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October 26, 1999

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Clinton authorised to waive sanctions

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C K Arora in Washington

President Bill Clinton last night signed the 268 billion dollar defence spending bill which also gives him the authority to waive sanctions against India and Pakistan that his administration had imposed in protest against their May 1998 nuclear tests.

It allows economic assistance (though this is limited to support to non-governmental organisations and establishment of democratic institutions and humanitarian assistance), military training, peacekeeping-operations assistance, credit, credit guarantees or other financial assistance.

The president can also restore loans and financial or technical assistance by international financial institutions. US banks may give loans or provide credit to the governments of India and Pakistan.

The bill provides the president with a national security waiver for sales of defence articles, defence services, foreign military financing and dual-use technologies that are not primarily used for missile development or nuclear weapons programmes.

It also calls for a review of the entities list, stating that only those be retained which make direct and material contributions to weapons of mass destruction and missile programmes.

UNI

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