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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2358 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2358

To impose sanctions against any foreign person or United States person 
that assists a foreign country in acquiring a nuclear explosive device 
       or unsafeguarded nuclear material, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 1993

Mr. Lantos introduced the following bill; which was referred jointly to 
   the Committees on Foreign Affairs and Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL

 
To impose sanctions against any foreign person or United States person 
that assists a foreign country in acquiring a nuclear explosive device 
       or unsafeguarded nuclear material, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Omnibus Nuclear Proliferation 
Control Act of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
                 TITLE I--REPORTING ON NUCLEAR EXPORTS

Sec. 101.  Reports of the President.
             TITLE II--SANCTIONS FOR NUCLEAR PROLIFERATION

Sec. 201. Imposition of sanctions.
Sec. 202. Eligibility for assistance.
Sec. 203. Role of international financial institutions.
Sec. 204. Amendment to the International Emergency Economic Powers Act.
Sec. 205. Amendment to the Federal Deposit Insurance Corporation 
                            Improvement Act of 1991.
Sec. 206. Export-Import Bank of the United States.
Sec. 207. Additional amendments to the Foreign Assistance Act of 1961.
Sec. 208. Reward.
Sec. 209. Reports.
Sec. 210. Technical correction.
             TITLE III--INTERNATIONAL ATOMIC ENERGY AGENCY

Sec. 301. Bilateral and multilateral initiatives.
Sec. 302. IAEA internal reforms.
Sec. 303. Reporting requirement.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``direct-use material'' means nuclear material 
        that can be used for the manufacture of nuclear explosive 
        components without transmutation or further enrichment, such as 
        plutonium containing less than 80 percent plutonium-238, 
        uranium enriched to 20 percent uranium-235 or more, uranium-
        233, and chemical compounds, mixtures of direct-use materials 
        (including mixed oxide reactor fuel), and plutonium contained 
        in spent nuclear fuel.
            (2) the term ``goods or technology'' means nuclear 
        materials and equipment and sensitive nuclear technology (as 
        such terms are defined in section 4 of the Nuclear Non-
        Proliferation Act of 1978), all export items designated by the 
        President pursuant to section 309(c) of the Nuclear Non-
        Proliferation Act of 1978, and all technical assistance 
        requiring authorization under section 57b. of the Atomic Energy 
        Act of 1954;
            (3) the term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more in the isotope U-235;
            (4) the term ``IAEA'' means the International Atomic Energy 
        Agency;
            (5) the term ``IAEA safeguards'' means the safeguards set 
        forth in an agreement between a country and the International 
        Atomic Energy Agency, as authorized by Article III(A)(5) of the 
        Statute of the International Atomic Energy Agency;
            (6) the term ``near real time material accountancy'' means 
        a method of accounting for the location, quantity, and 
        disposition of special fissionable material at facilities that 
        store or process such material, in which verification of 
        peaceful use is continuously achieved by means of frequent 
        physical inventories and the use of in-process instrumentation;
            (7) the term ``non-nuclear-weapon state'' means any country 
        which is not a nuclear-weapon state, as defined by Article IX 
        (3) of the Treaty on the Non-Proliferation of Nuclear Weapons, 
        signed at Washington, London, and Moscow on July 1, 1968;
            (8) the term ``nuclear explosive device'' means any device, 
        whether assembled or disassembled, that is designed to release 
        in one microsecond or less an amount of nuclear energy from 
        special nuclear material that is greater than the amount of 
        energy that would be released from the detonation of one pound 
        of trinitrotoluene (TNT);
            (9) the term ``special fissionable material'', as used in 
        title III of this Act, has the meaning given that term by 
        Article XX(1) of the Statute of the International Atomic Energy 
        Agency, done at the Headquarters of the United Nations on 
        October 26, 1956;
            (10) the term ``special nuclear material'' has the meaning 
        given that term in section 11 aa. of the Atomic Energy Act of 
        1954 (42 U.S.C. 2014aa);
            (11) the term ``Treaty'' means the Treaty on the Non-
        Proliferation of Nuclear Weapons, signed at Washington, London, 
        and Moscow on July 1, 1968; and
            (12) the term ``unsafeguarded special nuclear material'' 
        means special nuclear material which is held in violation of 
        IAEA safeguards or is not subject to IAEA safeguards, and does 
        not include any quantity of material that could, if it were 
        exported from the United States, be exported under a general 
        license issued by the Nuclear Regulatory Commission.

                 TITLE I--REPORTING ON NUCLEAR EXPORTS

SEC. 101. REPORTS OF THE PRESIDENT.

