[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1850 Engrossed in House (EH)]

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116th CONGRESS
  1st Session
                                H. R. 1850

_______________________________________________________________________

                                 AN ACT


 
  To impose sanctions with respect to foreign support for Palestinian 
                   terrorism, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Palestinian International Terrorism 
Support Prevention Act of 2019''.

SEC. 2. STATEMENT OF POLICY.

    It shall be the policy of the United States--
            (1) to prevent Hamas, the Palestinian Islamic Jihad, or any 
        affiliate or successor thereof from accessing its international 
        support networks; and
            (2) to oppose Hamas, the Palestinian Islamic Jihad, or any 
        affiliate or successor thereof from attempting to use goods, 
        including medicine and dual use items, to smuggle weapons and 
        other materials to further acts of terrorism.

SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN PERSONS AND 
              AGENCIES AND INSTRUMENTALITIES OF FOREIGN STATES 
              SUPPORTING HAMAS, THE PALESTINIAN ISLAMIC JIHAD, OR ANY 
              AFFILIATE OR SUCCESSOR THEREOF.

    (a) Identification.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter for a period 
        not to exceed 3 years, the President shall submit to the 
        appropriate congressional committees a report that identifies 
        each foreign person or agency or instrumentality of a foreign 
        state that the President determines--
                    (A) knowingly assists in, sponsors, or provides 
                significant financial or material support for, or 
                financial or other services to or in support of, the 
                terrorist activities of any person described in 
                paragraph (2); or
                    (B) directly or indirectly, knowingly and 
                materially engaged in a significant transaction with 
                any person described in paragraph (2).
            (2) Person described.--A person described in this paragraph 
        is a foreign person that the President determines--
                    (A) is a senior member of Hamas, the Palestinian 
                Islamic Jihad, or any affiliate or successor thereof;
                    (B) is a senior member of a foreign terrorist 
                organization designated pursuant to section 219 of the 
                Immigration and Nationality Act (8 U.S.C. 1189) whose 
                members directly or indirectly support the terrorist 
                activities of Hamas, the Palestinian Islamic Jihad, or 
                any affiliate or successor thereof by knowingly 
                engaging in a significant transaction with, or 
                providing financial or material support for Hamas, the 
                Palestinian Islamic Jihad, or any affiliate or 
                successor thereof, or any person described in 
                subparagraph (A); or
                    (C) directly or indirectly, supports the terrorist 
                activities of Hamas, the Palestinian Islamic Jihad, or 
                any affiliate or successor thereof by knowingly and 
                materially assisting, sponsoring, or providing 
                financial or material support for, or goods or services 
                to or in support of, Hamas, the Palestinian Islamic 
                Jihad, or any affiliate or successor thereof, or any 
                person described in subparagraph (A) or (B).
            (3) Form of report.--Each report required under paragraph 
        (1) shall be submitted in unclassified form, but may contain a 
        classified annex.
            (4) Exception.--
                    (A) In general.--The President shall not be 
                required to identify a foreign person or an agency or 
                instrumentality of a foreign state in a report pursuant 
                to paragraph (1)(B) if--
                            (i) the foreign person or agency or 
                        instrumentality of a foreign state notifies the 
                        United States Government in advance that it 
                        proposes to engage in a significant transaction 
                        as described in paragraph (1)(B); and
                            (ii) the President determines and notifies 
                        the appropriate congressional committees in a 
                        classified form not less than 15 days prior to 
                        the foreign person or agency or instrumentality 
                        of a foreign state engaging in the significant 
