209
cise of the authorities contained in sections 105(a),
106(a), 107(a), and 108(a).
(2) With respect to multilateral export controls
imposed or maintained under section 105, the fol-
lowing:
(A) The effectiveness of each export con-
trol regime, as required by section 105(h), in-
cluding all information required by section
105(h)(2).
(B) Adjustments to multilateral export
controls.
(C) The implementation of the export li-
censing treatment authorized by section 105(e).
(D) Determinations of foreign availability
made under section 105(i), the criteria used to
make such determinations, the removal of any
export controls under such subsection, and any
evidence demonstrating a need to maintain ex-
port controls notwithstanding foreign availabil-
ity.
(E) The operation of the indexing system
under section 105(k).
(3) With respect to unilateral export controls
imposed under section 106, the following:
(A) The effectiveness of such controls.
210
(B) Adjustments to such controls pursuant
to negotiations under subsections (a)(5) and (c)
of section 106.
(C) Embargoes imposed, maintained, or re-
moved in accordance with section 106, including
descriptions of each embargo and the rationale
for imposing, maintaining, or removing such
embargo.
(4) Short supply controls and monitoring under
section 107.
(5) Organizational and procedural changes un-
dertaken in furtherance of the policies set forth in
this title, including changes to increase the efficiency
of the export licensing process and to fulfill the re-
quirements of section 109, including an accounting
of appeals received, and actions taken pursuant
thereto, under section 109(g).
(6) Violations under section 110 and enforce-
ment activities under section 113.
(7) The issuance of regulations under this title.
(8) The results, in as much detail as may be in-
cluded consistent with the strategic and political in-
terests of the United States and the need to main-
tain the confidentiality of proprietary information, of
the reviews of the security control list, and any revi-
211
sions to the list resulting from such reviews, re-
quired by section 105.
(9) Each of the assessments described in sec-
tion 114(a)(2).
(b) INFORMATION ON SECTION 111.—
(1) INFORMATION
TO
BE
INCLUDED.—The
President shall include in each annual report under
subsection (a)—
(A) a description of the actions taken to
carry out section 111, including the imposition
and removal of sanctions under such section;
(B) a description of the current efforts of
foreign countries and subnational groups to ac-
quire equipment, materials, or technology to de-
velop, produce, or use chemical or biological
weapons, together with an assessment of the
current and likely future capabilities of such
countries and groups to develop, produce, stock-
pile, deliver, transfer, or use such weapons;
(C) a description of—
(i) the use of chemical or biological
weapons by foreign countries in violation of
international law,
(ii) the use of chemical or biological
weapons by subnational groups,
212
(iii) substantial preparations by for-
eign countries and subnational groups to
do so, and
(iv) 
the 
development, 
production,
stockpiling, or use of chemical or biological
weapons 
by 
foreign 
countries 
and
subnational groups; and
(D) a description of the extent to which
foreign persons or governments have knowingly
and materially assisted third countries or
subnational groups to acquire equipment, mate-
rial, or technology intended to develop, produce,
or use chemical or biological weapons.
(2) INFORMATION
SHOULD
BE
UNCLASSI-
FIED.—To the extent practicable, information sub-
mitted under paragraph (1) should be based on un-
classified information.
SEC. 116. DEFINITIONS.
As used in this title:
(1) AUSTRALIA GROUP.—The term ‘‘Australia
Group’’ means the multilateral arrangement in
which the United States participates that seeks to
prevent the proliferation of chemical and biological
weapons.
213
(2) COCOM.—The term ‘‘COCOM’’ means the
Coordinating Committee for Multilateral Export
Controls, and any successor entity.
(3) 
COMMODITY.—The 
term 
‘‘commodity’’
means any article, natural or manmade substance,
material, supply, or manufactured product, including
inspection and test equipment, and excluding tech-
nical data.
(4) CONTROL
OR
CONTROLLED.—The terms
‘‘control’’ and ‘‘controlled’’ refer to a requirement
that an export have a validated license or written re-
export authorization.
(5) CONTROL
INDEX.—The term ‘‘control
index’’ means the United States Commodity Control
Index established under section 104(c)(1).
(6) CONTROLLABLE.—The term ‘‘controllable’’
means capable of being made subject to an effective
prohibition or significant restriction on exports. A
commodity or technology shall not be considered to
be controllable unless it is—
(A) manufactured or sold by only a limited
number of suppliers who can be positively iden-
tified;
(B) consumed or used by only a limited
number of end users who can be positively iden-
214
tified and whose export activities can be con-
trolled; and
(C) individually traceable or not easily con-
cealed or disguised.
(7) CONTROLLED COUNTRY, CONTROLLED END
USE, AND CONTROLLED END USER.—(A) The term
‘‘controlled country’’ means a country identified
under section 105(b)(3), and a country on which
controls are imposed under section 106.
(B) The term ‘‘controlled end use’’ means an
end use identified under section 105(b)(3) and an
end use for which exports are controlled under sec-
tion 106.
(C) The term ‘‘controlled end user’’ means an
end user identified under section 105(b)(3) and an
end user to which exports are controlled under sec-
tion 106.
(8) COOPERATING
COUNTRY.—The term ‘‘co-
operating country’’ means a country that, pursuant
to an agreement or other arrangement with the
United States or an export control regime, controls
exports of items that are consistent with the criteria
and standards of that export control regime.
(9) END USE AND END USER.—(A) The term
‘‘end use’’ means the intended application or use of
215
an item as represented by an export license appli-
cant.
(B) The term ‘‘end user’’ means the person lo-
cated abroad who is the true party in interest in ac-
tually receiving an export for the end use designated
for the export.
(10) EXPORT.—The term ‘‘export’’—
(A) means—
(i) an actual shipment, transfer, or
transmission of items out of the United
States; and
(ii) a transfer to any person of items
either within the United States or outside
of the United States with the knowledge or
intent that the items will be shipped out-
side the United States, transferred, or
transmitted to an unauthorized end user,
end use, or destination;
(B) includes the transfer of the registra-
tion of a satellite or operational control of a
satellite from a party resident in the United
States to a party resident in another country;
and
(C) includes the term ‘‘reexport’’.
216
(11) EXPORT
CONTROL
REGIME, MULTILAT-
ERAL
EXPORT
CONTROL
REGIME, MULTILATERAL
REGIME, AND REGIME.—The terms ‘‘export control
regime’’, ‘‘multilateral export control regime’’, ‘‘mul-
tilateral regime’’, and ‘‘regime’’ each mean a group
of two or more countries which includes the United
States and the purpose of which is to curtail, by
means of cooperative export controls, access to cer-
tain items by certain countries, by certain end users,
or for certain end uses.
(12) FOREIGN
AVAILABILITY, AVAILABLE
IN
FACT
TO
CONTROLLED
COUNTRIES.—The terms
‘‘foreign availability’’ and ‘‘available in fact to con-
trolled countries’’ each include production or avail-
ability of any item from any country—
(A) in which the item is not restricted for
export to any controlled country; or
(B) in which such export restrictions are
determined by the Secretary to be ineffective.
For purposes of subparagraph (B), the mere inclu-
sion of items on a list of items subject to export con-
trols imposed pursuant to a multilateral export con-
trol regime shall not alone constitute credible evi-
dence that the government of a country provides an
217
effective means of controlling the export of such
items to controlled countries.
(13) FOREIGN
PERSON.—The term ‘‘foreign
person’’ means—
(A) an individual who is not a United
States citizen or an alien admitted for perma-
nent residence to the United States;
(B) any corporation, partnership, business
association, society, trust, organization, or other
nongovernmental entity created or organized
under the laws of a foreign country or that has
its principal place of business outside the Unit-
ed States; and
(C) any governmental entity of a foreign
country that is operating as a business enter-
prise.
(14) ITEM.—The term ‘‘item’’ means any com-
modity or technology.
(15) LICENSE.—The term ‘‘license’’ includes
both validated licenses and written reexport author-
izations.
(16) MEMBER
OF
AN
EXPORT
CONTROL
RE-
GIME.—A ‘‘member’’ of an export control regime is
a country that participates in that regime.
218
(17) MISSILE.—The term ‘‘missile’’ means any
missile system or component listed in category I of
the MTCR Annex, and any other unmanned delivery
system or component of similar capability, as well as
the specially designed production facilities for these
systems.
(18) MISSILE TECHNOLOGY CONTROL REGIME;
MTCR.—The term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ means the policy statement and
guidelines between the United States, the United
Kingdom, the Federal Republic of Germany, France,
Italy, Canada, and Japan, announced on April 16,
1987, to restrict sensitive missile-related transfers
based on the MTCR Annex, and any amendments
thereto.
(19) 
MTCR 
ANNEX.—The 
term 
‘‘MTCR
Annex’’ means the Equipment and Technology
Annex of the MTCR, and any amendments thereto.
