DATE= 10/16/97
TYPE=CORRESPONDENT REPORT
NUMBER=2-221350
TITLE=U-S / IRAN / CUBA / SANCTIONS (L-O)
BYLINE=RON PEMSTEIN
DATELINE=STATE DEPT.
CONTENT=
VOICED AT:
// RE-RUNNING WITH MINOR CHANGE IN INTRO //
INTRO: THE UNITED STATES IS INVESTIGATING WHETHER A BOND
OFFERING FOR THE RUSSIAN FIRM "GAZPROM" VIOLATES AMERICAN
SANCTIONS AGAINST TRADE WITH IRAN. AND U-S OFFICIALS EXPECT TO
CONTINUE TALKS WITH EUROPEANS WHO ARE MIFFED OVER THE
HELMS-BURTON SANCTIONS INVOLVING CUBA. RON PEMSTEIN REPORTS FROM
THE STATE DEPARTMENT, AMERICAN SANCTIONS CONTINUE TO CAUSE
PROBLEMS FOR U-S FRIENDS AND ALLIES.
TEXT: STATE DEPARTMENT LAWYERS ARE EXAMINING WHETHER THE
"GOLDMAN SACHS" COMPANY MAY BE VIOLATING AMERICAN TRADE SANCTIONS
AGAINST IRAN BY SELLING ONE-BILLION DOLLARS' WORTH OF BONDS TO
HELP FINANCE THE RUSSIAN FIRM GAZPROM'S INVESTMENT IN IRANIAN
NATURAL GAS.
THE UNITED STATES HAS REACHED NO FINAL DECISION ABOUT WHETHER THE
INVESTMENTS BY FRENCH, RUSSIAN AND MALAYSIAN FIRMS IN IRAN
TRIGGER THE SANCTIONS. HOWEVER, STATE DEPARTMENT SPOKESMAN JAMES
FOLEY SAYS THE AMERICAN BOND FIRM MAY BE TAKING A RISK UNTIL A
DETERMINATION IS MADE.
///FOLEY ACT///
WE'RE LOOKING AT IT EXPEDITIOUSLY, THE OVERALL QUESTION,
AND WE'RE NOT INTENDING TO DELAY THE INVESTIGATION AND
THE SECRETARY'S (SECRETARY OF STATE MADELEINE
ALBRIGHT'S) ULTIMATE DETERMINATION. BUT BUSINESSES FACE
RISKS OF ALL KINDSW EVERY DAY IN MAKING THEIR DECISIONS
AND I COULDN'T JUDGE FOR YOU THE MAGNITUDE OF RISK THAT
WOULD BE INVOLVED FOR THIS COMPANY TO PROCEED ON THIS
ISSUE.
///END ACT///
EUROPEAN COUNTRIES REJECT THE IDEA THAT SANCTIONS IMPOSED BY THE
U-S CONGRESS SHOULD APPLY TO THEIR FIRMS AS WELL. HOWEVER, THE
SANCTIONS COULD AFFECT THE AMERICAN BOND FIRM -- WHERE U-S
TREASURY SECRETARY ROBERT RUBIN WORKED BEFORE HE JOINED PRESIDENT
CLINTON'S CABINET.
THE IRAN-LIBYA SANCTIONS ACT WAS MEANT TO PUNISH THOSE TWO
COUNTRIES AND TO PREVENT AMERICAN BUSINESSES FROM INVESTING
THERE. THE ACT ALSO HAS PROVISIONS DENYING FOREIGN FIRMS THE
AMERICAN MARKET IF THEY INVEST IN IRAN AND LIBYA.
THIS FEATURE OF MAKING AMERICAN SANCTIONS AFFECT FOREIGN
COUNTRIES IS ALSO PRESENT IN THE HELMS-BURTON ACT -- WHICH
PENALIZES FOREIGN FIRMS THAT INVEST IN CUBAN COMPANIES THAT USE
CONFISCATED AMERICAN PROPERTY. TALKS BETWEEN THE EUROPEAN UNION
AND THE UNITED STATES IN BRUSSELS FAILED TO MEET WEDNESDAY'S
DEADLINE FOR A COMPROMISE.
THE EUROPEAN UNION HAS THREATENED TO TAKE THE DISPUTE TO THE
WORLD TRADE ORGANIZATION IF THE UNITED STATES DOES NOT ELIMINATE
THE PENALTY AGAINST FOREIGN FIRMS. SPOKESMAN FOLEY SAYS THE
UNITED STATES IS STILL WILLING TO DISCUSS THE ISSUE WITH THE
EUROPEANS.
///FOLEY ACT///
WHILE SIGNIFICANT DIFFERENCES DO REMAIN, THEY HAVE BEEN
NARROWED IN THE COURSE OF THIS WEEK'S NEGOTIATIONS.
DURING THE COURSE OF THE DISCUSSIONS, THE U-S DELEGATION
SAW PROMISING AREAS FOR FUTURE WORK AND HAS RECOMMENDED
TO WASHINGTON THAT THE PROCESS CONTINUE TO BE PURSUED.
///END ACT///
THE UNITED STATES EXPECTS THE TALKS WITH THE EUROPEAN UNION TO
CONTINUE AT THE END OF THE MONTH IN PARIS (AROUND THE MARGINS OF
THE O-E-C-D MEETING).
THE CLINTON ADMINISTRATION IS CAUGHT BETWEEN THE EUROPEANS -- WHO
ARE REJECTING THE EXTRA-TERRITORIAL REACH OF THE AMERICAN
SANCTIONS LEGISLATION -- AND (U-S) SENATE FOREIGN RELATIONS
COMMITTEE CHAIRMAN JESSE HELMS, WHO WANTS PROOF THE STATE
DEPARTMENT IS VIGOROUSLY APPLYING THE SANCTIONS. (SIGNED)
NEB/RP/RRM
16-Oct-97 3:20 PM EDT (1920 UTC)
NNNN
Source: Voice of America
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