May 12, 2004

WASHINGTON - US President George W. Bush on Tuesday banned all American exports to Syria except for food and medicine, ordering sanctions after long-standing complaints that the Middle East nation was supporting terrorism and undermining US efforts in Iraq. fect will be a bit, but not on the

The actions of the Syrian government -- including pursuing weapons of mass destruction and occupying Lebanon -- represent an 'extraordinary threat to the national security, foreign policy and economy of the United States', Mr Bush said in signing an executive order imposing sanctions.

The measures include a ban on flights to and from the US, authorisation to the Treasury Department to freeze assets of Syrian nationals and entities involved in terrorism, weapons of mass destruction, occupation of Lebanon or terror in Iraq; and restrictions on banking relations between US banks and the Syrian national bank.

Exemptions would be made to allow sale of spare aircraft parts so that Syrian commercial planes are not endangered. Communications equipment also was to be exempted to allow Syrians access to outside information.

The measures follow complaints by the US that Syria was supporting militant groups such as Hamas and Hizbollah, permitting them to plot attacks on Israel from Damascus, and failing to stop guerillas from crossing the border into Iraq.

US exports to Syria last year totaled US$214 million, while Syrian exports to the US amounted to $259 million, much of it fuel oil and other petroleum products.

Syrian exports to the US are not banned by the President's order, but State Department officials said American oil companies would be hard-pressed to keep operating in Syria because they would not be able to import equipment from their American factories.

Diplomatic relations with Syria were not severed. One reason, State Department officials said, was to keep the door open to any prospect of Damascus participating in Middle East peacemaking.

Trade with Syria already was limited by sanctions imposed because the country is one of six branded a supporter of terror by the State Department. Mr Bush's order will cut even deeper.

'President Bush did everything within his power to send a message through diplomatic channels that Syria should not support groups such as Hamas and Hizbollah, but it has continued to do so,' said US Representative Ileana Ros-Lehtinen, chairman of the House International Relations Middle East subcommittee.

The US is sending 'a loud and clear message to the leaders of Syria that we will no longer turn a blind eye to their transgressions', said Representative Eliot Engel, who co-authored the legislation with Ms Ros-Lehtinen. 'The ball is now in Damascus' court.' -- AP

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