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SEC. 1103. STATEMENT OF PURPOSE.
It is the purpose of this title to impose additional sanc-
tions against those foreign countries and persons that trans-
fer destabilizing numbers and types of advanced conven-
tional weapons, or goods and technology that assist in en-
hancing the capabilities of Iran and Iraq to manufacture
and deliver such weapons.
SEC. 1104. SANCTIONS AGAINST PERSONS.
Section 1604 is amended to read as follows:
‘‘(a) PROHIBITION.—If the President determines that
any person has transferred or retransferred goods or tech-
nology so as to contribute knowingly and materially to the
efforts by Iran or Iraq (or any agency or instrumentality
of either such country) to acquire destabilizing numbers and
types of advanced conventional weapons, then—
‘‘(1) the sanctions described in subsection (b)
shall be imposed; and
‘‘(2) the President may apply, in the discretion
of the President, the sanctions described in subsection
(c).
‘‘(b) MANDATORY SANCTIONS.—The sanctions to be
imposed pursuant to subsection (a)(1) are as follows:
‘‘(1) PROCUREMENT SANCTION.—Except as pro-
vided in subsection (d), the United States Government
shall not procure directly or indirectly, or enter into
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any contract for the procurement of, any goods or
services from the sanctioned person.
‘‘(2) EXPORT
SANCTION.—The United States
Government shall not issue any license for any export
by or to the sanctioned person.
‘‘(c) DISCRETIONARY SANCTIONS.—The sanctions re-
ferred to in subsection (a)(2) are as follows:
‘‘(1) TRANSITING UNITED STATES TERRITORY.—
‘‘(A) Notwithstanding any other provision
of law (other than a treaty or other international
agreement), no employee or official of a sanc-
tioned person and no good or technology that is
manufactured, produced, sold, or shipped by the
sanctioned person may transit by vessel or air-
craft any territory subject to the jurisdiction of
the United States. The Secretary of Transpor-
tation may promulgate regulations, as necessary,
to provide for the implementation of this sanc-
tion in the most effective manner.
‘‘(B) The Secretary of Transportation may
provide for such exceptions from this paragraph
as the Secretary considers in the interest of the
United States.
‘‘(2) FINANCIAL INSTITUTIONS.—(A) The Presi-
dent may by order prohibit any depositary institu-
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tion that is chartered by, or that has its principal
place of business within, a State or the United States
from making any loan or providing any credit to the
sanctioned person, except for loans or credits for the
purpose of purchasing food or other agricultural com-
modities.
‘‘(B) As used in this paragraph, the term ‘depos-
itory institution’ means a bank or savings associa-
tion, as defined in section 3 of the Federal Deposit
Insurance Act.
‘‘(3) USE
OF
AUTHORITIES
OF
THE
INTER-
NATIONAL EMERGENCY ECONOMIC POWERS ACT.—The
President may exercise the authorities of the Inter-
national Emergency Economic Powers Act to prohibit
any transaction involving any property in which the
sanctioned person has any interest whatsoever except
for transactions involving the provision of humani-
tarian assistance.
‘‘(4) PROHIBITION
ON
VESSELS
THAT
ENTER
PORTS
OF
SANCTIONED
COUNTRIES
TO
ENGAGE
IN
TRADE.—
‘‘(A) IN GENERAL.—Beginning on the 10th
day after a sanction is imposed under this Act
against a country, a vessel which enters a port
or place in the sanctioned country to engage in
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the trade of goods or services may not if the
President so requires within 180 days after de-
parture from such port or place in the sanc-
tioned country, load or unload any freight at
any place in the United States.
‘‘(B) DEFINITIONS.—As used in this para-
graph, the term ‘vessel’ includes every description
of water craft or other contrivance used, or capa-
ble of being used, as a means of transportation
in water, but does not include aircraft.
‘‘(d) EXCEPTIONS.—The sanction described in sub-
section (b)(1) shall not apply—
‘‘(1) in the case of procurement of defense articles
or defense services—
‘‘(A) under existing contracts or sub-
contracts, including the exercise of options for
production quantities to satisfy operational mili-
tary requirements essential to the national secu-
rity of the United States;
‘‘(B) if the President determines that the
person or other entity to which the sanctions
would otherwise be applied is a sole source sup-
plier of the defense articles or services, that the
defense articles or services are essential, and that
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alternative sources are not readily or reasonably
available; or
‘‘(C) if the President determines that such
articles or services are essential to the national
security under defense coproduction agreements;
‘‘(2) to products or services provided under con-
tracts entered into before the date on which the Presi-
dent makes a determination under subsection (a);
‘‘(3) in the case of contracts entered into before
the date on which the President makes a determina-
tion under subsection (a), with respect to—
‘‘(A) spare parts which are essential to
United States products or production; or
‘‘(B) component parts, but not finished
products, essential to United States products or
production; or
‘‘(C) routine servicing and maintenance of
products, to the extent that alternative sources
are not readily or reasonably available;
‘‘(4) to information and technology essential to
United States products or production; or
‘‘(5) to medical or other humanitarian items.
‘‘(e) CONSULTATION WITH AND ACTIONS BY FOREIGN
GOVERNMENT OF JURISDICTION.—
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‘‘(1) CONSULTATIONS.—Whenever the President
makes a determination under subsection (a) with re-
spect to a foreign person, the Congress urges the
President—
‘‘(A) to initiate consultations immediately
with the government with primary jurisdiction
over that foreign person with respect to the im-
position of sanctions pursuant to this section;
and, as appropriate,
‘‘(B) to take steps in the United Nations
and other multilateral groups to negotiate com-
prehensive multilateral sanctions pursuant to the
provisions of chapter 7 of the United Nations
Charter, including a partial or complete embar-
go, against the government of the foreign country
of primary jurisdiction over that sanctioned per-
son, as long as that government has not taken
specific and effective actions, including appro-
priate penalties, to terminate the involvement of
the sanctioned person or firm in the activities
described in section 1604(a).
‘‘(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue such consultations with the
government, the President may delay imposition of
sanctions pursuant to subsections (b) and (c) for up
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to 90 days. Following these consultations, the Presi-
dent shall impose sanctions immediately unless the
President determines and certifies to the Congress
that that government has taken specific and effective
actions, including appropriate penalties, to terminate
the involvement of the foreign person in the activities
described in subsection (a). The President may delay
the imposition of sanctions for up to an additional 90
days if the President determines and certifies to the
Congress that that government is in the process of
taking the actions described in the preceding sentence.
‘‘(3) REPORT TO CONGRESS.—Not later than 90
days after the application of sanctions under this sec-
tion, the President shall submit to the Committee on
Foreign Relations and the Committee on Govern-
mental Affairs of the Senate and the Committee on
Foreign Affairs of the House of Representatives a re-
port on the status of consultations with the appro-
priate government under this subsection, and the
basis for any determination under paragraph (2) of
this subsection that such government has taken spe-
cific corrective actions.’’.
SEC. 1105. SANCTIONS AGAINST CERTAIN FOREIGN COUN-
TRIES.
Section 1605 is amended—
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(1) in subsection (a)(2), by striking ‘‘sanction’’
and inserting ‘‘sanctions’’;
(2) in subsection (c)—
(A) by striking ‘‘SANCTION.—The sanction
referred to in subsection (a)(2) is’’ and inserting
‘‘SANCTIONS.—The sanctions referred to in sub-
section (a)(2) are’’; and
(B) by adding at the end the following new
paragraphs:
‘‘(3) DIPLOMATIC RELATIONS.—The President is
urged to downgrade or suspend diplomatic relations
between the United States and the government of the
sanctioned country.
