SPEAKERS CONTENTS INSERTS
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2005
HOLDING THE CURRENT REGIME IN IRAN
ACCOUNTABLE FOR ITS THREATENING BEHAVIOR AND SUPPORTING A TRANSITION TO
DEMOCRACY IN IRAN
MARKUP
BEFORE THE
SUBCOMMITTEE ON THE MIDDLE EAST
AND CENTRAL ASIA
OF THE
COMMITTEE ON
INTERNATIONAL RELATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINTH CONGRESS
FIRST SESSION
ON
H.R. 282
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APRIL 13, 2005
Serial No. 109–51
Printed for the use of the Committee on International Relations
Available via the World Wide Web: http://www.house.gov/international—relations
COMMITTEE ON INTERNATIONAL RELATIONS
HENRY J. HYDE, Illinois, Chairman
JAMES A. LEACH, Iowa
CHRISTOPHER H. SMITH, New Jersey,
Vice Chairman
DAN BURTON, Indiana
ELTON GALLEGLY, California
ILEANA ROS-LEHTINEN, Florida
DANA ROHRABACHER, California
EDWARD R. ROYCE, California
PETER T. KING, New York
STEVE CHABOT, Ohio
THOMAS G. TANCREDO, Colorado
RON PAUL, Texas
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DARRELL ISSA, California
JEFF FLAKE, Arizona
JO ANN DAVIS, Virginia
MARK GREEN, Wisconsin
JERRY WELLER, Illinois
MIKE PENCE, Indiana
THADDEUS G. McCOTTER, Michigan
KATHERINE HARRIS, Florida
JOE WILSON, South Carolina
JOHN BOOZMAN, Arkansas
J. GRESHAM BARRETT, South Carolina
CONNIE MACK, Florida
JEFF FORTENBERRY, Nebraska
MICHAEL McCAUL, Texas
TED POE, Texas
TOM LANTOS, California
HOWARD L. BERMAN, California
GARY L. ACKERMAN, New York
ENI F.H. FALEOMAVAEGA, American Samoa
DONALD M. PAYNE, New Jersey
ROBERT MENENDEZ, New Jersey
SHERROD BROWN, Ohio
BRAD SHERMAN, California
ROBERT WEXLER, Florida
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ELIOT L. ENGEL, New York
WILLIAM D. DELAHUNT, Massachusetts
GREGORY W. MEEKS, New York
BARBARA LEE, California
JOSEPH CROWLEY, New York
EARL BLUMENAUER, Oregon
SHELLEY BERKLEY, Nevada
GRACE F. NAPOLITANO, California
ADAM B. SCHIFF, California
DIANE E. WATSON, California
ADAM SMITH, Washington
BETTY McCOLLUM, Minnesota
BEN CHANDLER, Kentucky
DENNIS A. CARDOZA, California
THOMAS E. MOONEY, SR., Staff Director/General Counsel
ROBERT R. KING, Democratic Staff Director
Subcommittee on the Middle East and Central Asia
ILEANA ROS-LEHTINEN, Florida, Chair
STEVE CHABOT, Ohio, Vice Chair
THADDEUS G. McCOTTER, Michigan
JOHN BOOZMAN, Arkansas
CONNIE MACK, Florida
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JEFF FORTENBERRY, Nebraska
JO ANN DAVIS, Virginia
MIKE PENCE, Indiana
KATHERINE HARRIS, Florida
DARRELL ISSA, California
GARY L. ACKERMAN, New York
HOWARD L. BERMAN, California
ELIOT L. ENGEL, New York
JOSEPH CROWLEY, New York
SHELLEY BERKLEY, Nevada
ADAM B. SCHIFF, California
BEN CHANDLER, Kentucky
DENNIS A. CARDOZA, California
YLEEM POBLETE, Subcommittee Staff Director
MATT ZWEIG, Professional Staff Member
DAVID ADAMS, Democratic Professional Staff Member
C O N T E N T S
MARKUP OF
H.R. 282, To hold the current regime in Iran accountable for its threatening behavior and to support a transition to democracy in Iran
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Amendment to H.R. 282 offered by the Honorable Ileana Ros-Lehtinen, a Representative in Congress from the State of Florida, and Chair, Subcommittee on the Middle East and Central Asia
HOLDING THE CURRENT REGIME IN IRAN
ACCOUNTABLE FOR ITS THREATENING
BEHAVIOR AND SUPPORTING A
TRANSITION TO DEMOCRACY IN IRAN
WEDNESDAY, APRIL 13, 2005
House of Representatives,
Subcommittee on the Middle East
and Central Asia,
Committee on International Relations,
Washington, DC.