(20) NUCLEAR EXPLOSIVE DEVICE.—The term
‘‘nuclear explosive device’’ means any device, wheth-
er assembled or disassembled, that is designed to
produce an instantaneous release of an amount of
nuclear energy from special nuclear material that is
greater than the amount of energy that would be re-
220
opment, production, or use of a commodity, and in-
cludes software.
(27) UNILATERAL
AND
UNILATERALLY.—(A)
The terms ‘‘unilateral’’ and ‘‘unilaterally’’, with re-
spect to an export control or license treatment, refer
to a license requirement or license treatment that is
not agreed to by a multilateral regime for any or all
of the following elements: the purpose of the license
requirement or treatment, the items subject to the
license requirement or treatment, the standard of re-
view for applications for such license, the domestic
and international procedures for review of such li-
cense applications, and the controlled countries, and
end uses or end users, to which the review policy ap-
plies.
(B) An export control or license treatment shall
be considered to be unilateral or unilaterally main-
tained by the United States if it is a restriction, con-
dition, or interpretation imposed by the Secretary
upon commodities or technology, or upon a license
application for the export of commodities or tech-
nology, that is not imposed or implemented in simi-
lar circumstances by other members of an export
control regime, or that is not otherwise specifically
permitted by this title.
221
(28) UNITED
STATES.—The term ‘‘United
States’’ means the States of the United States, the
District of Columbia, and any commonwealth, terri-
tory, dependency, or possession of the United States,
and includes the Outer Continental Shelf, as defined
in section 2(a) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331(a)).
(29) UNITED
STATES
PERSON.—The term
‘‘United States person’’ means any United States
resident or national (other than an individual resi-
dent outside the United States and employed by
other than a United States person), any domestic
concern (including any permanent domestic estab-
lishment of any foreign concern) and any foreign
subsidiary or affiliate (including any permanent for-
eign establishment) of any domestic concern which is
controlled in fact by such domestic concern, as de-
termined under regulations of the President.
(30) WEAPONS OF MASS DESTRUCTION.—The
term ‘‘weapons of mass destruction’’ means any
chemical, biological, or nuclear weapon, including a
nuclear explosive device.
SEC. 117. EFFECTS ON OTHER ACTS.
(a) COMMODITY JURISDICTION.—
222
(1) IN GENERAL.—Notwithstanding any other
provision of law—
(A) an item agreed for control on the
International Munitions List of COCOM shall
be subject to control under the Arms Export
Control Act and not under this title;
(B) except as provided in paragraphs (2),
(3), and (5), an item which is on the Inter-
national Industrial List of COCOM shall be
subject to control under this title and not under
the Arms Export Control Act; and
(C) no item may be included on both the
control index and the United States Munitions
List after publication of the lists required under
paragraph (4) and resolution of any dispute
with respect to such lists under paragraph (5).
(2) EXCEPTIONS.—(A) An item described in
subparagraph (B) that is not on the International
Munitions List may be subject to control under the
Arms Export Control Act—
(i)(I) for a period of 9 months after the
date on which the United States proposes to
COCOM that the item be added to the Inter-
national Munitions List; and
223
(II) for an additional 9-month period, but
only if negotiations in COCOM to add the item
to the International Munitions List are continu-
ing; or
(ii) if the Secretary of State, in consulta-
tion with the Secretary, so determines, except
that if the Secretary disagrees with the Sec-
retary of State with respect to such item, the
item may be subject to control under the Arms
Export Control Act only if the disagreement is
resolved by the Secretaries or by the President
pursuant to the procedures set forth in sub-
paragraphs (B) and (C) of paragraph (5).
(B) An item referred to in subparagraph (A) is
an item that—
(i) is specifically designed, developed, con-
figured, adapted, or modified for military or in-
telligence application;
(ii) does not have significant civil applica-
tions; and
(iii) is not a component the performance
capacity and function of which are essentially
equivalent to those used for civil applications.
(3) PRESIDENTIAL DETERMINATIONS.—An item
that is not on the International Munitions List may
224
be subject to control under the Arms Export Control
Act if the President—
(A) determines that extraordinary cir-
cumstances exist affecting the national security
of the United States, which require that the
item be controlled under the Arms Export Con-
trol Act;
(B) proposes to COCOM that the item be
added to the International Munitions List; and
(C) not later than 10 days after making
the determination under subparagraph (A),
submits a report to the Speaker of the House
of Representatives and the President pro tem-
pore of the Senate, describing in detail the rea-
sons for the determination, in appropriate clas-
sified form, as necessary.
(4) PUBLICATION OF LISTS.—
(A)(i) Not later than 3 months after the
date of the enactment of this Act, the Secretary
shall publish the control index and the Sec-
retary of State shall publish the United States
Munitions List, with all revisions that have
been made in accordance with this subsection.
(ii) Not later than 3 months after the date
of the enactment of this Act, the Secretary of
225
State shall publish in a separate list those items
remaining subject to control under the Arms
Export Control Act under paragraph (2).
(iii) The publications required by clauses
(i) and (ii) shall be made in the Federal Reg-
ister.
(B) If either the Secretary or the Secretary
of State fails to publish a revised list in accord-
ance with subparagraph (A), there shall be ex-
cluded from the list of the Secretary that did
not so publish a revised list any item included
on the list of the Secretary that did so publish
a revised list.
(5) COMMODITY JURISDICTION DISPUTE RESO-
LUTION.—
(A) Whenever—
(i) the Secretary or the Secretary of
State receives a request to determine
whether an item is subject to control under
this title or the Arms Export Control Act,
(ii) either Secretary finds that an item
is included on both the control index and
the United States Munitions List,
(iii) an item appearing on the list of
one Secretary under paragraph (4)(A)(i) is
226
considered by the other Secretary to be
under the jurisdiction of that other Sec-
retary, or
(iv) the Secretary disagrees with the
inclusion of an item on the list published
under paragraph (4)(A)(ii),
the Secretary or the Secretary of State (as the
case may be) shall refer the matter and any rel-
evant information to the other Secretary.
(B) The 2 Secretaries shall have a period
of 15 days following the referral of a matter
under subparagraph (A) to resolve any dif-
ferences with respect to the matter involved.
(C) If the 2 Secretaries fail to resolve such
differences within that 15-day period, either
Secretary may refer the matter to the Presi-
dent, who, not later than 15 days after receiv-
ing the referral, shall notify the 2 Secretaries of
his determination on the matter in dispute.
(D) In the event that either the Secretary
or the Secretary of State does not respond to
a referral under subparagraph (A) by the other
Secretary, the Secretary that did not so respond
shall be deemed to concur with the other Sec-
retary on the matter involved.
227
(6) REFERENCES.—For purposes of this sub-
section, any reference to the ‘‘International Muni-
tions List’’ or the ‘‘International Industrial List’’ in-
cludes a reference to any successor list to the Inter-
national Munitions List or the International Indus-
trial List, as the case may be.
(b) 
EXPORT
CONTROLS
ON
TELECOMMUNI-
CATIONS.—
(1) NO
LICENSE
REQUIRED
FOR
CIVIL
END
USES.—The Secretary shall not require a validated
license for export or authorization for reexport of
telecommunications equipment to civil end users for
civil end uses in any of the republics of the former
Soviet Union, the People’s Republic of China, Po-
land, the Czech Republic, Slovakia, Bulgaria, Roma-
nia, Albania, Estonia, Lithuania, Latvia, Cambodia,
Laos, Mongolia, or Vietnam.
(2) DEFINITIONS.—For purposes of this sub-
section, the term ‘‘telecommunications equipment’’
includes—
(A) those items described in the Advisory
Notes to Category 5 of the Commerce Control
List set forth in part 799 of title 15, Code of
Federal Regulations, as of April 4, 1994, that
indicate likelihood of approval—
228
(i) for country groups QWY and the
People’s Republic of China,
(ii) only for the People’s Republic of
China, or
(iii) to specified destinations in coun-
try group Y; and
(B) those entries and subentries listed in
export control classification numbers 5AO2A
(except subentries h and i), 5A03A, 5A04A,
5A05A, 
5A06A, 
5B01A, 
5B02A, 
5C01A,
5D01A, 5D02A, and 5D03A of the Commerce
Control List set forth in part 799 of title 15,
Code of Federal Regulations, as of April 4,
1994, but not including software designed or
modified for the development, production, or
use of items controlled under export control
classification number 5A01A of the Commerce
Control List.
(c) ASSESSMENT OF ENCRYPTION SOFTWARE MAR-
KET.—
(1) PRESIDENTIAL
REPORT
REQUIRED.—Not
later than 150 days after the date of enactment of
this Act, the President shall submit a report to the
Committee on Banking, Housing, and Urban Affairs
229
of the Senate and the Committee on International
Relations of the House of Representatives.