‘‘(4) SUSPENSION OF TRADE AGREEMENTS.—The
President may exercise the authorities of the Inter-
national Emergency Economic Powers Act to suspend
any trade agreement with the sanctioned country, ex-
cept those affecting imports into the United States for
the sanctioned country.
‘‘(5) REVOCATIONS OF LICENSES FOR EXPORT OF
NUCLEAR MATERIAL.—The Nuclear Regulatory Com-
mission is authorized to revoke any license for the ex-
port of nuclear material pursuant to a nuclear co-
operation agreement with the sanctioned country.
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‘‘(6) PRESIDENTIAL
ACTION
REGARDING
AVIA-
TION.—
‘‘(A)(i) The President is authorized to no-
tify the government of a sanctioned country of
his intention to suspend the authority of foreign
air carriers owned or controlled by the govern-
ment of that country to engage in foreign air
transportation to or from the United States.
‘‘(ii) The President is authorized to direct
the Secretary of Transportation to suspend at
the earliest possible date the authority of any
foreign air carrier owned or controlled, directly
or indirectly, by that government to engage in
foreign air transportation to or from the United
States, notwithstanding any agreement relating
to air services.
‘‘(B)(i) The President may direct the Sec-
retary of State to terminate any air service
agreement between the United States and a sanc-
tioned country in accordance with the provisions
of that agreement.
‘‘(ii) Upon termination of an agreement
under this subparagraph, the Secretary of Trans-
portation is authorized to take such steps as may
be necessary to revoke at the earliest possible date
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the right of any foreign air carrier owned, or
controlled, directly or indirectly, by the govern-
ment of that country to engage in foreign air
transportation to or from the United States.
‘‘(C) The President may direct the Sec-
retary of Transportation to provide for such ex-
ceptions from this subsection as the President
considers necessary to provide for emergencies in
which the safety of an aircraft or its crew or
passengers is threatened.
‘‘(D) For purposes of this paragraph, the
terms ‘aircraft’, ‘air carrier’, ‘air transpor-
tation’, and ‘foreign air carrier’ have the mean-
ings given those terms in section 101 of the Fed-
eral Aviation Act of 1958 (49 U.S.C. 1301).
‘‘(7) OTHER
SANCTIONS.—The President may
apply the sanctions described in section 1605(c) with
respect to actions of a foreign government.’’.
SEC. 1106. WAIVER.
Section 1606 is amended—
(1) by striking ‘‘waiver’’ each place it appears
and inserting ‘‘modification, and waiver’’; and
(2) by striking ‘‘waive’’ each place it appears
and inserting ‘‘modify or waive’’.
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SEC. 1107. TERMINATION OF SANCTIONS.
The Act is amended by inserting after section 1606 the
following new section:
‘‘SEC. 1606A. TERMINATION OF SANCTIONS.
‘‘Except as otherwise provided in this title, the sanc-
tions imposed pursuant to the Act shall apply for a period
of at least 24 months following the imposition of sanctions
and shall case to apply thereafter only if the President de-
termines and certifies to the Congress that—
‘‘(1) reliable information indicates that the gov-
ernment of jurisdiction has taken specific and effec-
tive action, including appropriate penalties, to termi-
nate the involvement of the sanctioned person in the
sanctionable activity;
‘‘(2) the President has received reliable assur-
ances from the sanctioned government that such gov-
ernment will not, in the future, violate this Act.’’.
SEC. 1108. STAY OF SANCTIONS.
The Act is amended by inserting after section 1607 the
following new section:
‘‘(a) CRITERION FOR STAY.—The President may stay
the imposition of any sanction on any entity in order to
protect—
‘‘(1) ongoing criminal investigations, or
‘‘(2) sensitive intelligence sources and methods
which are being used to acquire further information
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on the proliferation of advanced conventional weap-
ons, weapons of mass destruction, or missiles that
would be comprised by the publication of the sanc-
tioned entity’s name.
‘‘(b) DETERMINATION.—The President shall exercise
the authority described in paragraph (1) only when the
President determines that the non-proliferation goals of the
Act are better served by delaying the imposition of sanctions
rather than by compromising the criminal investigation or
intelligence sources and methods at issue.
‘‘(c) LIFTING OF STAY.—The President shall lift any
stay imposed pursuant to this subsection as soon as the
basis for the determination made pursuant to paragraph
(2) no longer exists.
‘‘(d) NOTIFICATION
AND REPORT
TO CONGRESS.—
Whenever the duration of any stay imposed pursuant to this
subsection exceeds 120 days, the President shall promptly
report to the Select Committee on Intelligence of the Senate
and the Permanent Select Committee on Intelligence of the
House of Representatives the rationale and circumstances
that led the President to exercise the stay authority.’’.
SEC. 1109. RULES AND REGULATIONS.
The Act is amended by inserting after section 1607 the
following new section:
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‘‘SEC. 1607A. RULES AND REGULATIONS.
‘‘The President is authorized to prescribe such rules
and regulations as the President may require to carry out
this Act.’’.
SEC. 1110. DEFINITIONS.
Section 1608 is amended by adding at the end the fol-
lowing new paragraph;
‘‘(8) The term ‘goods or technology’ includes any item
of the type that is listed on the Nuclear Referral List under
section 309(c) of the Nuclear Non-Proliferation Act of 1978,
the United States Munitions List (established in section 38
of the Arms Export Control Act), or the MTCR Annex (as
defined in section 74(4) of the Arms Export Control Act)
or any item that is subject to licensing by the Nuclear Regu-
latory Commission.
‘‘(9) The term ‘United States’ includes territories and
possessions of the United States and the customs waters of
the United States, as defined in section 401 of the Tariff
Act of 1930 (19 U.S.C. 1401).’’.
SEC. 1111. SENSE OF THE SENATE.
Whereas both Iran and Iraq have re-emerged as con-
tinuing threats to the peace and stability of the Middle East
and thus pose a threat to the stability of the post-Cold War
world, it is the sense of the Senate that the conference agree-
ment on H.R. 2333 should include as additional discre-
tionary sanctions under section 1105 of this title denial of
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Most-Favored-Nation status to a sanctioned country and
suspension of special trade privileges for a sanctioned coun-
try which were extended pursuant to the Generalized Sys-
tem of Preferences or the Caribbean Basin Initiative.
TITLE XII—IMMIGRATION AND
NATIONALITY ACT
SEC. 1201. ALIEN PHYSICALLY PRESENT IN UNITED STATES.
Section 245 of the Immigration and Nationality Act,
as amended (8 U.S.C. 1255), is amended by adding at the
end thereof the following new subsection:
‘‘(i)(1) Notwithstanding the provisions of subsections
(a) and (c) of this section, an alien physically present in
the United States who (A) entered the United States with-
out inspection; or (B) is within one of the classes enumer-
ated in subsection (c) of this section may apply to the Attor-
ney General for the adjustment of his or her status to that
of an alien lawfully admitted for permanent residence. The
Attorney General may accept such application only if the
alien remits with such application a sum equalling five
times the fee required for the processing of applications
under this section as of the date of receipt of the applica-
tion. The sum specified herein shall be in addition to the
fee normally required for the processing of an application
under this section.
