I
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 ma-
terial, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives 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 Improve-
ment 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 nu-
clear material that can be used for the manufacture
of nuclear explosive components without transmuta-
tion or further enrichment, such as plutonium con-
taining less than 80 percent plutonium-238, ura-
nium 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 nu-
clear 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 En-
ergy Act of 1954;
(3) the term ‘‘highly enriched uranium’’ means
uranium enriched to 20 percent or more in the iso-
tope 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 Agen-
cy, as authorized by Article III(A)(5) of the Statute
of the International Atomic Energy Agency;
(6) the term ‘‘near real time material account-
ancy’’ means a method of accounting for the loca-
tion, quantity, and disposition of special fissionable
material at facilities that store or process such mate-
rial, in which verification of peaceful use is continu-
ously achieved by means of frequent physical inven-
tories 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 Wash-
ington, 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 mate-
rial 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 sub-
ject 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 Commis-
sion.
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 nu-
clear 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 ex-
port 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 ex-
port 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 Nu-
clear Proliferation Control Act of 1993,
section 670(b)(1) of the Foreign Assist-
ance 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 Om-
nibus 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 Omni-
bus Nuclear Proliferation Control Act
of 1993,
‘‘(II) section 620E(d), or para-
graph (5) or (6) of section 670(b), of
the Foreign Assistance Act of 1961,
‘‘(III) section 605 of the Federal
Deposit Insurance Corporation Im-
provement 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 sub-
section (b)(2), the President shall impose the appli-
cable sanctions described in subsection (c) if the
President determines that a foreign person or a
United States person, on or after the date of enact-
ment 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 sub-
ject 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-nu-
clear-weapon state to acquire unsafeguarded special
nuclear material or to use, develop, produce, stock-
pile, or otherwise acquire any nuclear explosive de-
vice, whether or not the goods or technology is spe-
cifically designed or modified for that purpose.
(2) PERSONS AGAINST WHICH SANCTIONS ARE
TO BE IMPOSED.—Sanctions shall be imposed pursu-
ant to paragraph (1) on—
(A) the foreign person or United States
person with respect to which the President
makes the determination described in that para-
graph;
(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 ac-
tivities which were the basis of that determina-
tion; 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 con-
trolled in fact by that foreign person.
(3) OTHER SANCTIONS AVAILABLE.—The sanc-
tions 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 sub-
section, the term ‘‘requisite knowledge’’ means situa-
tions in which a person ‘‘knows’’, as ‘‘knowing’’ is
defined in section 104 of the Foreign Corrupt Prac-
tices 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 re-
spect 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
JURISDIC-
TION.—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 deter-
mines and certifies to the Congress that that govern-
ment has taken specific and effective actions, includ-
ing appropriate penalties, to terminate the involve-
ment 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 sen-
tence.
(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 Govern-
mental Affairs of the Senate and the Committee on
Foreign Affairs of the House of Representatives a
report on the status of consultations with the appro-
priate government under this subsection, and the
basis for any determination under paragraph (2) of
this subsection that such government has taken spe-
cific corrective actions.
(c) SANCTIONS.—
(1) DESCRIPTION
OF
SANCTIONS.—The sanc-
tions to be imposed pursuant to subsection (a)(1)
are, except as provided in paragraph (2) of this sub-
section, that the United States Government shall not
procure, or enter into any contract for the procure-
ment of, any goods or services from any person de-
scribed 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 sub-
contracts, including the exercise of options
for production quantities to satisfy require-
ments 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 avail-
able; 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 prod-
ucts or production; or
(iii) routine servicing and mainte-
nance of products, to the extent that alter-
native sources are not readily or reason-
ably available;
(D) to information and technology essen-
tial 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 ‘‘appro-
priate 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 for-
eign 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 assur-
ances from the foreign person or United States per-
son, 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 nu-
clear 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 Con-
gress that the continued imposition of the sanction
would have a serious adverse effect on vital United
States interests.
(2) NOTIFICATION OF AND REPORT TO CON-
GRESS.—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 notifica-
tion shall include a report fully articulating the ra-
tionale 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 per-
manent residence to the United States; or
(B) a corporation, partnership, or other
nongovernment entity which is created or orga-
nized 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 perma-
nent 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 follow-
ing 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 sub-
section, such acts shall include any activity that the
Secretary determines willfully aids or abets the
international proliferation of nuclear explosive de-
vices 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 pe-
riod 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 Om-
nibus 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 sec-
tion 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 Prolifera-
tion 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 INSTITU-
TIONS.
