[Weekly Compilation of Presidential Documents Volume 32, Number 32 (Monday, August 12, 1996)]
[Pages 1403-1404]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
 Remarks on Signing the Iran and Libya Sanctions Act of 1996 and an 
Exchange With Reporters

 August 5, 1996

     The President. Good morning, ladies and gentlemen. It's good to be 
joined today by Senator D'Amato and Congressmen Cardin, Gejdenson, 
Gilman, King, and Matsui; family members of the victims of Pan Am Flight 
103; and two brave Americans who suffered the nightmare of being taken 
hostage in the Middle East.
     We come together around the common commitment to strengthen our 
fight against terrorism. Terrorism has many faces, to be sure, but Iran 
and Libya are two of the most dangerous supporters of terrorism in the 
world. The Iran and Libya sanctions bill I sign today will help to deny 
those countries the money they need to finance international terrorism. 
It will limit the flow of resources necessary to obtain weapons of mass 
destruction. It will heighten pressure on Libya to extradite the 
suspects in the bombing of Pan Am Flight 103.
     From the skies over Lockerbie to Khobar Towers, from the World 
Trade Center to Centennial Park, America has felt the pain of terrorism 
abroad and at home. From the Tokyo subway to the streets of Tel Aviv, we 
know that no nation is immune. We have not yet solved all these 
tragedies; we will not rest until we do so. But one thing is clear: To 
succeed in this battle we need to wage it together, as one America 
leading the community of civilized nations.
     Our Nation is fighting terrorism on three fronts: first, abroad, 
through closer cooperation with our allies; second, at home, by giving 
our law enforcement officials the most powerful counterterrorism tools 
available; and, third, by improving security in our airports and on our 
airplanes. Last week in Paris, with America's leadership, the G-7 
nations and Russia agreed on a sweeping set of measures to prevent 
terrorists from acting and to catch them when they do. We have seen that 
when we pool our strength we can obtain results. We will continue to 
press our allies to join with us in increasing the pressure on Iran and 
Libya to stop their support of terrorists. We already have acted 
ourselves, through our own sanctions, and with this legislation we are 
asking our allies to join with us more effectively.
    With this legislation we strike hard where it counts, against those 
who target innocent lives and our very way of life. It shows we are 
fully prepared to act to restrict the funds to Iran and Libya that fuel 
terrorist attacks. America will not rest, and I resolve to hunt down, 
prosecute, and punish terrorists and to put pressure on states that 
support them.

[[Page 1404]]

The survivors of terrorism, the families of its victims who surround me, 
and all the American people deserve nothing less.

[At this point, the President signed the legislation.]

    The President.  Thank you all very much.

Extraterritorial Impact of Sanctions

    Q. Mr. President, France says the Europeans will retaliate if this 
measure is implemented.
    The President.  Well, of course that's their decision to make. But 
every advanced country is going to have to make up its mind whether it 
can do business with people by day who turn around and fuel attacks on 
their innocent civilians by night. That's a decision that every 
country's going to have to make.
    I will say this, I am encouraged that we are doing more with our 
allies than before to fight terrorism and that there is broader 
agreement than there has been before on specific measures. But in 
extreme cases where we disagree and where it is obvious that basically 
turning away from the implications of state support of terrorism has not 
worked, the United States has to act. And I can only hope that some day 
soon, all countries will come to realize that you simply can't do 
business with people by day who are killing your people by night.

Robert Dole's Tax Cut Proposal

    Q. Mr. President, what do you think of Senator Dole's apparent plan 
to cut taxes 15 percent, 50 percent on capital gains, and so forth. Will 
it hurt you?
    The President. Well, the most important thing is: Will it hurt the 
American people? And I favor targeted tax cuts for education that are 
paid for. I am unalterably opposed to going back to the mistake we made 
before in having big tax cuts that are not paid for. It will balloon the 
deficit, raise interest rates, and weaken the economy. That's the only 
thing that matters: What impact will it have on the American people?
    Thank you very much. Thank you.

 Note: The President spoke at 9:42 a.m. in the Oval Office at the White 
House. H.R. 3107, approved August 5, was assigned Public Law No. 104-
172.