    Section 601(a) of the Nuclear Non-Proliferation Act of 1978 (22 
U.S.C. 3281(a)) is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (3) by adding after paragraph (5) the following new 
        paragraph:
            ``(6) a description of the implementation of nuclear export 
        controls in the preceding calendar year, including a summary by 
        type of commodity, by value per type of commodity, and by 
        destination, of--
                    ``(A) any transactions for which--
                            ``(i) a license was issued for the export 
                        or retransfer of any good controlled under 
                        section 309(c) of the Nuclear Non-Proliferation 
                        Act of 1978;
                            ``(ii) a license was issued for the export 
                        or retransfer of any good controlled under 
                        section 109 b. of the 1954 Act; and
                            ``(iii) an authorization was made as 
                        required by section 57 b.(2) of the 1954 Act to 
                        engage, directly or indirectly, in the 
                        production of special nuclear material; and
                    ``(B) each instance in which--
                            ``(i) a sanction has been imposed under 
                        section 201(a) of the Omnibus Nuclear 
                        Proliferation Control Act of 1993, section 
                        670(b)(1) of the Foreign Assistance Act of 
                        1961, or section 601 or 602 of the Federal 
                        Deposit Insurance Corporation Improvement Act 
                        of 1991;
                            ``(ii) a sale or lease has been denied 
                        under section 3(f) of the Arms Export Control 
                        Act or a transaction prohibited by reason of 
                        any act relating to proliferation of nuclear 
                        explosive devices, as described in section 
                        40(d) of that Act;
                            ``(iii) a sanction has not been imposed by 
                        reason of section 201(c)(2) of the Omnibus 
                        Nuclear Proliferation Control Act of 1993 or 
                        the imposition of a sanction has been delayed 
                        under section 670(b)(4) of the Foreign 
                        Assistance Act of 1961; or
                            ``(iv) a waiver of a sanction has been made 
                        under--
                                    ``(I) section 201(f) of the Omnibus 
                                Nuclear Proliferation Control Act of 
                                1993,
                                    ``(II) section 620E(d), or 
                                paragraph (5) or (6) of section 670(b), 
                                of the Foreign Assistance Act of 1961,
                                    ``(III) section 605 of the Federal 
                                Deposit Insurance Corporation 
                                Improvement Act of 1991,
                                    ``(IV) section 40(g) of the Arms 
                                Export Control Act with respect to the 
                                last sentence of section 40(d) of that 
                                Act, or
                                    ``(V) section 614 of the Foreign 
                                Assistance Act of 1961 with respect to 
                                section 620E or 670(b)(1) of that Act 
                                or section 3(f), or the last sentence 
                                of section 40(d), of the Arms Export 
                                Control Act.''.

             TITLE II--SANCTIONS FOR NUCLEAR PROLIFERATION

SEC. 201. IMPOSITION OF SANCTIONS.

