[Congressional Record Volume 141, Number 205 (Wednesday, December 20, 1995)]
[Senate]
[Pages S19015-S19019]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     IRAN OIL SANCTIONS ACT OF 1995

  Mr. SANTORUM. I ask unanimous consent that the Senate proceed to the 
immediate consideration of calendar No. 280, S. 1228.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 1228) to impose sanctions on foreign persons 
     exporting petroleum products, natural gas, or related 
     technology to Iran.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Banking, Housing, and 
Urban Affairs, with an amendment to strike all after the enacting 
clause and inserting in lieu thereof the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Iran Oil Sanctions Act of 
     1995''.

     SEC. 2. FINDINGS.

       The Congress makes the following findings:
       (1) The efforts of the Government of Iran to acquire 
     weapons of mass destruction and the means to deliver them and 
     its support of international terrorism endanger the national 
     security and foreign policy interests of the United States 
     and those countries with which it shares common strategic and 
     foreign policy objectives.
       (2) The objective of preventing the proliferation of 
     weapons of mass destruction and international terrorism 
     through existing multilateral and bilateral initiatives 
     requires additional efforts to deny Iran the financial means 
     to sustain its nuclear, chemical, biological, and missile 
     weapons programs.

     SEC. 3. DECLARATION OF POLICY.

       The Congress declares that it is the policy of the United 
     States to deny Iran the ability to support international 
     terrorism and to fund the development and acquisition of 
     weapons of mass destruction and the means to deliver them by 
     limiting the development of petroleum resources in Iran.

     SEC. 4. IMPOSITION OF SANCTIONS.

       (a) In General.--Except as provided in subsection (d), the 
     President shall impose one or more of the sanctions described 
     in section 5 on a person subject to this section (in this Act 
     referred to as a ``sanctioned person''), if the President 
     determines that the person has, with actual knowledge, on or 
     after the date of enactment of this Act, made an investment 
     of more than $40,000,000 (or any combination of investments 
     of at least $10,000,000 each, which in the aggregate exceeds 
     $40,000,000 in any 12-month period), that significantly and 
     materially contributed to the development of petroleum 
     resources in Iran.
       (b) Persons Against Which the Sanctions Are To Be 
     Imposed.--The sanctions described in subsection (a) shall be 
     imposed on any person the President determines--
       (1) has carried out the activities described in subsection 
     (a);
       (2) is a successor entity to that person;
       (3) is a person that is a parent or subsidiary of that 
     person if that parent or subsidiary with actual knowledge 
     engaged in the activities which were the basis of that 
     determination; and
       (4) is a person that is an affiliate of that person if that 
     affiliate with actual knowledge engaged in the activities 
     which were the basis of that determination and if that 
     affiliate is controlled in fact by that person.
       (c) Publication in Federal Register.--The President shall 
     cause to be published in the Federal Register a current list 
     of persons that are subject to sanctions under subsection 
     (a). The President shall remove or add the names of persons 
     to the list published under this subsection as may be 
     necessary.
       (d) Exceptions.--The President shall not be required to 
     apply or maintain the sanctions under subsection (a)--
       (1) to products or services provided under contracts 
     entered into before the date on which the President publishes 
     his intention to impose the sanction; or
       (2) to medicines, medical supplies, or other humanitarian 
     items.

     SEC. 5. DESCRIPTION OF SANCTIONS.