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‘‘(2) Upon receipt of such an application and the sum
hereby required, the Attorney General may adjust the status
of the alien to that of an alien lawfully admitted for perma-
nent residence if (A) the alien is eligible to receive an immi-
grant visa and is admissible to the United States for perma-
nent residence; and (B) an immigrant visa is immediately
available to the alien at the time the application is filed.
‘‘(3) Sums remitted to the Attorney General pursuant
to paragraphs (1) and (2) of this subsection shall be dis-
posed of by the Attorney General as provided in sections
286 (m), (n), and (o) of this title.’’.
SEC. 1202. ALIEN VISA.
Section 212(a)(9) of the Immigration and Nationality
Act, as amended (8 U.S.C. 1182(a)(9)), is amended by add-
ing at the end thereof the following:
‘‘(D) An alien applying for an immigrant
visa who has been physically present in the
United States within the ninety day period im-
mediately preceding the date of such application
is excludable.’’.
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TITLE 
XIII—NUCLEAR 
PROLIF-
ERATION 
PREVENTION 
ACT
OF 1994
SEC. 1301. SHORT TITLE.
This title may be cited as the ‘‘Nuclear Proliferation
Prevention Act of 1994’’.
Subtitle A—Reporting on Nuclear
Exports
SEC. 1311. 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
the Nuclear Non-Proliferation Act of 1978;
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‘‘(iii) a sanction has not been imposed
by reason of section 1321(c)(2) of the Nu-
clear Proliferation Prevention Act of 1994
or the imposition of a sanction has been de-
layed under section 1002(b)(4) of the Arms
Export Control Act; or
‘‘(iv) a waiver of a sanction has been
made under—
‘‘(I) section 1321(f) of the Nuclear
Proliferation Prevention Act of 1994,
‘‘(II) section 620E(d) of the For-
eign Assistance Act of 1961, or para-
graph (5) or (6)(B) of section 1002(b)
of the Arms Export Control Act,
‘‘(III) section 605 of the Federal
Deposit Insurance Corporation Im-
provement Act of 1991;
‘‘(IV) section 40(g) of the Arms
Export Control Act with respect to the
last sentence of section 40(d) of that
Act, or
‘‘(V) section 614 of the Foreign
Assistance Act of 1961 with respect to
section 620E of that Act or section 3(f),
the last sentence of section 40(d), or
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1002(b)(1) of the Arms Export Control
Act; and
‘‘(C) the progress of those independent states
of the former Soviet Union that are non-nuclear-
weapon 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 paragraph (6) may
be submitted in classified form, as necessary. Any such in-
formation that may not be published or disclosed under sec-
tion 12(c)(1) of the Export Administration Act of 1979
shall be submitted as confidential.’’.
Subtitle B—Sanction for Nuclear
Proliferation
SEC. 1321. IMPOSITION OF SANCTION.
(a) DETERMINATION BY THE PRESIDENT.—
(1) IN GENERAL.—Except as provided in sub-
section (b)(2), the President shall impose the sanction
described in subsection (c) if the President determines
in writing that a foreign person or a United States
person, on or after the effective date of this subtitle,
has materially and with requisite knowledge contrib-
uted—
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(A) through the export from the United
States of any goods or technology that are subject
to the jurisdiction of the United States, or
(B) through the export from any other coun-
try of any goods or technology that would be, if
they were exported from the United States, sub-
ject to the jurisdiction of the United States,
to the efforts by any individual, group, or non-nu-
clear-weapon state to acquire unsafeguarded special
nuclear material or to use, develop, produce, stockpile,
or otherwise acquire any nuclear explosive device.
(2) PERSONS AGAINST WHICH THE SANCTION IS
TO BE IMPOSED.—The sanction shall be imposed pur-
suant to paragraph (1) on—
(A) the foreign person or United States per-
son with respect to which the President makes
the determination described in that paragraph;
(B) any successor entity to that foreign per-
son or United States person;
(C) any foreign person or United States
person that is a parent or subsidiary of that per-
son if that parent or subsidiary materially and
with requisite knowledge assisted in the activities
which were the basis of that determination; and
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(D) any foreign person or United States
person that is an affiliate of that person if that
affiliate materially and with requisite knowledge
assisted in the activities which were the basis of
that determination and if that affiliate is con-
trolled in fact by that foreign person.
(3) OTHER SANCTIONS AVAILABLE.—The sanc-
tions which are required to be imposed for activities
described in this subsection are in addition to any
other sanction which may be imposed for the same ac-
tivities 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 de-
fined in section 104 of the Foreign Corrupt Practices
Act of 1977 (15 U.S.C. 78dd–2).
(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
sanction pursuant to this section.
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(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue such consultations with
that government, the President may delay imposition
of the sanction pursuant to this section for up to 90
days. Following these consultations, the President
shall impose the sanction unless the President deter-
mines and certifies in writing to the Congress that
that government has taken specific and effective ac-
tions, including appropriate penalties, to terminate
the involvement of the foreign person in the activities
described in subsection (a)(1). The President may
delay the imposition of the sanction for up to an ad-
ditional 90 days if the President determines and cer-
tifies in writing to the Congress that that government
is in the process of taking the actions described in the
preceding sentence.
(3) REPORT TO CONGRESS.—Not later than 90
days after making a determination under subsection
(a)(1), the President shall submit to the Committee on
Foreign Relations and the Committee on Govern-
mental Affairs of the Senate and the Committee on
Foreign Affairs of the House of Representatives a re-
port on the status of consultations with the appro-
priate government under this subsection, and the
basis for any determination under paragraph (2) of
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this subsection that such government has taken spe-
cific corrective actions.
(c) SANCTION.—
(1) DESCRIPTION OF SANCTION.—The sanction
to be imposed pursuant to subsection (a)(1) are, ex-
cept as provided in paragraph (2) of this subsection,
that the United States Government shall not procure,
or enter into any contract for the procurement of, any
goods or services from any person described in sub-
section (a)(2).
(2) EXCEPTIONS.—The President shall not be re-
quired to apply or maintain the sanction under this
section—
(A) in the case of procurement of defense ar-
ticles 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 sanction would otherwise be ap-
plied is a sole source supplier of the defense
articles or services, that the defense articles
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or services are essential, and that alter-
native sources are not readily or reasonably
available; or
(iii) if the President determines in
writing that such articles or services are es-
sential to the national security under de-
fense coproduction agreements;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
the sanction;
(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 reasonably
available;
(D) to information and technology essential
to United States products or production; or
(E) to medical or other humanitarian
items.
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(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 opin-
ion to that person as to whether a proposed activity by that
person would subject that person to the sanction under this
section. Any person who relies in good faith on such an
advisory opinion which states that the proposed activity
would not subject a person to such sanction, and any person
who thereafter engages in such activity, may not be made
subject to such sanction on account of such activity.
(e) TERMINATION OF THE SANCTION.—The sanction
imposed pursuant to this section shall apply for a period
of at least 12 months following the imposition of the sanc-
tion 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 sub-
section; and
(2) the President has received reliable assurances
from the foreign person or United States person, as
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the case may be, that such person will not, in the fu-
ture, aid or abet any individual, group, or non-nu-
clear-weapon 
state 
in 
its 
efforts 
to 
acquire
unsafeguarded special nuclear material or any nu-
clear explosive device, as described in subsection
(a)(1).
