DRAFT STATE TESTIMONY ON S. 2766 ("BERMAN BILL"): RELAYING CIA COMMENTS TO OMB

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89T00234R000300340004-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 23, 2016
• Document Release Date: November 14, 2013
• Sequence Number: 4
• Publication Date: September 30, 1988
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-IDP89T00234R000300340004-4
mior
STAT
STAT
STAT
30 September 1988
OCA 3284-88
MEMORANDUM FOR THE RECORD
SUBJECT: Draft State Testimony on S. 2766 ("Berman Bill"):
Relaying CIA Comments to OMB
1. On 29 September, 1988, I spoke with Sue Mau,
Legislative Analyst, Office of Management and Budget (OMB).
2. I advised her that the Agency had no objection to the
draft testimony by the Department of State on S. 2766, the
"Anti-terrorism and Arms Export Amendments Act of 1988" which
OMB had circulated for comment. S. 2766 is the Senate
companion to the so-called "Berman bill" which, prior to House
passage, had been modified to address the Agency's concerns.
3. Prior to cal
testimony with
Counterterrorism Center
lin Ms. Thau, I had discussed the
Office of General Counsel,
CTC)L,w.he?kad ngmobjection to
OUVLEG
Office of Congressional Affairs
30 set), 88
Distribution:
Orig - OCA Records ?
' 1 - D/OCA
1 - DDL/OCA
1 - PS Chrono
1 - OCA/LEG Subj. File (nmam-imia)
1 - OCA Records
OCARead
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14
: CIA-RDP89T00234R000300340004-4
?
OCA 3230-88
STAT
OFFICE OF CONGRESSIONAL AFFAIRS
Routing Slip
ACTION
INFO
1. D/OCA
X
2. DD/Legislation
XX
RR
3. DD/Senate Affairs
X
4. Ch/Senate Affairs
5. DD/House Affairs
X
6. Ch/House Affairs
7. Admin Officer
8. FOIA Officer
Constituent Inquiries
9- Officer
10.
11.
12.
SUSPENSE
29SEPT88
Action Officer:
Date
Remarks:
PICK UP AT 011B 28SEPT88 BY
SPECIAL COURIER !IFINES-CAFTERNOONI
EJ 28SEPT88
Name/Date
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14
: CIA-RDP89T00234R000300340004-4
Am.
Declassified in Part - Sanitized Copy Aprigjciivil7far_17_tgst?n?01141r/.4.14t:LI JA-RI:r89T00234R000300340004-4
lifFICE OF MANAGEMENT AND BUDGET
TO:
WASHINGTON. D.C. 20503
September 27, 1988
URGENT
LEGISLATIVE REFERRAL MEMORANDUM OCA 3230-88
Legislative Liaison Officer -
Department of the Treasury (Carro 566-8523) 28
Department of Commerce (Levitt 377-3151) - 04
Department of Justice (Perkins 633-2113) 17
United States Trade Representative (Parker 3432) 23
Department of Defense (Brick 697-1305) 06
Arms Control and Disarmament Agency
(Staples 647-8478) 34
(Central Intelligence Agency
National Security Council
SUBJECT: State draft testimony on S. 2766, "Anti-terrorism and.
Arms Export Amendments Act of 1988."
The Office of Management and Budget requests the views of your -
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
A response to this request for your views is needed no later than
12:00 NOON, SEPTEMBER 29, 1988.
Questions should be referred to Annette Rooney/Sue Thau
(395-7300).
Enclosures
cc: J. Eisenhour
J. McClelland
A. Donahue
K. Scheid
RONALD K. PETERSON FOR
Assistant Director for
Legislative Reference
URGENT
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
Iii
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
,
411???
TESTIMONY ON S. 2766
THE ANTI-TERRORISM AND ARMS EXPORT AMENDMENTS ACT OF 1988
BY
L. PAUL BREMER III
AMBASSADOR AT LARGE FOR COUNTER-TERRORISM
BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE
Sagimaibez=213=zialaji--
Sef 3-61, / set?
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
Ik
. Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
?
Mr. Chairman:
Thank you for the opportunity to comment on S. 2776, the
Anti-Terrorism and Arms Export Amendments Act of 1968.
As you realize, a large portion of the bill has more to
do with arms export issues than terrorism. / can testify
only on the terrorism-related provisions of the bill.
Because of the short notice for this hearing, Mr. Allan
Holmes, the Assistant Secretary of State for Political and
Military Affairs and the Department's lead witness at the
March hearing in the House Foreign Affairs Committee, could
not reschedule a previous commitment. There will not be
formal testimony from his bureau. However Mr. Robert Mantel
of the Bureau of Political and Military Affairs is with me
today to help answer any questions you may have on the arms
export control portions of the bill.
The legislation before you includes considerable
revisions from the original version of the House bill. The
Executive Branch had many problems with the original version
of the bill. Subsequently, the State Department and other
Departments worked extensively with members of the House
Foreign Affairs Committee and their staffs to improve the
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
?