(2) CONTENTS
OF
REPORT.—The report re-
quired by paragraph (1) shall—
(A) assess the current and future inter-
national market for computer software with
encryption;
(B) assess the impact of United States
encryption export controls on the international
competitiveness of the United States computer
software industry and their economic con-
sequences, including the impact on exports and
jobs in the United States computer software in-
dustry; and
(C) review the types, quality and market
penetration of foreign produced encryption soft-
ware products and any controls that influence
the international marketability of encryption
software products.
(3) CONSULTATION.—In preparing the report
required under paragraph (1), the President shall
consult with representatives of the United States
computer software industry. Confidential business
information provided by United States industry in
the course of preparing the report shall not be dis-
230
closed, except with the permission of the submitter
or when aggregated so that the source of the infor-
mation cannot be identified.
(d) IN GENERAL.—To the extent provided in this
title, this title shall be construed to modify, repeal, super-
sede, and otherwise affect the provisions of any other laws
authorizing control over exports of any commodities or
technology.
(e) COORDINATION OF CONTROLS.—The authority
granted under this title and under section 38 of the Arms
Export Control Act (22 U.S.C. 2778) shall be exercised
in such a manner as to share information regarding the
trustworthiness of parties.
(f) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding
any other provision of law, any civil aircraft product, or
any technology used in a civil aircraft product, that is
standard equipment certified or scheduled to be certified
by the Federal Aviation Administration and is an integral
part of such aircraft, shall be subject to export controls
exclusively under this title.
(g) NONPROLIFERATION CONTROLS.—The provisions
of section 109 shall supersede the procedures published
pursuant to section 309(c) of the Nuclear Non-Prolifera-
tion Act of 1978 (42 U.S.C. 2139a(c)) to the extent such
231
procedures are inconsistent with the provisions of section
109.
(h) AMENDMENTS TO THE INTERNATIONAL EMER-
GENCY ECONOMIC POWERS ACT.—
(1) PRESIDENTIAL
AUTHORIZATION.—Section
203(a) of the International Emergency Economic
Powers Act (50 U.S.C. 1702(a)) is amended—
(A) by redesignating paragraphs (2) and
(3) as paragraphs (3) and (4), respectively, and
(B) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) The President may prohibit or curtail the expor-
tation of any items on the United States Commodity Con-
trol Index that are subject to the jurisdiction of the United
States under this title only to the extent provided in, and
subject to the criteria of, sections 105, 106, and 114 of
the Export Act of 1994, unless such prohibition or curtail-
ment is part of an embargo (as described in section
106(f)(1) of the Export Act of 1994) against the country
concerned. The preceding sentence shall continue to apply
notwithstanding the expiration of the Export Act of
1994.’’.
(2) CONFIDENTIALITY OF INFORMATION.—The
International Emergency Economic Powers Act is
amended—
232
(A) by redesignating section 208 as section
209; and
(B) by inserting after section 207 the fol-
lowing:
‘‘SEC. 208. CONFIDENTIALITY OF INFORMATION.
‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information
obtained under this title before or after the enactment of
this section may be withheld only to the extent permitted
by statute, except that information submitted, obtained,
or considered in connection with an application for an ex-
port license or other export authorization under this title,
including the export license or other export authorization
itself, classification requests, information or evidence ob-
tained in the course of any investigation, and information
obtained or furnished under this title in connection with
international agreements, treaties, or obligations shall be
withheld from public disclosure unless the release of such
information is determined by the Secretary to be in the
national interest.
‘‘(b) INFORMATION TO CONGRESS AND GAO.—
‘‘(1) IN GENERAL.—Nothing in this title shall
be construed as authorizing the withholding of infor-
mation from the Congress or from the General Ac-
counting Office.
‘‘(2) AVAILABILITY TO THE CONGRESS.—
233
‘‘(A) IN
GENERAL.—All information ob-
tained at any time under this title regarding
the control of exports, including any report or
license application required under this title,
shall be made available to any committee or
subcommittee of Congress of appropriate juris-
diction upon the request of the chairman or
ranking minority member of such committee or
subcommittee.
‘‘(B) PROHIBITION ON FURTHER DISCLO-
SURE.—No committee, subcommittee, or Mem-
ber of Congress shall disclose any information
obtained under this title or previous Acts re-
garding the control of exports which is submit-
ted on a confidential basis to the Congress
under subparagraph (A) unless the full commit-
tee to which the information is made available
determines that the withholding of the informa-
tion is contrary to the national interest.
‘‘(3) AVAILABILITY TO THE GAO.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), information referred to in paragraph
(2) shall, consistent with the protection of intel-
ligence, counterintelligence, and law enforce-
ment sources, methods, and activities, as deter-
234
mined by the agency that originally obtained
the information, and consistent with the provi-
sions of section 716 of title 31, United States
Code, be made available only by the agency,
upon request, to the Comptroller General of the
United States or to any officer or employee of
the General Accounting Office authorized by
the Comptroller General to have access to such
information.
‘‘(B) PROHIBITION ON FURTHER DISCLO-
SURES.—No officer or employee of the General
Accounting Office shall disclose, except to the
Congress in accordance with this subsection,
any such information which is submitted on a
confidential basis and from which any individ-
ual can be identified.
‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDEN-
TIAL INFORMATION.—Any officer or employee of the
United States, or any department or agency thereof, who
publishes, divulges, discloses, or makes known in any man-
ner or to any extent not authorized by law any information
that—
‘‘(1) he or she obtains in the course of his or
her employment or official duties or by reason of any
examination or investigation made by, or report or
235
record made to or filed with, such department or
agency, or officer or employee thereof, and
‘‘(2) is exempt from disclosure under this sec-
tion,
shall be fined not more than $10,000, or imprisoned not
more than 1 year, or both, shall be removed from office
or employment, and shall be subject to a civil penalty of
not more than $1,000.’’.
(i) REGULATION OF EXPORT OF CERTAIN COMMER-
CIAL COMMUNICATIONS SATELLITES
AND ASSOCIATED
EQUIPMENT.—
(1) 
REGULATION
SOLELY
UNDER
THIS
TITLE.—Notwithstanding any other provision of law,
the export of commercial communications satellites,
including any integral components of such satellites,
which are designed for civil applications, including
items necessary to achieve the ultimate orbit location
of such satellites, and associated ground and test
equipment, when exported as part of a satellite sys-
tem for purposes of launch, shall be regulated under
this title. The Secretary shall consult with the Sec-
retary of Defense and the Secretary of State to de-
termine the satellites and components to which this
paragraph applies. The Secretary, in consultation
with the Secretary of State and the Secretary of De-
236
fense, shall prohibit the unauthorized transfer of
missile equipment, data, or technology that are com-
ponents of any such satellite which is authorized for
export.
(2) AMENDMENT TO ARMS EXPORT CONTROL
ACT.—Section 38(a) of the Arms Export Control Act
(22 U.S.C. 2778(a)) is amended—
(A) in paragraph (3), by striking ‘‘In exer-
cising the authorities’’ and inserting ‘‘Except as
provided in paragraph (4), in exercising the au-
thorities’’; and
(B) by adding at the end the following new
paragraph:
‘‘(4) The export of commercial communications sat-
ellites, including any integral components of such sat-
ellites, which are designed for civil applications, including
items necessary to achieve the ultimate orbit location of
such satellites, and associated ground and test equipment,
when exported as part of a satellite system for purposes
of launch, may be regulated only by the Secretary of Com-
merce under the Export Act of 1994, pursuant to section
117(i)(1) of that Act.’’.
(3) APPLICABILITY.—The amendments made
by this subsection shall apply only with respect to
237
the export of satellites on or after the date of the
enactment of this Act.
SEC. 118. SECONDARY ARAB BOYCOTT.
(a) FINDINGS.—The Congress finds that—
(1) certain countries maintain an economic boy-
cott of Israel, including a secondary boycott of com-
panies that refuse to cooperate with the economic
boycott of Israel;
(2) the secondary Arab boycott has caused eco-
nomic damage to the countries that maintain the
boycott as well as to Israel;
(3) the secondary Arab boycott causes great
difficulties for United States firms that trade with
Israel, depriving them of trade opportunities and
violating internationally accepted principles of free
trade;
(4) the United States has a longstanding policy
opposing the Arab League boycott of Israel and
United States law prohibits American firms from
providing information to Arab countries to dem-
onstrate compliance with the boycott;
(5) American companies on the list maintained
by the Arab League of companies prohibited from
doing business in Arab League countries can be de-
nied contracts by the Kuwaiti Government for the
238
reconstruction of Kuwait because they conduct busi-
ness with Israel;
(6) under the leadership of the executive
branch, the United States has sent a clear, consist-
ent, and unambiguous message that the Arab
League boycott of companies that do business with
Israel is an obstacle to peace and should be termi-
nated;
(7) the United States Trade Representative, in
August 1993, commissioned the International Trade
Commission to undertake a study of the boycott’s
impact on United States businesses which will pro-
vide, for the first time, a carefully researched esti-
mate of the impact of the boycott on the United
States;
(8) the executive branch has conducted an ac-
tive diplomatic campaign to convince Arab League
countries that the time to end the secondary Arab
boycott and the economic discrimination against
United States businesses is now;
(9) under United States leadership, the G–7
countries have unconditionally called for an end to
the Arab boycott;
(10) the President, the Vice President, the Sec-
retary of State, the Secretary of Commerce, and
239
other senior executive branch officials have assured
the Congress that they will speak forcefully and can-
didly, in every forum which touches upon the search
for peace in the Middle East, about the need to end
the secondary Arab boycott;
(11) the Congress wishes to support the efforts
of the executive branch and to help see the promises
made to date translated into tangible results;
(12) the quarterly reports from the Office of
Anti-Boycott Compliance of the Department of Com-
merce show no loosening in enforcement by Arab
League countries of the secondary Arab boycott; and
(13) the recent statements made by Arab lead-
ers indicating that the secondary Arab boycott is no
longer being enforced must be translated into action,
as measured by quarterly reports from the Office of
Anti-Boycott Compliance of the Department of Com-
merce.
