ELECTIONS '98
COMMENTARY
SPECIALS
INTERVIEWS
CAPITAL BUZZ
REDIFF POLL
DEAR REDIFF
THE STATES
YEH HAI INDIA!
ARCHIVES

What the US will sanction against

The sanctions imposed by the US and Japan on India has already had its effect on the Indian economy, with stocks dipping and the rupee dropping in value. This is what Section 826-a of the Nuclear Proliferation Prevention Act that deals with countries that detonate a nuclear device has to say:

"The United States government shall terminate assistance to that country under the Foreign Assistance Act of 1961, except for humanitarian assistance or food or other agricultural commodities.

"The United States government shall terminate --

"i. sales to that country under this act of any defence articles, defence services or design and construction services and

" ii. licenses for the export to that country of any item on the United States Munitions List.

"The United States government shall terminate all foreign military financing for that country under this act.

The United States government shall deny to that country any credit, credit guarantees or other financial assistance by any department, agency or instrumentality of the United States government, except that the sanction of this subparagraph shall not apply --

"i. to any transaction subject to the reporting requirements of Title V of the National Security Act of 1947 (relating to Congressional oversight of intelligence activities) or

"ii. to humanitarian assistance.

"The United States government shall oppose, in accordance with section 701 of the International Financial Institutions Act (22 USC 262d), the extension of any loan or financial or technical assistance to that country by any international financial institution.

"The United States government shall prohibit any United States bank from making any loan or providing any credit to the government of that country, except for loans or credits for the purpose of purchasing food or other agricultural commodities.

"The authorities of section 6 of the Export Administration Act of 1979 shall be used to prohibit exports to that country of specific goods and technology (other than food and agricultural commodities) except that such prohibition shall not apply to any transaction... subject to the reporting requirements of Title V of the National Security Act of 1947."

Tell us what you think of this report