                        transaction that the significant transaction is 
                        in the national interests of the United States.
                    (B) Non-applicability.--Subparagraph (A) shall not 
                apply with respect to--
                            (i) an agency or instrumentality of a 
                        foreign state which the Secretary of State 
                        determines has repeatedly provided support for 
                        acts of international terrorism pursuant to 
                        section 1754(c) of the Export Reform Control 
                        Act of 2018, section 40 of the Arms Export 
                        Control Act, section 620A of the Foreign 
                        Assistance Act of 1961, or any other provision 
                        of law; or
                            (ii) any significant transaction described 
                        in paragraph (1)(B) that involves, directly or 
                        indirectly, a foreign state described in clause 
                        (i).
    (b) Imposition of Sanctions.--
            (1) In general.--The President shall impose two or more of 
        the sanctions described in paragraph (2) with respect to a 
        foreign person or an agency or instrumentality of a foreign 
        state identified pursuant to subsection (a).
            (2) Sanctions described.--The sanctions referred to in 
        paragraph (1) are the following:
                    (A) The President may direct the Export-Import Bank 
                of the United States not to give approval to the 
                issuance of any guarantee, insurance, extension of 
                credit, or participation in the extension of credit in 
                connection with the export of any goods or services to 
                the foreign person or agency or instrumentality of the 
                foreign state, and the Export-Import Bank of the United 
                States shall comply with any such direction.
                    (B) No sales of any defense articles, defense 
                services, or design and construction services under the 
                Arms Export Control Act (22 U.S.C. 2751 et seq.) may be 
                made to the foreign person or agency or instrumentality 
                of the foreign state.
                    (C) No licenses for export of any item on the 
                United States Munitions List that include the foreign 
                person or agency or instrumentality of the foreign 
                state as a party to the license may be granted.
                    (D) No exports may be permitted to the foreign 
                person or agency or instrumentality of the foreign 
                state of any goods or technologies controlled for 
                national security reasons under the Export 
                Administration Regulations, except that such 
                prohibition shall not apply to any transaction subject 
                to the reporting requirements of title V of the 
                National Security Act of 1947 (50 U.S.C. 413 et seq.; 
                relating to congressional oversight of intelligence 
                activities).
                    (E) The President shall prohibit any United States 
                financial institution from making loans or providing 
                any credit or financing totaling more than $10,000,000 
                to the foreign person or agency or instrumentality of 
                the foreign state, except that this subparagraph shall 
                not apply--
                            (i) to any transaction subject to the 
                        reporting requirements of title V of the 
                        National Security Act of 1947 (50 U.S.C. 413 et 
                        seq.; relating to congressional oversight of 
                        intelligence activities);
                            (ii) to the provision of medicines, medical 
                        equipment, and humanitarian assistance; or
                            (iii) to any credit, credit guarantee, or 
                        financial assistance provided by the Department 
                        of Agriculture to support the purchase of food 
                        or other agricultural commodities.
                    (F)(i) The President may exercise all powers 
                granted to the President by the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.) (except 
                that the requirements of section 202 of such Act (50 
                U.S.C. 1701) shall not apply) to the extent necessary 
                to block and prohibit all transactions in all property 
                and interests in property of a foreign person or agency 
                or instrumentality of the foreign state if such 
