Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Iran Nuclear Prolifera-
tion Prevention Act of 1998’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Iran remains the world’s leading sponsor of
international terrorism and is on the Department of
State’s list of countries that provide support for acts
of international terrorism.
(2) Iran has repeatedly called for the destruc-
tion of Israel and Iran supports organizations, such
as Hizballah, Hamas, and the Palestine Islamic
Jihad, which are responsible for terrorist attacks
against Israel.
(3) Iranian officials have stated their intent to
complete at least three nuclear power plants by 2015
and are currently working to complete the Bushehr
nuclear power plant located on the Persian Gulf
coast.
(4) The United States has publicly opposed the
completion of reactors at the Bushehr nuclear power
plant because the transfer of civilian nuclear tech-
nology and training could help to advance Iran’s nu-
clear weapons program.
(5) In an April 1997 hearing before the Sub-
committee on Near Eastern and South Asian Affairs
of the Committee on Foreign Relations of the Sen-
ate, the former Director of the Central Intelligence
Agency, James Woolsey, stated that through the op-
eration of the nuclear power reactor at the Bushehr
nuclear power plant, Iran will develop substantial ex-
pertise relevant to the development of nuclear weap-
ons.
(6) Construction of the Bushehr nuclear power
plant was halted following the 1979 revolution in
Iran because the former West Germany refused to
assist in the completion the plant due to concerns
that completion of the plant could provide Iran with
expertise and technology which could advance Iran’s
nuclear weapons program.
(7) Iran is building up its offensive military ca-
pacity in other areas as evidenced by its recent test-
ing of engines for ballistic missiles capable of carry-
ing 2,200 pound warheads more than 800 miles,
within range of strategic targets in Israel.
(8) 
In 
January 
1995 
Iran 
signed 
a
$780,000,000 contract with the Russian Federation
for Atomic Energy (MINATOM) to complete a
VVER–1000 pressurized-light water reactor at the
Bushehr nuclear power plant.
(9) In March of 1998, Russia confirmed its in-
tention to complete work on the two reactors at the
Bushehr nuclear power plant and agreed in principle
to the construction of two more reactors at the
Bushehr site.
(10) At least one reactor could be operational
within a few years and it would subsequently provide
Iran with substantial expertise to advance its nu-
clear weapons program.
(11) Iran ranks tenth among the 105 nations
receiving assistance from the technical cooperation
program of the International Atomic Energy Agen-
cy.
(12) Between 1995 and 1999, the International
Atomic Energy Agency has provided and is expected
to provide a total of $1,550,000 through its Tech-
nical Assistance and Cooperation Fund for the Ira-
nian nuclear power program, including reactors at
the Bushehr nuclear power plant.
(13) The United States provides annual con-
tributions to the International Atomic Energy Agen-
cy which total more than 25 percent of the annual
assessed budget of the Agency and the United
States also provides annual voluntary contributions
to the Technical Assistance and Cooperation Fund
of the Agency which total approximately 32 percent
($16,000,000 in 1996) of the annual budget of the
program.
(14) The United States should not voluntarily
provide funding for the completion of nuclear power
reactors which could provide Iran with substantial
expertise to advance its nuclear weapons program
and potentially pose a threat to the United States or
its allies.
(15) Iran has no need for nuclear energy be-
cause of its immense oil and natural gas reserves
which are equivalent to 9.3 percent of the world’s re-
serves and Iran has 73,000,000,000 cubic feet of
natural gas, an amount second only to the natural
gas reserves of Russia.
SEC. 3. WITHHOLDING OF VOLUNTARY CONTRIBUTIONS TO
THE INTERNATIONAL ATOMIC ENERGY AGEN-
CY FOR PROGRAMS AND PROJECTS IN IRAN.
Section 307 of the Foreign Assistance Act of 1961
(22 U.S.C. 2227) is amended by adding at the end the
following:
‘‘(d) Notwithstanding subsection (c), the limitations
of subsection (a) shall apply to programs and projects of
the International Atomic Energy Agency in Iran.’’.
SEC. 4. ANNUAL REVIEW BY SECRETARY OF STATE OF PRO-
GRAMS 
AND 
PROJECTS 
OF 
THE 
INTER-
NATIONAL ATOMIC ENERGY AGENCY; UNITED
STATES OPPOSITION TO PROGRAMS AND
PROJECTS OF THE AGENCY IN IRAN.
(a) ANNUAL REVIEW.—
(1) IN GENERAL.—The Secretary of State shall
undertake a comprehensive annual review of all pro-
grams and projects of the International Atomic En-
ergy Agency in the countries described in section
307(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2227(a)) and shall determine if such pro-
grams and projects are consistent with United
States nuclear nonproliferation and safety goals.
(2) REPORT.—Not later than 1 year after the
date of the enactment of this Act and on an annual
basis thereafter for 5 years, the Secretary shall pre-
pare and submit to the Congress a report containing
the results of the review under paragraph (1).
(b) OPPOSITION
TO
CERTAIN
PROGRAMS
AND
PROJECTS OF INTERNATIONAL ATOMIC ENERGY AGEN-
CY.—The Secretary of State shall direct the United States
representative to the International Atomic Energy Agency
to oppose the following:
(1) Programs of the Agency that are deter-
mined by the Secretary under the review conducted
under subsection (a)(1) to be inconsistent with nu-
clear nonproliferation and safety goals of the United
States.
(2)(A) 
Technical 
assistance 
programs 
or
projects of the Agency designed to develop or com-
plete the Bushehr nuclear power plant in Iran.
(B) Subparagraph (A) shall not apply with re-
spect to programs or projects of the Agency that
provide for the discontinuation, dismantling, or safe-
ty inspection of nuclear facilities or related mate-
rials, or for inspections and similar activities de-
signed to prevent the development of nuclear weap-
ons by Iran.
SEC. 5. REPORTING REQUIREMENTS.
(a) IN GENERAL.—Not later than 180 days after the
date of the enactment of this Act and on an annual basis
thereafter for 5 years, the Secretary of State, in consulta-
tion with the United States representative to the Inter-
national Atomic Energy Agency, shall prepare and submit
to the Congress a report that—
(1) describes the total amount of annual assist-
ance to Iran from the International Atomic Energy
Agency, a list of Iranian officials in leadership posi-
tions at the Agency, the expected timeframe for the
completion of the nuclear power reactors at the
Bushehr nuclear power plant, and a summary of the
nuclear materials and technology transferred to Iran
from the Agency in the preceding year which could
assist in the development of Iran’s nuclear weapons
program; and
(2) contains a description of all programs and
projects of the International Atomic Energy Agency
in each country described in section 307(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2227(a))
and any inconsistencies between the technical co-
operation and assistance programs and projects of
the Agency and United States nuclear nonprolifera-
tion and safety goals in these countries.
(b) ADDITIONAL REQUIREMENT.—The report re-
quired to be submitted under subsection (a) shall be sub-
mitted in an unclassified form, to the extent appropriate,
but may include a classified annex.
SEC. 7. SENSE OF THE CONGRESS.
It is the sense of the Congress that the United States
Government should pursue internal reforms at the Inter-
national Atomic Energy Agency that will ensure that all
programs and projects funded under the Technical Co-
operation and Assistance Fund of the Agency are compat-
ible with United States nuclear nonproliferation policy and
international nuclear nonproliferation norms.
Passed the House of Representatives August 3,
1998.
Attest:
Clerk.