(f) WAIVER.—
(1) CRITERION
FOR
WAIVER.—The President
may waive the application of the sanction imposed on
any person pursuant to this section, after the end of
the 12-month period beginning on the date on which
that sanction was imposed on that person, if the
President determines and certifies in writing to the
Congress that the continued imposition of the sanc-
tion would have a serious adverse effect on vital Unit-
ed States interests.
(2) NOTIFICATION
OF
AND
REPORT
TO
CON-
GRESS.—If the President decides to exercise the waiv-
er authority provided in paragraph (1), the President
shall so notify the Congress not less than 20 days be-
fore the waiver takes effect. Such notification shall in-
clude a report fully articulating the rationale and
circumstances which led the President to exercise the
waiver authority.
(g) DEFINITIONS.—For purposes of this section—
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(1) the term ‘‘foreign person’’ means—
(A) an individual who is not a citizen of
the United States or an alien admitted for per-
manent residence to the United States; or
(B) a corporation, partnership, or other
nongovernment entity which is created or orga-
nized under the laws of a foreign country or
which has its principal place of business outside
the United States; and
(2) the term ‘‘United States person’’ means—
(A) an individual who is a citizen of the
United States or an alien admitted for perma-
nent residence to the United States; or
(B) a corporation, partnership, or other en-
tity which is not a foreign person.
SEC. 1322. ELIGIBILITY FOR ASSISTANCE.
(a) AMENDMENTS TO THE ARMS EXPORT CONTROL
ACT.—(1) Section 3 of the Arms Export Control Act (22
U.S.C. 2753) is amended by adding at the end the following
new subsection:
‘‘(f) No sales or leases shall be made to any country
that the President has determined is in material breach of
its binding commitments to the United States under inter-
national treaties or agreements concerning the nonprolifera-
tion of nuclear explosive devices (as defined in section
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1330(3) of the Nuclear Proliferation Prevention Act of
1994) and unsafeguarded special nuclear material (as de-
fined in section 1330(6) of that Act).’’.
(2) Section 40 of such Act (22 U.S.C. 2780) is amend-
ed—
(A) in subsection (d), by adding at the end the
following new sentence: ‘‘For purposes of this sub-
section, such acts shall include all activities that the
Secretary determines willfully aid or abet the inter-
national proliferation of nuclear explosive devices to
individuals or groups or willfully aid or abet an in-
dividual or groups in acquiring unsafeguarded spe-
cial nuclear material.’’; and
(B) in subsection (l)—
(i) in paragraph (2), by striking ‘‘and’’
after the semicolon;
(ii) in paragraph (3), by striking the period
at the end and inserting a semicolon; and
(iii) by adding at the end the following:
‘‘(4) the term ‘nuclear explosive device’ has the
meaning given that term in section 1330(3) of the
Nuclear Proliferation Prevention Act of 1994; and
‘‘(5) the term ‘unsafeguarded special nuclear ma-
terial’ has the meaning given that term in section
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1330(6) of the Nuclear Proliferation Prevention Act of
1994.’’.
(b) AMENDMENT TO THE FOREIGN ASSISTANCE ACT
OF 1961.—
(1) Notwithstanding any other provision of law,
Presidential Determination No. 82–7 of February 10,
1982, made pursuant to section 670(a)(2) of the For-
eign Assistance Act of 1961, shall have no force or ef-
fect with respect to any grounds for the prohibition
of assistance under section 1002(a)(1) of the Arms
Eport Act arising on or after the effective date of this
subtitle.
(2) Section 620E(d) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2375(d)) is amended to read
as follows:
‘‘(d) The President may waive the prohibitions of sec-
tion 1001 of the Arms Export Control Act with respect to
any grounds for the prohibition of assistance under that
section arising before the effective date of subtitle B of the
Nuclear Proliferation Prevention Act of 1994 to provide as-
sistance to Pakistan if he determines that to do so is in
the national interest of the United States.’’.
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SEC. 1323. 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 section
701(a) of the International Financial Institutions Act (22
U.S.C. 262d(a)) to use the voice and vote of the United
States to oppose any direct or indirect use of the institu-
tion’s funds to promote the acquisition of unsafeguarded
special nuclear material or the development, stockpiling, or
use of any nuclear explosive device by any non-nuclear-
weapon state.
(b) DUTIES OF UNITED STATES EXECUTIVE 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
1330(6) of the Nuclear Proliferation Prevention
Act of 1994) or a nuclear explosive device (as de-
fined in section 1330(3) of that Act);
‘‘(B) is not a State Party to the Treaty on
Non-Proliferation of Nuclear Weapons; or
‘‘(C) has detonated a nuclear explosive de-
vice; and’’.
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SEC. 1324. AMENDMENTS TO THE FEDERAL DEPOSIT INSUR-
ANCE CORPORATION IMPROVEMENT ACT OF
1991.
The Federal Deposit Insurance Corporation Improve-
ment Act of 1991 is amended by adding at the end the fol-
lowing new title:
‘‘TITLE VI—SANCTIONS ON
FINANCIAL INSTITUTIONS
‘‘SEC. 601. PRESIDENTIAL DETERMINATION.
‘‘(a) IN GENERAL.—The prohibitions in section 603
shall be imposed on a financial institution if the President
determines in writing that such financial institution, on
or after the date which is 60 days after the date of enact-
ment of this section, has materially and with requisite
knowledge contributed, through provision of financing or
other services, to the efforts by any individual, group, or
non-nuclear-weapon state to acquire unsafeguarded special
nuclear material or to use, develop, produce, stockpile, or
otherwise acquire any nuclear explosive device, as these
standards and terms would be applied under section
1321(a) of the Nuclear Proliferation Prevention Act of 1994.
‘‘(b) PRESIDENTIAL ORDER.—Whenever the President
makes a determination under subsection (a) with respect
to a financial institution, the President shall issue an order
specifying a date within 180 days after such determination
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on which the prohibitions in section 603 shall begin to
apply to such institution.
‘‘SEC. 602. ADDITIONAL ENTITIES AGAINST WHICH SANC-
TIONS ARE TO BE IMPOSED.
‘‘The prohibitions described in section 603 shall also
be imposed, pursuant to section 601, on—
‘‘(1) any successor entity to the financial institu-
tion with respect to which the President makes a de-
termination under section 601(a);
‘‘(2) any foreign person or United States person
that is a parent or subsidiary of that financial insti-
tution if that parent or subsidiary materially and
with requisite knowledge assisted in the activities
which were the basis of that determination; and
‘‘(3) any foreign person or United States person
that is an affiliate of that financial institution if that
affiliate materially and with requisite knowledge as-
sisted in the activities which were the basis of such
determination and if that affiliate is controlled in
fact by that financial institution.
‘‘SEC. 603. PROHIBITIONS.
‘‘The following prohibitions shall apply to a financial
institution with respect to which a determination is made
under section 601(a) and to the entities described in section
602:
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‘‘(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 continu-
ation of any prior designation of, such financial
institution or any such entity as a primary
dealer in United States Government debt instru-
ments.
‘‘(B) GOVERNMENT FUNDS.—Such financial
institution or any such entity shall not serve as
agent of the United States Government or serve
as repository for United States Government
funds.