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
- 2 -
bill. It was a good cooperative effort and the version of H.R.
3651 passed by the 'Nouse on May 24 and introduced in the Senate
as S. 2766 is in effect a compromise bill. From the-viewpoint
?
of the counter-terrorism provisions of the bill, and I
understand other portions as well, most of the administration's
initial concerns have been met.
Naturally, as in the case of such efforts, there are some
things we may have preferred to have handled differently. The
Administration does not object to passage of the bill as
approved by the House. The Administration notes that, as the
Committee on Foreign Affairs report to accompany the bill makei
clear, the bill is not intended to impair the constitutional
authority of the President to conduct foreign relations.
Let me turn to the anti-terrorism portions of S. 2766. The
legislation reflects a basic premise which we share and indeed
use in our fight against international terrorism. That concept
is: economic sanctions are an important tool in our fight
against terrorism and countries which support international
terrorism should not be able to engage in these criminal
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
?
I-
?
/II
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
-3 -
activities and enjoy business as usual with the civilized
world.
?
As I noted in previous testimony to this Cvmmittee nearly a
year ago, in the Administration's view, state-supported
terrorists are substantially more dangerous than those
operating independently. States which support terrorists
provide these international criminals with important assets,
such as money, weapons, training, documents, logistic support, .
intelligence information, safe houses and -- as this bill notes
-- sanctuary.
For example:
The terrorists who attacked the Greek ferry boat City of
Paz= this year belonged to the Abu Nidal Organization and at
least one of them used a Libyan passport. Passports the
Libyans confiscated from Tunisian guest workers were used by
the Abu Nidal terrorists in the December 1985 Christmas season
attack at Vienna airport. A Syrian government service passport
was used by the terrorist Neter Hindawi who was convicted in A
British court in November 1986 for trying to blow up an El Al
passenger plane at Heathrow airport earlier that year.
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
An.
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
- 4
State supported terrorists also have an easier time
obtaining weapons dnd transporting them. /n the City of POIOS
attack, some of the weapons were traced to supplies triginally
sold to Libya. in the Hindawi case in London, his bomb was
brought into the United Kingdom aboard the Syrian official
airline.
Terrorists who enjoy safe houses and sanctuary can more
easily hi4after operations and plan new ones without the
psychological pressures of fearing immediate arrest and
punishment.
Thus it is particularly important that we keep pressure on
countries which support terrorism so that they have to pay a
price for their actions unless they change their behavior.
Libya remains a particular problem. Now that Qadhafi is
conducting a so-called "charm offensive," some countries appear
tempted to relax some of the diplomatic and economic pressures
imposed by western countries two years ago. As a result of the
strong actions taken by the U.S. and Western European countries
in April 1986, Libyan-backed terrorism had dropped sharply in
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
5
1986 and 1987. But earlier this year, Libyan-backed terrorists
such as the Abu Nidal Organization and the Japanese Red Army
became more active. For example, Abu Nidal terrorists struck
at a British club in the Sudan, killing six persons, staged the
City_gf Poros attack in Greece in which nine persons died, and
a Japanese Red Army terrorist bombed a USO club in Naples,
killing an American servicewoman. Terrorists groups with ties
to Libya also planted bombs at U.S. facilities in three Latin
American countries this April.
More recently, evidence has become available that Libya is
developing a chemical warfare capability. This development is
of particular concern in the counter-terrorism community
because Oadhafi has a track record of providing powerful
weapons to terrorist groups. And the use of chemical weapons
in the Iran-/rag war may tempt terrorists to believe they could
use the chemicals in terrorist attacks.
Thus it is important to keep up the pressure against
countries like Libya and to take care that exports to them do
not enhance their ability to support terrorism and military
operations.
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
-6
It is not an easy effort. Our friends oversees are sometime
reluctant to coopteate. But as shown in the steps taken by the
European Economic Community against Libya and Syria In 1986 and
the condemnation of North Korea for blowing up the South Korean
airliner, a united international front can be effective. I can
assure you that this is a major focus of our counter-terrorism
diplomacy.
I would like to make a few brief comments on the bill
before you.
In an important change from existing law, the bill
establishes a common standard for invoking certain sanctions
against countries which support international terrorism. The
bill incorporates the basic standard of the 1979 Export
Administration Act, (EAA) section 6 (j), which establishes an
export control mechanism for the sale of items with potential
military or terrorist use to countries which the Secretary of
State determines "repeatedly provided support for acts of
international terrorism."
