Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, May 1, 1995 TAG: 9505020066
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
``I am convinced that instituting a trade embargo with Iran is the most effective way our nation can help to curb that nation's drive to acquire devastating weapons and support terrorist activities,'' Clinton said.
The action, which White House officials concede could cost thousands of American jobs and cause a slight short-term increase in fuel prices, deprives U.S. companies and their U.S.-based subsidiaries of the lucrative Iranian oil market. It also will eliminate U.S. exports of agricultural and industrial goods, which totaled $326 million in 1994.
Clinton's plan was outlined in a speech to the World Jewish Congress, an audience sensitive to Middle East terrorism. Aides said Clinton will sign an executive order later this week, acting under the Emergency Powers Act.
They said Clinton will declare Iran's nuclear ambitions and support of terrorism a threat on the United States and Middle East peace. And he will seek to use the action as leverage in efforts to convince Russia to cancel a sale of nuclear technology to Iran.
Defending his order, Clinton said, ``It would be wrong to do nothing more as Iran continues its pursuit of nuclear weapons. It would be wrong to stand pat in the face of ... Tehran's support of terrorism that would trip the dawn of peace.
``Even as prospects for peace in the Middle East have grown, Iran has broadened its role as inspiration and paymaster to terrorists.''
He also singled out Iraq and Libya as nations that ``hunger for nuclear and other weapons of mass destruction. Our policy toward these rogue states is simple: They must be contained.''
As part of a gradual heightening of Iranian sanctions, Clinton in March killed a $1 billion oil contract between Conoco and Iran that would have produced Conoco-developed oil fields in the Persian Gulf. Under current restrictions, no Iranian oil is sold in the United States but American companies and their subsidiaries can buy Iranian oil and sell it on the world market.
Clinton said his latest order would close that $3.5 billion loophole, as well as prohibit trade and U.S. investment with Iran - closing off Iran to U.S. private-sector business.
Administration officials said the U.S. companies affected most by the order probably would be Exxon and Texaco, along with Dresser Industries and the Coastal Corp., both Texas-based exploration companies.
Edgar M. Bronfman, honored Sunday by the World Jewish Congress, is a board member at DuPont, which owns Conoco. His family pressed Conoco to scuttle the Iranian deal.
Clinton unveiled the plan hours after attending a ceremony for 6,000 Holocaust survivors where he reminded Americans that hatred still lurks and urged them to ``stand against new forms of organized evil,'' as witnessed in the Oklahoma City bombing.
by CNB