After the bill passed a decade ago, European governments and companies vehemently objected, charging that it amounted to a brazen case of extra-territoriality, the term for one nation imposing its laws on foreign companies and sovereign nations. At the time, President Clinton, acting to avoid a confrontation with Europe and in part to send a conciliatory message to Iran when moderates seemed to be vying for power, waived the sanctions on several European companies, including Total, the leading French oil concern.

Recalling that precedent, Lantos said his bill would strip the president of the ability to waive sanctions on Iran on national security grounds. The Bush administration opposes that provision as a weakening of presidential prerogatives in foreign policy.

A spokesman for House Speaker Nancy Pelosi said that she supported Lantos’ bill. Lantos says he is confident he can persuade lawmakers to pass his bill with a big enough majority to override a presidential veto.

The existing sanctions law gives Washington the option to choose among several penalties, including denial of government credits to companies that deal with the foreign oil company, denial of export licenses and a ban on US government procurement or imports from these companies.

Administration officials say the reason no decisions have been made on whether to invoke or waive sanctions is that the energy exploration deals by Shell, Repsol, China, Malaysia and Pakistan are all still in an embryonic stage and that it is better to head them off by using persuasion than penalties.

... contd.