       The sanctions to be imposed on a person under section 4(a) 
     are as follows:
       (1) Export-import bank assistance for exports to sanctioned 
     persons.--The President may direct the Export-Import Bank of 
     the United States not to guarantee, insure, extend credit, or 
     participate in the extension of credit in connection with the 
     export of any goods or services to any sanctioned person.
       (2) Export sanction.--The President may order the United 
     States Government not to issue any specific license and not 
     to grant any other specific permission or authority to export 
     any goods or technology to a sanctioned person under--
       (A) the Export Administration Act of 1979;
       (B) the Arms Export Control Act;
       (C) the Atomic Energy Act of 1954; or
       (D) any other statute that requires the prior review and 
     approval of the United States Government as a condition for 
     the exportation of goods and services, or their re-export, to 
     any person designated by the President under section 4(a).
       (3) Loans from united states financial institutions.--The 
     United States Government may prohibit any United States 
     financial institution from making any loan or providing any 
     credit to any sanctioned person in an amount exceeding 
     $10,000,000 in any 12-month period (or two or more loans of 
     more than $5,000,000 each in such period) unless such person 
     is engaged in activities to relieve human suffering within 
     the meaning of section 203(b)(2) of the International 
     Emergency Economic Powers Act.
       (4) Prohibitions on financial institutions.--The following 
     prohibitions may be imposed against financial institutions 
     sanctioned under section 4(a):
       (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 
     continuation of any prior designation of, such financial 
     institution as a primary dealer in United States Government 
     debt instruments.
       (B) Government funds.--Such financial institution shall not 
     serve as agent of the United States Government or serve as 
     repository for United States Government funds.

     SEC. 6. ADVISORY OPINIONS.

       The Secretary of State may, upon the request of any person, 
     issue an advisory opinion, to that person as to whether a 
     proposed activity by 

[[Page S19016]]
     that person would subject that person to sanctions under this Act. 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 sanctions, and any person who thereafter 
     engages in such activity, may not be made subject to such 
     sanctions on account of such activity.

     SEC. 7. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

       (a) Delay of Sanctions.--
       (1) Consultations.--If the President makes a determination 
     described in section 4(a) with respect 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 
     sanctions pursuant to this Act.
       (2) Actions by government of jurisdiction.--In order to 
     pursue such consultations with that government, the President 
     may delay imposition of sanctions pursuant to this Act for up 
     to 90 days. Following such consultations, the President shall 
     immediately impose a sanction or sanctions unless the 
     President determines and certifies to the Congress that the 
     government has taken specific and effective actions, 
     including, as appropriate, the imposition of appropriate 
     penalties, to terminate the involvement of the foreign person 
     in the activities that resulted in the determination by the 
     President pursuant to section 4(a) concerning such person.
       (3) Additional delay in imposition of sanctions.--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 the government with primary jurisdiction 
     over the foreign person is in the process of taking the 
     actions described in paragraph (2).
       (4) Report to congress.--Not later than 90 days after 
     making a determination under section 4(a), the President 
     shall submit to the Committee on Banking, Housing and Urban 
     Affairs of the Senate and the Committee on International 
     Relations of the House of Representatives a report which 
     shall include information on the status of consultations with 
     the appropriate foreign government under this subsection, and 
     the basis for any determination under paragraph (3).
       (b) Duration of Sanctions..--The requirement to impose 
     sanctions pursuant to section 4(a) shall remain in effect 
     until the President determines that the sanctioned person is 
     no longer engaging in the activity that led to the imposition 
     of sanctions.
       (c) Presidential Waiver.--(1) The President may waive the 
     requirement in section 4(a) to impose a sanction or sanctions 
     on a person in section 4(b), and may waive the continued 
     imposition of a sanction or sanctions under subsection (b) of 
     this section, 15 days after the President determines and so 
     reports to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on International 
     Relations of the House of Representatives that it is 
     important to the national interest of the United States to 
     exercise such waiver authority.
       (2) Any such report shall provide a specific and detailed 
     rationale for such determination, including--
       (A) a description of the conduct that resulted in the 
     determination;
       (B) in the case of a foreign person, an explanation of the 
     efforts to secure the cooperation of the government with 
     primary jurisdiction of the sanctioned person to terminate 
     or, as appropriate, penalize the activities that resulted in 
     the determination;
       (C) an estimate as to the significance of the investment to 
     Iran's ability to develop its petroleum resources; and
       (D) a statement as to the response of the United States in 
     the event that such person engages in other activities that 
     would be subject to section 4(a).

