreign 

10 person or entity that the President determines sells, trans11 fers, brokers, finances, assists, delivers or otherwise pro12 vides or receives, on or after the date of the enactment 

13 of this Act— 

14 (1) nuclear enrichment or reprocessing equip15 ment, materials, or technology to— 

16 (A) any country for which an additional 

17 protocol with the International Atomic Energy 

18 Agency for the application of safeguards (as de19 rived from IAEA document INFCIRC/540 and 

20 related corrections and additions) is not in 

21 force; or 

22 (B) to any country that the President de23 termines is developing, constructing, manufac24 turing, or acquiring a nuclear explosive device; 

25 or 
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1 (2) designs, equipment, or specific information 

2 to assist in the development, construction, manufac3 ture, or acquisition of a nuclear explosive device by 

4 a non-nuclear weapon state. 

5 SEC. 102. PRESIDENTIAL DETERMINATION. 

6 (a) DETERMINATION.—If the President receives cred7 ible information or evidence regarding any activity de8 scribed in section 101(a) by a foreign person or entity, 

9 the President shall promptly make a determination as to 

10 whether, in his judgment, such activity occurred. 

11 (b) REPORT.—If the President makes an affirmative 

12 determination under subsection (a), the President shall, 

13 within 5 days after making the determination, report the 

14 fact and substance of the determination to the appropriate 

15 congressional committees. 

16 (c) PUBLICATION OF DETERMINATION.—If the Presi17 dent makes an affirmative determination under subsection 

18 (a), the President shall publish in the Federal Register, 

19 not later than 15 days after reporting such determination 

20 to the Committees under subsection (b), the identity of 

21 each foreign person or entity that is subject to that deter22 mination and on whom sanctions have been imposed under 

23 section 101(a), the reasons for the sanctions, and period 

24 during which the sanctions will be in effect. 
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1 SEC. 103. ADDITIONAL REPORTS. 

2 (a) POSSIBLE ACTIVITY.—The President shall submit 

3 to the appropriate congressional committees, not later 

4 than January 30th of each year, a report containing all 

5 credible information regarding the activities described in 

6 section 101(a), regardless of whether the President deter7 mines that such activities did in his judgment occur. 

8 (b) TRANSACTIONS BY FOREIGN PERSONS.—The 

9 President shall submit to the appropriate congressional 

10 committees, not later than June 30th of each year, a re11 port that identifies any foreign person or entity that en12 gages in transactions or dealings with foreign persons or 

13 entities on whom sanctions are in effect under section 

14 101(a) that— 

15 (1) would be prohibited transactions or dealings 

16 subject to sanctions under section 101(a) if those 

17 transactions or dealings had been conducted by 

18 United States persons or within the United States; 

19 and 

20 (2) could make material contributions to a nu21 clear enrichment, reprocessing, or nuclear weapon 

22 development program. 

23 The report under this subsection shall be unclassified to 

24 the maximum extent feasible, but may also include a clas25 sified annex. 
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1 TITLE II—INCENTIVES FOR PRO2 LIFERATION INTERDICTION 

3 COOPERATION 

4 SEC. 201. AUTHORITY TO PROVIDE ASSISTANCE. 

5 Notwithstanding any other provision of law, the 

6 President is authorized to provide, on such terms as he 

7 deems appropriate, assistance under section 202 to any 

8 country that cooperates with the United States and with 

9 other countries allied with the United States to prevent 

10 the transport and transshipment of items of proliferation 

11 concern in its national territory or airspace or in vessels 

12 under its control or registry. 

13 SEC. 202. TYPES OF ASSISTANCE. 

14 The assistance authorized under section 201 is the 

15 following: 

16 (1) Assistance under section 23 of the Arms 

17 Export Control Act (22 U.S.C. 2763). 

18 (2) Assistance under chapter 4 of part II of the 

19 Foreign Assistance Act of 1961, notwithstanding 

20 section 531(e) or 660(a) of that Act. 

21 (3) Drawdown of defense equipment and serv22 ices under section 516 of the Foreign Assistance Act 

23 of 1961. 
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1 SEC. 203. CONGRESSIONAL NOTIFICATION. 

2 Assistance authorized under this title may not be pro3 vided until at least 30 days after the date on which the 

4 President has provided notice thereof to the appropriate 

5 congressional committees, in accordance with the proce6 dures applicable to reprogramming notifications under 

7 section 634A(a) of the Foreign Assistance Act of 1961. 