(b) SENSE OF CONGRESS.—
(1) ENDING SECONDARY BOYCOTT.—It is the
sense of the Congress that the countries of the Arab
League should end the secondary Arab boycott.
(2) ACTIONS TO END SECONDARY BOYCOTT.—
The United States will consider the secondary Arab
boycott to have ended when—
240
(A) the Arab League issues a public pro-
nouncement that the Arab League has ended
the secondary Arab boycott;
(B) all activities carried out by the Central
Office for the Boycott of Israel in support of
the secondary Arab boycott have been termi-
nated;
(C) the Arab League and the individual
countries that are members of the Arab League
have terminated the practice of barring United
States persons and foreign companies that do
not comply with the secondary Arab boycott
from doing business with countries that are
members of the Arab League, and have de-
clared null and void any existing list of such
barred persons and companies; and
(D) the Arab League, and the individual
countries that are the members of the Arab
League, have ceased requesting United States
persons from taking actions prohibited under
section 108(a).
(c) DEFINITION.—For purposes of this section, the
term ‘‘secondary Arab boycott’’ means the refusal to do
business with persons who do not comply with requests
241
to take any action prohibited under section 108(a) with
respect to Israel.
SEC. 119. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) ARMS EXPORT CONTROL ACT.—
(1) Section 38 of the Arms Export Control Act
(22 U.S.C. 2778) is amended—
(A) in subsection (e)—
(i) in the first sentence by striking
‘‘subsections (c)’’ and all that follows
through ‘‘12 of such Act’’ and inserting
‘‘subsections (b), (c), (d) and (e) of section
110 of the Export Act of 1994, by sub-
sections (a) and (b) of section 113 of such
Act, and by section 114(g) of such Act’’;
and
(ii) in the third sentence by striking
‘‘11(c) of the Export Administration Act of
1979’’ and inserting ‘‘110(c) of the Export
Act of 1995’’; and
(B) in subsection (g)(1)(A) by striking
clause (ii) and inserting the following:
‘‘(ii) section 110 of the Export Act of
1995,’’.
242
(2) Section 39A(c) of the Arms Export Control
Act, as added by the Foreign Relations Authoriza-
tion Act, Fiscal Years 1994 and 1995, is amended—
(A) by striking ‘‘(c),’’ and all that follows
through ‘‘12(a)’’ and inserting ‘‘(c), (d), and (e)
of section 110, section 112(c), and subsections
(a) and (b) of section 113, of the Export Act
of 1995’’; and
(B) by striking ‘‘11(c)’’ and inserting
‘‘110(c)’’.
(3) Section 40(k) of the Arms Export Control
Act (22 U.S.C. 2780(k)) is amended—
(A) by striking ‘‘11(c), 11(e), 11(g), and
12(a) of the Export Administration Act of
1979’’ and inserting ‘‘110(b), 110(c), and
110(e) of the Export Act of 1995’’; and
(B) by striking ‘‘11(c)’’ and inserting
‘‘110(c)’’.
(4) Sections 72 and 73 of the Arms Export
Control Act (22 U.S.C. 2797a and 2797b) are here-
by repealed.
(5) Section 73A of the Arms Export Control
Act, as added by the Foreign Relations Authoriza-
tion Act, Fiscal Years 1995 and 1995, is amended
243
by striking ‘‘a MTCR adherent’’ and inserting ‘‘an
MTCR adherent’’.
(6) Section 74 of the Arms Export Control Act
(22 U.S.C. 2797c) is amended—
(A) by striking paragraphs (6), (7), (8),
and (9);
(B) in paragraph (4) by adding ‘‘and’’
after the semicolon; and
(C) in paragraph (5) by striking the semi-
colon and inserting a period.
(b) CHEMICAL
AND BIOLOGICAL WEAPONS.—The
Chemical and Biological Weapons Control and Warfare
Elimination Act of 1991 (title III of Public Law 102–182;
22 U.S.C. 5601 and following) is hereby repealed.
(c) OTHER PROVISIONS OF LAW.—
(1) Section 5(b)(4) of the Trading with the
Enemy Act (12 U.S.C. 95a(4); 50 U.S.C. App.
5(b)(4)) is amended by striking ‘‘5 of the Export
Administration Act of 1979, or under section 6’’ and
inserting ‘‘105 of the Export Act of 1995, or under
section 106’’.
(2) Section 16(a) of the Trading with the
Enemy Act (50 U.S.C. App. 16(a)) is amended by
striking ‘‘participants’’ and inserting ‘‘participates’’.
244
(3) Section 502B(a)(2) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2304(a)(2)) is amend-
ed in the second sentence—
(A) by striking ‘‘Export Administration
Act of 1979’’ the first place it appears and in-
serting ‘‘Export Act of 1995’’; and
(B) by striking ‘‘Administration Act of
1979)’’ and inserting ‘‘Act of 1995)’’.
(4)(A) Section 140(a)(2) of the Foreign Rela-
tions Authorization Act, Fiscal Years 1988 and
1989 (22 U.S.C. 2656f(a)(2)) is amended by strik-
ing ‘‘6(j) of the Export Administration Act of 1979’’
and inserting ‘‘106(i) of the Export Act of 1995’’.
(B) For purposes of the report required by
March 31, 1995, under section 140(a) of the For-
eign Relations Authorization Act, Fiscal Years 1988
and 1989, the reference in paragraph (2) of such
section to ‘‘section 106(i) of the Export Act of
1995’’ shall be deemed to refer to ‘‘section 6(j) of
the Export Administration Act of 1979 or section
106(i) of the Export Act of 1995’’.
(5) Section 40(e)(1) of the State Department
Basic 
Authorities 
Act 
of 
1956 
(22 
U.S.C.
2712(e)(1)) is amended by striking ‘‘6(j)(1) of the
245
Export Administration Act of 1979’’ and inserting
‘‘106(i)(1) of the Export Act of 1995’’.
(6) Section 110 of the International Security
and Development Cooperation Act of 1980 (22
U.S.C. 2778a) is amended by striking ‘‘Administra-
tion Act of 1979’’ and inserting ‘‘Act of 1995’’.
(7) Section 205(d)(4) of the State Department
Basic 
Authorities 
Act 
of 
1956 
(22 
U.S.C.
4305(d)(4)) is amended by striking ‘‘6(j) of the Ex-
port Administration Act of 1979’’ and inserting
‘‘106(i) of the Export Act of 1995’’.
(8) Section 203(b)(3) of the International
Emergency Economic Powers Act (50 U.S.C.
1702(b)(3)) is amended by striking ‘‘5 of the Export
Administration Act of 1979, or under section 6’’ and
inserting ‘‘105 of the Export Act of 1995, or under
section 106’’.
(9) Section 491(f) of the Forest Resources Con-
servation and Shortage Relief Act of 1990 (16
U.S.C. 620c(f)) is amended by striking ‘‘supersede
section 7(i) of the Export Administration Act of
1979 (50 U.S.C. App. 2406(i))’’ and inserting ‘‘af-
fect section 107(i) of the Export Act of 1995’’.
SEC. 120. EXPIRATION DATE.
This title expires on June 30, 1999.
246
SEC. 121. SAVINGS PROVISIONS.
(a) IN GENERAL.—All delegations, rules, regulations,
orders, determinations, licenses, or other forms of admin-
istrative action which have been made, issued, conducted,
or allowed to become effective under—
(1) the Export Control Act of 1949, the Export
Administration Act of 1969, or the Export Adminis-
tration Act of 1979, or
(2) those provisions of the Arms Export Control
Act or the Chemical and Biological Weapons Control
and Warfare Elimination Act of 1991 which are re-
pealed and amended by section 119,
and are in effect at the time this title takes effect, shall
continue in effect according to their terms until modified,
superseded, set aside, or revoked under this title.