    (a) Determination by the President.--
            (1) In general.--Except as provided in subsection (b)(2), 
        the President shall impose the applicable sanctions described 
        in subsection (c) if the President determines that a foreign 
        person or a United States person, on or after the date of 
        enactment of this Act, has materially and with requisite 
        knowledge contributed--
                    (A) through the export from the United States of 
                any goods or technology that are subject to the 
                jurisdiction of the United States, or
                    (B) through the export from any other country of 
                any goods or technology that would be, if they were 
                exported from the United States, subject to the 
                jurisdiction of the United States,
        to the efforts by any individual, group, or non-nuclear-weapon 
        state to acquire unsafeguarded special nuclear material or to 
        use, develop, produce, stockpile, or otherwise acquire any 
        nuclear explosive device, whether or not the goods or 
        technology is specifically designed or modified for that 
        purpose.
            (2) Persons against which sanctions are to be imposed.--
        Sanctions shall be imposed pursuant to paragraph (1) on--
                    (A) the foreign person or United States person with 
                respect to which the President makes the determination 
                described in that paragraph;
                    (B) any successor entity to that foreign person or 
                United States person;
                    (C) any foreign person or United States person that 
                is a parent or subsidiary of that person if that parent 
                or subsidiary materially and with requisite knowledge 
                assisted in the activities which were the basis of that 
                determination; and
                    (D) any foreign person or United States person that 
                is an affiliate of that person if that affiliate 
                materially and with requisite knowledge assisted in the 
                activities which were the basis of that determination 
                and if that affiliate is controlled in fact by that 
                foreign person.
            (3) Other sanctions available.--The sanctions which are 
        required to be imposed for activities described in this 
        subsection are in addition to any other sanction which may be 
        imposed for the same activities under any other provision of 
        law.
            (4) Definition.--For purposes of this subsection, the term 
        ``requisite knowledge'' means situations in which a person 
        ``knows'', as ``knowing'' is defined in section 104 of the 
        Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2), and 
        includes situations in which a person has reason to know.
    (b) Consultation With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes a determination 
        described in subsection (a)(1) with respect to a foreign 
        person, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of sanctions pursuant to this section.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of sanctions pursuant to this section for 
        up to 90 days. Following these consultations, the President 
        shall impose sanctions unless the President determines and 
        certifies to the Congress that that government has taken 
        specific and effective actions, including appropriate 
        penalties, to terminate the involvement of the foreign person 
        in the activities described in subsection (a)(1). The President 
        may delay the imposition of sanctions for up to an additional 
        90 days if the President determines and certifies to the 
        Congress that that government is in the process of taking the 
        actions described in the preceding sentence.
            (3) Report to congress.--Not later than 90 days after 
        making a determination under subsection (a)(1), the President 
        shall submit to the Committee on Foreign Relations and the 
        Committee on Governmental Affairs of the Senate and the 
        Committee on Foreign Affairs of the House of Representatives a 
        report on the status of consultations with the appropriate 
        government under this subsection, and the basis for any 
        determination under paragraph (2) of this subsection that such 
        government has taken specific corrective actions.
    (c) Sanctions.--
            (1) Description of sanctions.--The sanctions to be imposed 
        pursuant to subsection (a)(1) are, except as provided in 
        paragraph (2) of this subsection, that the United States 
        Government shall not procure, or enter into any contract for 
        the procurement of, any goods or services from any person 
        described in subsection (a)(2).
            (2) Exceptions.--The President shall not be required to 
        apply or maintain sanctions under this section--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy 
                        requirements essential to the national security 
                        of the United States;
                            (ii) if the President determines that the 
                        person or other entity to which the sanctions 
                        would otherwise be applied is a sole source 
                        supplier of the defense articles or services, 
                        that the defense articles or services are 
                        essential, and that alternative sources are not 
                        readily or reasonably available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security under defense coproduction 
                        agreements;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose the 
                sanctions;
                    (C) to--
                            (i) spare parts which are essential to 
                        United States products or production;
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production; or
                            (iii) routine servicing and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available;
                    (D) to information and technology essential to 
                United States products or production; or
                    (E) to medical or other humanitarian items.
    (d) Advisory Opinions.--(1) Upon the request of any person, the 
Secretary of State may, after appropriate consultation, issue an 
advisory opinion in writing to that person as to whether a proposed 
activity by that person would subject that person to sanctions under 
this section.
    (2) Issuance of an advisory opinion under paragraph (1) shall not 
exempt any person from compliance with the requirements of this Act.
    (3) For purposes of this subsection, the term ``appropriate 
consultation'' means consultation by the Secretary of State with the 
Secretary of Defense, the Director of the Arms Control and Disarmament 
Agency, and the heads of such other Federal agencies as the Secretary 
of State may determine are necessary.
    (e) Termination of Sanctions.--The sanctions imposed pursuant to 
this section shall apply for a period of at least 12 months following 
the imposition of sanctions and shall cease to apply thereafter only if 
the President determines and certifies to the Congress that--
            (1) reliable information indicates that the foreign person 
        or United States person with respect to which the determination 
        was made under subsection (a)(1) has ceased to aid or abet any 
        individual, group, or non-nuclear-weapon state in its efforts 
        to acquire unsafeguarded special nuclear material or any 
        nuclear explosive device, as described in that subsection; and
            (2) the President has received reliable assurances from the 
        foreign person or United States person, as the case may be, 
        that such person will not, in the future, aid or abet any 
        individual, group, or non-nuclear-weapon state in its efforts 
        to acquire unsafeguarded special nuclear material or any 
        nuclear explosive device, as described in subsection (a)(1).
    (f) Waiver.--
            (1) Criterion for waiver.--The President may waive the 
        application of any sanction imposed on any person pursuant to 
        this section, after the end of the 12-month period beginning on 
        the date on which that sanction was imposed on that person, if 
        the President determines and certifies to the Congress that the 
        continued imposition of the sanction would have a serious 
        adverse effect on vital United States interests.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the Congress not 
        less than 20 days before the waiver takes effect. Such 
        notification shall include a report fully articulating the 
        rationale and circumstances which led the President to exercise 
        the waiver authority.
    (g) Definitions.--For purposes of this section--
            (1) the term ``foreign person'' means--
                    (A) an individual who is not a citizen of the 
                United States or an alien admitted for permanent 
                residence to the United States; or
                    (B) a corporation, partnership, or other 
                nongovernment entity which is created or organized 
                under the laws of a foreign country or which has its 
                principal place of business outside the United States; 
                and
            (2) the term ``United States person'' means--
                    (A) an individual who is a citizen of the United 
                States or an alien admitted for permanent residence to 
                the United States; or
                    (B) a corporation, partnership, or other entity 
                which is not a foreign person.

SEC. 202. ELIGIBILITY FOR ASSISTANCE.

