US Congress votes to tighten Iran sanctions

WASHINGTON - The US Congress has moved to extend and tighten sanctions on Iran and companies doing business with Iran after talks in Europe on a compromise over Tehran's nuclear programme failed to reach agreement.

The legislation, passed by voice vote in the House of Representatives and awaiting action by the Senate, is aimed at choking off funds that could aid Iran in developing a nuclear weapon and raising the pressure on the Islamic republic at a critical time.

Republican Ileana Ros-Lehtinen, a Florida Republican who pushed the bill, said it "provides US officials with the necessary tools to prevent Iran from acquiring the technical assistance, financial resources and political legitimacy to develop nuclear weapons and support terrorism."

But critics said the bill could make international diplomacy more difficult by targeting countries the United States needs as allies in its campaign to persuade Iran to curb its nuclear programme.

They also said sanctions imposed by one country are seldom effective. "We can pound our chests all we want hoping that Russia or China will follow our lead (but such actions by Congress) simply carry no weight," said Republican Rep. Jim Leach of Iowa.

The bill renews for five more years economic sanctions - known as the Iran-Libya Sanctions Act or ILSA and set to expire this weekend - to discourage companies from investing in Iran's energy sector.

It also establishes mandatory economic sanctions on companies that provide Iran any goods, services or technologies that can be used in programmes for nuclear, chemical or biological weapons.

The UN Security Council set an August 31 deadline for Iran to halt uranium enrichment. Iran, which ignored the deadline, says the enrichment programme is for electricity production. The United States and some other world powers say it is for nuclear weapons.

Senators supporting the bill were working to get a unanimous agreement to pass it in that chamber and send it to President Bush for signature before Congress adjourns this weekend.

The bill also authorizes assistance for human rights and pro-democracy groups and for independent broadcasting organisations that meet its criteria.

Backers of the House bill who faced resistance from the Bush administration and the Senate provided more room for Bush to waive the sanctions.

Passage was applauded by the American Israel Public Affairs Committee, the leading pro-Israel lobby, which said the bill is "an important step in further isolating the radical regime in Tehran."

European Union foreign policy chief Javier Solana said in Berlin he failed to reach a deal with chief Iranian nuclear negotiator Ali Larijani, but would hold more talks soon.

After Iran ignored the Aug. 31 deadline, the United States, Britain, France, Germany, Russia and China agreed to give Iran until early October to reach a deal.

State Department spokesman Sean McCormack told reporters Iran had not yet agreed to suspension.

"We continue to hope for a positive answer from the Iranians. ... Nobody wants to go down the path of sanctions. That is not our first choice. But we are prepared along with the (other major powers) to go down that path if that's the door the Iranians want to open," he said, adding that the first week of October deadline remains in place.

- REUTERS