The Subcommittee met, pursuant to call, at 12:03 p.m. in room 2255, Rayburn House Office Building, Hon. Ileana Ros-Lehtinen (Chair of the Subcommittee) presiding.
Ms. ROS-LEHTINEN. This meeting will now come to order. Thank you so much, all of the Members, for being so great about coming.
Pursuant to notice, I call up the bill, H.R. 282, a bill to hold the current regime in Iran accountable for its threatening behavior and to support a transition to democracy in Iran for purposes of markup and move its recommendation to the Full Committee. Without objection, the bill will be considered as read and open for amendments at any point.
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[The bill, H.R. 282, follows:]
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Ms. ROS-LEHTINEN. I am going to make some opening statements and recognize our Members for opening statements as well. I am going to talk fast and make it quick because folks have a busy schedule.
Iran is the full ticket. It has medium- and long-range missile programs. It is believed to have chemical and biological weapons programs. It is pursuing nuclear capabilities. It remains the most active state sponsor of terrorism in the world.
At a recent hearing of this Subcommittee entitled ''Iran: A Quarter Century of State-Sponsored Terror,'' we heard from victims of Iranian terror. Witnesses included Americans held hostage by the Iranians in 1979 and families of the victims of the 1983 Iran-sponsored terrorist attack against our Marine barracks in Beirut.
Major Steven Kirtley, a former hostage in Iran, highlighted that inaction appears to only embolden the Iranian regime to further its actions and efforts.
Ms. Lynn Smith Derbyshire, sister of Marine Captain Vince Smith, the highest ranking officer killed in the Beirut attack, stated that in order to deter more crimes of terrorism there must be serious consequences. We have not held them accountable for their crimes, she said, so they continue to build bombs, and they continue to murder and maim our loved ones.
So, to address the Iranian threat, particularly its pursuit of more deadly weapons and its support of international terrorism, as well as to help further the efforts of dissidents and pro-democracy advocates in Iran, Mr. Ackerman and I introduced H.R. 282.
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We were joined in this endeavor by our distinguished colleagues, including Mr. Lantos, our Full Committee Ranking Member; Mr. Chabot, our Subcommittee Vice Chair; Mr. Cantor, the Deputy Chief Majority Whip; and our distinguished colleague on the Subcommittee, Mr. Berman.
Mr. Ackerman and I are pleased to announce that our bill, H.R. 282, enjoys the support of over 140 bipartisan co-sponsors, including a significant majority of Members of our International Relations Committee and virtually all of our Subcommittee membership.
As you know, H.R. 282 codifies existing U.S. sanctions on the Iranian regime and with respect to Iran strengthens the Iran-Libya Sanctions Act, closes loopholes, expands definitions, tightens the enforcement provisions of the original bill.
We will be offering a series of amendments en block. Those amendments that Mr. Ackerman and I have been working on include the input and recommendations from the lead co-sponsors of the bill.
The amendments build on the introduced bill by requiring an immediate determination on any pending investigations of ILSA violations. They close the loophole on foreign subsidiaries of U.S. companies to ensure that the sanctions of all United States dealings with the Iranian regime apply to foreign subsidiaries.
It expresses the sense of Congress that all U.S Government pension funds and other similar funds should divest from existing investment in companies subject to ILSA sanctions and should not enter into any future investment in such entities.
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The amendments require managers of these public and private pension plans and mutual funds to notify investors that the funds are invested in entities that are subject to ILSA sanctions because of their activities in Iran's energy sector, and the amendments call for a series of public reports documenting all companies subject to ILSA sanctions since the enactment of the original ILSA in 1996.
Lastly, it calls for a series of diplomatic efforts to curtail Iranian terrorism and proliferation activities, including a U.N. Security Council resolution requiring unrestricted access for inspectors from the International Atomic Energy Agency to Iran's nuclear-related facilities, and if Iran does not comply, it calls for the U.S. permanent representative to the U.N. to seek support for a resolution calling for sanctions against the Iranian regime.
The amendments also build on existing prohibitions in the Foreign Assistance Act regarding state sponsors of terrorism. They call for the withholding of U.S. assistance to countries that are directly, or through their commercial entities, helping Iran by investing in its energy sector. These investments run contrary to U.S. national security interests, provide the Iranian regime with much needed currency to support international terrorism, and develop its missile and unconventional weapons program.
The en block amendment therefore defines investment in Iran's energy sector as assistance to the Iranian regime and holds U.S. foreign aid recipients accountable for such efforts. Further, minor technical and conforming changes are included in the en block amendment.
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I would like to recognize Mr. Ackerman for his opening statement. Mr. Ackerman?
