Thank you Mr. Chairman and Ranking Member Sarbanes for holding this hearing.

The Administration stated in the national security strategy that the United States "may face no greater challenge from a single country than Iran." While the United States has cause for concern with Iran on many fronts, including its support of Hezbollah and Hamas, and its influence in Iraq, Iran's nuclear program is a primary issue.

The economic sanctions of the Iran Libya Sanctions Act or "ILSA" were enacted in order to prevent Iran from acquiring weapons of mass destruction and from funding terrorist groups.

The intent of the law however, has never materialized and the true effectiveness of ILSA is not readily apparent today.

The economic sanctions, under ILSA, may have been a deterrent for some governments and enterprises. These sanctions have never been levied.

International Atomic Energy Agency inspections since 2003 have revealed almost two decades worth of undeclared nuclear activities in Iran, including uranium enrichment and plutonium separation efforts. January and February 2006 IAEA reports say documents found by inspectors show a possible "military nuclear dimension" to Iran's nuclear program, including plans for high explosives and warheads. Due to the secrecy of this program alone, one can only assume the potential for a cover of a nuclear weapons program. Economic sanctions, under ILSA, have not prevented this.

Iran supports terrorist activity. Iran can be connected to various terrorist activities and various groups worldwide. Recently, American soldiers intercepted a large shipment of high explosives, including shaped charges, which were smuggled into northeastern Iraq from Iran. Military officials say there's only one use for shaped charges - to kill American forces - and insurgents have been using them in Iraq with deadly effectiveness. Economic sanctions, under ILSA, have not prevented this.

While oil fetches over $60 and 70 per barrel, the renewal of unilateral sanctions under ILSA will leave Iran rich with oil money while other nations continue to purchase their oil.

The US must focus on an effective means at stopping the Iranian Arms program.

As you are aware, the US along with the United Kingdom, France, Germany, China and Russia, are in the midst of negotiations with Iran regarding this very subject. They have said to Iran, cooperate and we, this international cohort, will offer the following incentives. They have also said, if you do not cease and desist, then we will withhold those incentives and levy sanctions.

I understand the need to want to take action. However, I believe the best direction of the US is to work with the international community. In the middle of ongoing negotiations is not the time to act unilaterally. Ultimately, international negotiations may lead to sanctions, but they must be agreed openly by all nations in order to be effective. We must unite worldwide on a common front and realize the success of the negotiations relies on unwavering dialogue from an international cohort.

I hope that the Administration is seriously committed to engaging in multinational talks and working with the UN and IAEA. It is a more practical and durable solution.

Therefore, while I am open to the information provided in this hearing, I remain concerned about moving forward with ILSA at this time.

Thank you, Mr. Chairman.