    (a) Amendments to the Arms Export Control Act.--(1) Section 3 of 
the Arms Export Control Act (22 U.S.C. 2753) is amended by adding at 
the end the following new subsection:
    ``(f) No sales or leases shall be made under this Act to any 
country that the President has determined is in material breach of its 
commitments to the United States under international treaties or 
agreements concerning the nonproliferation of nuclear explosive devices 
(as defined in section 3(8) of the Omnibus Nuclear Proliferation 
Control Act of 1993) and unsafeguarded special nuclear material (as 
defined in section 3(12) of that Act).''.
    (2) Section 40 of such Act (22 U.S.C. 2780) is amended--
            (A) in subsection (d), by adding at the end the following 
        new sentence: ``For purposes of this subsection, such acts 
        shall include any activity that the Secretary determines 
        willfully aids or abets the international proliferation of 
        nuclear explosive devices to an individual or group or 
        willfully aids or abets an individual or group in acquiring 
        unsafeguarded special nuclear material.''; and
            (B) in subsection (l)--
                    (i) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (ii) in paragraph (3), by striking the period at 
                the end and inserting a semicolon; and
                    (iii) by adding at the end the following:
            ``(4) the term `nuclear explosive device' has the meaning 
        given that term in section 3(8) of the Omnibus Nuclear 
        Proliferation Control Act of 1993; and
            ``(5) the term `unsafeguarded special nuclear material' has 
        the meaning given that term in section 3(12) of the Omnibus 
        Nuclear Proliferation Control Act of 1993.''.
    (b) Amendments to the Foreign Assistance Act of 1961.--
            (1) Section 670(a)(2) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2429a(a)(2)) is amended in the first sentence--
                    (A) by inserting ``in any fiscal year'' after 
                ``President''; and
                    (B) by inserting ``during that fiscal year'' after 
                ``certifies in writing''.
            (2) Notwithstanding any other provision of law, 
        Presidential Determination No. 82-7 of February 10, 1982, shall 
        have no force or effect with respect to any grounds for the 
        prohibition of assistance under section 670(a)(1) of such Act 
        arising on or after the date of enactment of this Act.
            (3) Section 620E(d) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2375(d)) is amended to read as follows:
    ``(d) The President may waive the prohibitions of section 669 of 
this Act with respect to any grounds for the prohibition of assistance 
under that section arising before the date of enactment of the Omnibus 
Nuclear Proliferation Control Act of 1993 to provide assistance to 
Pakistan if he determines that to do so is in the national interest of 
the United States.''.

SEC. 203. ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS.

    (a) In General.--The Secretary of the Treasury shall instruct the 
United States executive director to each of the international financial 
institutions described in section 701(a) of the International Financial 
Institutions Act (22 U.S.C. 262d(a)) to use the voice and vote of the 
United States to oppose any direct or indirect use of the institution's 
funds to promote the acquisition of unsafeguarded special nuclear 
material or the development, stockpiling, or use of any nuclear 
explosive device by any non-nuclear-weapon state.
    (b) Duties of United States Executive Directors.--Section 701(b)(3) 
of the International Financial Institutions Act (22 U.S.C. 262d(b)(3)) 
is amended to read as follows:
            ``(3) whether the recipient country--
                    ``(A) has been found by the President to be seeking 
                to acquire unsafeguarded special nuclear material (as 
                defined in section 3(12) of the Omnibus Nuclear 
                Proliferation Control Act of 1993) or a nuclear 
                explosive device (as defined in section 3(8) of that 
                Act);
                    ``(B) is not a State Party to the Treaty on Non-
                Proliferation of Nuclear Weapons; or
                    ``(C) has detonated a nuclear explosive device; 
                and''.

SEC. 204. AMENDMENT TO THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT.

    Section 202 of the International Emergency Economic Powers Act (50 
U.S.C. 1701) is amended by adding at the end thereof the following new 
subsection:
    ``(c) For the purpose of this section, the term `any unusual and 
extraordinary threat' includes any international event that the 
President determines may involve the detonation of a nuclear explosive 
device (as defined in section 3(8) of the Omnibus Nuclear Proliferation 
Control Act of 1993) or an action or activity that substantially 
contributes to the likelihood of the proliferation or detonation of 
such devices, including the acquisition by a non-nuclear-weapon state 
of unsafeguarded special nuclear material (as defined in section 3(12) 
of that Act).''.

SEC. 205. AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE CORPORATION 
              IMPROVEMENT ACT OF 1991.

    The Federal Deposit Insurance Corporation Improvement Act of 1991 
is amended by adding at the end the following new title:

            ``TITLE VI--SANCTIONS ON FINANCIAL INSTITUTIONS

``SEC. 601. PRESIDENTIAL DETERMINATION.

    ``(a) In General.--The prohibitions in section 603 shall be imposed 
on a financial institution if the President determines that such 
financial institution, on or after the date which is 60 days after the 
date of enactment of this section, has materially and with requisite 
knowledge contributed, through provision of financing or other 
services, to the efforts by any individual, group, or non-nuclear-
weapon state to acquire unsafeguarded special nuclear material or to 
use, develop, produce, stockpile, or otherwise acquire any nuclear 
explosive device, as these standards and terms would be applied under 
section 201(a) of the Omnibus Nuclear Proliferation Control Act of 
1993.
    ``(b) Presidential Order.--Whenever the President makes a 
determination under subsection (a) with respect to a financial 
institution, the President shall issue an order specifying a date 
within 180 days after such determination on which the prohibitions in 
section 603 shall begin to apply to such institution.

``SEC. 602. ADDITIONAL ENTITIES AGAINST WHICH SANCTIONS ARE TO BE 
              IMPOSED.

    ``The prohibitions described in section 603 shall also be imposed, 
pursuant to section 601, on--
            ``(1) any successor entity to the financial institution 
        with respect to which the President makes a determination under 
        section 601(a);
            ``(2) any foreign person or United States person that is a 
        parent or subsidiary of that financial institution if that 
        parent or subsidiary materially and with requisite knowledge 
        assisted in the activities which were the basis of that 
        determination; and
            ``(3) any foreign person or United States person that is an 
        affiliate of that financial institution if that affiliate 
        materially and with requisite knowledge assisted in the 
        activities which were the basis of such determination and if 
        that affiliate is controlled in fact by that financial 
        institution.

``SEC. 603. PROHIBITIONS.

