[Weekly Compilation of Presidential Documents Volume 34, Number 26 (Monday, June 29, 1998)]
[Page 1198]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Returning Without Approval to the House of Representatives 
the ``Iran Missile Proliferation Sanctions Act of 1998''

June 23, 1998

    I have committed my administration to an unceasing effort to halt 
the transfer of missile technology to nations that conduct or condone 
terrorism and otherwise violate international norms. The stated purpose 
of H.R. 2709--the ``Iran Missile Proliferation Act of 1998''--is to 
further this effort. To the contrary, if enacted, it would damage the 
U.S. national interest, making it harder to achieve the goals it is 
intended to serve. Therefore, I am vetoing this bill.
    The battle against proliferation is most effective as a cooperative 
enterprise. It will be successful if other, like-minded governments join 
in enacting and enforcing the strictest possible export-control 
policies. As my veto message makes clear, this bill mandates the 
sweeping application of sanctions according to inflexible and 
indiscriminate criteria. It would require the imposition of sanctions 
based on an unworkably low standard of evidence. Sanctions could be 
wrongly triggered against individuals and businesses worldwide, 
including against companies that did not know the true end user of their 
products. The sanctions are also disproportionate. A minor violation 
would carry the same penalty as a major one. As a result, the bill would 
generate tensions and discourage cooperation with the very nations whose 
support we must enlist.
    From my conversations with Members of Congress, I sense a growing 
awareness that the vast machinery of U.S. sanctions law has not served 
our interests well and is in serious need of an overhaul. Adding yet 
another flawed sanctions bill is not the way to start, especially since 
this one is redundant. Existing law provides a sufficient basis for 
imposing sanctions when we need them.
    I am particularly concerned about the impact that the bill would 
have on our on-going effort to work with the Russian Government to stem 
the flow of technology from that country to Iran's missile program. This 
is a very real problem, to which this administration has accorded the 
highest priority over the past year and a half. As a result of my own 
work with President Yeltsin, reinforced by the efforts of the Vice 
President, the Secretary of State, and other officials, the Russian 
Government recently has adopted new legal and administrative measures to 
deal with this problem. While the hard work of implementation must 
continue, we have seen concrete progress, which we seek to encourage, 
not undercut.
    This bill will make it more difficult to continue our work with the 
Russian Government in this area. Moreover, the imposition of unilateral 
American sanctions could damage our interests in working with the 
Russian Government in other vital areas, such as arms control, law 
enforcement, counternarcotics and combating transnational crime. This 
bill would hinder, not help, our overall national interests.