A bill to prevent United States involvement in hostilities in the Persian Gulf.

(Reported to Senate from the Committee on Foreign Relations with amendment, S. Rept. 100-102)

Declares that the Congress: (1) reaffirms U.S. neutrality in the war between Iran and Iraq; (2) supports the use of U.S. naval forces to protect the right of American vessels under international law to free passage through the international waters of the Persian Gulf; and (3) supports U.S. participation in collective efforts by the Western allies and other neutral nations to protect such neutral rights.

Urges the President to: (1) take steps through the United Nations Security Council to obtain a cease-fire in the Iran-Iraq War; and (2) seek a U.N. Security Council arms embargo and economic sanctions against any combatant which fails to cooperate in the establishment of a negotiated cease-fire.

States that the United States should use its influence with the People's Republic of China (including leverage provided by the sale of advanced fighters aircraft avionics equipment) to stop Chinese arms sales to Iran.

Prohibits, for one year, the use of any appropriated or other funds to enter into or implement any agreement with any country bordering on the Persian Gulf under which any vessel owned by a country or by a national of such a country is registered under the United States flag.