    ``The following prohibitions shall apply to a financial institution 
with respect to which a determination is made under section 601(a) and 
to the entities described in section 602:
            ``(1) Ban on dealings in government finance.--
                    ``(A) Designation as primary dealer.--Neither the 
                Board of Governors of the Federal Reserve System nor 
                the Federal Reserve Bank of New York may designate, or 
                permit the continuation of any prior designation of, 
                such financial institution or any such entity as a 
                primary dealer in United States Government debt 
                instruments.
                    ``(B) Government funds.--Such financial institution 
                or any such entity shall not serve as agent of the 
                United States Government or serve as repository for 
                United States Government funds.
            ``(2) Restrictions on operations.--Such financial 
        institution or any such entity shall not, directly or 
        indirectly--
                    ``(A) commence any line of business in the United 
                States in which it was not engaged as of the date of 
                the determination; or
                    ``(B) conduct business from any location in the 
                United States at which it did not conduct business as 
                of the date of the determination.

``SEC. 604. CONDITIONS AND TERMINATION OF SANCTIONS.

    ``The same requirements for consultation with the foreign 
government of jurisdiction, where appropriate, and for termination of 
sanctions shall apply under this title as are provided in subsections 
(b) and (e), respectively, of section 201 of the Omnibus Nuclear 
Proliferation Control Act of 1993.

``SEC. 605. WAIVER.

    ``The President may waive the imposition of any prohibition imposed 
on any financial institution or other entity pursuant to section 601 or 
602 if the President determines and certifies to the Congress that the 
imposition of such prohibition would have a serious adverse effect on 
the safety and soundness of the domestic or international financial 
system or on domestic or international payments systems.

``SEC. 606. DEFINITIONS.

    ``As used in this title--
            ``(1) the term `financial institution' includes--
                    ``(A) a depository institution, including a branch 
                or agency of a foreign bank;
                    ``(B) a securities firm, including a broker or 
                dealer;
                    ``(C) an insurance company, including an agency or 
                underwriter;
                    ``(D) any other company that provides financial 
                services; or
                    ``(E) any subsidiary of any entity described in 
                subparagraph (A), (B), (C), or (D);
            ``(2) the term `requisite knowledge' means situations in 
        which a person `knows', as `knowing' is defined in section 104 
        of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-
        2), and includes situations in which a person has reason to 
        know; and
            ``(3) the terms `foreign person' and `United States person' 
        have the meanings given those terms in section 201(g) of the 
        Omnibus Nuclear Proliferation Control Act of 1993.''.

SEC. 206. EXPORT-IMPORT BANK OF THE UNITED STATES.

    Section 2(b)(4) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(4)) is amended in the first sentence by inserting after 
``device'' the following: ``(as defined in section 3(8) of the Omnibus 
Nuclear Proliferation Control Act of 1993), or that any country has 
willfully aided or abetted any non-nuclear-weapon state (as defined in 
section 3(7) of that Act) to acquire any such nuclear explosive device 
or to acquire unsafeguarded special nuclear material (as defined in 
section 3(12) of that Act).''.

SEC. 207. ADDITIONAL AMENDMENTS TO THE FOREIGN ASSISTANCE ACT OF 1961.