8 SEC. 204. LIMITATION. 

9 Assistance may be provided to a country under sec10 tion 201 in no more than 3 fiscal years. 

11 SEC. 205. USE OF ASSISTANCE. 

12 To the extent practicable, assistance provided under 

13 this title shall be used to enhance the capability of the 

14 recipient country to prevent the transport and trans15 shipment of items of proliferation concern in its national 

16 territory or airspace, or in vessels under its control or reg17 istry, including through the development of a legal frame18 work in that country to enhance such capability. 

19 SEC. 206. AUTHORIZATION OF APPROPRIATIONS. 

20 (a) APPROPRIATIONS.—There is authorized to be ap21 propriated $250,000,000 to carry out this title. 

22 (b) AVAILABILITY.—Amounts appropriated pursuant 

23 to subsection (a) are authorized to remain available until 

24 expended. 
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1 SEC. 207. LIMITATION ON SHIP TRANSFERS. 

2 Notwithstanding any other provision of law, the 

3 United States may not transfer any excess defense article 

4 that is a vessel to a country that has not provided written 

5 assurances to the United States that it will support and 

6 assist efforts by the United States to interdict items of 

7 proliferation concern. 

8 SEC. 208. LIMITATION ON AIRCRAFT TRANSFERS. 

9 Notwithstanding any other provision of law, the 

10 United States may not transfer any excess defense article 

11 that is an aircraft to any country that has not provided 

12 written assurances to the United States that it will sup13 port and assist efforts by the United States to interdict 

14 items of proliferation concern. 

15 TITLE III—ROLLBACK OF KHAN 

16 NUCLEAR PROLIFERATION 

17 NETWORK 

18 SEC. 301. COOPERATION OF PAKISTAN. 

19 (a) LIMITATION.—Notwithstanding any other provi20 sion of law, the President may not provide, in any fiscal 

21 year, more than 75 percent of United States assistance 

22 to Pakistan unless the President determines and certifies 

23 to the appropriate congressional committees that Paki24 stan— 

25 (1) has verifiably halted any cooperation with 

26 any state in the development of nuclear or missile 
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1 technology, material, or equipment, or any other 

2 technology, material, or equipment that is useful for 

3 the development of weapons of mass destruction, in4 cluding exports of such technology, material, or 

5 equipment; and 

6 (2) is fully sharing with the United States all 

7 information relevant to the A.Q. Khan proliferation 

8 network, and has provided full access to A.Q. Khan 

9 and his associates and any documentation, declara10 tions, affidavits, or other material that bears upon 

11 their proliferation network activities and contacts. 

12 (b) WAIVER.— 

13 (1) AUTHORITY.—The President may waive the 

14 requirements of subsection (a) in a fiscal year if— 

15 (A) the President has certified to the ap16 propriate congressional committees that— 

17 (i) the waiver is in the vital interest of 

18 the national security of the United States; 

19 (ii) the waiver will promote Pakistan’s 

20 cooperation in achieving the conditions set 

21 forth in paragraphs (1) and (2) of sub22 section (a); and 

23 (iii) Pakistan’s lack of cooperation is 

24 not significantly hindering efforts of the 

25 United States to investigate and eliminate 
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1 the Khan proliferation network and any 

2 successor networks; and 

3 (B) 30 days have elapsed since making the 

4 certification under subparagraph (A). 

5 (2) BRIEFING.—Within 5 days after making a 

6 certification under paragraph (1), the Secretary of 

7 State shall brief the appropriate congressional com8 mittees on the degree to which Pakistan has or has 

9 not satisfied the conditions set forth in paragraphs 

10 (1) and (2) of subsection (a)(1). 

11 (3) LIMITATION.—The waiver authority under 

12 paragraph (1) may not be exercised in two succes13 sive fiscal years. 

14 SEC. 302. IDENTIFICATION OF PROLIFERATION NETWORK 

15 HOST COUNTRIES. 

16 (a) REPORT.—Not later than 30 days after the date 

17 of the enactment of this Act, the President shall submit 

18 a report to the appropriate congressional committees that 

19 identifies any country in which manufacturing, brokering, 

20 shipment, transshipment, or other significant activity oc21 curs that is related to the transactions carried out by the 

22 various elements and entities of the A.Q. Khan nuclear 

23 proliferation network. 