‘‘(2) RESTRICTIONS ON OPERATIONS.—Such fi-
nancial institution or any such entity shall not, di-
rectly or indirectly—
‘‘(A) commence any line of business in the
United States in which it was not engaged as of
the date of the determination; or
‘‘(B) conduct business from any location in
the United States at which it did not conduct
business as of the date of the determination.
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‘‘SEC. 604. CONDITIONS AND TERMINATION OF SANCTIONS.
‘‘The same requirements for consultation with the for-
eign government of jurisdiction, where appropriate, and for
termination of sanctions shall apply under this title as are
provided in subsections (b) and (e), respectively, of section
1321 of the Nuclear Proliferation Prevention Act of 1994.
‘‘SEC. 605. WAIVER.
‘‘The President may waive the imposition of any pro-
hibition imposed on any financial institution or other en-
tity pursuant to section 601 or 602 if the President deter-
mines and certifies in writing to the Congress that the im-
position of such prohibition would have a serious adverse
effect on the safety and soundness of the domestic or inter-
national financial system or on domestic or international
payments systems.
‘‘SEC. 606. DEFINITIONS.
‘‘As used in this title—
‘‘(1) the term ‘financial institution’ includes—
‘‘(A) a depository institution, including a
branch or agency of a foreign bank;
‘‘(B) a securities firm, including a broker or
dealer;
‘‘(C) an insurance company, including an
agency or underwriter;
‘‘(D) any other company that provides pri-
marily financial services; or
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‘‘(E) any subsidiary of any entity described
in subparagraph (A), (B), (C), or (D);
‘‘(2) the term ‘requisite knowledge’ means situa-
tions in which a person ‘knows’, as ‘knowing’ is de-
fined in section 104 of the Foreign Corrupt Practices
Act of 1977 (15 U.S.C. 78dd–2); and
‘‘(3) the terms ‘foreign person’ and ‘United
States person’ have the meanings given those terms in
section 1321(g) of the Nuclear Proliferation Preven-
tion Act of 1994.’’.
SEC. 1325. 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 sentence by
inserting after ‘‘device’’ the following: ‘‘(as defined in sec-
tion 1330(3) of the Nuclear Proliferation Prevention Act of
1994), or that any country has willfully aided or abetted
any non-nuclear-weapon state (as defined in section
1330(4) of that Act) to acquire any such nuclear explosive
device or to acquire unsafeguarded special nuclear material
(as defined in section 1330(6) of that Act).’’.
SEC. 1326. 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:
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‘‘CHAPTER 10—NUCLEAR
NONPROLIFERATION CONTROLS
‘‘SEC. 1001. NUCLEAR ENRICHMENT TRANSFERS.
‘‘(a) PROHIBITIONS; SAFEGUARDS
AND
MANAGE-
MENT.—Except as provided in subsection (b) of this section,
no funds authorized to be appropriated by the Foreign As-
sistance Act of 1961 or this Act may be used for the purpose
of providing economic assistance (including assistance
under chapter 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, on or after Au-
gust 4, 1977, delivers nuclear enrichment equipment, mate-
rials, or technology to any other country, or receives such
equipment, materials, or technology from any other coun-
try, unless before such delivery—
‘‘(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-
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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; CONCURRENT RESOLUTION OF
DISAPPROVAL BY CONGRESS.—(1) Notwithstanding sub-
section (a) of this section, the President may furnish assist-
ance which would otherwise be prohibited under such sub-
section if he determines and certifies in writing to the
Speaker of the House of Representatives and the Committee
on Foreign Relations of the Senate 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 nu-
clear weapons or assist other nations in doing so.
Such certification shall set forth the reasons supporting
such determination in each particular case.
‘‘(2)(A) A certification under paragraph (1) of this
subsection shall take effect on the date on which the certifi-
cation is received by the Congress. However, if, within thir-
ty calendar days after receiving this certification, the Con-
gress adopts a concurrent resolution stating in substance
that the Congress disapproves the furnishing of assistance
pursuant to the certification, then upon the adoption of that
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resolution the certification shall cease to be effective and all
deliveries of assistance furnished under the authority of that
certification shall be suspended immediately.
‘‘(B) Any concurrent 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 the purpose of expediting the consideration
and adoption of concurrent resolutions under this para-
graph, a motion to proceed to the consideration of any such
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the House
of Representatives.
‘‘SEC. 1002. NUCLEAR REPROCESSING TRANSFERS, ILLEGAL
EXPORTS FOR NUCLEAR EXPLOSIVE DEVICES,
TRANSFERS OF NUCLEAR EXPLOSIVE DE-
VICES, AND NUCLEAR DETONATIONS.
‘‘(a) PROHIBITIONS ON ASSISTANCE TO COUNTRIES
INVOLVED
IN TRANSFER
OF NUCLEAR REPROCESSING
EQUIPMENT, MATERIALS, OR TECHNOLOGY; EXCEPTIONS;
PROCEDURES APPLICABLE.—(1) Except as provided in
paragraph (2) of this subsection, no funds authorized to be
appropriated by the Foreign Assistance Act of 1961 or this
Act may be used for the purpose of providing economic as-
sistance (including assistance under chapter 4 of part II
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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 (A) on or after August 4, 1977, delivers nu-
clear reprocessing equipment, materials, or technology to
any other country or receives such equipment, materials,
or technology from any other country (except for the trans-
fer of reprocessing technology associated with the investiga-
tion, under international evaluation programs in which the
United States participates, of technologies which are alter-
natives to pure plutonium reprocessing), or (B) is a non-
nuclear-weapon state which, on or after August 8, 1985, ex-
ports illegally (or attempts to export illegally) from the
United States any material, equipment, or technology
which would contribute significantly to the ability of such
country to manufacture a nuclear explosive device, if the
President determines that the material, equipment, or tech-
nology was to be used by such country in the manufacture
of a nuclear explosive device. For purposes of clause (B),
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 at-
tempted export) by that country.
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‘‘(2) Notwithstanding paragraph (1) of this subsection,
the President in any fiscal year may furnish assistance
which would otherwise be prohibited under that paragraph
if he determines and certifies in writing during that fiscal
year to the Speaker of the House of Representatives and
the Committee on Foreign Relations of the Senate that the
termination of such assistance would be seriously preju-
dicial to the achievement of United States nonproliferation
objectives or otherwise jeopardize the common defense and
security. The President shall transmit with such certifi-
cation a statement setting forth the specific reasons therefor.
‘‘(3)(A) A certification under paragraph (2) of this
subsection shall take effect on the date on which the certifi-
cation is received by the Congress. However, if, within 30
calendar days after receiving this certification, the Congress
adopts a concurrent resolution stating in substance that the
Congress disapproves the furnishing of assistance pursuant
to the certification, then upon the adoption of that resolu-
tion the certification shall cease to be effective and all deliv-
eries of assistance furnished under the authority of that cer-
tification shall be suspended immediately.
‘‘(B) Any concurrent 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.
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‘‘(C) For the purpose of expediting the consideration
and adoption of concurrent resolutions under this para-
graph, a motion to proceed to the consideration of any such
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the House
of Representatives.
