03 August 2001

Bush Signs Extension of Iran and Libya Sanctions Act

President Bush has signed legislation extending the Iran and Libya Sanctions Act (ILSA) for another five years.

In a statement issued by the White House press office on August 3, Bush said that he approves of provisions added to the ILSA legislation that call for frequent review of sanctions to assess their "effectiveness and continued suitability."

"I approve of this statutorily mandated requirement to periodically assess the effectiveness of sanctions and to recommend whether the Congress should terminate or modify the Act. The Act also continues the President's power to waive sanctions in the national interest," said Bush.

The Iran and Libya Sanctions Act was enacted in 1996. It sanctions foreign companies that provide new investments of over $40 million for the development of petroleum resources in Iran or Libya, or that violate existing UN prohibitions against trade with Libya in certain goods and services such as arms, certain oil equipment, and civil aviation services. The law allows the president to waive sanctions against a foreign company if doing so is deemed to be in the U.S. national interest. U.S. companies are prohibited by U.S. law from engaging in any commercial or financial transactions with Iran or Libya.

Bush said that he shares the concerns of the Congress with "the objectionable policies and behavior of Iran and Libya," and said his administration is strengthening its efforts with other member of the international community to solve "the problems of proliferation and terrorism addressed by ILSA."

The following is the text of the White House press release:

The White House
Office of the Press Secretary
For Immediate Release August 3, 2001
Statement By The President

Today, I have signed into law H.R. 1954, the "ILSA Extension Act of 2001." This Act provides for a 5-year extension of the Iran and Libya Sanctions Act (ILSA) with amendments that affect certain of the investment provisions.

I believe that we should review sanctions frequently to assess their effectiveness and continued suitability. A new provision in this bill mandates a report on the impact of certain actions taken pursuant to the Act. I approve of this statutorily mandated requirement to periodically assess the effectiveness of sanctions and to recommend whether the Congress should terminate or modify the Act. The Act also continues the President's power to waive sanctions in the national interest.

My Administration shares the Congress' deep concerns about the objectionable policies and behavior of Iran and Libya. We are addressing these concerns in a number of ways. In particular, we are strengthening our efforts with other countries, whose cooperation is essential to pursuing the most effective approaches to solving the problems of proliferation and terrorism addressed by ILSA.

Libya must address its obligations under UN Security Council Resolutions. These relate to the 1988 Lockerbie bombing and require Libya to accept responsibility for the actions of Libyan officials, disclose all it knows about the bombing, renounce terrorism, and pay appropriate compensation. Cooperative action by Libya on these four issues would make it possible for us to begin to move toward a more constructive relationship.

With respect to Iran, we continue to have serious concerns over its support for terrorism, opposition to the Middle East peace process, and pursuit of weapons of mass destruction. I hope that the Iranian people's recently expressed desire for a freer, more open, and more prosperous society will give our two countries an opportunity to identify areas where our interests converge, and where we can work together constructively for our mutual benefit.

George W. Bush

The White House, August 3, 2001.