Statement on Signing the ILSA Extension Act of 2001

Today, I have signed into law H.R. 1954, the "ILSA Extension Act of 2001." This Act provides for a 5-year extension of the Iran and Libya Sanctions Act (ILSA) with amendments that affect certain of the investment provisions.

I believe that we should review sanctions frequently to assess their effectiveness and continued suitability. A new provision in this bill mandates a report on the impact of certain actions taken pursuant to the Act. I approve of this statutorily mandated requirement to periodically assess the effectiveness of sanctions and to recommend whether the Congress should terminate or modify the Act. The Act also continues the President's power to waive sanctions in the national interest.

My Administration shares the Congress' deep concerns about the objectionable policies and behavior of Iran and Libya. We are addressing these concerns in a number of ways. In particular, we are strengthening our efforts with other countries, whose cooperation is essential to pursuing the most effective approaches to solving the problems of proliferation and terrorism addressed by ILSA.

Libya must address its obligations under U.N. Security Council Resolutions. These relate to the 1988 Lockerbie bombing and require Libya to accept responsibility for the actions of Libyan officials, disclose all it knows about the bombing, renounce terrorism, and pay appropriate compensation. Cooperative action by Libya on these four issues would make it possible for us to begin to move toward a more constructive relationship.

With respect to Iran, we continue to have serious concerns over its support for terrorism, opposition to the Middle East peace process, and pursuit of weapons of mass destruction. I hope that the Iranian people's recently expressed desire for a freer, more open, and more prosperous society will give our two countries an opportunity to identify areas where our interests converge, and where we can work together constructively for our mutual benefit.

GEORGE W. BUSH

The White House, August 3, 2001.