24 (b) ADDITIONAL INFORMATION.—After the report is 

25 submitted under subsection (a), the President shall submit 
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1 to the appropriate congressional committees any addi2 tional information described in subsection (a) with respect 

3 to any country, as such information becomes available. 

4 SEC. 303. SUSPENSION OF ARMS SALES LICENSES AND DE5 LIVERIES TO PROLIFERATION NETWORK 

6 HOST COUNTRIES. 

7 (a) SUSPENSION.—Upon submission of the report 

8 and any additional information under section 302 to the 

9 appropriate congressional committees, the President shall 

10 suspend all licenses issued under the Arms Export Control 

11 Act, and shall prohibit any licenses to be issued under that 

12 Act, to any country identified in the report or additional 

13 information, until such time as the President certifies to 

14 the appropriate congressional committees that such coun15 try—

16 (1) has—

17 (A) fully investigated the activities of any 

18 person or entity within its territory that has 

19 participated in the Khan nuclear proliferation 

20 network; and 

21 (B) taken effective steps to permanently 

22 halt all such activities; 

23 (2) is fully cooperating with the United States 

24 in investigating and eliminating the Khan nuclear 
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1 proliferation network and any successor networks 

2 operating within its territory; and 

3 (3) has enacted new laws, promulgated decrees 

4 or regulations, or established practices designed to 

5 prevent future such activities from occurring within 

6 its territory. 

7 (b) WAIVER.—The President may waive the require8 ments of subsection (a) in a fiscal year if—

9 (1) the President has certified to the appro10 priate congressional committees that the waiver is in 

11 the vital interest of the national security of the 

12 United States; and 

13 (2) 5 days have elapsed since making the cer14 tification under paragraph (1). 

15 TITLE IV—GENERAL 

16 PROVISIONS 

17 SEC. 401. DEFINITIONS. 

18 In this Act: 

19 (1) APPROPRIATE CONGRESSIONAL COMMIT20 TEES.—The term ‘‘appropriate congressional com21 mittees’’ means the Committee on International Re22 lations of the House of Representatives and the 

23 Committee on Foreign Relations of the Senate. 

24 (2) EXCESS DEFENSE ARTICLE.—The term 

25 ‘‘excess defense article’’ has the meaning given that 
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1 term in section 644(g) of the Foreign Assistance Act 

2 of 1961 (22 U.S.C. 2403(g)). 

3 (3) FOREIGN PERSON.—The term ‘‘foreign per4 son’’ means a person other than a United States 

5 person. 

6 (4) ITEMS OF PROLIFERATION CONCERN.—The 

7 term ‘‘items of proliferation concern’’ means any 

8 equipment, materials, or technology that could mate9 rially support the research, development, manufac10 turing, or acquisition by any means of a nuclear ex11 plosive device, a chemical or biological weapon, or 

12 missile with a payload of 500 kilograms or greater 

13 and with a range of 300 kilometers or greater. 

14 (5) NON-NUCLEAR WEAPON STATE.—The term 

15 ‘‘non-nuclear weapon state’’ means any state other 

16 than the United States, the United Kingdom, 

17 France, the Russian Federation, or the People’s Re18 public of China. 

19 (6) PERSON.—The term ‘‘person’’—

20 (A) means a natural person as well as a 

21 corporation, business association, partnership, 

22 society, trust, any other nongovernmental enti23 ty, organization, or group, and any govern24 mental entity, or subsidiary, subunit, or parent 
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1 entity thereof, and any successor of any such 

2 entity; and 

3 (B) in the case of a country where it may 

4 be impossible to identify a specific governmental 

5 entity referred to in subparagraph (A), means 

6 all activities of that government relating to the 

7 development or production of any nuclear 

8 equipment or technology. 

9 (7) UNITED STATES ASSISTANCE.—The term 

10 ‘‘United States assistance’’ means assistance under 

11 the foreign operations, export financing, and related 

12 programs appropriations Act for a fiscal year, and 

13 assistance under the Foreign Assistance Act of 

14 1961. 

15 (8) UNITED STATES PERSON.—The term 

16 ‘‘United States person’’ has the meaning given that 

17 term in section 14 of the Iran and Libya Sanctions 

18 Act of 1996 (22 U.S.C. 1701 note).

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