    (a) Additional Sanctions.--Section 670 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2429a(b)) is amended--
            (1) in subsection (b), by redesignating paragraphs (2), 
        (3), and (4) as paragraphs (4), (5), and (6), respectively; and
            (2) by amending subsection (b)(1) to read as follows:
    ``(b)(1) Except as provided in paragraphs (4), (5), and (6), in the 
event that the President determines that any country, after the date of 
enactment of the Omnibus Nuclear Proliferation Control of 1993--
            ``(A) transfers to a non-nuclear-weapon state a nuclear 
        explosive device,
            ``(B) is a non-nuclear-weapon state and either--
                    ``(i) receives a nuclear explosive device, or
                    ``(ii) detonates a nuclear explosive device,
            ``(C) transfers to a non-nuclear-weapon state any design 
        information or component which is determined by the President 
        to be important to, and known by the transferring country to be 
        intended by the recipient state for use in, the development or 
        manufacture of any nuclear explosive device, or
            ``(D) is a non-nuclear-weapon state and has sought and 
        received any design information or component which is 
        determined by the President to be important to, and intended by 
        the recipient state for use in, the development or manufacture 
        of any nuclear explosive device,
then the President shall forthwith report in writing his determination 
to the Congress and shall forthwith impose the sanctions described in 
paragraph (2) against that country.
    ``(2) The sanctions referred to in paragraph (1) are as follows:
            ``(A) The United States Government shall terminate 
        assistance to that country under this Act, except for 
        humanitarian assistance or food or other agricultural 
        commodities.
            ``(B) The United States Government shall terminate--
                    ``(i) sales to that country under the Arms Export 
                Control Act of any defense articles, defense services, 
                or design and construction services, and
                    ``(ii) licenses for the export to that country of 
                any item on the United States Munitions List.
            ``(C) The United States Government shall terminate all 
        foreign military financing for that country under the Arms 
        Export Control Act.
            ``(D) The United States Government shall deny to that 
        country any credit, credit guarantees, or other financial 
        assistance by any department, agency, or instrumentality of the 
        United States Government, except that the sanction of this 
        subparagraph shall not apply--
                    ``(i) to any transaction subject to the reporting 
                requirements of title V of the National Security Act of 
                1947 (relating to congressional oversight of 
                intelligence activities), or
                    ``(ii) to humanitarian assistance.
            ``(E) The United States Government shall oppose, in 
        accordance with section 701 of the International Financial 
        Institutions Act (22 U.S.C. 262d), the extension of any loan or 
        financial or technical assistance to that country by any 
        international financial institution.
            ``(F) The United States Government shall prohibit any 
        United States bank from making any loan or providing any credit 
        to the government of that country, except for loans or credits 
        for the purpose of purchasing food or other agricultural 
        commodities.
            ``(G) The President shall prohibit exports to that country 
        of all goods and technology (excluding food and other 
        agricultural commodities), except that such prohibition shall 
        not apply to any transaction subject to the reporting 
        requirements of title V of the National Security Act of 1947 
        (relating to congressional oversight of intelligence 
        activities).
    ``(3) As used in this subsection--
            ``(A) the term `design information' means information that 
        relates to the design of a nuclear explosive device and that is 
        not available to the public; and
            ``(B) the term `component' means a component of a nuclear 
        explosive device.''.
    (b) Definition of Nuclear Explosive Device.--Section 644 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2403) is amended by adding at 
the end the following:
    ``(q) `Nuclear explosive device' has the meaning given that term in 
section 3(8) of the Omnibus Nuclear Proliferation Control Act of 
1993.''.
    (c) Conforming Amendments.--Section 670(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2429a(b)) is further amended--
            (1) in paragraph (4) (as redesignated by subsection (a)(1) 
        of this section)--
                    (A) in subparagraph (A)--
                            (i) by striking ``furnish assistance which 
                        would otherwise be prohibited under paragraph 
                        (1)'' and inserting ``delay the imposition of 
                        sanctions which would otherwise be required 
                        under paragraph (1)(A) or (1)(B)'';
                            (ii) by striking ``, before furnishing such 
                        assistance, the President'' and inserting ``the 
                        President first''; and
                            (iii) by striking ``termination of 
                        assistance to'' and inserting ``imposition of 
                        sanctions on'';
                    (B) in subparagraph (B) by striking ``(3)'' and 
                inserting ``(5)''; and
                    (C) in subparagraph (E)--
                            (i) by striking ``(b)(2)'' and inserting 
                        ``(b)(4)''; and
                            (ii) by striking ``(b)(3)'' and inserting 
                        ``(b)(5)'';
            (2) in paragraph (5) (as so redesignated)--
                    (A) by striking ``(2)'' and inserting ``(4)'';
                    (B) by striking ``furnish assistance which would 
                otherwise be prohibited under paragraph (1)'' and 
                inserting ``waive any sanction which would otherwise be 
                required under paragraph (1)(A) or (1)(B)''; and
                    (C) by striking ``termination of such assistance'' 
                and inserting ``imposition of such sanction'';
            (3) by redesignating paragraph (6) (as so redesignated) as 
        paragraph (7); and
            (4) by inserting after paragraph (5) (as so redesignated) 
        the following:
            ``(6) Notwithstanding any other provision of law, the 
        sanctions which are required to be imposed against a country 
        under paragraph (1)(C) or (1)(D) shall not apply if the 
        President determines and certifies in writing to the Committee 
        on Foreign Relations and the Committee on Governmental Affairs 
        of the Senate and the Committee on Foreign Affairs of the House 
        of Representatives that the application of such sanctions 
        against such country would have a serious adverse effect on 
        vital United States interests. The President shall transmit 
        with such certification a statement setting forth the specific 
        reasons therefor.''.

SEC. 208. REWARD.

    Section 36(a) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2708(a)) is amended--
            (1) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
            (2) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following:
            ``(2) For purposes of this subsection, the term `act of 
        international terrorism' includes any act substantially 
        contributing to the acquisition of unsafeguarded special 
        nuclear material (as defined in section 3(12) of the Omnibus 
        Nuclear Proliferation Control Act of 1993) or any nuclear 
        explosive device (as defined in section 3(8) of that Act) by an 
        individual or group.''.

SEC. 209. REPORTS.