‘‘(b) PROHIBITIONS ON ASSISTANCE TO COUNTRIES
INVOLVED IN TRANSFER OR USE OF NUCLEAR EXPLOSIVE
DEVICES; EXCEPTIONS; PROCEDURES APPLICABLE.—(1)
Except as provided in paragraphs (4), (5), and (6), in the
event that the President determines that any country, after
the effective date of subtitle B of the Nuclear Proliferation
Prevention Act of 1994—
‘‘(A) transfers to a non-nuclear-weapon state a
nuclear explosive device,
‘‘(B) is a non-nuclear-weapon state and either—
‘‘(i) receives a nuclear explosive device, or
‘‘(ii) detonates a nuclear explosive device,
‘‘(C) transfers to a non-nuclear-weapon state any
design information or component which is determined
by the President to be important to, and known by
the transferring country to be intended by the recipi-
ent state for use in, the development or manufacture
of any nuclear explosive device, or
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‘‘(C) The United States Government shall termi-
nate all foreign military financing for that country
under this Act.
‘‘(D) The United States Government shall deny
to that country any credit, credit guarantees, or other
financial assistance by any department, agency, or
instrumentality of the United States Government, ex-
cept that the sanction of this subparagraph shall not
apply—
‘‘(i) to any transaction subject to the report-
ing requirements of title V of the National Secu-
rity Act of 1947 (relating to congressional over-
sight of intelligence activities), or
‘‘(ii) to humanitarian assistance.
‘‘(E) The United States Government shall op-
pose, in accordance with section 701 of the Inter-
national Financial Institutions Act (22 U.S.C. 262d),
the extension of any loan or financial or technical as-
sistance to that country by any international finan-
cial institution.
‘‘(F) The United States Government shall pro-
hibit any United States bank from making any loan
or providing any credit to the government of that
country, except for loans or credits for the purpose of
purchasing food or other agricultural commodities.
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‘‘(G) The authorities of section 6 of the Export
Administration Act of 1979 shall be used to prohibit
exports to that country of specific goods and tech-
nology (excluding food and other agricultural com-
modities), except that such prohibition shall not
apply to any transaction subject to the reporting re-
quirements of title V of the National Security Act of
1947 (relating to congressional oversight of intel-
ligence activities).
‘‘(3) As used in this subsection—
‘‘(A) 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
‘‘(B) the term ‘component’ means a specific com-
ponent of a nuclear explosive device.
‘‘(4)(A) Notwithstanding paragraph (1) of this sub-
section, the President may, for a period of not more than
30 days of continuous session, delay the imposition of sanc-
tions which would otherwise be required under paragraph
(1)(A) or (1)(B) of this subsection 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 immediate imposition of sanctions on that country
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would be detrimental to the national security of the United
States. Not more than one such certification may be trans-
mitted for a country with respect to the same detonation,
transfer, or receipt of a nuclear explosive device.
‘‘(B) If the President transmits a certification to the
Congress under subparagraph (A), a joint resolution which
would permit the President to exercise the waiver authority
of paragraph (5) of this subsection shall, if introduced in
either House within thirty days of continuous session after
the Congress receives this certification, be considered in the
Senate and House of Representatives in accordance with
subparagraphs (C) and (D) of this paragraph.
‘‘(C) 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 Assist-
ance and Arms Export Control Act of 1976.
‘‘(D) For the purpose of expediting the consideration
and adoption of joint resolutions under this paragraph, a
motion to proceed to the consideration of such a joint resolu-
tion after it has been reported by the appropriate committee
shall be treated as highly privileged in the House of Rep-
resentatives.
‘‘(E) For purposes of this paragraph, the term ‘‘joint
resolution’’ means a joint resolution the matter after the
resolving clause of which is as follows: ‘‘That the Congress
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having received on a certification by the President under
section 670(b)(4) of the Foreign Assistance Act of 1961 with
respect to, the Congress hereby authorizes the President to
exercise the waiver authority contained in section 670(b)(5)
of that Act.’’, with the date of receipt of the certification
inserted in the first blank and the name of the country in-
serted in the second blank.
‘‘(5) Notwithstanding paragraph (1) of this subsection,
if the Congress enacts a joint resolution under paragraph
(4) of this subsection, the President may waive any sanction
which would otherwise be required under paragraph (1)(A)
or (1)(B) if he determines and certifies in writing to the
Speaker of the House of Representatives and the Committee
on Foreign Relations of the Senate that the imposition of
such sanction would be seriously prejudicial to the achieve-
ment of United State nonproliferation objectives or other-
wise jeopardize the common defense and security. The Presi-
dent shall transmit with such certification a statement set-
ting forth the specific reasons therefor.
‘‘(6)(A) In the event the President is required to im-
pose sanctions against a country under paragraph (1)(C)
or (1)(D), the President shall forthwith so inform such
country and shall impose the required sanctions beginning
30 days after submitting to the Congress the report required
by paragraph (1) unless, and to the extent that, there is
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enacted during the 30-day period a law prohibiting the im-
position of such sanctions.
‘‘(B) Notwithstanding any other provision of law, the
sanctions which are required to be imposed against a coun-
try under paragraph (1)(C) or (1)(D) shall not apply if
the President determines and certifies in writing to the
Committee on Foreign Relations and the Committee on
Governmental Affairs of the Senate and the Committee on
Foreign Affairs of the House of Representatives that the ap-
plication of such sanctions against such country would have
a serious adverse effect on vital United States interests. The
President shall transmit with such certification a statement
setting forth the specific reasons therefor.
‘‘(7) For purposes of this subsection, continuity of ses-
sion is broken only by an adjournment of Congress sine die
and the days on which either House is not in session be-
cause of an adjournment of more than three days to a day
certain are excluded in the computation of any period of
time in which Congress is in continuous session.
‘‘(8) The President may not delegate or transfer his
power, authority, or discretion to make or modify deter-
minations under this subsection.
‘‘(c) ‘NON-NUCLEAR-WEAPON STATE’ DEFINED.—As
used in this section, the term ‘‘non-nuclear-weapon state’’
means any country which is not a nuclear-weapon state,
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as defined in Article IX(3) of the Treaty on the Non-Pro-
liferation of Nuclear Weapons.
‘‘SEC. 1003. DEFINITION OF NUCLEAR EXPLOSIVE DEVICE.
‘‘As used in this chapter, the term ‘nuclear explosive
device’ has the meaning given that term in section 1330(3)
of the Nuclear Proliferation Prevention Act of 1994.’’.
(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 date of enactment of this Act to section 669 or 670
of the Foreign Assistance Act of 1961 shall, after such date,
be deemed to be a reference to section 1001 or 1002, as the
case may be, of the Arms Export Control Act.
SEC. 1327. REWARD.
Section 36(a) of the State Department Basic Authori-
ties Act of 1956 (22 U.S.C. 2708(a)) is amended—
(1) by redesignating paragraphs (1) through (3)
as subparagraphs (A) through (C), respectively;
(2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(3) by adding at the end the following:
‘‘(2) For purposes of this subsection, the term ‘act of
international terrorism’ includes any act substantially con-
tributing to the acquisition of unsafeguarded special nu-
clear material (as defined in section 1330(6) of the Nuclear
Proliferation Prevention Act of 1994) or any nuclear explo-
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sive device (as defined in section 1330(3) of that Act) by
an individual, group, or non-nuclear-weapon state, as de-
fined in section 1330(4) of that Act.’’.
SEC. 1328. REPORTS.