(a) IN GENERAL.—The Secretary of the Treasury
shall instruct the United States executive director to each
of the international financial institutions described in sec-
tion 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 develop-
ment, stockpiling, or use of any nuclear explosive device
by any non-nuclear-weapon state.
(b) DUTIES OF UNITED STATES EXECUTIVE DIREC-
TORS.—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 nu-
clear material (as defined in section 3(12) of
the Omnibus Nuclear Proliferation Control Act
of 1993) or a nuclear explosive device (as de-
fined 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 de-
vice; and’’.
SEC. 204. AMENDMENT TO THE INTERNATIONAL EMER-
GENCY ECONOMIC POWERS ACT.
Section 202 of the International Emergency Eco-
nomic 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 inter-
national 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 Con-
trol Act of 1993) or an action or activity that substantially
contributes to the likelihood of the proliferation or detona-
tion 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 INSUR-
ANCE CORPORATION IMPROVEMENT ACT OF
1991.
The Federal Deposit Insurance Corporation Improve-
ment 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 con-
tributed, through provision of financing or other services,
to the efforts by any individual, group, or non-nuclear-
weapon state to acquire unsafeguarded special nuclear ma-
terial 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 Presi-
dent makes a determination under subsection (a) with re-
spect to a financial institution, the President shall issue
an order specifying a date within 180 days after such de-
termination on which the prohibitions in section 603 shall
begin to apply to such institution.
‘‘SEC. 602. ADDITIONAL ENTITIES AGAINST WHICH SANC-
TIONS 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 insti-
tution 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 insti-
tution 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 as-
sisted 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 sec-
tion 602:
‘‘(1) BAN ON DEALINGS IN GOVERNMENT FI-
NANCE.—
‘‘(A) DESIGNATION
AS
PRIMARY
DEAL-
ER.—Neither the Board of Governors of the
Federal Reserve System nor the Federal Re-
serve Bank of New York may designate, or per-
mit the continuation of any prior designation
of, such financial institution or any such entity
as a primary dealer in United States Govern-
ment debt instruments.
‘‘(B) GOVERNMENT FUNDS.—Such finan-
cial institution or any such entity shall not
serve as agent of the United States Government
or serve as repository for United States Govern-
ment funds.
‘‘(2) RESTRICTIONS ON OPERATIONS.—Such fi-
nancial institution or any such entity shall not, di-
rectly 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 Con-
trol Act of 1993.
‘‘SEC. 605. WAIVER.
‘‘The President may waive the imposition of any pro-
hibition imposed on any financial institution or other en-
tity pursuant to section 601 or 602 if the President deter-
mines 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 fi-
nancial services; or
‘‘(E) any subsidiary of any entity described
in subparagraph (A), (B), (C), or (D);
‘‘(2) the term ‘requisite knowledge’ means situ-
ations in which a person ‘knows’, as ‘knowing’ is de-
fined in section 104 of the Foreign Corrupt Prac-
tices 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 Prolifera-
tion 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 sen-
tence by inserting after ‘‘device’’ the following: ‘‘(as de-
fined 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 nu-
clear material (as defined in section 3(12) of that Act).’’.
SEC. 207. ADDITIONAL AMENDMENTS TO THE FOREIGN AS-
SISTANCE 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 para-
graphs (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 ei-
ther—
‘‘(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 deter-
mined 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 com-
ponent 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 nu-
clear 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 ter-
minate assistance to that country under this Act, ex-
cept for humanitarian assistance or food or other
agricultural commodities.
‘‘(B) The United States Government shall ter-
minate—
‘‘(i) sales to that country under the Arms
Export Control Act of any defense articles, de-
fense services, or design and construction serv-
ices, and
‘‘(ii) licenses for the export to that country
of any item on the United States Munitions
List.
‘‘(C) The United States Government shall ter-
minate 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, agen-
cy, or instrumentality of the United States Govern-
ment, except that the sanction of this subparagraph
shall not apply—
‘‘(i) to any transaction subject to the re-
porting 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 op-
pose, in accordance with section 701 of the Inter-
national Financial Institutions Act (22 U.S.C.