Mr. ACKERMAN. Thank you very much, Madam Chair, for scheduling today's markup and for the extraordinary bipartisan way in which you reach across the aisle to conduct the business of our Committee.
As I said at the Subcommittee's Iran hearing last February, it seems to me that Iran has long been a problem in search of a policy. The bill before us today speaks to the frustration that many of us have in our efforts to stop Iran's nuclear program and its support of international terrorism, not to mention the oppression of its own people, have been largely unsuccessful.
Since 1996, the Iran-Libya Sanctions Act has been law, although no one has ever been sanctioned under it. Instead, we have a grand bargain with our European and Japanese friends. If they will pretend to take our concerns about Iran seriously, we will pretend to enforce our laws. In the meantime, Iran inches ever closer to acquiring a nuclear weapon.
The Iran Freedom Support Act makes a number of changes designed to put more teeth to ILSA. First, it codifies our current sanctions regime against Iran. Second, it requires more detailed reporting from the President regarding our efforts to establish a multilateral sanctions regime against Iran.
Third, it raises the standard that the President must meet before he can waive sanctions. Fourth, it sets out a timeframe within which the Secretary of the Treasury must investigate suspected investment in Iran. And lastly, the bill provides assistance to groups that support democracy in Iran.
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All of these are worthwhile changes and, with luck, will force the President to actually make a determination the next time there is a suspected investment in Iran's petroleum sector.
I would like to draw our colleagues' attention to a particular provision that the Chair has highlighted, and that will be the managers' amendment offered by the Chair. The language regarding pension plans and mutual funds requires the managers of such funds to notify investors if any of the assets of a particular fund are invested in an entity which has invested in Iran and may be subject to the sanctions under ILSA. The President would be required to list in the Federal Register those entities that may be subject to ILSA sanctions.
The provision does not require immediate divestment of those assets, but it does encourage fund managers to divest and further urges that no future investments be made in entities that invest in Iran's petroleum sector.
I think this is a reasonable provision that makes clear Congress' concern that Americans, simply by contributing to their 401[k]s, may be unwittingly fueling Iran's drive to acquire nuclear weapons.
I want to again thank the Chair for the opportunity to work closely across the aisle and the way she has approached work on this amendment and the bill in general. And I urge all of our colleagues to support the amendment to be offered by the Chair, as well as the bill.
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Thank you, Madam Chair.
Ms. ROS-LEHTINEN. Thank you. I know that so many Members have pressing items on their schedule, so I would encourage you to put your statements in the record, but I would not want to put a gag order on you.
Mr. Engel?
Mr. ENGEL. Thank you, Madam Chair. I will be very, very brief. I want to commend you and Mr. Ackerman for introducing this legislation. Just the way you and I have introduced legislation with regard to Syria, Iran is certainly another major threat in the region.
If you look at Hezbollah in Lebanon, southern Lebanon, fighting a proxy war against Israel for the Syrian regime, that group, that terrorist organization, is funded by Iran. So Iran and Syria are arm-in-arm in terms of supporting terrorism in the Middle East, in support of destabilizing the Middle East, and if our European allies do not develop a backbone, we in the Congress will start the backbone and hopefully we will have it here strongly in the United States and it will spread throughout the world.
So I want to just commend you and Mr. Ackerman for this legislation.
Ms. ROS-LEHTINEN. Thank you so much.
Mr. ENGEL. I strongly support it.
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Ms. ROS-LEHTINEN. Thank you, Mr. Engel.
Mr. Issa?
Mr. ISSA. Thank you, Madam Chair. I also want to commend you and the Ranking Member for putting forth this legislation. I support it.
I have just recently spent the entire March recess break in the Middle East, and I can see the effects of democracy as they are fledgling, but beginning to come out. And it is this kind of effort and consistent pressure that will do so.
Last, but not least, although I see and have been in Libya to see signs that there may be changes going on there, I would ask that we all think and remember on the record the statement of Ronald Reagan: ''You trust, but verify.''
Thank you, Madam Chair.
Ms. ROS-LEHTINEN. Amen. Thank you.
Mr. Berman?
Mr. BERMAN. I will speak loudly. I want to congratulate you for putting together this bill, Madam Chair. I am happy to be a co-sponsor of it.
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In the original ILSA we passed, we created this dynamic to essentially try and move to an extra-territorial level our sanctions. We have had sanctions on Iran for a very long time. This is not a debate about these sanctions, unilateral sanctions. ILSA is an effort to try and get other countries and entities in other countries to understand there is a price to pay for investing in Iran's energy sector.
Originally, when it passed, it had some positive effects. It killed some investments. There were some waivers, but at least the waivers were subject to discussion and controversy and the Administration has to think a lot about issuing a waiver simply [inaudible].
