EU pressures US not to extend Iran and Libya Sanctions Act
Berlin, July 14, IRNA -- The European Union is increasing its pressure
on the US not to renew the controversial Iran and Libya Sanctions Act
(ILSA) which punishes American and European companies for investing in
the Iranian and Libyan economies, German media reported here Saturday.
"We are asking the American administration not to extend the law,"
an unidentified EU diplomat was quoted saying in the Belgian capital
Brussels. "We have always contested the extra-territorial elements of this
legislation," the diplomat added.
The law, approved by the US Congress in 1998, became the focal
point of trans-atlantic tensions following planned investments by
French oil conglomerate TOTAL and recent German announcements of oil
and gas investments in Libya.
Former US President Bill Clinton, in an effort to prevent any
further damages in trans-atlantic ties, agreed secretly with EU
leaders not to enforce the extra-territorial aspects of the law.
"We are hoping that President Bush will abide by the same promises
of flexibility," the diplomat said.
"If not, trans-atlantic relations will suffer," he added, pointing
out that EU Foreign Ministers would issue a warning to the Bush
government and might raise the problem with the World Trade
Organization.
US oil companies have recently intensified their lobbying efforts,
pressuring the White House not to extend ILSA next month.
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