    (a) Content of ACDA Annual Report.--Section 52 of the Arms Control 
and Disarmament Act (22 U.S.C. 2592) is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Congress'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting ``; and'';
            (4) by adding after paragraph (5) the following new 
        paragraph:
            ``(6) a section of the report shall deal with any material 
        noncompliance by foreign governments with their commitments to 
        the United States with respect to the prevention of the spread 
        of nuclear explosive devices (as defined in section 3(8) of the 
        Omnibus Nuclear Proliferation Control Act of 1993) by non-
        nuclear-weapon states (as defined in section 3(7) of that Act) 
        or the acquisition by such states of unsafeguarded special 
        nuclear material (as defined in section 3(12) of that Act), 
        including--
                    ``(A) a net assessment of the aggregate military 
                significance of all such violations;
                    ``(B) a statement of the compliance policy of the 
                United States with respect to violations of those 
                commitments; and
                    ``(C) what actions, if any, the President has taken 
                or proposes to take to bring any nation committing such 
                a violation into compliance with its commitments.''; 
                and
            (5) by adding at the end the following new subsection:
    ``(b) Reporting Consecutive Noncompliance.--If the President in 
consecutive reports submitted to the Congress under this section 
reports that any designated nation is not in full compliance with its 
nonproliferation commitments to the United States, then the President 
shall include in the second such report an assessment of what actions 
are necessary to compensate for such violations.''.
    (b) Reporting on Demarches.--(1)(A) Not later than six months after 
the date of enactment of this Act, the President shall submit to the 
congressional committees specified in section 602(c) of the Nuclear 
Non-Proliferation Act of 1978 an unclassified report that shall state 
the number of high-level demarches that was issued or received by the 
United States with respect to activities related to the proliferation 
of nuclear explosive devices.
    (B) The report described in subparagraph (A) shall cover demarches 
issued or received during the period beginning January 1, 1981, and 
ending December 31, 1993, and shall identify for each demarche the 
foreign country issuing or receiving the demarche, as the case may be.
    (2)(A) Section 601(a) of the Nuclear Non-Proliferation Act of 1978 
(22 U.S.C. 3281(a)), as amended by section 101, is further amended--
            (i) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (ii) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (iii) by adding after paragraph (6) the following new 
        paragraph:
            ``(7) a statement of the number of all high-level demarches 
        (as defined in section 209(b)(4) of the Omnibus Nuclear 
        Proliferation Control Act of 1993) issued by or received by the 
        United States with respect to activities related to the 
        proliferation of nuclear explosive devices, and shall identify 
        each foreign country issuing or receiving such a demarche, in 
        the preceding calendar year.''.
    (B) The amendments made by subparagraph (A) shall take effect on 
January 1, 1995.
    (3) It is the sense of the Congress that the Department of State 
should, in the course of implementing its reporting responsibilities 
under section 602(c) of the Nuclear Non-Proliferation Act of 1978, 
include a summary of all demarches that the United States has issued or 
received from foreign governments with respect to activities which are 
of significance from the proliferation standpoint.
    (4) For purposes of this subsection, the term ``high-level 
demarche'' means any official communication by one government to 
another at the presidential, vice presidential, ministerial, or 
ambassadorial level, by written or oral means, intended by the 
originating government to express--
            (A) a concern over a past, present, or possible future 
        action or activity of the recipient government, or of a person 
        within the jurisdiction of that government, contributing to the 
        global spread of unsafeguarded special nuclear material or of 
        nuclear explosive devices;
            (B) a request for the recipient government to counter such 
        action or activity; or
            (C) both the concern and request described in subparagraphs 
        (A) and (B).

SEC. 210. TECHNICAL CORRECTION.

    Section 133 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2160c) 
is amended by striking ``20 kilograms'' and inserting ``5 kilograms''.

             TITLE III--INTERNATIONAL ATOMIC ENERGY AGENCY

SEC. 301. BILATERAL AND MULTILATERAL INITIATIVES.

    It is the sense of the Congress that in order to maintain and 
enhance international confidence in the effectiveness of IAEA 
safeguards and in other multilateral undertakings to halt the global 
proliferation of nuclear explosive devices and associated technology, 
the United States should seek to negotiate with other nations and 
groups of nations, including the IAEA Board of Governors and the 
Nuclear Suppliers Group, to--
            (1) build international support for the principle that each 
        nuclear supply relationship involving a non-nuclear weapon 
        state must include a commitment by such state to the 
        application of full-scope international safeguards;
            (2) encourage each nuclear-weapon state within the meaning 
        of the Treaty on the Non-Proliferation of Nuclear Weapons to 
        undertake a comprehensive review of its own procedures for 
        declassifying information relating to the design or production 
        of nuclear explosive devices and to investigate any measures 
        that would reduce the risk of such information contributing to 
        the proliferation of such devices;
            (3) encourage the deferral of efforts to separate plutonium 
        or enrich uranium to 20 percent uranium-235 or more;
            (4) pursue greater financial support for the implementation 
        and improvement of safeguards from all IAEA member nations with 
        significant nuclear programs, particularly from those nations 
        that are currently using or planning to use direct-use material 
        for commercial purposes;
            (5) arrange for the timely payment of annual financial 
        contributions by all members of the IAEA, including the United 
        States;
            (6) discourage international commerce in highly enriched 
        uranium for use in research reactors while encouraging 
        multilateral cooperation to develop and to use low-enriched 
        alternative nuclear fuels;
            (7) oppose efforts by non-nuclear-weapon states to develop 
        or use unsafeguarded nuclear fuels for purposes of naval 
        propulsion;
            (8) pursue an international arrangement that would 
        authorize the IAEA to operate surveillance aircraft and would 
        facilitate IAEA access to satellite information for safeguards 
        verification purposes;
            (9) develop an institutional means for IAEA member nations 
        to share information with the IAEA on possible safeguards 
        violations;
            (10) require any exporter of a sensitive nuclear facility 
        or sensitive nuclear technology to notify the IAEA prior to 
        export and to require safeguards over that facility or 
        technology, regardless of its destination;
            (11) seek agreement among the parties to the Treaty to 
        apply IAEA safeguards in perpetuity and to consider the 
        establishment of new limits on the right to withdraw from the 
        Treaty;
            (12) encourage other nations to adopt legislation that 
        would tighten penalties against companies and individuals that 
        knowingly and materially assist any non-nuclear-weapon state or 
        group to an acquire a nuclear explosive device;
            (13) encourage the creation under IAEA auspices of 
        international repositories for the long-term storage of spent 
        nuclear fuel; and
            (14) develop measures to ensure the safe and long-term 
        storage under international auspices of special fissionable 
        material recovered as a consequence of nuclear disarmament 
        accords.