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-TR-DP89T00234R000300340004-4
Nor
? - 7 -
The pending bill would add the language "taking into
account such factor's as Whether that government grants
sanctuary from prosecution or apprehension to an indeVidual or
group which has committed an act of international terrorism.-
Of course there are other factors we take into account in
making a determination, such as the provision of weapons,
financial support, gatehouses, logistic help, documents, or
intelligence information. Still, we welcome the bill's focus :
on sanctuary from prosecution because this is a standard which
had been used for anti-terrorism sanctions in a number of
amendments passed since the mid-1970's More important, in
recent years we have placed great stress on using the rule of
law against terrorists, to prosecute and punish them in
courts. And this element of our counterterrorist policy is
showing successes, as more terrorists are being brought to
trial and sentenced stiff prison terms. To cite some examples:
?????16
Early last year a French court sentenced a Lebanese
terrorist to life imprisonment for his part in the murders
of an American military attache and an Israeli diplomat.
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
?
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-IDP89T00234R000300340004-4
Nor
ala i??
??? ????
- 8 -
A Spanish court in 1987 passed a 47 year sentence on a
Palestinian tlifrorist for his attempt to blow up an El Al
airliner -- and in 1986 a British court handed down a 45
1?11.
year sentence for another terrorist in a similar case at
London Airport.
An Austrian court sent two Abu Nidal terrorists to prison
for life for their role in the 1985 assault on the Vienna
airport;
A West German court is currently trying Mohammed Hamadei, a
Lebanese terrorist implicated in the 1985 TWA hijacking,
which resulted in the murder of an innocent American seaman.
And in Greece, authorities arrested a notorious Palestinian
terrorist named Muhammad Rashid at our request in May. We
have asked for Rashid's extradition, because he is believed
to have masterminded the 1982 bombing of a Pan Am
airliner. The hearing on his extradition is set for
October 4. Our government hopes Greece will confirm its
desire to help combat terrorism by agreeing to Rashid's
speedy extradition.
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
. Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RbP89T00234R000300340004-4
4IF mir
By singling out sanctuary from prosecution as factor in
designating a couhtty as a supporter of terrorism, the Congress
and Executive Branch of the United States are united tin saying
that terrorists should be brought to trial, that they should
not be granted sanctuary from prosecution.
Other highlights of the bill:
-- Recession: The bill does provide more flexibility in
removing a country from the designation on the so-called
terrorism list. Currently the President would have to certify
that the country has not supported acts of international
terrorism during the previous six months and has given
assurances that it will not support future acts. The pending
bill would allow for a waiver of the six month period if there
is a significant change in the government. This could help us
provide restore normal relations quickly if there is a new
government which does not support terrorism.
--Threshold: Under current law, Congress would have to be
notified 30 days in advance before export licenses are issued
for the sale of goods or services valued at more than $1
?
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
. Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIATRDP89T00234R000300340004-4
mow
- 10 -
million which would make a significant contribution to that
country's military*potential or ability to support acts of
international terrorism. The pending bill removes tibe $1
million threshold, and requires a validated licenses for all
goods or technology regardless of the dollar value.
Criminal and civil penalties: The bill would impose
criminal penalties of up to $1 million and civil penalties of
up to $500,000 for those who violate the law.
As I understand it Mr. Chairman, if a country is designated
under the Export Administration Act's section 6 (j) as one
which has repeatedly supported acts of international terrorism,
the pending bill would then automatically trigger sanctions in
three major areas: arms transfers under the Arms Export Control
Act, the sale of dual use items, such as planes or trucks which
could be used for military purposes under the Export
Administration Act, and various forms of assistance under the
Foreign Assistance Act.
You are undoubtedly aware that there other laws already f,n
the books which automatically trigger additional sanctions
?
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
_
. Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-ITDP89T00234R000300340004-4
against countries which are designated under the EAA's Section
? 0
6 (j). They were passed piecemeal as amendments to a variety
of bills after the 1979 Export Administration Act. they
include provisions mandating the U.S. to vote against loans in
the international financial institutions such as the world
bank, an IRS prohibition against foreign tax credits, and a
prohibition on Defense Department and NASA procurement from
companies or subcontractors controlled by countries on the
Section 6 (j) list.
I mention these only to point out that if this bill is
passed, there will be a number of sanctions automatically
invoked against countries supporting terrorism. As I testified
last year on another legislative proposal, there are only so
many arrows in our quiver and the Committee should be extremely
cautious in the future about adding to the list of automatic
sanctions and thus inadvertently restricting the President's
flexibility to tailor the most effective package to deal with
each country. I do not want to belabor this point as we have
no objection to this pending bill, S2766, but did want to
remind the committee for the record of our position.
DOC SCTPACON159
Declassified in Part - Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
_ ----M?
: Declassified in Part -
ILLEGIB
TO:
Ash.
Sanitized Copy Approved for Release 2013/11/14: CIA-RDP89T00234R000300340004-4
111-1C
ZFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 27, 1988
URGENT
LEGISLATIVE REFERRAL MEMORANDUM
Legislative Liaison Officer -
Department of the Treasury (Carro 566-8523)
Department of Commerce (Levitt 377-3151) -
Department of Justice (Perkins 633-2113)
United States Trade Representative (Parker
Department of Defense (Brick 697-1305)
Arms Control and Disarmament Agency
(Staples 647-8478)