     SEC. 8. TERMINATION OF SANCTIONS.

       The sanctions requirement of section 4 shall no longer have 
     force or effect if the President determines and certifies to 
     the appropriate congressional committees that Iran--
       (1) has ceased its efforts to design, develop, manufacture, 
     or acquire--
       (A) a nuclear explosive device or related materials and 
     technology;
       (B) chemical and biological weapons; or
       (C) ballistic missiles and ballistic missile launch 
     technology; and
       (2) has been removed from the list of state sponsors of 
     international terrorism under section 6(j) of the Export 
     Administration Act of 1979.

     SEC. 9. REPORT REQUIRED.

       The President shall ensure the continued transmittal to 
     Congress of reports describing--
       (1) the nuclear and other military capabilities of Iran, as 
     required by section 601(a) of the Nuclear Non-Proliferation 
     Act of 1978 and section 1607 of the National Defense 
     Authorization Act, Fiscal Year 1993; and
       (2) the support provided by Iran for acts of international 
     terrorism, as part of the Department of State's annual report 
     on international terrorism.

     SEC. 10. DEFINITIONS.

       As used in this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committees 
     on Banking, Housing, and Urban Affairs and Foreign Relations 
     of the Senate and the Committees on Banking and Financial 
     Services and International Relations of the House of 
     Representatives.
       (2) Financial institution.--The term ``financial 
     institution'' includes--
       (A) a depository institution (as defined in section 3(c)(1) 
     of the Federal Deposit Insurance Act), including a branch or 
     agency of a foreign bank (as defined in section 1(b)(7) of 
     the International Banking Act of 1978);
       (B) a credit union;
       (C) a securities firm, including a broker or dealer;
       (D) an insurance company, including an agency or 
     underwriter;
       (E) any other company that provides financial services; or
       (F) any subsidiary of such financial institution.
       (3) Investment.--The term ``investment'' means--
       (A) the entry into a contract that includes responsibility 
     for the development of petroleum resources located in Iran, 
     or the entry into a contract providing for the general 
     supervision and guarantee of another person's performance of 
     such a contract;
       (B) the purchase of a share of ownership in that 
     development; or
       (C) the entry into a contract providing for participation 
     in royalties, earnings, or profits in that development, 
     without regard to the form of the participation.
       (4) Person.--The term ``person'' means a natural person as 
     well as a corporation, business association, partnership, 
     society, trust, any other nongovernmental entity, 
     organization, or group, and any governmental entity operating 
     as a business enterprise, and any successor of any such 
     entity.
       (5) Petroleum resources.--The term ``petroleum resources'' 
     includes petroleum and natural gas resources.


                           Amendment No. 3106

 (Purpose: To deter investment in the development of Libya's petroleum 
                               resources)

  Mr. SANTORUM. Madam President, I send an amendment to the desk in 
behalf of Senators Kennedy and D'Amato, and I ask for its 
consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Pennsylvania (Mr. Santorum), for Mr. 
     Kennedy, for himself and Mr. D'Amato, proposes an amendment 
     numbered 3106.

  Mr. SANTORUM. Madam President, I ask unanimous consent that the 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the end of the bill, add the following new section:

     SEC.   . APPLICATION OF THE ACT TO LIBYA.

       The sanctions of this Act, including the terms and 
     conditions for the imposition, duration, and termination of 
     sanctions, shall apply to persons making investments for the 
     development of petroleum resources in Libya in the same 
     manner as those sanctions apply under this Act to persons 
     making investments for such development in Iran.

