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18 June 1998

FACT SHEET: INDIA AND PAKISTAN SANCTIONS

(Sanctions imposed as a result of nuclear tests) (550)
Washington -- The following is a fact sheet issued by the Department
of State June 18 outlining sanctions imposed by the United States on
India and Pakistan as a result of their nuclear tests in May:
(Begin text)
The United States imposed sanctions on India and Pakistan as result of
their nuclear tests in May.
In imposing these sanctions, we seek: to send a strong message to
would-be nuclear testers; to have maximum influence on Indian and
Pakistani behavior; to target the governments, rather than the people;
and to minimize the damage to other U.S. interests.
Our goals are that India and Pakistan: halt further nuclear testing;
sign the Comprehensive Test Ban Treaty (CTBT) immediately and without
conditions; not deploy or test missiles or nuclear weapons; cut-off
fissile material production for nuclear weapons; cooperate in fissile
material cut-off treaty (FMCT) negotiations in Geneva; maintain and
formalize restraints on sharing sensitive goods and technologies with
other countries; reduce bilateral tensions# including Kashmir.
Accordingly, the United States:
-- Terminated or suspended foreign assistance under the Foreign
Assistance Act, with exceptions provided by law (e.g. humanitarian
assistance, food, or other agricultural commodities.
-- $21 million in economic development assistance and housing
guarantee authority for India terminated.
-- $6 million Greenhouse Gas program in India suspended.
-- Trade Development Agency will not consider new projects.
-- Most assistance to Pakistan had already been prohibited.
-- Terminated Foreign Military Sales under the Arms Export Control Act
and revoked licenses for the commercial sale of any item on the U.S.
Munitions List.
-- Suspended delivery of previously approved defense articles and
services to India.
-- Halted any new commitments of USG credits and credit guarantees by
USG entities (EXIM, OPIC, CCC).
-- The Administration will support legislation to permit CCC credits
for food and agricultural commodities.
-- OPIC had only recently reopened in Pakistan; however, India was one
of OPIC's top five countries receiving and average of $300 million
annually in OPIC support.
-- EXIM had only recently reopened in Pakistan with one expression of
interest pending for $1.1 million; $500 million in pending financing
in India will riot go forward.
-- Gained G-8 support to postpone consideration of non-basic human
needs (BHN) loans for India and Pakistan by the International
Financial Institutions (IFI) to bolster the effect of the Glenn
Amendment requirement that the U.S. oppose non-BHN IFI loans.
-- $1.17 billion in IFI lending postponed for India.
-- although no IFI loans for Pakistan have been presented for board
consideration, $25 million in IMF assistance has been postponed for
failure to meet economic benchmarks.
-- Will issue Executive Orders to prohibit U.S. banks from extending
loans or credits to the governments of India and Pakistan.
-- Will deny export of all dual use items controlled for nuclear or
missile reasons. Will presume denial for all other dual use exports to
entities involved in nuclear or missile programs.
-- Will toughen existing controls for government military entities.
-- Will continue denial of nuclear exports licensed by NRC or
authorized by DOE.
-- Will continue to favorably consider on a case-by-case basis other
transactions which do not support nuclear, missile, or inappropriate
military activities.
(End text)