	Requirements of ï¿½ 102(b) of the Arms Export Control Act (AECA)

The text of ï¿½ 102(b)(1) of the Arms Export Control Act under discussion here providesas follows:
Except as provided in paragraphs (4), (5), and (6), in the event that the President determines that any country, after the effective date of partB of the Nuclear Proliferation Prevention Act of 1994 -- 
(B) is a non-nuclear-weapon-state and either -- 
(i) receives a nuclear explosive device, or
(ii) detonates a nuclear explosive device,
then the President shall forthwith report in writing his determination to the Congress and shall forthwith impose the sanctions describedin paragraph (2) against that country. (12)

	Details of ï¿½ 102(b) Sanctions Imposed on India and Pakistan

After conducting an inter-agency review to develop a comprehensive sanctions policywith respect to India and Pakistan, the Administration announced its original implementation scheme for the two countries June 18, 1998. Provisions of P.L. (19)
Government credits, credit guarantees, and other financial assistance: The Export-Import Bank (Eximbank) had issued notices terminating new business in India andPakistan prior to the Administration's June 18 announcement. (30) As notedearlier, the prohibition's exemption for agricultural commodities was legislatively expandedin July 1998 to include fertilizer. (35)

	1998 Sanctions Relief Legislation

Concern over the lack of an exemption for food and agricultural products in the ï¿½102(b)(2)(D) prohibition on government credits, guarantees, and financing led to the July 14,1998, enactment of the Agriculture Export Relief Act (AERA), P.L. (39)
The India-Pakistan Relief Act of 1998 (IPRA), enacted October 21, 1998, authorized the President to waive "for a period not to exceed one year upon enactment" all or part of theï¿½ 102(b) sanctions imposed on India or Pakistan related to FAA and governmental financialassistance, international financial assistance, and private bank loans, as well as all or part ofthe following: ï¿½ 620E(e) of the Foreign Assistance Act, prohibiting military assistance toPakistan based on its nuclear activities (Pressler Amendment); ï¿½ 2(b)(4) of the Export-ImportBank Act, generally restricting financing based on the detonation of a nuclear device; and ï¿½101 of the AECA, which prohibits certain FAA and AECA assistance to countries engagedin nuclear enrichment transfers. 2561 , the Department of Defense Appropriations Act, 2000. The new law, P.L. 106-79 , ï¿½ 9001, authorizes the President to waive, without time limitation, all of the sanctions contained in ï¿½ï¿½ 101 or 102 of the AECA, the nuclear-relatedrestriction in ï¿½ 2(b)(4) of the Export-Import Bank Act, and ï¿½ 620E(e) of the ForeignAssistance Act (Pressler Amendment), as these apply to India or Pakistan. The Presidentmay waive military and export control sanctions in ï¿½ 102(b)(2), however, only if he certifiesto Congress that a particular restriction would not be in U.S. national security interests. On October 27, the President waived the statutory restrictions covered by the new law as applicable to specific U.S. government programs and commercial transactions. Following the September 11 terrorist attacks on the World Trade Center and the Pentagon, the President, on September 22, waived ï¿½ 101(b)(2) sanctions and prohibitions onexports of defense items and sensitive technology and military financing with respect to bothIndia and Pakistan, having determined that continuation of the measures would not be in U.S.national security interests. (53) He also waived anyremaining sanctions in ï¿½ï¿½ 101 or 102 of theAECA, the Export-Import Bank Act, and the Pressler Amendment. 2889 (Lantos), introduced September 14, 2001, would permanently remove nuclear sanctions as they apply to India. The bill, as reported by the SenateAppropriations Committee, does not contain this additional language. The President would have been required to notify Congress before using this authority; thestatute could not have been construed to authorize the President to provide for nuclearcooperation with either country.
Section 102(b) of the Arms Export Control Act (AECA) requires the President to impose sanctions on any country that he has determined is a "non-nuclear-weapon state" andhas received or detonated a "nuclear explosive device." Sanctions include prohibitions onforeign assistance; munitions sales and licenses; foreign military financing; governmentcredits, guarantees, and financial assistance; U.S. support for multilateral financialassistance; private bank lending to the affected government; and exports of certain specificcontrolled goods and technology. Specific exceptions exist for humanitarian aid; food andagricultural exports; food assistance; private bank loans and credits for purchases of food andagricultural commodities; and certain transactions involving intelligence activities. Thestatute does not provide for terminating or suspending sanctions once imposed. ThePresident placed ï¿½ 102(b) sanctions on India and Pakistan in May 1998 following nucleartests by those countries earlier that month. The statute had never before been invoked andits full implementation give rise to various legal and policy issues. After an inter-agencyreview, the Administration announced its overall implementation plan for both countriesJune 18, 1998. Concerns over the lack of an exemption for agricultural goods in ï¿½102(b)(2)'s prohibition on government credits and guarantees led to enactment of theAgriculture Export Relief Act ( P.L. 105-194 ), which exempted Department of Agricultureprograms through FY99; it also permanently exempted government financing for medicineand medical goods and allowed private loans for fertilizer exports. In October 1998,Congress authorized the President to waive for one year certain ï¿½ 102(b)(2) prohibitionsapplicable to the two countries, as well as other related statutory restrictions (India-PakistanRelief Act, P.L. 105-277 ). The President exercised this authority December 1, 1998.
Congress has since authorized the President to waive indefinitely, as they apply to India and Pakistan, all sanctions imposed under ï¿½ï¿½ 101 or 102 of the AECA; a nuclear-relatedrestriction in the Export-Import Bank Act; and ï¿½ 620E(e) of the Foreign Assistance Act(FAA)(Pressler Amendment), which restricts military aid and exports to Pakistan (DODAppropriations Act, 2000, P.L. 106-79 , ï¿½ 9001). The President may waive military andexport control sanctions only if he certifies to Congress that applying a restriction would notbe in U.S. national security interests; any licenses for defense exports must be notified toCongress and are subject to congressional review. In October 1999, President Clintonwaived sanctions with regard to certain programs and commercial transactions specific toeach country. In August and early September 2001, both the Bush Administration andMembers of Congress began to call for removal of the sanctions, mainly as applicable toIndia; legislation to lift the measures has also been introduced. Following the September 11attacks on the World Trade Center and the Pentagon, the President waived for both India andPakistan prohibitions on exports of defense items and sensitive technology and militaryfinancing, citing U.S. national security interests; also waived were any remaining sanctionsin ï¿½ï¿½ 101 or 102 of the AECA, the Export-Import Bank Act, and the Pressler Amendment. Foreign assistance to Pakistan continues to be restricted because of an anti-coup provisionin appropriations legislation and other debt-related restrictions; also, three Pakistani entitiesare subject to two-year AECA missile proliferation sanctions. Legislation allowing removalof restrictions on Pakistan ( S. 1465 ) was reported by the Senate ForeignRelations Committee October 4. This report will be updated.