DATE=7/7/98
TYPE=BACKGROUND REPORT
NUMBER=5-40878
TITLE=SENATE-SOUTH ASIA SANCTIONS
BYLINE=DAVID SWAN
DATELINE=CAPITOL HILL
CONTENT=
VOICED AT: 

INTRO: WHEN INDIA AND PAKISTAN TESTED NUCLEAR WEAPONS SEVERAL 
WEEKS AGO, PRESIDENT CLINTON IMPOSED TOUGH ECONOMIC SANCTIONS ON 
BOTH SIDES.  THE ADMINISTRATION AND MEMBERS OF CONGRESS ARE NOW 
RETHINKING THE SITUATION AND SUGGESTING THE SANCTIONS BE EASED.  
SENATE CORRESPONDENT DAVID SWAN HAS DETAILS.

TEXT: THE LAW GAVE THE PRESIDENT NO CHOICE BUT TO ACT AFTER INDIA
AND PAKISTAN EXPLODED THEIR DEVICES.  THE WHITE HOUSE SHUT OFF 
CREDITS, LOAN GUARANTEES, MILITARY AID, AND EXPORTS OF ANY 
TECHNOLOGY WITH MILITARY USES.  THE STATUTE ALSO CALLS ON THE U-S
GOVERNMENT TO OPPOSE NEW LOANS FOR BOTH STATES AT THE WORLD BANK 
AND INTERNATIONAL MONETARY FUND, AID THAT COULD BE WORTH HUNDREDS
OF MILLIONS OF DOLLARS.

BUT THE SANCTIONS FAILED THEIR MISSION OF DETERRING NUCLEAR TESTS
-- AND, CRITICS SAY, ARE MAKING IT DIFFICULT TO DEAL WITH THEIR 
AFTERMATH.  A GROWING NUMBER OF SENATORS HAVE NOW COME OUT IN 
FAVOR OF RELAXING OR MODIFYING THE PUNISHING MEASURES.

REPUBLICAN SAM BROWNBACK, WHO VISITED SOUTH ASIA LAST WEEK, SAYS 
THE HEAVIEST WEIGHT OF THE SANCTIONS IS FALLING ON PAKISTAN - 
WHICH HE CALLS "THE LEAST BAD ACTOR" IN THE CRISIS.

                      /// BROWNBACK ACT ///

         BUT THEY'RE UNILATERAL AND UNILATERAL SANCTIONS DON'T 
         WORK AGAINST LARGE ECONOMIES.  ITS NOT WORKING AGAINST 
         INDIA.  THEY DO HAVE AN IMPACT ON SMALL ECONOMIES.  THE 
         PAKISTANI ECONOMY IS MUCH SMALLER AND IS BEING 
         DEVASTATED.

                         /// END ACT ///

MR. BROWNBACK AND OTHERS SAY THE PRESIDENT NEEDS FLEXIBILITY TO 
RE-ENGAGE THE TWO RIVAL STATES DIPLOMATICALLY, AND HOPEFULLY STOP
THEIR ARMS RACE FROM ESCALATING FURTHER.  THE WHITE HOUSE IS ALSO
UNDER PRESSURE FROM BUSINESS ORGANIZATIONS AND FARMERS WHO WORRY 
ABOUT THE SANCTIONS' IMPACT ON TRADE.

A SPECIAL SENATE TASK FORCE IS EXPLORING SEVERAL OPTIONS FOR 
EASING SANCTIONS.  ONE IDEA, WHICH A NUMBER OF LAWMAKERS SUPPORT,
WOULD ALLOW MR. CLINTON TO WAIVE OR DEFER THE PENALTIES, AS THE 
CURRENT LAW DOES NOT.

DEMOCRATIC SENATOR JOHN GLENN, WHO WROTE THE ORIGINAL SANCTIONS 
BILL FOUR YEARS AGO, FAVORS A MORE RESTRICTIVE APPROACH, WHICH 
WOULD NOT GIVE THE PRESIDENT SO MUCH AUTHORITY.  IN A LENGTHY 
SPEECH ON THE SENATE FLOOR, MR. GLENN SAID THE LAW WAS WORKING - 
UNTIL A FEW MONTHS AGO.

                        /// GLENN ACT ///

         AND UNFORTUNATELY, THE HOPE ON WHICH THIS AMENDMENT WAS 
         BASED WENT DOWN THE DRAIN WHEN INDIA'S EXTREME HINDU 
         NATIONALIST PARTY OVERRODE WHAT MOST OF THE WORLD 
         THOUGHT SHOULD HAVE BEEN MORE RESPONSIBLE BEHAVIOR AND 
         SET OFF A NUCLEAR WEAPON.  AND PAKISTAN RESPONDED IN 
         KIND.

                         /// END ACT ///

THE SENATE TASK FORCE MAY ALSO RECOMMEND REMOVING ANY SANCTIONS 
ON FARM TRADE.  REPUBLICAN LEADERS EXPECT THE GROUP TO REPORT ITS
FINDINGS AS EARLY AS THIS WEEK.  IT IS NOT CLEAR WHEN, OR IF, THE
SENATE MAY REACH A CONSENSUS AND VOTE ON THE ISSUE. (SIGNED)

NEB/DS/WDC/PT

07-Jul-98 6:40 PM EDT (2240 UTC)
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Source: Voice of America
.