DATE:06/28/96 TITLE:28-06-96 U.S. ALLIES SAY YES TO ANTI-TERRORIST ACTIONS, NO TO BOYCOTTS TEXT: (Clinton takes tough stance) (470) By Jon Schaffer USIA Economics Correspondent Lyon, France -- Leaders of the major industrial nations say they are willing to follow President Clinton's lead in seeking strong actions to combat terrorists, but back off from supporting sanctions against specific countries known to support terrorist activities. Meeting at the annual Group of Seven (G-7) economic summit of industrial nations June 27-29, the leaders agreed to hold a ministerial meeting in July on terrorism and approved a 40-point action plan to combat crime and terror activities. But European, Canadian and Japanese officials were equally vocal in opposing U.S. legislation aimed at isolating "rogue" states such as Iran, Libya and Cuba. The legislation was one of three issues discussed during a June 28 luncheon of the leaders. The G-7 nations are the United States, France, Germany, Japan, United Kingdom, Italy and Canada. At issue are the Helms-Burton Act, which provides for sanctions against individuals trafficking in U.S. property confiscated by Cuba, and proposed legislation that would impose sanctions on companies that invest in the energy sectors in Iran and Libya. Europeans do not dispute that these countries have supported terrorism, officials here say. Rather, European opposition to sanctions stems from the belief that it is better to maintain open channels of communication that would support more moderate elements in these states. Officials from Europe and Canada specifically protested the "extra-territorial" dimensions of the Helms-Burton law, asserting that it is a set-back for free and open markets and works against U.S. and foreign interests. Already several countries are considering legislation that would counteract the effects of Helms-Burton on their companies. Asked whether the June 26 bombing in Saudi Arabia lends credibility to the controversial U.S. law, Canadian Prime Minister Jean Chretien responded: "That does not justify that type of legislation.... If we start on that game to solve some short-term political problems it will never end." Chretien said that he believes Clinton will listen to the views of his G-7 allies but "I don't expect him to back down, especially at this time." Dan Tarullo, assistant to the present for economic policy, told reporters following the June 28 luncheon that Clinton "pushed ... fairly hard on the issue of needing to confront terrorist states; to take action against countries that are threats to democracy and to the safety of our citizens." A day earlier, Sandy Vershbow, senior director for Europe at the National Security Council, said that Clinton told his counterparts that while he wants to minimize potential frictions, he believes that U.S. allies need to be more forceful in their approach to countries like Cuba. NNNN .