(b) ADMINISTRATIVE
AND
JUDICIAL
PROCEED-
INGS.—
(1) EXPORT ADMINISTRATION ACT.—This title
shall not affect any administrative or judicial pro-
ceedings commenced or any application for a license
made, under the Export Administration Act of 1979,
which is pending at the time this title takes effect.
Any such proceedings, and any action on such appli-
cation, shall continue under the Export Administra-
tion Act of 1979 as if that Act had not expired.
247
(2) OTHER
PROVISIONS
OF
LAW.—This title
shall not affect any administrative or judicial pro-
ceedings commenced or any application for a license
made, under those provisions of the Arms Export
Control Act or the Chemical and Biological Weapons
Control and Warfare Elimination Act of 1991 which
are repealed and amended by section 119, if such
proceedings or application is pending at the time
this title takes effect. Any such proceedings, and any
action on such application, shall continue under
those provisions as if those provisions had not been
amended or repealed by section 119.
(c) TREATMENT OF CERTAIN DETERMINATIONS.—
Any determination with respect to the government of a
foreign country under section 6(j) of the Export Adminis-
tration Act of 1979, that is in effect at the time this title
takes effect, shall, for purposes of this title or any other
provision of law, be deemed to be made under section
106(i) of this Act until superseded by a determination
under such section 106(i).
TITLE 
II—NUCLEAR 
PROLIF-
ERATION PREVENTION ACT
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Nuclear Proliferation
Prevention Act of 1995’’.
248
PART A—REPORTING ON NUCLEAR EXPORTS
SEC. 211. REPORTS TO CONGRESS.
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 a semicolon; and
(3) by adding after paragraph (5) the following:
‘‘(6) a description of the implementation of nu-
clear and nuclear-related dual-use export controls in
the preceding calendar year, including a summary by
type of commodity and destination of—
‘‘(A) all transactions for which—
‘‘(i) an export license was issued for
any good controlled under section 309(c)
of this Act;
‘‘(ii) an export license was issued
under section 109 b. of the 1954 Act;
‘‘(iii) approvals were issued under the
Export Act of 1995, or section 109 b.(3)
of the 1954 Act, for the retransfer of any
item, technical data, component, or sub-
stance; or
‘‘(iv) authorizations were made as re-
quired by section 57 b.(2) of the 1954 Act
249
to engage, directly or indirectly, in the pro-
duction of special nuclear material;
‘‘(B) each instance in which—
‘‘(i) a sanction has been imposed
under section 221(a), 224(h), or 226(a) of
the Nuclear Proliferation Prevention Act of
1995;
‘‘(ii) sales or leases have been denied
under section 3(f) of the Arms Export
Control Act or transactions prohibited by
reason of acts 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 221(c)(2) of the Nu-
clear Proliferation Prevention Act of 1995
or the imposition of a sanction has been
delayed under section 226(d) of that Act;
or
‘‘(iv) a waiver of a sanction has been
made under—
‘‘(I) section 221(f), section 224,
or subsection (e) or (f)(2) of section
226, of the Nuclear Proliferation Pre-
vention Act of 1995,
250
‘‘(II) section 620E(d) of the For-
eign Assistance Act of 1961,
‘‘(III) section 40(g) of the Arms
Export Control Act with respect to
the last sentence of section 40(d) of
that Act, or
‘‘(IV) section 614 of the Foreign
Assistance Act of 1961 with respect to
section 620E of that Act or section
3(f), or the last sentence of section
40(d), of the Arms Export Control
Act; and
‘‘(7) the progress of those independent states of
the former Soviet Union that are non-nuclear-weap-
on states and of the Baltic states towards achieving
the objective of applying full scope safeguards to all
their peaceful nuclear activities.
Portions of the information required by paragraphs (6)
and (7) may be submitted in classified form, as necessary.
Any such information that may not be published or dis-
closed under section 114(g)(1) of the Export Act of 1995
shall be submitted as confidential.’’.
SEC. 212. EFFECTIVE DATE.
The amendments made by this part shall take effect
60 days after the date of the enactment of this Act.
251
PART B—SANCTIONS FOR NUCLEAR
PROLIFERATION
SEC. 221. IMPOSITION OF SANCTIONS ON PERSONS ENGAG-
ING IN EXPORT ACTIVITIES THAT CONTRIB-
UTE TO PROLIFERATION.
(a) DETERMINATION BY THE PRESIDENT.—
(1) IN GENERAL.—Except as provided in sub-
section (b)(2), the President shall impose the sanc-
tions described in subsection (c) if the President de-
termines in writing that, on or after the effective
date of this part, a foreign person or a United
States person has materially and with requisite
knowledge contributed, through the export from the
United States or any other country of any goods or
technology (as defined in section 231(2)), to the ef-
forts by any individual, group, or non-nuclear-weap-
on state to acquire unsafeguarded special nuclear
material or to use, develop, produce, stockpile, or
otherwise acquire any nuclear explosive device.
(2) PERSONS AGAINST WHICH THE SANCTIONS
ARE TO BE IMPOSED.—The sanctions shall be im-
posed 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 para-
graph;
252
(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 person.
(3) OTHER SANCTIONS AVAILABLE.—The sanc-
tions which are required to be imposed for activities
described in this subsection is 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).
253
(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 the
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 the sanctions pursuant to this section for up to
90 days. Following these consultations, the Presi-
dent shall impose the sanctions unless the President
determines and certifies in writing 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 activi-
ties described in subsection (a)(1). The President
may delay the imposition of the sanctions for up to
an additional 90 days if the President determines
and certifies in writing to the Congress that that
government is in the process of taking the actions
described in the preceding sentence.
254
(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
International Relations of the House of Representa-
tives 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 sanc-
tions to be imposed pursuant to subsection (a)(1)
are, except as provided in paragraph (2) of this sub-
section, the following:
(A) 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).
(B) The importation into the United
States of products produced by any person de-
scribed in subsection (a)(2) shall be prohibited.
255
(2) EXCEPTIONS.—The President shall not be
required to apply or maintain the 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 in
writing that the person or other entity to
which the sanctions would otherwise be ap-
plied is a sole source supplier of the de-
fense articles or services, that the defense
articles or services are essential, and that
alternative sources are not readily or rea-
sonably available; or
(iii) if the President determines in
writing that such articles or services are
essential to the national security under de-
fense coproduction agreements;
(B) to products or services provided under
contracts entered into before the date on which
256
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.—Upon the request of any
person, the Secretary of State may, in consultation with
the Secretary of Defense, issue in writing an advisory
opinion to that person as to whether a proposed activity
by that person would subject that person to the sanctions
under this section. Any person who relies in good faith
on such an advisory opinion which states that the pro-
posed activity would not subject a person to such sanc-
tions, and any person who thereafter engages in such ac-
257
tivity, may not be made subject to such sanctions on ac-
count of such activity.
(e) TERMINATION OF THE SANCTIONS.—The sanc-
tions imposed pursuant to this section shall apply for a
period of at least 12 months following the imposition of
the sanctions and shall cease to apply thereafter only if
the President determines and certifies in writing 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.—
258
(1) CRITERION
FOR
WAIVER.—The President
may waive the application of the sanctions imposed
on any person pursuant to this section, after the end
of the 12-month period beginning on the date on
which that sanctions was imposed on that person, if
the President determines and certifies in writing to
the Congress that the continued imposition of the
sanctions 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.
SEC. 222. ELIGIBILITY FOR ASSISTANCE.
(a) AMENDMENTS TO THE ARMS EXPORT CONTROL
ACT.—
(1) PROHIBITION.—Section 3 of the Arms Ex-
port 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 to any country
that the President has determined is in material breach
259
of its binding commitments to the United States under
international treaties or agreements concerning the non-
proliferation of nuclear explosive devices (as defined in
section 231(4) of the Nuclear Proliferation Prevention Act
of 1995) and unsafeguarded special nuclear material (as
defined in section 231(8) of that Act).’’.
(2) DEFINITION
OF
SUPPORT
FOR
INTER-
NATIONAL TERRORISM.—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 all ac-
tivities that the Secretary determines willfully
aid or abet the international proliferation of nu-
clear explosive devices to individuals or group or
willfully aid or abet an individual or groups in
acquiring unsafeguarded special nuclear mate-
rial.’’; 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 semi-
colon; and
260
(iii) by adding at the end the follow-
ing:
‘‘(4) the term ‘nuclear explosive device’ has the
meaning given that term in section 231(4) of the
Nuclear Proliferation Prevention Act of 1995; and
‘‘(5) the term ‘unsafeguarded special nuclear
material’ has the meaning given that term in section
231(8) of the Nuclear Proliferation Prevention Act
of 1995.’’.
(b) FOREIGN ASSISTANCE ACT OF 1961.—
(1) PRESIDENTIAL
DETERMINATION
82–7.—
Notwithstanding any other provision of law, Presi-
dential Determination No. 82–7 of February 10,
1982, made pursuant to section 670(a)(2) of the
Foreign Assistance Act of 1961, shall have no force
or effect with respect to any grounds for the prohibi-
tion of assistance under section 102(a) of the Arms
Export Control Act arising on or after the effective
date of this part.