  Mr. D'AMATO. Madam President, I rise in support of the Kennedy-
D'Amato amendment to S. 1228, the Iran Oil Sanctions Act of 1995.
  What can one say about Libya. It has now been over 4 years since the 
United States indicted two Libyan agents, Lamen Khalifa Fhimah and 
Abdel Basset Ali Megrahi, for responsibility in the bombing of Pan Am 
Flight 103 in December 1988. So far there has been no action, no 
surrender of these men. We must answer the cry for justice by the 
families of the 270 victims of this terrorist attack, 189 of them 
Americans, with 35 from New York State.
  For us to add Libya to a bill placing sanctions on those countries 
which seek to develop Iran's petroleum resources is, I feel, a 
justified action. We must send the message that terrorism, sponsorship 
of terrorism, and those who subsidize terrorism will not be ignored.
  Mu'ammar Qadhafi brazenly dismisses the indictment while at the same 
time pounding his chest, bragging to the world that he has again 
withstood American aggression. His offer to try the two agents in a 
Libyan court is a mockery of justice and an insult to the families of 
the victims.
  Just yesterday, a Scottish businessman was charged in a Boston court 
with violating the U.S. embargo on Libya by attempting to export over 
250,000 dollars' worth of computers and related equipment. This is only 
further proof that Qadhafi is still up to his old games and is trying 
to flaunt our sanctions against him.
  I want to discuss, very briefly, the amount of oil that the 
Organization for Economic Cooperation and Development [OECD] countries 
buy from Libya. According to the Energy Department, OECD countries 
bought over $7 billion in oil from Libya in 1994. The worst offenders 
were Italy, with over $3 billion and Germany with over $1 billion.
  As far as how this legislation would effect Libya, one need only look 
at the 

