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Bush extends Iran-Libya sanctions for 5 years
( 2001-08-04 12:46 ) (7 )

US President George W. Bush on Friday signed a five-year extension of sanctions against Libya and Iran designed to curb foreign investment in their oil and gas sectors.

In a statement, Bush said his administration shared Congress' concerns about the "objectionable policies and behavior" of Iran and Libya.

"We are addressing these concerns in a number of ways," he said. "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 (the Iran and Libya Sanctions Act)."

The US Senate and House of Representatives last week approved a five-year extension of the sanctions.

The legislation allows the president to continue to penalize through mid-2006 any foreign firm that invests@than $20 million in the energy sectors of either country.

The 1996 law, due to expire next month, was meant to punish the two nations for what Washington says is their support for international terrorism and the development of weapons of mass destruction. Both countries have dismissed the charges.

The House and the Senate passed slightly different versions of the legislation, and the one Bush signed was the version approved by the House. That lets the president report to Congress after two years on the success of the sanctions.

Bush said in the statement he wanted a more frequent review of sanctions, to better assess their effectiveness.

Supporters of the law say it has worked, discouraging foreign energy firms from investing in Iran and Libya. But critics said it had not prevented foreign companies, especially those in Europe, from doing business with the two countries.

The European Commission this week said it regretted Congress' decision to extend sanctions, warning it would retaliate if action was taken against European firms.

Iran and Libya are both on the US list of "state sponsors of terrorism".

CONDITIONS FOR BETTER RELATIONS

The United States wants Libya to take responsibility for the 1988 bombing of a Pan Am flight over Lockerbie, Scotland in which 270 people died.

"Libya must address its obligations under the UN Security Council Resolutions," Bush said. "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@constructive relationship," he said.

Regarding Iran, Bush said the administration has 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," he said.