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The Administration opposes House passage of H.R. 748.  The bill would deny the 
Executive branch the discretion to determine, on a case-by-case basis, the most 
appropriate and effective sanctions to impose against governments that support 
terrorism.
 
H.R. 748 would seriously infringe on the President's ability to conduct foreign 
policy.  It would seriously impede the Executive branch's ability to use 
sanctions to respond quickly and flexibly to unforeseeable developments and 
international events.  The loss of flexibility to tailor sanctions to unique 
circumstances and situations would undermine the usefulness of sanctions as a 
U.S. foreign policy tool needed to defend U.S. national security and economic 
interests.  No list can adequately address the circumstances that could arise 
in U.S. relations with terrorist regimes.  
 
Current sanctions programs reflect foreign policies crafted over extended 
periods in response to unique developments in each target country.  H.R. 748 
would make it impossible for the Administration to respond to changing foreign 
policy conditions.  The bill would interfere with the United States' ability to 
implement mandatory United Nations Security Council Resolutions that impose 
sanctions.  The ramifications of this bill have not been adequately considered, 
particularly with respect to its impact on other provisions of law, on binding 
international obligations, and on the overall interests of the United States.  
For example, H.R. 748 would eliminate mandated exceptions to sanctions as 
contained in existing laws, including the Cuban Democracy Act, the Cuban 
Liberty and Democratic Solidarity Act, the Trading with the Enemy Act, and the 
International Emergency Economic Powers Act.  These Acts authorize or exempt, 
when appropriate, various financial transactions from sanctions.  In addition, 
H.R. 748 could undermine the Administration's ability to serve as an effective 
intermediary in the Middle East peace process, and would hinder efforts to gain 
Syria's cooperation on specific terrorism-related problems.  
 
The Administration currently has sufficient statutory authority to administer 
an effective sanctions program against terrorist countries.  Comprehensive 
embargoes are already being applied to Cuba, Iran, Iraq, North Korea, and 
Libya, and further measures against Sudan pursuant to existing statutory 
authorities are being considered at this time.
 
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