[[Page S19017]]
contracts signed by European firms in the last few years. Just in 
August, a Spanish company Repsol, awarded a Cypriot company a $155 
million contract to build a crude oil pipeline in Libya. Furthermore, 
European companies such as Agip--Italy, Total--France, Petrofina--
Belgium, OMV--Austria, and Veba--Germany, have all signed contracts for 
upstream activities in Libya and would be affected by this bill.
  While the focus of the underlying bill has been Iran and an attempt 
to stop the subsidizing of Iranian terrorism, I cannot see why we 
should not seek to prevent the subsidizing of Libyan terrorism at the 
same time? More importantly, who is to say that the attack on Pan Am 
103 was not directed by Iran and conducted by the Libyans. If this were 
the case, than we will get two terrorist states with one bill.
  There can be no rest until the individuals who ordered, directed, and 
paid for the commission of the terrible crime of the bombing of Pan Am 
Fight 103 are brought to justice, no matter where they may be located. 
The investigation of the bombing must continue to be vigorously and 
intensively pursued. Libya, with a long and documented history of 
obscene violations of human rights and international law, must pay the 
price for its part in this slaughter and its past support for other 
international terrorist acts.
  It is for this reason, that I enthusiastically agree with the Senator 
from Massachusetts and am glad to have worked with him on this issue.
  Mr. KENNEDY. Madam President, I offer an amendment to apply the 
sanctions in this legislation to Libya.
  I support the pending bill which is intended to provide a stronger 
deterrent to the development of nuclear weapons by Iran by applying 
economic sanctions to those in other countries who substantially assist 
Iran in Oil production.
  My amendment extends the same sanctions to those who help Libya in 
oil production. Its purpose is to use stronger economic sanctions to 
encourage the Government of Libya to turn over the two suspects 
indicted for the terrorist bombing of Pan Am Flight 103.
  On December 21, 1988, 7 years ago tomorrow, in one of the worst 
terrorist atrocities in recent years, Pan Am Flight 103 was blown up 
over Lockerbie, Scotland, killing 270 citizens of 21 nations, including 
189 Americans.
  In November 1991, two Libyan national were indicted for carrying out 
that bombing. Despite U.N. economic sanctions which have been in force 
since 1992, the Government of Libya has refused to turn over the 
suspects, and the two suspects remain in Libya under the protection of 
Colonial Qadhafi.
  Many of us on both sides of the aisle have called for stronger 
international sanctions against Libya, including an international oil 
embargo, and our proposals have had the strong support of both Senator 
D'Amato and Senator Helms.
  Because of Libya's earlier well-known support for terrorism, the 
United States imposed our own oil embargo against Libya during the 
Reagan administration in 1986, 2 years before the Pan Am bombing. Our 
efforts since the Pan Am bombing to persuade other nations to join the 
oil embargo have not succeeded, primarily because several European 
countries purchase oil from Libya and refuse to support such a measure.
  Additional sanctions on Libya are essential if we are to have any 
chance of bringing the terrorists to trial. This bill offers an 
effective opportunity to enact such sanctions.
  According to experts familiar with oil production investment in 
Libya, this action may very well affect the investment plans of 
numerous foreign oil companies.
  as in the case of Iran, this amendment will not prevent any foreign 
companies from doing business in Libya. But they will not be able to do 
so with the benefit of U.S. assistance.
  This Christmas season is a very difficult time for the families of 
the victims of Pan Am flight 103. We cannot bring back their loved 
ones. What we can do is take every available step to see that the 
terrorists charged with committing this atrocity are finally at long 
last brought to justice. This is one such step, and I urge the Senate 
to support it.
  Mr. SARBANES. Madam President, I rise in support of S. 1228, the Iran 
Oil Sanctions Act of 1995. This bill would put sanctions on foreign 
companies that invest in Iran and thereby help that country develop its 
oil and gas resources. The increased revenue from such enhanced oil 
production augments Iran's ability to fund its development of nuclear 
weapons and its support for international terrorism.
  Since the Iranian Revolution in 1979, American administrations with 
bipartisan congressional support have used economic sanctions to hinder 
Iran's support for international terrorism and to make it harder for 
that country to get materials and revenues to strengthen its nuclear 
and conventional weapons programs.
  Earlier this year, just prior to the Banking Committee's March 16 
hearing on our country's economic relations with Iran, the committee 
learned that then existing restrictions on such relations did not 
prohibit the Conoco Co. from signing a contract with Iran to develop a 
huge offshore oil field in the Persian Gulf. The Clinton administration 
immediately announced that while Conoco's actions were not illegal, 
they were inconsistent with our policy of bringing pressure on Iran, 
both politically and economically to change its unacceptable behavior. 
The President then on March 15 issued an Executive order prohibiting 
U.S. persons from entering into contracts for the financing or the 
overall supervision and management of the petroleum resources of Iran.
  On May 8, President Clinton issued another Executive order that 
imposed significant new economic sanctions on Iran, including a 
prohibition on trading in goods or services of Iranian origin, a ban on 
exports to Iran, and a ban on new investment or bank loans to Iran. The 
new prohibitions applied to U.S. persons, wherever they may be, 
including the foreign branches of U.S. entities.
  The Clinton administration also urged other countries to support 
United States efforts to pressure Iran economically and persuaded our 
G7 allies to avoid any collaboration with Iran that might help that 
country develop a nuclear weapons capability. A number of foreign 
corporations, however, are supporting Iran's efforts to increase its 
oil and gas production. S. 1228 seeks to persuade such companies from 
assisting Iran as the latter uses its oil and gas revenues to fund 
behavior harmful to the international community.
  At the Banking Committee's October 11 hearing on S. 1228, Under 
Secretary of State Tarnoff told the committee that a straight line 
links Iran's oil income and its ability to sponsor terrorism, build 
weapons of mass destruction, and acquire sophisticated armaments. He 
also told us that the administration was making great efforts to 
persuade other nations to cooperate with our embargo of Iran. He 
expressed concerns, however, that we not enact legislation that would 
make it more difficult to get that cooperation. Chairman D'Amato 
assured Under Secretary Tarnoff that he wanted to work with the 
administration in crafting legislation that would persuade foreign 
companies to cooperate with our embargo of Iran.
  Prior to the December 12 committee markup of S. 1228, Chairman 
D'Amato, Senator Boxer, myself, and other members of the committee 
worked with the administration to develop a bill the administration 
could endorse. Agreement was reached and on December 12, the committee 
adopted a substitute version of S. 1228 that President Clinton 
supports.
  It does not target trade but rather new investment contracts that 
enhance Iran's ability to produce oil and gas. The bill also provides 
the President the necessary flexibility to determine the best mix of 
sanctions in a particular case, and to waive the imposition, or 
continued imposition, of sanctions when he determines it is important 
to the national interest to do so. In using these authorities, the 
President is directed to consider factors such as the significance of 
an investment, the prospects of cooperation with other governments, 
U.S. international commitments, and the effect of sanctions on U.S. 
economic interests and regional policies. Finally, S. 1228 authorizes 
the Secretary of State to provide advisory 

