A House of Representatives committee has unanimously approved a bill to expand U.S. sanctions against Iran and Libya.
The goal is to keep non-U.S. companies from helping to develop Iranian and Libyan oil and gas resources.
The U.S. Senate passed a similar bill last December. But the measure approved by the House international relations committee goes further, including firms that export refinery equipment to Iran or Libya. Both nations stand accused of supporting international terrorism.
Rep. Benjamin Gilman (R-N.Y.), committee chairman and principal sponsor of the bill, said, "By imposing sanctions on companies that help to develop the oil and gas industries in Iran and Libya, this bill can put a halt to their state sponsored terrorism and their efforts to develop weapons of mass destruction."
The Clinton administration supports sanctions but warned the House bill could offend U.S. allies and indirectly hurt U.S. businesses.
Barbara Larkin, assistant secretary of state, said the Libyan provisions might erode support for an existing United Nations ban on sales of refining equipment to Libya.
She said the House bill would require the U.S. to monitor all Iranian trade, "a tremendous administrative burden."
Larkin said, "We want the legislation to hurt Iran more than it hurts us. Shifting from an investment trigger to a trade trigger will be vigorously opposed by our allies and harm our cooperation with Europe."
House, Senate measures
The House and Senate bills give the administration an array of sanctions to use against firms helping Iran or Libya develop oil or gas resources. The House bill calls for two sanctions to be used against firms that invest $40 million/year or more, while the Senate bill requires only one to be used.
Larkin said the administration favors the Senate version because it is more flexible.
Both bills would deny offending companies U.S. Export-Import Bank loans and guarantees. They also would forbid U.S. bank loans of more than $10 million/year and prohibit a foreign financial institution from serving as a primary dealer in U.S. government bonds or as a repository for U.S. government funds.
An executive order currently bars U.S. companies from most business activity in the two countries.
