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QUESTION: Do you have anything on the large number of foreign product companies who are being sanctioned based on nonproliferation activities?
MR. ERELI: Pursuant to the Iran Nonproliferation Act of 2000, the United States imposed penalties on 13 companies that engaged in providing prohibited items to Iran. Those companies include five Chinese, two Macedonian, two Russian and one of -- one from Belarus, one from North Korea, one from Taiwan, and one from the United Arab Emirates.
The penalties were imposed pursuant to the Act because there was credible information indicating that these companies had transferred to Iran, since January 1st, 1999, either equipment and technology on the export -- multilateral export control lists or items such as those on the list but falling below control list parameters or other items with the potential of making a material contribution to proscribed programs.
I would note that the penalties apply only to the specific entities, not to their respective governments or countries.
I would also just note that last year we imposed penalties on four entities and that since the passage of the Act there are 23, a total of 23 entities, which are currently subject to sanctions.
QUESTION: So you're sanctioning the companies even if they fall below the control list parameters?
MR. ERELI: When it is determined that such items have the potential of making a material contribution to WMD or cruise or ballistic missile systems.
QUESTION: Adam, do you have any words for -- apparently, the IAEA has found bomb-grade uranium in and around some of the nuclear plants in Iran this morning. They announced it.
MR. ERELI: I have seen that report. You know, obviously, it's of concern. It's not the first time we've seen these kinds of reports. What it underscores is really the need for Iran to come clean, to cooperate with the IAEA, to fulfill the terms of the IAEA Board of Governors resolutions, to open up its facilities to the IAEA inspectors who are there, to fully declare all its activities and to stop its enrichment activity.
This is something that they pledged to do. There continue to be new discoveries, which calls into question, I think, the comprehensiveness and credibility of those declarations.
Yes.
QUESTION: Back on the sanctions. While the governments themselves aren't necessarily affected by them, can you confirm that the U.S. has spoken with, at least, governments in Russia and China, urging them to put more controls, to have more surveillance of these companies, before you decided to put sanctions?
MR. ERELI: Sure. The issue of these companies and their activity is something that we have been regularly engaged with the governments involved on. And I would note that, you know, in many cases, the governments have, you know, taken action.
There is always, I think, more that we can all do, in terms of enforcement of regulations and making the regulatory environment more strict and implementing export control, existing export control mechanisms. But it is, to put it simply, an important subject of ongoing discussion with the host countries, and it's something that we really engage on very, very consistently.
QUESTION: Would you say that you've spoken to all of these governments except, perhaps, North Korea, about these companies?
MR. ERELI: I really wouldn't want to give you a sweeping statement like that. I think what's safe to say is that, I mean, we've certainly talked to the Chinese and the Russians. I'm not sure how much detail we've gone in with the other governments. If you'd like, I can try and get you an answer to that question.
QUESTION: I do. It's interesting.
QUESTION: There are reports from Moscow that two Russian companies have been -- have had their sanctions lifted.
MR. ERELI: Actually, there were -- there were six Russian entities that have had their nonproliferation penalties removed. That was done on March 23rd. The penalties were removed because we had determined that there was no evidence that the entities were continuing the activity for which they were originally sanctioned.
The removal of the penalties was announced in the Federal Register and took effect on April 1st. In fact, I'm surprised our Federal Register watcher didn't bring it to our attention.
QUESTION: Yeah.
QUESTION: Is that also Iran-related?
MR. ERELI: Yes.
QUESTION: Adam, one question.
QUESTION: Can you generalize about the kind of economic ties that these companies had with the U.S., which might be affected? Is it -- I don't know whether you can generalize or not, since there are so many of them.
MR. ERELI: I mean, I can tell you what -- I can tell you what the penalties are.
QUESTION: All right.
MR. ERELI: But I don't have the kind of details of, you know, on each company what their other commercial activity is related to the United States that would be affected by these penalties.
QUESTION: Maybe that's a blessing.
MR. ERELI: But let me -- the penalties are: no department or agency of the U.S. Government may procure or enter into any contract for the procurement of any goods, services or technology from these entities; no department or agency of the U.S. Government may provide any assistance to these entities, and these entities shall not be eligible to participate in any assistance program of the U.S. Government; U.S. Government sales of an item on the U.S. munitions list to any of these entities are prohibited, and new licenses are to be denied and existing licenses suspended for transfers to these entities of items controlled under the Export Administration Act of 1979 or Export Administration Regulations.
QUESTION: Is there a time limit, or did you say?
MR. ERELI: No, these sanctions are -- have to be renewed every year. Actually, I take that back. I'm not sure. I know that -- I'll have to check and see what's the duration of the sanctions, whether they have to be renewed every year, or whether they stay in effect until they're explicitly removed. And I'll check and get back to you on that.
Mr. Ota.
QUESTION: Same issue. So I've never heard the Iranian developing a cruise missile. Can you specify more? I mean, what kind of a cruise missile, launching --
MR. ERELI: The law specifies -- I'm not saying that Iran is developing a cruise missile, but the law specifies that if a company is found to be exporting to Iran or providing Iran with equipment and technology that has the potential to contribute to a cruise missile system, that's according to law, then that entity is sanctionable.
Obviously, I think, Iran has an active missile program, but I'm not saying that these entities were involved in providing equipment for that program. It's just what the law says.
QUESTION: Also -- sorry. In the case of the North Korean company, this is the, a state-run company. It's possible to give the name of the company?
MR. ERELI: The North Korean company is the Changgwang Sinyong Corporation. And I would note that it had been previously sanctioned under the Act in January and June of 2001 and June of 2003.
Teri.
QUESTION: One more on Rwanda. Is the U.S. planning to send any representative to the ceremonies next week?
MR. ERELI: I believe that our Ambassador-at-Large for War Crimes Pierre Prosper will be in Rwanda for the ceremonies. I believe he left today or is leaving today.
QUESTION: Thanks.
QUESTION: (Inaudible.)
MR. ERELI: I don't have the exact date.
Yes, ma'am.
QUESTION: On the five Chinese and the one Taiwan companies, you mentioned the North Korea one was previously sanctioned. How about both the Chinese and the Taiwan one? Can you tell us on that?
MR. ERELI: The companies that had been previously sanctioned include one Chinese company, Chinese North Industries Corporation, NORINCO, as well as -- they had been sanctioned in 2003. The China Precision Machinery Import/Export Corporation had been sanctioned in -- also in 2002 and 2003. And the Zibo Equipment Plant, also a Chinese entity, had been sanctioned in 2002 and 2003.
QUESTION: How about the Taiwan one?
MR. ERELI: The Taiwan Corporation is Goodly Industrial Company, Ltd. That is a new designation.
QUESTION: Thank you.
MR. ERELI: Yes.
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