[[Page S19018]]
opinions on whether a proposed activity would be covered to avoid 
unnecessary uncertainty on the part of companies and friction with 
allies.
  This bill was reported out of committee by a vote of 15 to 0. It is a 
bill I support because it will make it more difficult for Iran to fund 
its efforts to develop weapons of mass destruction and its support for 
international terrorism. I urge its enactment.
  Mr. SANTORUM. Madam President, I ask unanimous consent that the 
amendment be considered read and agreed to, the committee amendment be 
agreed to, the bill be deemed a third time, passed, the motion to 
reconsider be laid upon the table, and any statements relating to the 
bill be placed at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the amendment (No. 3106) was agreed to.
  So the committee amendment was agreed to.
  So the bill (S. 1228), as amended, was deemed read for a third time, 
and passed, as follows:

                                S. 1228

       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 ``Iran Oil Sanctions Act of 
     1995''.

     SEC. 2. FINDINGS.

       The Congress makes the following findings:
       (1) The efforts of the Government of Iran to acquire 
     weapons of mass destruction and the means to deliver them and 
     its support of international terrorism endanger the national 
     security and foreign policy interests of the United States 
     and those countries with which it shares common strategic and 
     foreign policy objectives.
       (2) The objective of preventing the proliferation of 
     weapons of mass destruction and international terrorism 
     through existing multilateral and bilateral initiatives 
     requires additional efforts to deny Iran the financial means 
     to sustain its nuclear, chemical, biological, and missile 
     weapons programs.

     SEC. 3. DECLARATION OF POLICY.

       The Congress declares that it is the policy of the United 
     States to deny Iran the ability to support international 
     terrorism and to fund the development and acquisition of 
     weapons of mass destruction and the means to deliver them by 
     limiting the development of petroleum resources in Iran.

     SEC. 4. IMPOSITION OF SANCTIONS.

       (a) In General.--Except as provided in subsection (d), the 
     President shall impose one or more of the sanctions described 
     in section 5 on a person subject to this section (in this Act 
     referred to as a ``sanctioned person''), if the President 
     determines that the person has, with actual knowledge, on or 
     after the date of enactment of this Act, made an investment 
     of more than $40,000,000 (or any combination of investments 
     of at least $10,000,000 each, which in the aggregate exceeds 
     $40,000,000 in any 12-month period), that significantly and 
     materially contributed to the development of petroleum 
     resources in Iran.
       (b) Persons Against Which the Sanctions Are To Be 
     Imposed.--The sanctions described in subsection (a) shall be 
     imposed on any person the President determines--
       (1) has carried out the activities described in subsection 
     (a);
       (2) is a successor entity to that person;
       (3) is a person that is a parent or subsidiary of that 
     person if that parent or subsidiary with actual knowledge 
     engaged in the activities which were the basis of that 
     determination; and
       (4) is a person that is an affiliate of that person if that 
     affiliate with actual knowledge engaged in the activities 
     which were the basis of that determination and if that 
     affiliate is controlled in fact by that person.
       (c) Publication in Federal Register.--The President shall 
     cause to be published in the Federal Register a current list 
     of persons that are subject to sanctions under subsection 
     (a). The President shall remove or add the names of persons 
     to the list published under this subsection as may be 
     necessary.
       (d) Exceptions.--The President shall not be required to 
     apply or maintain the sanctions under subsection (a)--
       (1) to products or services provided under contracts 
     entered into before the date on which the President publishes 
     his intention to impose the sanction; or
       (2) to medicines, medical supplies, or other humanitarian 
     items.