(2) AMENDMENT.—Section 620E(d) of the For-
eign 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 101 of the Arms Export Control Act with respect to
any grounds for the prohibition of assistance under that
261
section arising before the effective date of part B of the
Nuclear Proliferation Prevention Act of 1995 to provide
assistance to Pakistan if he determines that to do so is
in the national interest of the United States.’’.
SEC. 223. 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 use of the institution’s funds
to promote the acquisition of unsafeguarded special nu-
clear material or the development, 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) is seeking to acquire unsafeguarded
special nuclear material (as defined in section
231(8) of the Nuclear Proliferation Prevention
262
Act of 1995) or a nuclear explosive device (as
defined in section 231(4) of that Act);
‘‘(B) is not a State Party to the Treaty on
the Non-Proliferation of Nuclear Weapons; or
‘‘(C) has detonated a nuclear explosive de-
vice; and’’.
SEC. 224. PROHIBITION ON ASSISTING NUCLEAR PRO-
LIFERATION THROUGH THE PROVISION OF
FINANCING.
(a) PROHIBITED ACTIVITY DEFINED.—For purposes
of this section, the term ‘‘prohibited activity’’ means the
act of knowingly, materially, and directly contributing or
attempting to contribute, through the provision of financ-
ing, to—
(1) the acquisition of unsafeguarded special nu-
clear material; or
(2) the use, development, production, stock-
piling, or other acquisition of any nuclear explosive
device,
by any individual, group, or non-nuclear-weapon state.
(b) PROHIBITION.—To the extent that the United
States has jurisdiction to prohibit such activity by such
person, no United States person and no foreign person
may engage in any prohibited activity.
263
(c) PRESIDENTIAL DETERMINATION
AND ORDER
WITH RESPECT TO UNITED STATES AND FOREIGN PER-
SONS.—If the President determines, in writing after op-
portunity for a hearing on the record, that a United States
person or a foreign person has engaged in a prohibited
activity (without regard to whether subsection (b) applies),
the President shall, by order, impose the sanctions de-
scribed in subsection (d) on such person.
(d) SANCTIONS.—The following sanctions shall be
imposed pursuant to any order issued under subsection
(c) with respect to any United States person or any for-
eign person:
(1) BAN
ON
DEALINGS
IN
GOVERNMENT
FI-
NANCE.—
(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 con-
tinuation of any prior designation of, the person
as a primary dealer in United States Govern-
ment debt instruments.
(B) SERVICE AS DEPOSITARY.—The person
may not serve as a depositary for United States
Government funds.
264
(2) RESTRICTIONS ON OPERATIONS.—The per-
son may not, directly or indirectly—
(A) commence any line of business in the
United States in which the person was not en-
gaged as of the date of the order; or
(B) conduct business from any location in
the United States at which the person did not
conduct business as of the date of the order.
(e) JUDICIAL REVIEW.—Any determination of the
President under subsection (c) shall be subject to judicial
review in accordance with chapter 7 of part I of title 5,
United States Code.
(f) CONSULTATION WITH AND ACTIONS BY FOREIGN
GOVERNMENT OF JURISDICTION.—
(1) CONSULTATIONS.—If the President makes a
determination under subsection (c) with respect to a
foreign person, the Congress urges the President to
initiate consultations immediately with any appro-
priate foreign government with respect to the impo-
sition of any sanction pursuant to this section.
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—
(A) SUSPENSION OF IMPOSITION OF SANC-
TIONS.—In order to pursue consultations de-
scribed in paragraph (1) with any government
265
referred to in such paragraph, the President
may delay, for up to 90 days, the effective date
of an order under subsection (c) imposing any
sanction.
(B) COORDINATION WITH ACTIVITIES OF
FOREIGN
GOVERNMENT.—Following consulta-
tions described in paragraph (1), the order is-
sued by the President under subsection (c) im-
posing any sanction on a foreign person shall
take effect unless the President determines, and
certifies in writing to the Congress, that the
government referred to in paragraph (1) has
taken specific and effective actions, including
the imposition of appropriate penalties, to ter-
minate the involvement of the foreign person in
any prohibited activity.
(C) EXTENSION
OF
PERIOD.—After the
end of the period described in subparagraph
(A), the President may delay, for up to an addi-
tional 90 days, the effective date of an order is-
sued under subsection (c) imposing any sanc-
tion on a foreign person if the President deter-
mines, and certifies in writing to the Congress,
that the appropriate foreign government is in
266
the process of taking actions described in sub-
paragraph (B).
(3) REPORT TO CONGRESS.—Before the end of
the 90-day period beginning on the date on which an
order is issued under subsection (c), the President
shall submit to the Congress a report on—
(A) the status of consultations under this
subsection with the government referred to in
paragraph (1); and
(B) the basis for any determination under
paragraph (2) that such government has taken
specific corrective actions.
(g) TERMINATION OF THE SANCTIONS.—Any sanc-
tion imposed on any person pursuant to an order issued
under subsection (c) shall—
(1) remain in effect for a period of not less
than 12 months; and
(2) cease to apply after the end of such 12-
month period only if the President determines, and
certifies in writing to the Congress, that—
(A) the person has ceased to engage in any
prohibited activity; and
(B) the President has received reliable as-
surances from such person that the person will
267
not, in the future, engage in any prohibited ac-
tivity.
(h) WAIVER.—The President may waive the contin-
ued application of any sanction imposed on any person
pursuant to an order issued under subsection (c) if the
President determines, and certifies in writing to the Con-
gress, that the continued imposition of the sanction would
have a serious adverse effect on the safety and soundness
of the domestic or international financial system or on do-
mestic or international payments systems.
(i) ENFORCEMENT ACTION.—The Attorney General
may bring an action in an appropriate district court of
the United States for injunctive and other appropriate re-
lief with respect to—
(1) any violation of subsection (b); or
(2) any order issued under subsection (c).
(j) KNOWINGLY DEFINED.—
(1) IN GENERAL.—For purposes of this section,
the term ‘‘knowingly’’ means the state of mind of a
person with respect to conduct, a circumstance, or a
result in which—
(A) such person is aware that such person
is engaging in such conduct, that such cir-
cumstance exists, or that such result is substan-
tially certain to occur; or
268
(B) such person has a firm belief that such
circumstance exists or that such result is sub-
stantially certain to occur.
(2) KNOWLEDGE OF THE EXISTENCE OF A PAR-
TICULAR CIRCUMSTANCE.—If knowledge of the exist-
ence of a particular circumstance is required for an
offense, such knowledge is established if a person is
aware of a high probability of the existence of such
circumstance, unless the person actually believes
that such circumstance does not exist.
(k) SCOPE
OF APPLICATION.—This section shall
apply with respect to prohibited activities which occur on
or after the date this part takes effect.
SEC. 225. EXPORT-IMPORT BANK.
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 231(4) of the Nuclear Proliferation Pre-
vention Act of 1995), or that any country has willfully
aided or abetted any non-nuclear-weapon state (as defined
in section 231(5) of that Act) to acquire any such nuclear
explosive device or to acquire unsafeguarded special nu-
clear material (as defined in section 231(8) of that Act)’’.
269
SEC. 226. SANCTIONS AGAINST COUNTRIES INVOLVED IN
TRANSFER OF NUCLEAR WEAPONS OR DE-
SIGN INFORMATION OR COMPONENTS.
(a) DETERMINATION OF THE PRESIDENT.—Except
as provided in subsections (d), (e), and (f), in the event
that the President determines that any country, on or
after the effective date of this part—
(1) transfers to a non-nuclear-weapon state a
nuclear explosive device,
(2) is a non-nuclear-weapon state and either—
(A) receives a nuclear explosive device, or
(B) detonates a nuclear explosive device,
(3) 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
(4) is a non-nuclear-weapon state and seeks and
receives 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 to the Congress
in writing his determination with respect to that country
270
and shall forthwith impose the sanctions described in sub-
section (b) against that country.
(b) SANCTIONS.—The sanctions referred to in sub-
section (a) are as follows:
(1) The United States Government shall termi-
nate assistance to that country under the Foreign
Assistance Act of 1961, except for humanitarian as-
sistance or food or other agricultural commodities.
(2) The United States Government shall—
(A) terminate sales to that country under
the Arms Export Control Act of any defense ar-
ticles, defense services, or design and construc-
tion services, and
(B) terminate and deny licenses for the ex-
port to that country of any item on the United
States Munitions List.
(3) The United States Government shall termi-
nate all foreign military financing for that country
under the Arms Export Control Act.
(4) 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 paragraph
shall not apply—
271
(A) 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
(B) to humanitarian assistance.
(5) 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.
(6) 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.
