News

DATE:08/06/96
TITLE:06-08-96  FACT SHEET: THE IRAN AND LIBYA SANCTIONS ACT OF 1996

TEXT: (Imposes new sanctions on foreign companies)  (710)

Washington -- A White House Fact Sheet says the Iran and Libya
Sanctions Act of 1996 imposes new sanctions on foreign companies that
engage in specified economic transactions with Iran or Libya.

The bill sanctions foreign companies that provide new investments over
$40 million for the development of petroleum resources in Iran or
Libya.

The bill also sanctions foreign companies that violate existing U.N.
prohibitions against trade with Libya in certain goods and services
such as arms, certain oil equipment, and civil aviation services.

Following is official text of Fact Sheet from the White House:

(begin text)

FACT SHEET:  THE IRAN AND LIBYA SANCTIONS ACT OF 1996

President Clinton has led the fight against terrorism and will
continue to take measures to further pressure and punish states that
support it.

Purpose: The Iran and Libya Sanctions Act of 1996 imposes new
sanctions on foreign companies that engage in specified economic
transactions with Iran or Libya. It is intended to:

-- Help deny Iran and Libya revenues that could be used to finance
international terrorism;

-- Limit the flow of resources necessary to obtain weapons of mass
destruction; and,

-- Put pressure on Libya to comply with U.N. resolutions that, among
other things, call for Libya to extradite for trial the accused
perpetrators of the Pan Am 103 bombing.

The Sanctions: The bill sanctions foreign companies that provide new
investments over $40 million for the development of petroleum
resources in Iran or Libya. The bill also sanctions foreign companies
that violate existing U.N. prohibitions against trade with Libya in
certain goods and services such as arms, certain oil equipment, and
civil aviation services. If a violation occurs, President Clinton is
to impose two out of seven possible sanctions against the violating
company. These sanctions include:

-- denial of Export-Import Bank assistance;

-- denial of export licenses for exports to the violating company;

-- prohibition on loans or credits from U.S. financial institutions of
over $10 million in any 12-month period;

-- prohibition on designation as a primary dealer for U.S. government
debt instruments;

-- prohibition on serving as an agent of the United States or as a
repository for U.S. government funds;

-- denial of U.S. government procurement opportunities (consistent
with WTO obligations); and

-- a ban on all or some imports of the violating company.

This Bill is Another Step in U.S. Efforts to Enforce Compliance:

-- prohibition on serving as an agent of the United States or as a
repository for U.S. government funds;

-- denial of U.S. government procurement opportunities (consistent
with WTO obligations); and

-- a ban on all or some imports of the violating company.

This Bill is Another Step in U.S. Efforts to Enforce Compliance from
Iran and Libya:

-- In 1984, Iran was placed on the list of states that support
international terrorism, triggering statutory sanctions that prohibit
weapons sales, oppose all loans to Iran from international financial
institutions, and prohibit all assistance to Iran.

-- In 1987, the U.S. further prohibited the importation of any goods
or services from Iran and U.S. naval and air forces struck Iranian
naval units on several occasions in response to Iranian efforts to
disrupt the flow of oil from the Persian Gulf with naval mines and
missile attacks.

-- In 1995, President Clinton imposed comprehensive sanctions on Iran,
prohibiting all commercial and financial transactions with Iran.

-- In January 1986, the United States imposed comprehensive sanctions
against Libya that froze Libyan assets, and banned all trade and
financial dealings with Libya. Two months later, U.S. Air Force and
Navy jets bombed Libyan targets in retaliation for Libyan terrorist
attacks on Americans in Europe.

-- In March 1992, the U.S. supported the imposition of sanction
against Libya which prohibited the export of petroleum, military or
aviation equipment to Libya; prohibited commercial flights to or from
Libya; limited Libyan diplomatic representation abroad; and restricted
Libyan financial activities.

-- In addition, the United States has worked with our allies to
further isolate Libya both internationally and within the Middle East
and to develop new methods to pressure Qadhafi to comply with the U.N.
Security Council Resolutions directed at Libya.

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