     SEC. 5. DESCRIPTION OF SANCTIONS.

       The sanctions to be imposed on a person under section 4(a) 
     are as follows:
       (1) Export-import bank assistance for exports to sanctioned 
     persons.--The President may direct the Export-Import Bank of 
     the United States not to guarantee, insure, extend credit, or 
     participate in the extension of credit in connection with the 
     export of any goods or services to any sanctioned person.
       (2) Export sanction.--The President may order the United 
     States Government not to issue any specific license and not 
     to grant any other specific permission or authority to export 
     any goods or technology to a sanctioned person under--
       (A) the Export Administration Act of 1979;
       (B) the Arms Export Control Act;
       (C) the Atomic Energy Act of 1954; or
       (D) any other statute that requires the prior review and 
     approval of the United States Government as a condition for 
     the exportation of goods and services, or their re-export, to 
     any person designated by the President under section 4(a).
       (3) Loans from united states financial institutions.--The 
     United States Government may prohibit any United States 
     financial institution from making any loan or providing any 
     credit to any sanctioned person in an amount exceeding 
     $10,000,000 in any 12-month period (or two or more loans of 
     more than $5,000,000 each in such period) unless such person 
     is engaged in activities to relieve human suffering within 
     the meaning of section 203(b)(2) of the International 
     Emergency Economic Powers Act.
       (4) Prohibitions on financial institutions.--The following 
     prohibitions may be imposed against financial institutions 
     sanctioned under section 4(a):
       (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 
     continuation of any prior designation of, such financial 
     institution as a primary dealer in United States Government 
     debt instruments.
       (B) Government funds.--Such financial institution shall not 
     serve as agent of the United States Government or serve as 
     repository for United States Government funds.

     SEC. 6. ADVISORY OPINIONS.

       The Secretary of State may, upon the request of any person, 
     issue an advisory opinion, to that person as to whether a 
     proposed activity by that person would subject that person to 
     sanctions under this Act. 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 sanctions, and 
     any person who thereafter engages in such activity, may not 
     be made subject to such sanctions on account of such 
     activity.

     SEC. 7. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

       (a) Delay of Sanctions.--
       (1) Consultations.--If the President makes a determination 
     described in section 4(a) with respect 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 
     sanctions pursuant to this Act.
       (2) Actions by government of jurisdiction.--In order to 
     pursue such consultations with that government, the President 
     may delay imposition of sanctions pursuant to this Act for up 
     to 90 days. Following such consultations, the President shall 
     immediately impose a sanction or sanctions unless the 
     President determines and certifies to the Congress that the 
     government has taken specific and effective actions, 
     including, as appropriate, the imposition of appropriate 
     penalties, to terminate the involvement of the foreign person 
     in the activities that resulted in the determination by the 
     President pursuant to section 4(a) concerning such person.
       (3) Additional delay in imposition of sanctions.--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 the government with primary jurisdiction 
     over the foreign person is in the process of taking the 
     actions described in paragraph (2).
       (4) Report to congress.--Not later than 90 days after 
     making a determination under section 4(a), the President 
     shall submit to the Committee on Banking, Housing and Urban 
     Affairs of the Senate and the Committee on International 
     Relations of the House of Representatives a report which 
     shall include information on the status of consultations with 
     the appropriate foreign government under this subsection, and 
     the basis for any determination under paragraph (3).
       (b) Duration of Sanctions..--The requirement to impose 
     sanctions pursuant to section 4(a) shall remain in effect 
     until the President determines that the sanctioned person is 
     no longer engaging in the activity that led to the imposition 
     of sanctions.
       (c) Presidential Waiver.--(1) The President may waive the 
     requirement in section 4(a) to impose a sanction or sanctions 
     on a person in section 4(b), and may waive the continued 
     imposition of a sanction or sanctions under subsection (b) of 
     this section, 15 days after the President determines and so 
     reports to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on International 
     Relations of the House of Representatives that it is 
     important to the national interest of the United States to 
     exercise such waiver authority.
       (2) Any such report shall provide a specific and detailed 
     rationale for such determination, including--
       (A) a description of the conduct that resulted in the 
     determination;
       (B) in the case of a foreign person, an explanation of the 
     efforts to secure the cooperation of the government with 
     primary jurisdiction of the sanctioned person to terminate 
     or, as appropriate, penalize the activities that resulted in 
     the determination;
       (C) an estimate as to the significance of the investment to 
     Iran's ability to develop its petroleum resources; and
       (D) a statement as to the response of the United States in 
     the event that such person 