(a) CONTENT OF ACDA ANNUAL REPORT.—Section 51
of the Arms Control and Disarmament Act, as inserted by
this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(5);
(2) by striking the period at the end of para-
graph (6) and inserting ‘‘; and’’;
(3) by adding after paragraph (6) the following
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 preven-
tion of the spread of nuclear explosive devices (as de-
fined in section 1330(3) of the Nuclear Proliferation
Prevention Act of 1994) by non-nuclear-weapon states
(as defined in section 1330(4) of that Act) or the ac-
quisition by such states of unsafeguarded special nu-
clear material (as defined in section 1330(6) of that
Act), including—
‘‘(A) a net assessment of the aggregate mili-
tary significance of all such violations;
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‘‘(B) a statement of the compliance policy of
the United States with respect to violations of
those commitments; and
‘‘(C) what actions, if any, the President has
taken or proposes to take to bring any nation
committing such a violation into compliance
with those commitments.’’; and
(4) by adding at the end the following new sub-
section:
‘‘(c) REPORTING CONSECUTIVE NONCOMPLIANCE.—If
the President in consecutive reports submitted to the Con-
gress under this section reports that any designated nation
is not in full compliance with its binding nonproliferation
commitments to the United States, then the President shall
include in the second such report an assessment of what
actions are necessary to compensate for such violations.’’.
(b) REPORTING ON DEMARCHES.—(1) 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.
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(2) For purposes of this section, the term ‘‘demarche’’
means any official communication by one government to
another, by written or oral means, intended by the originat-
ing government to express—
(A) a concern over a past, present, or possible fu-
ture 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).
(c) REPEAL.—Section 52 of the Arms Control and Dis-
armament Act (22 U.S.C. 2592), as in effect before the en-
actment of this Act, is hereby repealed.
SEC. 1329. 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. 1330. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘goods or technology’’ means nu-
clear materials and equipment and sensitive nuclear
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technology (as such terms are defined in section 4 of
the Nuclear Non-Proliferation Act of 1978), all export
items designated by the President pursuant to section
309(c) of the Nuclear Non-Proliferation Act of 1978,
and all technical assistance requiring authorization
under section 57 b. of the Atomic Energy Act of 1954;
(2) the term ‘‘IAEA safeguards’’ means the safe-
guards set forth in an agreement between a country
and the International Atomic Energy Agency, as au-
thorized by Article III(A)(5) of the Statute of the
International Atomic Energy Agency;
(3) the term ‘‘nuclear explosive device’’ means
any device, whether assembled or disassembled, that is
designed to produce an instantaneous release of an
amount of nuclear energy from special nuclear mate-
rial that is greater than the amount of energy that
would be released from the detonation of one pound
of trinitrotoluene (TNT);
(4) the term ‘‘non-nuclear-weapon state’’ means
any country which is not a nuclear-weapon state, as
defined by Article IX (3) of the Treaty on the Non-
Proliferation of Nuclear Weapons, signed at Washing-
ton, London, and Moscow on July 1, 1968;
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(5) the term ‘‘special nuclear material’’ has the
meaning given that term in section 11 aa. of the
Atomic Energy Act of 1954 (42 U.S.C. 2014aa); and
(6) the term ‘‘unsafeguarded special nuclear ma-
terial’’ means special nuclear material which is held
in violation of IAEA safeguards or not subject to
IAEA safeguards (excluding any quantity of material
that could, if it were exported from the United States,
be exported under a general license issued by the Nu-
clear Regulatory Commission).
SEC. 1331. EFFECTIVE DATE.
The provisions of this subtitle, and the amendments
made by this subtitle, shall take effect 60 days after the date
of the enactment of this Act.
Subtitle C—International Atomic
Energy Agency
SEC. 1341. BILATERAL AND MULTILATERAL INITIATIVES.
It is the sense of the Congress that in order to maintain
and enhance international confidence in the effectiveness of
IAEA safeguards and in other multilateral undertakings to
halt the global proliferation of nuclear weapons, the United
States should seek to negotiate with other nations and
groups of nations, including the IAEA Board of Governors
and the Nuclear Suppliers Group, to—
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(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 comprehen-
sive review of its own procedures for declassifying in-
formation relating to the design or production of nu-
clear explosive devices and to investigate any meas-
ures that would reduce the risk of such information
contributing to nuclear weapons proliferation;
(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 pro-
grams, particularly from those nations that are cur-
rently using or planning to use weapons-grade nu-
clear material for commercial purposes;
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(5) arrange for the timely payment of annual fi-
nancial contributions by all members of the IAEA,
including the United States;
(6) pursue a prohibition on international com-
merce in highly enriched uranium for use in research
reactors while encouraging multilateral cooperation to
develop and to use low-enriched alternative nuclear
fuels;
(7) oppose efforts by non-nuclear-weapon states
to develop or use unsafeguarded nuclear fuels for pur-
poses 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 pur-
poses;
(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-
clear-weapon state to notify the IAEA prior to export
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and to require safeguards over that facility or tech-
nology, 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. 1342. 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, process-
ing, or fabricating special nuclear material suitable
for use in a nuclear explosive device;
(2)(A) facilitate the IAEA’s efforts to meet and
to maintain its own goals for detecting the diversion
of nuclear materials and equipment, giving particu-
lar attention to facilities in which there are bulk
quantities of plutonium; and
(B) if it is not technically feasible for the IAEA
to meet those detection goals in a particular facility,
require the IAEA to declare publicly that it is unable
to do so;
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(3) enable the IAEA to issue fines for violations
of safeguards procedures, to pay rewards for informa-
tion on possible safeguards violations, and to establish
a ‘hot line’ for the reporting of such violations 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;
(8) revise downward the IAEA’s official mini-
mum amounts of nuclear material (‘‘significant
quantity’’) needed to make a nuclear explosive device
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and establish these amounts as national rather than
facility standards;
(9) expand the use of full-time resident IAEA in-
spectors at sensitive fuel cycle facilities;
(10) promote the use of near real time material
accountancy in the conduct of safeguards at facilities
that use, produce, or store significant quantities of
special fissionable material;
(11) develop with other IAEA member nations
an agreement on procedures to expedite approvals of
visa applications by IAEA inspectors;
(12) provide the IAEA the additional funds,
technical assistance, and political support necessary
to carry out the goals set forth in this subsection; and
(13) make public the annual safeguards 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 judicial
actions by IAEA member nations.
SEC. 1343. 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—
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(1) the steps he has taken to implement sections
1341 and 1342, and
(2) the progress that has been made and the ob-
stacles that have been encountered in seeking to meet
the objectives set forth in sections 1341 and 1342.
(b) CONTENTS OF REPORT.—Each report under para-
graph (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 objec-
tives set forth in sections 1341 and 1342;
(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 1341 and
1342;
(5) any recommendations of the President on ad-
ditional measures to enhance the effectiveness of IAEA
safeguards; and
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(6) any initiatives that the President plans to
take in support of each of the objectives set forth in
sections 1341 and 1342.
SEC. 1344. DEFINITIONS.
As used in this subtitle—
(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 location,
quantity, and disposition of special fissionable mate-
rial at facilities that store or process such material,
in which verification of peaceful use is continuously
achieved by means of frequent physical inventories
and the use of in-process instrumentation;
(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;
(5) the term ‘‘the Treaty’’ means the Treaty on
the Non-Proliferation of Nuclear Weapons, signed at
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Washington, London, and Moscow on July 1, 1968;
and
(6) the terms ‘‘IAEA safeguards’’, ‘‘non-nuclear-
weapon state’’, ‘‘nuclear explosive device’’, and ‘‘spe-
cial nuclear material’’ have the meanings given those
terms in section 1330 of this Act.