(7) The authorities of section 106 of the Export
Act of 1995 shall be used to prohibit exports to that
country of specific 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).
272
(8) In addition to the sanctions provided for in
paragraphs (1) through (7), the President may pro-
hibit the importation into the United States of goods
that are the growth, product, or manufacture of that
country. The President shall determine the type and
volume of imports to be prohibited.
(c) DEFINITIONS.—As used in this section—
(1) the term ‘‘design information’’ means spe-
cific information that relates to the design of a nu-
clear explosive device and that is not available to the
public; and
(2) the term ‘‘component’’ means a specific
component of a nuclear explosive device.
(d) AUTHORITY TO DELAY SANCTIONS RELATING TO
NUCLEAR EXPLOSIVE DEVICES.—
(1) PRESIDENTIAL
CERTIFICATION.—Notwith-
standing subsection (a), the President may, for a pe-
riod of not more than 30 days of continuous session,
delay the imposition of sanctions which would other-
wise be required under subsection (a)(1) or (2) if the
President first transmits to the Speaker of the
House of Representatives, and to the chairman of
the Committee on Foreign Relations of the Senate,
a certification that he has determined that an imme-
diate imposition of sanctions on that country would
273
be detrimental to the national security of the United
States. Not more than one such certification may be
transmitted for a country with respect to the same
detonation, transfer, or receipt of a nuclear explosive
device.
(2) AUTHORITY TO GRANT WAIVER.—(A) If the
President transmits a certification to the Congress
under paragraph (1), a joint resolution which would
permit the President to exercise the waiver authority
of subsection (e) shall, if introduced in either House
within 30 days of continuous session after the Con-
gress receives this certification, be considered in the
Senate in accordance with subparagraph (B).
(B) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of
1976.
(C) For purposes of this paragraph, the term
‘‘joint resolution’’ means a joint resolution the mat-
ter after the resolving clause of which is as follows:
‘‘That the Congress having received on ll a cer-
tification by the President under section 226(d)(1)
of the Nuclear Proliferation Prevention Act of 1995
with respect to ll, the Congress hereby authorizes
274
the President to exercise the waiver authority con-
tained in section 226(e) of that Act.’’, with the date
of receipt of the certification inserted in the first
blank and the name of the country inserted in the
second blank.
(e) WAIVER
AUTHORITY.—Notwithstanding sub-
section (a), if the Congress enacts a joint resolution under
subsection (d), the President may waive any sanction
which would otherwise be required under subsection (a)(1)
or (2) if he determines and certifies in writing to the
Speaker of the House of Representatives and the Commit-
tee on Foreign Relations of the Senate that the imposition
of such sanction would be seriously prejudicial to the
achievement of United States nonproliferation objectives
or otherwise jeopardize the common defense and security.
The President shall transmit with such certification a
statement setting forth the specific reasons therefor.
(f) SANCTIONS RELATING
TO INFORMATION
AND
COMPONENTS.—
(1) IMPOSITION.—In the event the President is
required to impose sanctions against a country
under subsection (a)(3) or (a)(4), the President shall
forthwith so inform such country and shall impose
the required sanctions beginning 30 days after sub-
mitting to the Congress the report required by sub-
275
section (a) unless, and to the extent that, there is
enacted during the 30-day period a law prohibiting
the imposition of such sanctions.
(2) WAIVER.—Notwithstanding any other provi-
sion of law, the sanctions which are required to be
imposed against a country under subsection (a)(3)
or (4) shall not apply if the President determines
and certifies in writing to the Committee on Foreign
Relations and the Committee on Governmental Af-
fairs of the Senate and the Committee on Inter-
national Relations 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 trans-
mit with such certification a statement setting forth
the specific reasons therefor.
(g) CONTINUITY OF SESSION.—For purposes of this
section, continuity of session is broken only by an adjourn-
ment of the Congress sine die and the days on which either
House of Congress is not in session because of an adjourn-
ment of more than three days to a day certain are ex-
cluded in the computation of any period of time in which
the Congress is in continuous session.
(h) AUTHORITY
OF
THE PRESIDENT NOT DELE-
GABLE.—The President may not delegate or transfer his
276
power, authority, or discretion to make or modify deter-
minations under this section.
SEC. 227. AMENDMENT TO THE ARMS EXPORT CONTROL
ACT.
(a) IN GENERAL.—The Arms Export Control Act is
amended by adding at the end the following new chapter:
‘‘CHAPTER 10—NUCLEAR
NONPROLIFERATION CONTROLS
‘‘SEC. 101. NUCLEAR ENRICHMENT TRANSFERS.
‘‘(a) PROHIBITIONS; SAFEGUARDS
AND MANAGE-
MENT.—Except as provided in subsection (b), no funds
made available to carry out the Foreign Assistance Act
of 1961 or this Act may be used for the purpose of provid-
ing economic assistance (including assistance under chap-
ter 4 of part II of the Foreign Assistance Act of 1961),
providing military assistance or grant military education
and training, providing assistance under chapter 6 of part
II of that Act, or extending military credits or making
guarantees, to any country which the President deter-
mines delivers nuclear enrichment equipment, materials,
or technology to any other country on or after August 4,
1977, or receives such equipment, materials, or technology
from any other country on or after August 4, 1977, unless
before such delivery—
277
‘‘(1) the supplying country and receiving coun-
try have reached agreement to place all such equip-
ment, materials, or technology, upon delivery, under
multilateral auspices and management when avail-
able; and
‘‘(2) the recipient country has entered into an
agreement with the International Atomic Energy
Agency to place all such equipment, materials, tech-
nology, and all nuclear fuel and facilities in such
country, under the safeguards system of such
Agency.
‘‘(b) CERTIFICATION BY PRESIDENT OF NECESSITY
OF CONTINUED ASSISTANCE; DISAPPROVAL
BY CON-
GRESS.—(1) Notwithstanding subsection (a), the Presi-
dent may furnish assistance which would otherwise be pro-
hibited under such subsection if he determines and cer-
tifies in writing to the Speaker of the House of Represent-
atives and the Committee on Foreign Relations of the Sen-
ate that—
‘‘(A) the termination of such assistance would
have a serious adverse effect on vital United States
interests; and
‘‘(B) he has received reliable assurances that
the country in question will not acquire or develop
nuclear weapons or assist other nations in doing so.
278
Such certification shall set forth the reasons supporting
such determination in each particular case.
‘‘(2)(A) A certification under paragraph (1) shall
take effect on the date on which the certification is re-
ceived by the Congress. However, if, within 30 calendar
days after receiving this certification, the Congress enacts
a joint resolution stating in substance that the Congress
disapproves the furnishing of assistance pursuant to the
certification, then upon the enactment of that resolution
the certification shall cease to be effective and all deliveries
of assistance furnished under the authority of that certifi-
cation shall be suspended immediately.
‘‘(B) Any joint resolution under this paragraph shall
be considered in the Senate in accordance with the provi-
sions of section 601(b) of the International Security As-
sistance and Arms Export Control Act of 1976.
‘‘SEC. 102. NUCLEAR REPROCESSING TRANSFERS AND ILLE-
GAL EXPORTS FOR NUCLEAR EXPLOSIVE DE-
VICES.
‘‘(a) PROHIBITIONS ON ASSISTANCE TO COUNTRIES
INVOLVED IN TRANSFER OF NUCLEAR REPROCESSING
EQUIPMENT, MATERIALS, OR TECHNOLOGY.—Except as
provided in subsection (b), no funds made available to
carry out the Foreign Assistance Act of 1961 or this Act
may be used for the purpose of providing economic assist-
279
ance (including assistance under chapter 4 of part II of
the Foreign Assistance Act of 1961), providing military
assistance or grant military education and training, pro-
viding assistance under chapter 6 of part II of that Act,
or extending military credits or making guarantees, to any
country which the President determines—
‘‘(1) delivers nuclear reprocessing equipment,
materials, or technology to any other country on or
after August 4, 1977, or receives such equipment,
materials, or technology from any other country on
or after August 4, 1977 (except for the transfer of
reprocessing technology associated with the inves-
tigation, under international evaluation programs in
which the United States participates, of technologies
which are alternatives to pure plutonium reprocess-
ing), or
‘‘(2) is a non-nuclear-weapon state which, on or
after August 8, 1985, exports illegally (or attempts
to export illegally) from the United States any mate-
rial, equipment, or technology which would contrib-
ute significantly to the ability of such country to
manufacture a nuclear explosive device, if the Presi-
dent determines that the material, equipment, or
technology was to be used by such country in the
manufacture of a nuclear explosive device.
280
For purposes of paragraph (2), an export (or attempted
export) by a person who is an agent of, or is otherwise
acting on behalf of or in the interests of, a country shall
be considered to be an export (or attempted export) by
that country.
