[Congressional Record Volume 142, Number 39 (Wednesday, March 20, 1996)]
[Extensions of Remarks]
[Page E387]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     IRAN OIL SANCTIONS ACT OF 1996

                                 ______


                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                        Tuesday, March 19, 1996

  Mr. GILMAN. Mr. Speaker, I rise today to introduce H.R. 3107, a bill 
that would impose sanctions on companies that provide key oilfield 
equipment and technology and investment to Iran and Libya. The Iran Oil 
Sanctions Act of 1996 will ensure that these terrorist states will have 
more limited access to outside capital and technology. It will be a 
major deterrant to their efforts in attracting new investment and 
luring European and Asian firms into developing Iranian offshore oil 
resources.
  The Iran Oil Sanctions Act of 1996 imposes sanctions on persons 
exporting key oilfield goods of technology or making investments of $40 
million or more that would enhance the ability of Iran and Libya to 
develop their petroleum resources.
  The measure would require the President to impose two or more 
penalties on a sanctioned person. These penalties include a denial of 
Exibank assistance; a denial of specific licenses for the export of 
controlled technology and a prohibition on imports from that company; a 
prohibition on a sanctioned financial institution from serving as a 
primary dealer in U.S. Government debt instruments; a prohibition on 
any U.S. financial institution from making any loan to a sanctioned 
person over $10 million a year; and a ban on any U.S. Government 
procurement of any goods or services from a sanctioned person.
  The legislation allows the President to delay imposition of sanctions 
for 90 days to pursue consultations with the Government of the 
sanctioned person to terminate the sanctionable activities. An 
additional 90-day delay is provided if that Government is in the 
process of terminating these activities. The President may waive any of 
the sanctions if he determines that doing so is in the U.S. national 
interest.
  The adoption of a companion bill in the Senate on December 22, 1995, 
as well as the prospect for the enactment of a more comprehensive 
sanctions regime contained in this bill has already had a deterrent 
effect on potential investors and oilfield suppliers in Iran and Libya.
  The bombings and slaughter of innocent civilians in Israel over the 
past several months demands an immediate and concrete plan to punish 
those states providing financing and other support to the perpetrators 
of these unspeakable crimes.

  While the convening of an antiterrorism summit in Egypt earlier this 
month was a laudable step in fighting the challenge of state-supported 
terrorism around the world, much more needs to be done in focusing the 
spotlight directly on states such as Libya and Iran. Adoption of this 
measure would be the first step in developing such a plan.
  It can be the cornerstone in the foundation of our policy of cutting 
off the key sources of funding to those regimes aiding and funding 
these acts of terrorism and actively developing weapons of mass 
destruction.
  In my view, the most effective way to advance the goals of the 
antiterrorism summit is to adopt a comprehensive policy designed to 
stop the flow of oilfield technology and investments to Iran and Libya. 
This bill accomplishes this objective by sanctioning any company 
providing goods or the capital to develop the oil resources of these 
rogue regimes.
  To our trading partners in Europe and Japan who have expressed 
reservations about our approach in this bill, I would only ask them to 
examine the actions and public statements coming from Teheran and 
Tripoli, including their continued support for terrorist activities 
throughout Europe, their advocacy of the destruction of Israel, their 
efforts to develop chemical and nuclear weapons of mass destruction, 
their characterization of the murder of Prime Minister Yitzakh Rabin as 
``divine revenge'', and their unwillingness to extradite those 
responsible for the murder of the passengers of the Pan Am 103 flight.
  I ask my colleagues on both sides of the aisle to send a strong 
message that future trade and investment in the petroleum sector in 
Iran and Libya will restrict a company's access to the United States 
economy. I ask you to join me in supporting this very important 
legislation which will be considered later this week by the 
International Relations Committee.

                          ____________________