[[Page S19019]]
     engages in other activities that would be subject to section 4(a).

     SEC. 8. TERMINATION OF SANCTIONS.

       The sanctions requirement of section 4 shall no longer have 
     force or effect if the President determines and certifies to 
     the appropriate congressional committees that Iran--
       (1) has ceased its efforts to design, develop, manufacture, 
     or acquire--
       (A) a nuclear explosive device or related materials and 
     technology;
       (B) chemical and biological weapons; or
       (C) ballistic missiles and ballistic missile launch 
     technology; and
       (2) has been removed from the list of state sponsors of 
     international terrorism under section 6(j) of the Export 
     Administration Act of 1979.

     SEC. 9. REPORT REQUIRED.

       The President shall ensure the continued transmittal to 
     Congress of reports describing--
       (1) the nuclear and other military capabilities of Iran, as 
     required by section 601(a) of the Nuclear Non-Proliferation 
     Act of 1978 and section 1607 of the National Defense 
     Authorization Act, Fiscal Year 1993; and
       (2) the support provided by Iran for acts of international 
     terrorism, as part of the Department of State's annual report 
     on international terrorism.

     SEC. 10. DEFINITIONS.

       As used in this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committees 
     on Banking, Housing and Urban Affairs and Foreign Relations 
     of the Senate and the Committees on Banking and Financial 
     Services and International Relations of the House of 
     Representatives.
       (2) Financial institution.--The term ``financial 
     institution'' includes--
       (A) a depository institution (as defined in section 3(c)(1) 
     of the Federal Deposit Insurance Act), including a branch or 
     agency of a foreign bank (as defined in section 1(b)(7) of 
     the International Banking Act of 1978);
       (B) a credit union;
       (C) a securities firm, including a broker or dealer;
       (D) an insurance company, including an agency or 
     underwriter;
       (E) any other company that provides financial services; or
       (F) any subsidiary of such financial institution.
       (3) Investment.--The term ``investment'' means--
       (A) the entry into a contract that includes responsibility 
     for the development of petroleum resources located in Iran, 
     or the entry into a contract providing for the general 
     supervision and guarantee of another person's performance of 
     such a contract;
       (B) the purchase of a share of ownership in that 
     development; or
       (C) the entry into a contract providing for participation 
     in royalties, earnings, or profits in that development, 
     without regard to the form of the participation.
       (4) Person.--The term ``person'' means a natural person as 
     well as a corporation, business association, partnership, 
     society, trust, any other nongovernmental entity, 
     organization, or group, and any governmental entity operating 
     as a business enterprise, and any successor of any such 
     entity.
       (5) Petroleum resources.--The term ``petroleum resources'' 
     includes petroleum and natural gas resources.

     SEC. 11. APPLICATION OF THE ACT TO LIBYA.

       The sanctions of this Act, including the terms and 
     conditions for the imposition, duration, and termination of 
     sanctions, shall apply to persons making investments for the 
     development of petroleum resources in Libya in the same 
     manner as those sanctions apply under this Act to persons 
     making investments for such development in Iran.

  So the title was amended so as to read:

  A bill to deter investment in the development of Iran's petroleum 
resources.

                          ____________________