‘‘(b) EXCEPTION.—(1) Notwithstanding subsection
(a), the President in any fiscal year may furnish assist-
ance which would otherwise be prohibited under that sub-
section if he determines and certifies in writing during
that fiscal year to the Speaker of the House of Represent-
atives and the Committee on Foreign Relations of the Sen-
ate that the termination of such assistance would be seri-
ously prejudicial to the achievement of United States non-
proliferation objectives or would otherwise jeopardize the
common defense and security. The President shall trans-
mit with such certification a statement setting forth the
specific reasons therefor.
‘‘(2)(A) A certification under paragraph (1) shall
take effect on the date on which the certification is re-
ceived by the Congress. However, if, within 30 calendar
days after receiving this certification, the Congress enacts
a joint resolution stating in substance that the Congress
disapproves the furnishing of assistance pursuant to the
certification, then upon the enactment of that resolution
the certification shall cease to be effective and all deliveries
281
of assistance furnished under the authority of that certifi-
cation shall be suspended immediately.
‘‘(B) Any joint resolution under this paragraph shall
be considered in the Senate in accordance with the provi-
sions of section 601(b) of the International Security As-
sistance and Arms Export Control Act of 1976.
‘‘SEC. 103. DEFINITION OF NUCLEAR EXPLOSIVE DEVICE.
‘‘As used in this chapter, the term ‘nuclear explosive
device’ has the meaning given that term in section 231(4)
of the Nuclear Proliferation Prevention Act of 1995.’’.
(b) REPEALS.—Sections 669 and 670 of the Foreign
Assistance Act of 1961 are hereby repealed.
(c) REFERENCES IN LAW.—Any reference in law as
of the effective date of this part to section 669 or 670
of the Foreign Assistance Act of 1961 shall, on and after
such date, be deemed to be a reference to section 101 or
102 of the Arms Export Control Act, or section 226 of
this Act, as the case may be.
SEC. 228. 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:
282
‘‘(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 231(8) of the Nu-
clear Proliferation Prevention Act of 1995) or any nuclear
explosive device (as defined in section 231(4) of that Act)
by an individual, group, or non-nuclear-weapon state (as
defined in section 231(5) of that Act).’’.
SEC. 229. REPORTS.
(a) CONTENT OF ACDA ANNUAL REPORT.—Section
51 of the Arms Control and Disarmament Act, as amend-
ed by section 717 of the Foreign Relations Authorization
Act, Fiscal Years 1995 and 1995, is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (5);
(B) by striking the period at the end of
paragraph (6) and inserting ‘‘; and’’; and
(C) by adding after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) a discussion of any material noncompliance
by foreign governments with their binding commit-
ments to the United States with respect to the pre-
vention of the spread of nuclear explosive devices (as
defined in section 231(4) of the Nuclear Prolifera-
283
tion Prevention Act of 1995) by non-nuclear-weapon
states (as defined in section 231(5) of that Act) or
the acquisition by such states of unsafeguarded spe-
cial nuclear material (as defined in section 231(8) 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 na-
tion committing such a violation into compli-
ance with those commitments.’’; and
(2) by adding at the end the following new sub-
section:
‘‘(c) 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 binding non-
proliferation commitments to the United States, then the
President shall include in the second such report an as-
sessment of what actions are necessary to compensate for
such violations.’’.
284
(b) REPORTING ON DEMARCHES.—(1) 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 demarches that the United
States has issued or received from foreign governments
with respect to activities which are of significance from
the proliferation standpoint.
(2) For purposes of this section, the term ‘‘de-
marche’’ means any official communication by one govern-
ment to another, 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 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).
285
SEC. 230. 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’’.
SEC. 231. DEFINITIONS.
For purposes of this part—
(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;
(2) the term ‘‘goods or technology’’ means—
(A) nuclear materials and equipment and
sensitive nuclear technology (as such terms are
defined in section 4 of the Nuclear Non-Pro-
liferation Act of 1978), all export items des-
ignated by the President pursuant to section
309(c) of the Nuclear Non-Proliferation Act of
1978, and all technical assistance requiring au-
thorization under section 57 b. of the Atomic
Energy Act of 1954; and
287
(7) 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
nongovernment entity which is not a foreign
person; and
(8) the term ‘‘unsafeguarded special nuclear
material’’ means special nuclear material which is
held in violation of IAEA safeguards or not subject
to IAEA safeguards (excluding any quantity of ma-
terial that could, if it were exported from the United
States, be exported under a general license issued by
the Nuclear Regulatory Commission).
SEC. 232. EFFECTIVE DATE.
The provisions of this part, and the amendments
made by this part, shall take effect 60 days after the date
of the enactment of this Act.
PART C—INTERNATIONAL ATOMIC ENERGY
AGENCY
SEC. 241. 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 weapons,
288
the United States should seek to negotiate with other na-
tions and groups of nations, including the IAEA Board
of Governors and the Nuclear Suppliers Group, to—
(1) build international support for the principle
that nuclear supply relationships must require pur-
chasing nations to agree to full-scope international
safeguards;
(2) encourage each nuclear-weapon state within
the meaning of the Treaty to undertake a com-
prehensive review of its own procedures for declas-
sifying information relating to the design or produc-
tion of nuclear explosive devices and to investigate
any measures that would reduce the risk of such in-
formation contributing to nuclear weapons prolifera-
tion;
(3) encourage the deferral of efforts to produce
weapons-grade nuclear material for large-scale com-
mercial uses until such time as safeguards are devel-
oped that can detect, on a timely and reliable basis,
the diversion of significant quantities of such mate-
rial for nuclear explosive purposes;
(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
289
currently using or planning to use weapons-grade
nuclear material 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) pursue the elimination of international com-
merce in highly enriched uranium for use in research
reactors while encouraging multilateral cooperation
to develop and to use low-enriched alternative nu-
clear 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 open skies arrange-
ment that would authorize the IAEA to operate sur-
veillance aircraft and would facilitate IAEA access
to satellite information for safeguards verification
purposes;
(9) develop an institutional means for IAEA
member nations to share intelligence material with
the IAEA on possible safeguards violations without
compromising 
national 
security 
or 
intelligence
sources or methods;
(10) require any exporter of a sensitive nuclear
facility or sensitive nuclear technology to a non-nu-
290
clear-weapon state to notify the IAEA prior to ex-
port and to require safeguards over that facility or
technology, regardless of its destination; and
(11) seek agreement among the parties to the
Treaty to apply IAEA safeguards in perpetuity and
to establish new limits on the right to withdraw from
the Treaty.
SEC. 242. IAEA INTERNAL REFORMS.
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 nu-
clear facilities that are capable of producing, proc-
essing, or fabricating special nuclear material suit-
able 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,
291
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 weapons-grade nuclear
material;
(4) establish safeguards at facilities engaged in
the manufacture of equipment or material that is es-
pecially designated or prepared for the processing,
use, or production of special fissionable material or,
in the case of non-nuclear-weapon states, of any nu-
clear explosive device;
(5) establish safeguards over nuclear research
and development activities and facilities;
(6) implement special inspections of undeclared
nuclear facilities, as provided for under existing safe-
guards procedures, and seek authority for the IAEA
to conduct challenge inspections on demand at sus-
pected nuclear sites;
(7) expand the scope of safeguards to include
tritium, uranium concentrates, and nuclear waste
containing special fissionable material, and increase
the scope of such safeguards on heavy water;
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(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) promote 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.
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SEC. 243. REPORTING REQUIREMENT.
(a) REPORT REQUIRED.—The President shall, in the
report required by section 601(a) of the Nuclear Non-Pro-
liferation Act of 1978, describe—
(1) the steps he has taken to implement sec-
tions 241 and 242, 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 241 and
242.
(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 241 and 242;
(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 241
and 242;
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(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 241 and 242.
SEC. 244. DEFINITIONS.
As used in this part—
(1) the term ‘‘highly enriched uranium’’ means
uranium enriched to 20 percent or more in the iso-
tope U–235;
(2) the term ‘‘IAEA’’ means the International
Atomic Energy Agency;
(3) 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;
(4) the term ‘‘special fissionable material’’ 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;
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(5) the term ‘‘the Treaty’’ means the Treaty on
the Non-Proliferation of Nuclear Weapons, signed at
Washington, London, and Moscow on July 1, 1968;
and
(6) the terms ‘‘IAEA safeguards’’, ‘‘non-nu-
clear-weapon state’’, ‘‘nuclear explosive device’’, and
‘‘special nuclear material’’ have the meanings given
those terms in section 231 of this Act.
PART D—REPEAL OF DUPLICATIVE PROVISIONS
SEC. 251. REPEAL.
Effective 60 days after the date of the enactment of
this Act—
(1) title VIII of the Foreign Relations Author-
ization Act, Fiscal Years 1995 and 1995, the
amendments made by that title, and the items relat-
ing to such title in the table of contents of that Act,
are repealed; and
(2) with respect to any provisions of law re-
pealed by title VIII of that Act, such title shall be
deemed not to have been enacted.
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