But then what happened is it started to happen in the previous Administration—this Administration has continued it—is they just do not go out and make any determinations, so, in effect, the Government never finds that these investments are made in the Iranian energy sector. And therefore, not having found them, there is no decision about imposing sanctions or providing a waiver.
What you have done here with this bill is create a mechanism which forces the issue. It requires you to go make a determination when you have information you believe such investments in the energy sector are being made while the waiver authority continues, and then probably the Administration should have that flexibility, at least they have to confront the issue and get a——
Ms. ROS-LEHTINEN. And give an explanation.
Mr. BERMAN [continuing]. Sense of how serious people really are.
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So, again, this is not unilateral sanctions. I know it is controversial because it is an effort to get subsidiaries of U.S. companies and other countries and entities in other countries who want to do business with the United States, and a lot of them, lucrative as investment in Iran may be, losing their chance to do business with U.S. companies may be a higher price to pay. This will have a deterrent effect.
Then the only other issue I want to talk about is, it is well worth pursuing the negotiations track with the Ambassadors for the three European countries that have a verifiable [inaudible] the Iranian adverse development enrichment, uranium enrichment cycle, and then to that nuclear program.
The sanctions approach will be the next step. So I think this has a complementary effect on the efforts of the Administration to try to make the Europeans to try to [inaudible].
Ms. ROS-LEHTINEN. Thank you, Howard. I agree. And it gives us the leverage that we need to get cooperation from our allies to make sure that we can put an end to Iranian terrorism and proliferation.
If there are no other statements, we would like to move on to our markup. Thank you so much.
We have a series of amendments at the desk which all of the Members have before them. I ask unanimous consent that they be considered en block and be considered as read. The clerk will designate the amendment.
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Mr. RICKMAN. Amendments offered by Ms. Ros-Lehtinen to H.R. 282.
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Ms. ROS-LEHTINEN. Thank you. I have addressed the content, as well as Mr. Ackerman has, of the en block amendments in our opening remarks. The en block amendments include comments and recommendations the Subcommittee staff received from the Subcommittee Members.
Are there any amendments to the amendment en block?
Mr. BERMAN. I have one.
Ms. ROS-LEHTINEN. Yes, Mr. Berman? Yes.
Mr. BERMAN. Am I able to take the last word?
Ms. ROS-LEHTINEN. Yes, sir.
Mr. BERMAN. I have one question for staff. In this bill, we codified existing regulations and export controls. We give them the force of statute.
Does that include controls that are generic and apply to a whole variety of countries including Iran, or is it just Iran specifically? I just wanted [inaudible].
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Ms. POBLETE. If I may?
Ms. ROS-LEHTINEN. Yes, Ms. Poblete.
Ms. POBLETE. The codification with respect to the proliferation, which is [1][a] of the bill, codifies only those sanctions in effect with respect to Iran proliferation activities.
Section [1][b], which refers to the Export Administration Act, the state sponsors of terrorism list, again, it is only those export controls that are in effect with respect to Iran, or that should be in effect with respect to Iran, because of its terrorism designation and its proliferation designation.
Ms. ROS-LEHTINEN. Thank you, Ms. Poblete. I could not have said it better.
The question occurs on the en block amendments. All in favor say aye.
[Chorus of ayes.]
Ms. ROS-LEHTINEN. All opposed, nay.
[No response.]
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Ms. ROS-LEHTINEN. The ayes have it.
Are there any other amendments?
[No response.]
Ms. ROS-LEHTINEN. Having heard of no amendments, the question occurs on the motion to report the bill, H.R. 282, favorably as amended. All in favor say aye.
[Chorus of ayes.]
Ms. ROS-LEHTINEN. All opposed, no.
[No response.]
Ms. ROS-LEHTINEN. The motion is approved, and the bill is reported favorably.
Without objection, this bill will be reported favorably to the Full Committee in the form of a single amendment in the nature of a substitute incorporating the amendments adopted here today.
Without objection, the staff is directed to make any technical and conforming amendments.
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Thank you. What a great Subcommittee. Thank you.
Mr. CROWLEY. We will also have an opportunity to offer ours off the record?
Ms. ROS-LEHTINEN. Absolutely. And if I did not say it clearly, I meant to. So the Members are encouraged to submit statements for the record.
Mr. Ackerman, we want you to feel better.
Mr. ACKERMAN. Thank you.
Ms. ROS-LEHTINEN. Okay. Thank you. Thank you, ladies and gentlemen. Thank you, Subcommittee Members. You guys are great.
[Whereupon, at 12:20 p.m. the Subcommittee was adjourned.]