                property and interests in property are in the United 
                States, come within the United States, or are or come 
                within the possession or control of a United States 
                person.
                    (ii) The penalties provided for in subsections (b) 
                and (c) of section 206 of the International Emergency 
                Economic Powers Act (50 U.S.C. 1705) shall apply to a 
                person that knowingly violates, attempts to violate, 
                conspires to violate, or causes a violation of 
                regulations promulgated under section 6(b) to carry out 
                clause (i) to the same extent that such penalties apply 
                to a person that knowingly commits an unlawful act 
                described in section 206(a) of that Act.
                    (iii) The President may exercise all authorities 
                provided to the President under sections 203 and 205 of 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1702 and 1704) for purposes of carrying out 
                clause (i).
            (3) Exception.--The President shall not be required to 
        apply sanctions with respect to a foreign person or an agency 
        or instrumentality of a foreign state identified pursuant to 
        subsection (a) if the President certifies in writing to the 
        appropriate congressional committees that--
                    (A) the foreign person or agency or instrumentality 
                of the foreign state--
                            (i) is no longer carrying out activities or 
                        transactions for which the sanctions were 
                        imposed pursuant to this subsection; or
                            (ii) has taken and is continuing to take 
                        significant verifiable steps toward terminating 
                        the activities or transactions for which the 
                        sanctions were imposed pursuant to this 
                        subsection; and
                    (B) the President has received reliable assurances 
                from the foreign person or agency or instrumentality of 
                the foreign state that it will not carry out any 
                activities or transactions for which sanctions may be 
                imposed pursuant to this subsection in the future.
    (c) Waiver.--
            (1) In general.--The President may waive, on a case by case 
        basis and for a period of not more than 180 days, a requirement 
        under subsection (b) to impose or maintain sanctions with 
        respect to a foreign person or agency or instrumentality of a 
        foreign state if the President--
                    (A) determines that the waiver is in the national 
                security interest of the United States; and
                    (B) not less than 30 days before the waiver takes 
                effect, submits to the appropriate congressional 
                committees a report on the waiver and the justification 
                for the waiver.
            (2) Renewal of waiver.--The President may, on a case by 
        case basis, renew a waiver under paragraph (1) for additional 
        periods of not more than 180 days if the President--
                    (A) determines that the renewal of the waiver is in 
                the national security interest of the United States; 
                and
                    (B) not less than 15 days before the waiver 
                expires, submits to the appropriate congressional 
                committees a report on the renewal of the waiver and 
                the justification for the renewal of the waiver.
    (d) Rule of Construction.--The authority to impose sanctions under 
subsection (b) with respect to a foreign person or an agency or 
instrumentality of a foreign state identified pursuant to subsection 
(a) is in addition to the authority to impose sanctions under any other 
provision of law with respect to foreign persons or agencies or 
instrumentalities of foreign states that directly or indirectly support 
international terrorism.
    (e) Definitions.--In this section:
            (1) Foreign state.--The term ``foreign state'' has the 
        meaning given such term in section 1603(a) of title 28, United 
        States Code.
            (2) Agency or instrumentality.--The term ``agency or 
        instrumentality'' has the meaning given such term in section 
        1603(b) of title 28, United States Code.
    (f) Effective Date.--This section shall take effect on the date of 
the enactment of this Act and apply with respect to activities and 
transactions described in subsection (a) that are carried out on or 
after such date of enactment.

SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN GOVERNMENTS 
              THAT PROVIDE MATERIAL SUPPORT FOR THE TERRORIST 
              ACTIVITIES OF HAMAS, THE PALESTINIAN ISLAMIC JIHAD, OR 
              ANY AFFILIATE OR SUCCESSOR THEREOF.

    (a) Identification.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and every 180 days thereafter, the 
        President shall submit to the appropriate congressional 
        committees a report that identifies the following:
                    (A) Each government of a foreign country--
                            (i) with respect to which the Secretary of 
                        State determines has repeatedly provided 
                        support for acts of international terrorism 
                        pursuant to section 1754(c) of the Export 
                        Control Reform Act of 2018, section 40 of the 
                        Arms Export Control Act, section 620A of the 
                        Foreign Assistance Act of 1961, or any other 
                        provision of law; and
                            (ii) with respect to which the President 
                        determines has provided direct or indirect 
                        material support for the terrorist activities 
                        of Hamas, the Palestinian Islamic Jihad, or any 
                        affiliate or successor thereof.
                    (B) Each government of a foreign country that--
                            (i) is not identified under subparagraph 
                        (A); and
                            (ii) the President determines engaged in a 
                        significant transaction so as to contribute 
                        knowingly and materially to the efforts by the 
                        government of a foreign country described in 
                        subparagraph (A)(i) to provide direct or 
                        indirect material support for the terrorist 
                        activities of Hamas, the Palestinian Islamic 
                        Jihad, or any affiliate or successor thereof.
            (2) Form of report.--Each report submitted under paragraph 
        (1) shall be submitted in unclassified form but may contain a 
        classified annex.
    (b) Imposition of Sanctions.--
            (1) In general.--The President shall impose the following 
        sanctions with respect to each government of a foreign country 
        identified pursuant to subparagraph (A) or (B) of subsection 
        (a)(1):
                    (A) The United States Government shall suspend, for 
                a period of 1 year, United States assistance to the 
                government of the foreign country.
                    (B) The Secretary of the Treasury shall instruct 
                the United States Executive Director to each 
                appropriate international financial institution to 
                oppose, and vote against, for a period of 1 year, the 
                extension by such institution of any loan or financial 
                or technical assistance to the government of the 
                foreign country.
                    (C) No item on the United States Munitions List 
                (established pursuant to section 38 of the Arms Export 
                Control Act (22 U.S.C. 2778)) or the Commerce Control 
                List set forth in Supplement No. 1 to part 774 of title 
                15, Code of Federal Regulations, may be exported to the 
                government of the foreign country for a period of 1 
                year.
            (2) Exceptions.--The President shall not be required to 
        apply sanctions with respect to the government of a foreign 
        country pursuant to paragraph (1)--
                    (A) with respect to materials intended to be used 
                by United States military or civilian personnel at 
                military facilities in the country; or
                    (B) if the application of such sanctions would 
                prevent the United States from meeting the terms of any 
                status of forces agreement to which the United States 
                is a party.
    (c) Imposition of Additional Sanctions With Respect to Foreign 
Governments Identified Under Subsection (a)(1)(A).--The President shall 
impose the following additional sanctions with respect to each 
government of a foreign country identified pursuant to subsection 
(a)(1)(A):
            (1) The President shall, pursuant to such regulations as 
        the President may prescribe, prohibit any transactions in 
        foreign exchange that are subject to the jurisdiction of the 
        United States and in which the government of the foreign 
        country has any interest.
            (2) The President shall, pursuant to such regulations as 
        the President may prescribe, prohibit any transfers of credit 
        or payments between one or more financial institutions or by, 
        through, or to any financial institution, to the extent that 
        such transfers or payments are subject to the jurisdiction of 
        the United States and involve any interest of the government of 
        the foreign country.
    (d) Waiver.--
            (1) In general.--The President may waive, on a case by case 
        basis and for a period of not more than 180 days, a requirement 
        under subsection (b) or (c) to impose or maintain sanctions 
        with respect to a foreign government identified pursuant to 
        subparagraph (A) or (B) of subsection (a)(1) if the President--
                    (A) determines that the waiver is in the national 
                security interest of the United States; and
                    (B) not less than 30 days before the waiver takes 
                effect, submits to the appropriate congressional 
                committees a report on the waiver and the justification 
                for the waiver.
            (2) Renewal of waiver.--The President may, on a case by 
        case basis, renew a waiver under paragraph (1) for additional 
        periods of not more than 180 days if the President--
                    (A) determines that the renewal of the waiver is in 
                the national security interest of the United States; 
                and
                    (B) not less than 15 days before the waiver 
                expires, submits to the appropriate congressional 
                committees a report on the renewal of the waiver and 
                the justification for the renewal of the waiver.
    (e) Rule of Construction.--The authority to impose sanctions under 
subsection (b) or (c) with respect to each government of a foreign 
country identified pursuant to subparagraph (A) or (B) of subsection 
(a)(1) is in addition to the authority to impose sanctions under any 
other provision of law with respect to governments of foreign countries 
that provide material support to foreign terrorist organizations 
designated pursuant to section 219 of the Immigration and Nationality 
Act (8 U.S.C. 1189).
    (f) Termination.--The President may terminate any sanctions imposed 
with respect to the government of a foreign country pursuant to 
subsection (b) or (c) if the President determines and notifies the 
appropriate congressional committees that the government of the foreign 
country is no longer carrying out activities or transactions for which 
the sanctions were imposed and has provided assurances to the United 
States Government that it will not carry out the activities or 
transactions in the future.
    (g) Effective Date.--This section shall take effect on the date of 
the enactment of this Act and apply with respect to activities and 
transactions described in subparagraph (A) or (B) of subsection (a)(1) 
that are carried out on or after such date of enactment.

