DATE=3-13-01

TYPE=CORRESPONDENT REPORT

NUMBER=2-27367

TITLE=U-S - Iran (L only)

BYLINE=Deborah Tate

DATELINE=White House

CONTENT=

VOICED AT:

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INTRO: President Bush has renewed a ban on U-S trade and investment in Iran as his administration reviews overall policy toward that country. Correspondent Deborah Tate reports from the White House.

Text: In a letter to Congress, Mr. Bush says he is renewing the ban because of, in his words, Iran's support for international terrorism, its efforts to undermine Middle East peace, and its acquisition of weapons of mass destruction.

The sanctions - which were to expire Thursday - mainly affect U-S oil companies.

Last year former President Clinton lifted controls on several non-oil exports from Iran - including caviar, pistachio nuts and rugs - in an effort to encourage democratic reforms in Iran. The move came in the aftermath of Iranian parliamentary elections in which reformers overwhelmingly won.

Bush administration officials say an overall review of U-S policy toward Iran is pending. The review is not expected to be concluded until after the Iranian presidential election in June.

The United States and Iran severed ties after the 1979 Islamic Revolution.

U-S National Security Council spokeswoman Mary Ellen Countryman says Mr. Bush has not yet decided whether to support the renewal of the 1996 Iran-Libya Sanctions Act, which seeks to discourage other countries from investing in the oil sectors of both nations.

That law - which is due to expire August fifth - has not been enforced in the face of intense opposition from European countries. (signed)

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