262d), the extension of any loan or financial or tech-
nical assistance to that country by any international
financial institution.
‘‘(F) The United States Government shall pro-
hibit 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 commod-
ities.
‘‘(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 trans-
action 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 infor-
mation that relates to the design of a nuclear explo-
sive 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 follow-
ing:
‘‘(q) ‘Nuclear explosive device’ has the meaning given
that term in section 3(8) of the Omnibus Nuclear Pro-
liferation 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 sub-
section (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 other-
wise be required under paragraph (1)(A)
or (1)(B)’’;
(ii) by striking ‘‘, before furnishing
such assistance, the President’’ and insert-
ing ‘‘the President first’’; and
(iii) by striking ‘‘termination of assist-
ance to’’ and inserting ‘‘imposition of sanc-
tions 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 assist-
ance’’ and inserting ‘‘imposition of such sanc-
tion’’;
(3) by redesignating paragraph (6) (as so re-
designated) as paragraph (7); and
(4) by inserting after paragraph (5) (as so re-
designated) 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 cer-
tifies in writing to the Committee on Foreign Rela-
tions 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 inter-
ests. The President shall transmit with such certifi-
cation a statement setting forth the specific reasons
therefor.’’.
SEC. 208. REWARD.
Section 36(a) of the State Department Basic Au-
thorities 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 sub-
stantially 
contributing 
to 
the 
acquisition 
of
unsafeguarded special nuclear material (as defined
in section 3(12) of the Omnibus Nuclear Prolifera-
tion 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 para-
graph (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
what actions are necessary to compensate for such viola-
tions.’’.
(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-Prolifera-
tion Act of 1978 an unclassified report that shall state
the number of high-level demarches that was issued or re-
ceived by the United States with respect to activities relat-
ed to the proliferation of nuclear explosive devices.
(B) The report described in subparagraph (A) shall
cover demarches issued or received during the period be-
ginning 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-Prolifera-
tion Act of 1978 (22 U.S.C. 3281(a)), as amended by sec-
tion 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 re-
spect to activities related to the proliferation of nu-
clear explosive devices, and shall identify each for-
eign 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 Depart-
ment of State should, in the course of implementing its
reporting responsibilities under section 602(c) of the Nu-
clear Non-Proliferation Act of 1978, include a summary
of all demarches that the United States has issued or re-
ceived 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 presi-
dential, ministerial, or ambassadorial level, by written or
oral means, intended by the originating government to ex-
press—
(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 govern-
ment, 
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 main-
tain and enhance international confidence in the effective-
ness of IAEA safeguards and in other multilateral under-
takings 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 commit-
ment 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 infor-
mation relating to the design or production of nu-
clear explosive devices and to investigate any meas-
ures 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 im-
plementation 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 mate-
rial for commercial purposes;
(5) arrange for the timely payment of annual fi-
nancial 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 destina-
tion;
(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 legisla-
tion 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 aus-
pices 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 con-
sequence 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 spe-
cial 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 particu-
lar 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 un-
able to do so;
(3) enable the IAEA to issue fines for violations
of safeguards procedures, to pay rewards for infor-
mation on possible safeguards violations, and to es-
tablish a ‘hot line’ for the reporting of such viola-
tions and other illicit uses of direct-use material;
(4) examine the feasibility of applying safe-
guards 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-nu-
clear-weapon states, of any nuclear explosive device;
(5) examine the feasibility of applying safe-
guards over research and development activities and
facilities involving sensitive nuclear technology, as
defined in section 4(a)(6) of the Nuclear Non-Pro-
liferation Act of 1978, or any other technology di-
rectly related to the acquisition or production of nu-
clear explosive devices;
(6) implement special inspections of undeclared
nuclear facilities, as provided for under existing safe-
guards 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 fission-
able material, and increase the scope of such safe-
guards on heavy water;
(8) revise downward the IAEA’s official mini-
mum 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 facili-
ties 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 imple-
mentation report of the IAEA, establishing a public
registry of commodities in international nuclear com-
merce, including dual-use goods, and creating a pub-
lic repository of current nuclear trade control laws,
agreements, regulations, and enforcement and judi-
cial 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 sec-
tions 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 ob-
jectives 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 organi-
zations 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.
Æ
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