SEC. 302. REFORMS IN IAEA SAFEGUARDS.

    In order to promote the early adoption of reforms in the 
implementation of the safeguards responsibilities of the IAEA, the 
Congress urges the President to negotiate with other nations and groups 
of nations, including the IAEA Board of Governors and the Nuclear 
Suppliers Group, to--
            (1) improve the access of the IAEA within non-nuclear 
        weapon states to nuclear facilities that are capable of 
        producing, processing, or fabricating special fissionable 
        material suitable for use in a nuclear explosive device;
            (2)(A) facilitate the IAEA's efforts to meet and to 
        maintain its own goals for detecting the diversion of nuclear 
        materials and equipment, giving particular attention to 
        facilities in which there are bulk quantities of plutonium; and
            (B) if it is not technically feasible for the IAEA to meet 
        those detection goals in a particular facility, require the 
        IAEA to declare publicly that it is unable to do so;
            (3) enable the IAEA to issue fines for violations of 
        safeguards procedures, to pay rewards for information on 
        possible safeguards violations, and to establish a `hot line' 
        for the reporting of such violations and other illicit uses of 
        direct-use material;
            (4) examine the feasibility of applying safeguards at 
        facilities engaged in the manufacture of equipment or material 
        that is especially designed or prepared for the processing, 
        use, or production of special fissionable material or, in the 
        case of non-nuclear-weapon states, of any nuclear explosive 
        device;
            (5) examine the feasibility of applying safeguards over 
        research and development activities and facilities involving 
        sensitive nuclear technology, as defined in section 4(a)(6) of 
        the Nuclear Non-Proliferation Act of 1978, or any other 
        technology directly related to the acquisition or production of 
        nuclear explosive devices;
            (6) implement special inspections of undeclared nuclear 
        facilities, as provided for under existing safeguards 
        procedures, and seek authority for the IAEA to conduct short-
        notice inspections on demand at suspected nuclear sites;
            (7) expand the scope of safeguards to include tritium, 
        uranium concentrates, and nuclear waste containing significant 
        quantities of special fissionable material, and increase the 
        scope of such safeguards on heavy water;
            (8) revise downward the IAEA's official minimum amounts of 
        nuclear material (``significant quantity'') needed to make a 
        nuclear explosive device and establish these amounts as 
        national rather than facility standards;
            (9) expand the use of full-time resident IAEA inspectors at 
        sensitive fuel cycle facilities;
            (10) require the use of near real time material accountancy 
        in the conduct of safeguards at facilities that use, produce, 
        or store significant quantities of special fissionable 
        material;
            (11) develop with other IAEA member nations an agreement on 
        procedures to expedite approvals of visa applications by IAEA 
        inspectors;
            (12) provide the IAEA the additional funds, technical 
        assistance, and political support necessary to carry out the 
        goals set forth in this subsection; and
            (13) make public the annual safeguards implementation 
        report of the IAEA, establishing a public registry of 
        commodities in international nuclear commerce, including dual-
        use goods, and creating a public repository of current nuclear 
        trade control laws, agreements, regulations, and enforcement 
        and judicial actions by IAEA member nations.

SEC. 303. REPORTING REQUIREMENT.

    (a) Report Required.--Not later than 12 months after the date of 
enactment of this Act, the President shall submit to the congressional 
committees specified in section 602(c) of the Nuclear Non-Proliferation 
Act of 1978 (27 U.S.C.3282(c)) a report describing--
            (1) the steps he has taken to implement sections 301 and 
        302, and
            (2) the progress that has been made and the obstacles that 
        have been encountered in seeking to meet the objectives set 
        forth in sections 301 and 302.
    (b) Contents of Report.--Each report under paragraph (1) shall 
describe--
            (1) the bilateral and multilateral initiatives that the 
        President has taken during the period since the enactment of 
        this Act in pursuit of each of the objectives set forth in 
        sections 301 and 302;
            (2) any obstacles that have been encountered in the pursuit 
        of those initiatives;
            (3) any additional initiatives that have been proposed by 
        other countries or international organizations to strengthen 
        the implementation of IAEA safeguards;
            (4) all activities of the Federal Government in support of 
        the objectives set forth in sections 301 and 302;
            (5) any recommendations of the President on additional 
        measures to enhance the effectiveness of IAEA safeguards; and
            (6) any initiatives that the President plans to take in 
        support of each of the objectives set forth in sections 301 and 
        302.

                                 <all>

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