II 109th CONGRESS 1st Session S. 1737 IN THE SENATE OF THE UNITED STATES September 20, 2005 Mr. Santorum introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To prohibit entities that provide nuclear fuel assemblies to Iran from providing such assemblies to the United States, and for other purposes.

1.

Short title

This Act may be cited as the Iranian Nuclear Trade Prohibition Act of 2005.

2.

Findings

Congress makes the following findings: (1)Iran has pursued a nuclear program with assistance from foreign entities and foreign governments. (2)It is important that Iran not seek to develop nuclear weapons under the cover of a civilian nuclear power program. (3)The Government of Iran has asserted that its nuclear program is for peaceful purposes, however, that Government has supported terrorist organizations and uses harsh rhetoric towards allies of the United States in the Middle East, and the United States has expressed great concern with Iran's nuclear ambitions and has worked with United States allies to end Iran's nuclear program. (4)In October 2003, the Government of Iran promised it would suspend uranium enrichment activities, but broke that promise less than a year later. (5)In November 2004, the Government of Iran, in concert with talks with representatives of the Governments of Britain, France, and Germany (the EU–3) agreed to suspend all uranium enrichment and reprocessing activities related to Iran's nuclear program under the terms of the agreement made between the Islamic Republic of Iran and France, Germany and the United Kingdom, with the support of the High Representative of the European Union (the Paris Agreement). (6)The EU–3 agreed to support the United States in taking Iran's nuclear program to the United Nations Security Council if Iran resumed its nuclear activities. (7)In concert with the Paris Agreement, the President announced that the United States will drop its opposition to Iran's application to join the World Trade Organization and permit, on a case-by-case basis, the licensing of spare parts for Iranian commercial aircraft. (8)Iran's uranium enrichment program is likely to be dispersed throughout the country, protected in hardened infrastructure, and highly mobile. (9)The Parliament of Iran passed a nonbinding resolution insisting that the Government of Iran resume developing nuclear fuel. (10)That resolution stated that Iran should develop enough nuclear fuel to generate 20,000 megawatts of electricity. (11)In February 2005, the Atomic Energy Agency of Russia announced that Russia would ship nuclear fuel to Iran's Busheher nuclear reactor. (12)Russia pledged to provide fuel to this facility for 10 years and, under the commitment, Iran has pledged to return spent fuel to Russia for storage. (13)Russia remains the only major nuclear fuel market closed to outside competition and 100 percent of Russia's nuclear fuel industry is owned by the Government of Russia. (14)Iran is the fourth-largest oil producer in the world. (15)Iran has a wealth of natural gas and crude oil reserves and it is estimated that Iran plans to invest $104,000,000,000 by 2015 in natural gas production and that Iran plans to increase crude oil production to 7,000,000 barrels a day by 2020.

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Sense of congress on trade relations with state sponsors of terrorism

It is the sense of Congress that the countries of the world should choose between trading with state sponsors of terrorism or maintaining good trade relations with the United States.

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Prohibition of entry of nuclear fuel assemblies

The Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by inserting after section 10 the following new section:

10A.

Prohibition of entry to nuclear fuel assemblies to the United States

(a)

In general

Subject to subsection (b), the President shall prohibit the United States, or any entity of the United States, from purchasing nuclear fuel assemblies from any person or government entity, or any entity affiliated with such person or entity, that sells nuclear fuel assemblies to Iran. (b)

Waiver

The President may waive the prohibition in subsection (a) if the President— (1)determines that the waiver is in the national security interest of the United States; and (2)at least 7 days before the waiver takes effect, notifies the required congressional committees of the President's intention to exercise the waiver. (c)

Definitions

In this section: (1)

Nuclear fuel assemblies

The term nuclear fuel assemblies does not include low-enriched uranium (LEU). For the purpose of the preceding sentence the term low-enriched uranium means a product produced using blended down weapons-grade and highly-enriched uranium (HEU) that is provided by the Russian entity Techsnabexport (also known as TENEX) in cooperation with the U.S. Enrichment Corporation, a subsidiary of USEC, Inc. (2)

Required congressional committees

The term required congressional committees means the Committee on Armed Services, the Committee on Finance, and the Committee on Foreign Relations of the Senate and the Committee on Armed Services, the Committee on International Relations, and the Committee on Ways and Means of the House of Representatives.

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