TITLE XIV—CROATIA
SEC. 1401. FINDINGS.
The Congress finds that—
(a) The international boundaries between the
independent countries of the former Yugoslavia are
the same as the internal borders among the constitu-
ent republics of the former Yugoslavia as specified in
the 1974 Yugoslav Federal Constitution (except with
regard to the border between Serbia and Montenegro)
and cannot be altered without the consent of all coun-
tries concerned.
(b) The Government of Croatia is violating the
sovereignty of Bosnia-Hercegovina by sending thou-
sands of Croatian troops to Hercegovina, ostensibly to
counter an offensive against ethnic Coratian civilians
by Bosnian Government forces.
(c) Croatian forces are interfering with United
Nations peacekeeping operations, including the deliv-
ery of humanitarian aid to Bosnia-Hercegovina.
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SEC. 1402. POLICY TOWARDS CROATIA.
It is the sense of the Senate that the President should
consider taking the following actions—
(a) Instruct the United States Executive Director
or representative at all international financial insti-
tutions of which the United States is a member to
vote against all loans except for loans directed at pro-
grams which serve basic human needs to Croatia;
(b) Provide no assistance to Croatia (except for
humanitarian and refugee assistance);
(c) Make no sales to Croatia of any kind of mili-
tary equipment;
(d) Prohibit the licensing of commercial military
sales to Croatia;
(e) Provide no credits, and provide no guaran-
tees of any credits to Croatia;
(f) Prohibit the sale or transfer to Croatia of any
item subject to export controls by any agency of the
United States;
(g) Direct the Secretary of Transportation to re-
voke the right of any air carrier designated by the
Government of Croatia to provide service to the Unit-
ed States; and
(h) Negotiate comprehensive multilateral sanc-
tions pursuant to the provisions of Chapter 7 of the
United Nations Charter.
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TITLE XV—UNITED STATES PAR-
TICIPATION IN UNITED NA-
TIONS PEACEKEEPING OPER-
ATIONS
SEC. 1501. COST ASSESSMENT REPORT REGARDING ANY
UNITED STATES PARTICIPATION IN ACTION
UNDER ARTICLE 42 OF THE UNITED NATIONS
CHARTER.
(a) IN GENERAL.—Except as provided in subsection
(b), at least 15 days before—
(1) any obligation of funds for United States
participation in international peace operations, or
(2) any vote by the Security Council to take ac-
tion under Article 42 of the Charter of the United Na-
tions which would involve the use of United States
Armed Forces,
the President shall submit to the Committee on Foreign Re-
lations and the Committee on Appropriations of the Senate
and the Committee on Foreign Affairs and the Committee
on Appropriations of the House of Representatives a report
containing a cost assessment of the participation of the
United States Armed Forces in those operations.
(b) EXCEPTION.—The period for submission of the re-
port specified in subsection (a) shall not apply if the Presi-
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dent determines that an emergency exists which prevents
submission of the report in a timely manner.
(c) DEFINITION.—For purposes of this section, the
term ‘‘United States participation in international peace
operations’’ means the use of the United States Armed
Forces—
(1) pursuant to, or consistent with, action taken
by the Security Council under Article 42 of the Char-
ter of the United Nations; or
(2) consistent with the United Nations Partici-
pation Act of 1945.
SEC. 1502. CONGRESSIONAL NOTIFICATION REGARDING
ANY UNITED STATES IMPLEMENTATION OF
ARTICLE 43 OF THE UNITED NATIONS CHAR-
TER.
(a) IN GENERAL.—Except as provided in subsection
(b), at least 15 days before any agency or entity of the Unit-
ed States Government makes available armed forces, assist-
ance, or facilities to the United Nations under Article 43
of the United Nations Charter, the President shall so notify
the Committee on Foreign Relations and the Committee on
Appropriations of the Senate and the Committee on Foreign
Affairs and the Committee on Appropriations of the House
of Representatives.
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(b) EXCEPTION.—The period for notifying Congress in
subsection (a) shall not apply if the President determines
that an emergency exists which prevents making a notifica-
tion in a timely manner.
(c) DEFINITION.—For purposes of this section, the
term ‘‘assistance’’ means assistance of any kind, including
the provision of logistical support and the grant of rights
of passage.
SEC. 1503. REPORT ON UNITED NATIONS PEACEKEEPING
ACTIVITIES.
Not later than 90 days after the date of enactment of
this Act, and each year thereafter at the time of the Presi-
dent’s budget submission to Congress, the Secretary of State,
after consultation with the heads of other relevant Federal
agencies (including the Department of Defense), shall sub-
mit to the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of
the Senate a report on United States contributions to Unit-
ed Nations peacekeeping activities. Such report shall in-
clude—
(1) the overall cost of all peacekeeping operations
as of the date of the report;
(2) the costs of each peacekeeping operation;
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(3) the amount of United States contributions
(assessed and voluntary) on an operation-by-oper-
ation basis; and
(4) an assessment of the effectiveness of ongoing
peacekeeping operations, their relevance to United
States national interests, the efforts by the United Na-
tions to resolve the relevant armed conflicts, and the
projected termination dates for such operations.
SEC. 1504. UNITED STATES PARTICIPATION IN UNITED NA-
TIONS PEACEKEEPING OPERATIONS.
(a) FINDINGS.—The Congress finds that—
(1) the President of the United States has as-
serted that reform of United Nations peacekeeping op-
erations is to be of the highest national priority in
furtherance of United States national security objec-
tives;
(2) at the direction of the President of the United
States the National Security Council is coordinating
a comprehensive review of United States policy to-
wards United Nations peacekeeping operations on
which the Congress of the United States is to be con-
sulted;
(3) in cooperation with the Congress of the Unit-
ed States, the purpose of the National Security Coun-
cil review is to reform policies and programs govern-
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ing United States participation in United Nations
operations;
(4) in conjunction with the President’s review,
the Majority Leader of the United States Senate has
requested the Committee on Foreign Relations, the
Committee on Armed Services, and the Senate Select
Committee on Intelligence to examine thoroughly the
proper role of United States troops in the post-Cold
War world and the implications for United States
foreign policy with the intent of enacting legislation,
in cooperation with the President, regarding United
States policy toward post-Cold War conflicts, United
States involvement in peacekeeping operations, and of
establishing a process to ensure proper accommoda-
tions of legislative and executive branch prerogatives
in addressing such issues;
(5) such a process will embody sound constitu-
tional principles and reflect the appropriate roles of
the President and the Congress relating to the use of
United States Armed Forces both in unilateral and
multilateral operations in order for such operations to
enjoy the support of both the executive and legislative
branches and the American people; and
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(6) the concerned committees of jurisdiction have
initiated a process of examination of the appropriate
use of United States Forces.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that—
(1) the primacy of United States national secu-
rity interests with respect to United States participa-
tion in and support for United Nations peacekeeping
activities must be maintained;
(2) congressional oversight of United Nations
peacekeeping activities and other United Nations ac-
tivities must be strengthened;
(3) coordination between the executive and legis-
lative branches of Government regarding United
States participation in and support for United Na-
tions peacekeeping operations must be improved and
communication between the two branches prompt;
(4) the Congress should be notified in advance of
the intent to approve United Nations peacekeeping
operations;
(5) for United Nations peacekeeping operations
that would involve the participation of United States
combat forces, such notification should include de-
tailed information concerning command and control
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