[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1172 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1172

 To amend the National Defense Authorization Act for Fiscal Year 1993, 
 to impose sanctions on certain transfers of equipment and technology 
used in the manufacture or delivery of weapons of mass destruction and 
       to impose additional sanctions for violations of that Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 29 (legislative day, June 22), 1993

  Mr. McCain (for himself and Mr. Lieberman) introduced the following 
  bill; which was read twice and referred to the Committee on Foreign 
                               Relations

_______________________________________________________________________

                                 A BILL


 
 To amend the National Defense Authorization Act for Fiscal Year 1993, 
 to impose sanctions on certain transfers of equipment and technology 
used in the manufacture or delivery of weapons of mass destruction and 
       to impose additional sanctions for violations of that Act.

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

SECTION 1. SHORT TITLE; REFERENCES IN ACT.

    (a) Short Title.--This Act may be cited as the ``Iran-Iraq Arms 
Non-Proliferation Amendments of 1993''.
    (b) References in Act.--Except as specifically provided in this 
Act, whenever in this Act an amendment or repeal is expressed as an 
amendment to or repeal of a provision, the reference shall be deemed to 
be made to the National Defense Authorization Act for Fiscal Year 1993.

SEC. 2. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to halt the proliferation of weapons of mass 
        destruction within Iran and Iraq; and
            (2) to halt the transfer from any foreign country or 
        foreign person to Iran or Iraq of all weapons of mass 
        destruction and significant components or technology or that 
        can be used to manufacture or deliver weapons of mass 
        destruction.

SEC. 3. STATEMENT OF PURPOSE.

    It is the purpose of this Act to impose additional sanctions 
against those foreign countries and persons that transfer weapons of 
mass destruction, destabilizing numbers and types of advanced 
conventional weapons, or equipment and technology that assist in 
enhancing the capabilities of Iran or Iraq to manufacture and deliver 
such weapons.

SEC. 4. SANCTIONS AGAINST PERSONS.

    Section 1604 is amended to read as follows:

``SEC. 1604. SANCTIONS AGAINST PERSONS.

    ``(a) Prohibition.--If the President determines that any person has 
transferred or retransferred goods or technology 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 or to acquire 
weapons of mass destruction or the means of their delivery, 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 provided in 
        subsection (d), the United States Government shall not procure 
        directly or indirectly, or enter into 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 and shall revoke any such license issued before the 
        effective date of the sanction.
            ``(3) Import sanction.--Notwithstanding any other provision 
        of law, no item which is the product or manufacture of the 
        sanctioned person, and no technology developed by the 
        sanctioned person, may be imported into any territory subject 
        to the jurisdiction of the United States.
            ``(4) Transiting united states territory.--(A) 
        Notwithstanding any other provision of law (other than a treaty 
        or other international agreement), no sanctioned person, no 
        item which is the product or manufacture of the sanctioned 
        person, and no technology developed by the sanctioned person, 
        may transit any territory subject to the jurisdiction of the 
        United States.
            ``(B) The Secretary of Transportation may provide for such 
        exceptions from this paragraph as the Secretary considers 
        necessary to provide for emergencies in which the safety of a 
        vessel or its crew or passengers is threatened.
    ``(c) Discretionary Sanctions.--The sanctions referred to in 
subsection (a)(2) are as follows:
            ``(1) Financial institutions.--(A) The President may by 
        order prohibit any depository institution 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 commodities.
            ``(B) As used in this paragraph, the term `depository 
        institution' means a bank or savings association, as defined in 
        section 3 of the Federal Deposit Insurance Act.
            ``(2) Use of authorities of the international emergency 
        economic powers act.--The President may exercise the 
        authorities of the International Emergency Economics 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 humanitarian 
        assistance.
            ``(3) 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 the trade of goods or services may 
                not, if the President so requires, within 180 days 
                after departure from such port or place in the 
                sanctioned country, load or unload any freight at any 
                place in the United States.
                    ``(B) Definitions.--As used in this paragraph, the 
                term `vessel' includes every description of water craft 
                or other contrivance used, or capable of being used, as 
                a means of transportation in water, but does not 
                include aircraft.
    ``(d) Exceptions.--The sanction described in subsection (b)(1) 
shall not apply--
            ``(1) in the case of procurement of defense articles or 
        defense services--
                    ``(A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy operational military requirements 
                essential to the national security 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 supplier of the defense 
                articles or services, that the defense articles or 
                services are essential, and that alternative sources 
                are not readily or reasonably available; or
                    ``(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 contracts 
        entered into before the date on which the President makes a 
        determination under subsection (a);
            ``(3) in the case of contracts entered into before the date 
        on which the President makes a determination under subsection 
        (a), with respect to--
                    ``(A) spare parts which are essential to United 
                States products or production;
                    ``(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.--
            ``(1) Consultations.--Whenever the President makes a 
        determination under subsection (a) with respect 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 imposition of 
                sanctions pursuant to this section; and
                    ``(B) to take steps in the United Nations and other 
                multilateral groups to negotiate comprehensive 
                multilateral sanctions pursuant to the provisions of 
                chapter 7 of the United Nations Charter, including a 
                partial or complete embargo, against the government of 
                the foreign country of primary jurisdiction over that 
                sanctioned person, as long as that government has not 
                taken specific and effective actions, including 
                appropriate penalties, to terminate the involvement of 
                the sanctioned person or firm in the activities 
                described in section 1604(a).
            ``(2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of sanctions pursuant to subsections (b) 
        and (c) for up to 90 days. Following these consultations, the 
        President 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 section, the President 
        shall submit to the Committee on Foreign Relations and the 
        Committee on Governmental Affairs of the Senate and the 
        Committee on Foreign Affairs of the House of Representatives a 
        report on the status of consultations with the appropriate 
        government under this subsection, and the basis for any 
        determination under paragraph (2) of this subsection that such 
        government has taken specific corrective actions.''.