SEC. 5. EXEMPTIONS FROM SANCTIONS UNDER SECTIONS 3 AND 4 RELATING TO 
              PROVISION OF HUMANITARIAN ASSISTANCE.

    (a) Sanctions Under Section 3.--The following activities shall be 
exempt from sanctions under section 3:
            (1) The conduct or facilitation of a transaction for the 
        sale of agricultural commodities, food, medicine, or medical 
        devices to a foreign person described in section 3(a)(2).
            (2) The provision of humanitarian assistance to a foreign 
        person described in section 3(a)(2), including engaging in a 
        financial transaction relating to humanitarian assistance or 
        for humanitarian purposes or transporting goods or services 
        that are necessary to carry out operations relating to 
        humanitarian assistance or humanitarian purposes.
    (b) Sanctions Under Section 4.--The following activities shall be 
exempt from sanctions under section 4:
            (1) The conduct or facilitation of a transaction for the 
        sale of agricultural commodities, food, medicine, or medical 
        devices to Hamas, the Palestinian Islamic Jihad, or any 
        affiliate or successor thereof described in section 4(a)(1).
            (2) The provision of humanitarian assistance to Hamas, the 
        Palestinian Islamic Jihad, or any affiliate or successor 
        thereof described in section 4(a)(1), including engaging in a 
        financial transaction relating to humanitarian assistance or 
        for humanitarian purposes or transporting goods or services 
        that are necessary to carry out operations relating to 
        humanitarian assistance or humanitarian purposes.

SEC. 6. REPORT ON ACTIVITIES OF FOREIGN COUNTRIES TO DISRUPT GLOBAL 
              FUNDRAISING, FINANCING, AND MONEY LAUNDERING ACTIVITIES 
              OF HAMAS, THE PALESTINIAN ISLAMIC JIHAD, OR ANY AFFILIATE 
              OR SUCCESSOR THEREOF.

    (a) Report.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report that includes--
                    (A) a list of foreign countries that support Hamas, 
                the Palestinian Islamic Jihad, or any affiliate or 
                successor thereof, or in which Hamas maintains 
                important portions of its financial networks;
                    (B) with respect to each foreign country on the 
                list required by subparagraph (A)--
                            (i) an assessment of whether the government 
                        of the country is taking adequate measures to 
                        freeze the assets of Hamas, the Palestinian 
                        Islamic Jihad, or any affiliate or successor 
                        thereof within the territory of the country; 
                        and
                            (ii) in the case of a country the 
                        government of which is not taking adequate 
                        measures to freeze the assets of Hamas--
                                    (I) an assessment of the reasons 
                                that government is not taking adequate 
                                measures to freeze those assets; and
                                    (II) a description of measures 
                                being taken by the United States 
                                Government to encourage that government 
                                to freeze those assets;
                    (C) a list of foreign countries in which Hamas, the 
                Palestinian Islamic Jihad, or any affiliate or 
                successor thereof, conducts significant fundraising, 
                financing, or money laundering activities;
                    (D) with respect to each foreign country on the 
                list required by subparagraph (C)--
                            (i) an assessment of whether the government 
                        of the country is taking adequate measures to 
                        disrupt the fundraising, financing, or money 
                        laundering activities of Hamas, the Palestinian 
                        Islamic Jihad, or any affiliate or successor 
                        thereof within the territory of the country; 
                        and
                            (ii) in the case of a country the 
                        government of which is not taking adequate 
                        measures to disrupt those activities--
                                    (I) an assessment of the reasons 
                                that government is not taking adequate 
                                measures to disrupt those activities; 
                                and
                                    (II) a description of measures 
                                being taken by the United States 
                                Government to encourage that government 
                                to improve measures to disrupt those 
                                activities; and
                    (E) a list of foreign countries from which Hamas, 
                the Palestinian Islamic Jihad, or any affiliate or 
                successor thereof, acquires surveillance equipment, 
                electronic monitoring equipment, or other means to 
                inhibit communication or political expression in Gaza.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form to the greatest extent possible, 
        and may contain a classified annex.
    (b) Briefing.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter for a period not 
to exceed 3 years, the Secretary of State, the Secretary of the 
Treasury, and the heads of other applicable Federal departments and 
agencies (or their designees) shall provide to the appropriate 
congressional committees a briefing on the disposition of the assets 
and activities of Hamas, the Palestinian Islamic Jihad, or any 
successor or affiliate thereof related to fundraising, financing, and 
money laundering worldwide.
    (c) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Foreign Affairs, the Committee on 
        Financial Services, and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Banking, Housing, and Urban Affairs, and the Select Committee 
        on Intelligence of the Senate.