SEC. 5. SANCTIONS AGAINST CERTAIN FOREIGN COUNTRIES.

    Section 1605 is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or to acquire weapons of mass 
                destruction or the means of their delivery'' after 
                ``destabilizing numbers and types of advanced 
                conventional weapons''; and
                    (B) in paragraph (2), by striking ``sanction'' and 
                inserting ``sanctions'';
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(6) Other sanctions.--The President shall apply the same 
        sanctions described in paragraphs (1) through (4) of section 
        1604(b), together with the exception described in subsection 
        (d), with respect to actions of a foreign government;''; and
            (3) in subsection (c)--
                    (A) by striking ``Sanction.--The sanction referred 
                to in subsection (a)(2) is'' and inserting 
                ``Sanctions.--The sanctions referred to in subsection 
                (a)(2) are''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(3) Denial of most-favored-nation status.--
        Notwithstanding any other provision of law, the President may 
        suspend the application of nondiscriminatory trade agreement 
        (most-favored-nation status) to the sanctioned country for such 
        time as the President so determines.
            ``(4) Diplomatic relations.--The President is urged to 
        downgrade or suspend diplomatic relations between the United 
        States and the government of the sanctioned country.
            ``(5) Suspension of special trade privileges.--The 
        President is authorized to suspend special trade privileges 
        which were extended pursuant to the Generalized Systems of 
        Preferences or the Caribbean Basin Initiative.
            ``(6) Suspension of trade agreements.--The President is 
        authorized to suspend any trade agreement with the sanctioned 
        country.
            ``(7) Revocations of licenses for export of nuclear 
        material.--The Nuclear Regulatory Commission is authorized to 
        revoke any license for the export of nuclear material pursuant 
        to a nuclear cooperation agreement with the sanctioned country.
            ``(8) Presidential action regarding aviation.--(A)(i) The 
        President is authorized to notify the government of a 
        sanctioned country of his intention to suspend the authority of 
        foreign air carriers owned or controlled by the government 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 Secretary of State to 
        terminate any air service agreement between the United States 
        and a sanctioned country in accordance with the provisions of 
        that agreement.
            ``(ii) Upon termination of an agreement under this 
        subparagraph, the Secretary of Transportation is authorized to 
        take such steps as may be necessary to revoke at the earliest 
        possible date the right of any foreign air carrier owned, or 
        controlled, directly or indirectly, by the government of that 
        country to engage in foreign air transportation to or from the 
        United States.
            ``(C) The President may direct the Secretary of 
        Transportation to provide for such exceptions 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 transportation', and `foreign air carrier' 
        have the meanings given those terms in section 101 of the 
        Federal Aviation Act of 1958 (49 U.S.C. 1301).
            ``(9) Other sanctions.--The President may apply the 
        sanctions described in section 1605(c) with respect to actions 
        of a foreign government.''.

SEC. 6. WAIVER.

    Section 1606 is amended--
            (1) by striking ``waiver'' each place it appears and 
        inserting ``termination, modification, and waiver''; and
            (2) by striking ``waive'' each place it appears and 
        inserting ``modify or waive''.

SEC. 7. 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 sanctions imposed 
pursuant to section 1604(a)(1) shall apply for a period of at least 24 
months following the imposition of sanctions and shall cease to apply 
thereafter only if the President determines and certifies to the 
Congress that--
            ``(1) reliable information indicates that the sanctioned 
        person or government has ceased to violate this Act; and
            ``(2) the President has received reliable assurances from 
        the sanctioned person or government that such person or 
        government will not, in the future, violate this Act.''.

SEC. 8. RULES AND REGULATIONS.

    The Act is amended by inserting after section 1607 the following 
new section:

``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. 9. DEFINITIONS.

    Section 1608 is amended by adding at the end the following new 
paragraphs:
    ``(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 Regulatory 
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).
    ``(10) The term `weapons of mass destruction' includes nuclear, 
chemical, and biological weapons, bomber aircraft with a range in 
excess of 600 nautical miles, missiles, and missile equipment and 
technology.''.

SEC. 10. CONFORMING AMENDMENT.

    Section 1602(a) is amended by striking ``chemical, biological, 
nuclear,'' and inserting ``weapons of mass destruction''.

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