SEC. 7. MISCELLANEOUS PROVISIONS.

    (a) Rule of Construction.--Nothing in this Act shall be construed 
to apply to the authorized intelligence activities of the United 
States.
    (b) Regulatory Authority.--The President shall, not later than 180 
days after the date of the enactment of this Act, promulgate 
regulations as are necessary for the implementation of this Act.
    (c) Exception Relating to Importation of Goods.--
            (1) In general.--The authorities and requirements to impose 
        sanctions authorized under this Act shall not include the 
        authority or requirement to impose sanctions on the importation 
        of goods.
            (2) Good defined.--In this subsection, the term ``good'' 
        means any article, natural or man-made substance, material, 
        supply or manufactured product, including inspection and test 
        equipment, and excluding technical data.
    (d) Termination.--This Act shall terminate beginning--
            (1) 30 days after the date on which the President certifies 
        to the appropriate congressional committees that Hamas and the 
        Palestinian Islamic Jihad, or any successor or affiliate 
        thereof--
                    (A) are no longer designated as a foreign terrorist 
                organization pursuant to section 219 of the Immigration 
                and Nationality Act (8 U.S.C. 1189);
                    (B) are no longer subject to sanctions pursuant 
                to--
                            (i) Executive Order No. 12947 (January 23, 
                        1995; relating to prohibiting transactions with 
                        terrorists who threaten to disrupt the Middle 
                        East peace process); and
                            (ii) Executive Order No. 13224 (September 
                        23, 2001; relating to blocking property and 
                        prohibiting transactions with persons who 
                        commit, threaten to commit, or support 
                        terrorism); and
                    (C) meet the criteria described in paragraphs (1) 
                through (4) of section 9 of the Palestinian Anti-
                Terrorism Act of 2006 (22 U.S.C. 2378b note); or
            (2) 3 years after the date of the enactment of this Act,
whichever occurs earlier.

SEC. 8. DEFINITIONS.

    Except as otherwise provided, in this Act:
            (1) Admitted.--The term ``admitted'' has the meaning given 
        such term in section 101(a)(13)(A) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(13)(A)).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (3) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not a United States 
                person; or
                    (B) a corporation, partnership, or other 
                nongovernmental entity which is not a United States 
                person.
            (4) Material support.--The term ``material support'' has 
        the meaning given the term ``material support or resources'' in 
        section 2339A of title 18, United States Code.
            (5) Person.--The term ``person'' means an individual or 
        entity.
            (6) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 9. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives July 23, 2019.

            Attest:

                                                                 Clerk.
116th CONGRESS

  1st Session

                               H. R. 1850

_______________________________________________________________________

                                 AN ACT

  To impose sanctions with respect to foreign support for Palestinian 
                   terrorism, and for other purposes.