A number of countries at tacked Washington s decision to impose sanctions on non-US companies that trade with Iran and Libya, saying the more will do no good to the settlement ef the problem', report agen cies.

The Iran and Libya Sanctions Act of 1996 which President Bill Clinton signed Monday aims to choke off oil and gas investments in the two countries.

Companies investing at least 40 million dollars in one year in the oil or gas industries of these countries automatically would be subject to sanction.

Britain. Canada. France. Germany. Italy. Japan. Norway. Pakistan, Russia and Swi-tzerland have all protested the

European governments argue that the law violates international trade agreements and have vowed to retaliate the measure.

But the US has reiterated its call to European countries to join in the drive to "isolate Tehran and Tripoli, saying such action would make them eligible for a sanctions waiver.

Pakistan called as unfortunate the new US law to punish foreign firms that invest in • Iran and Libya and asked for a

dialogue to settle differences with these countries.

A foreign ministry spokesman. asked to comment on th< law said Pakistan's relations with Iran and Libya would remain unchanged and that he did not anticipate any Pakistani firm would be affected.

"There is need for a dialogue here. We regard the (US) decision as unfortunate." he said.

China : "The US act on intensifying sanction against Iran and Libya is not consistent with ... international relations and will do no good to the settlement of the problem." a foreign ministry spokesman said.

"Nobody should frequently resort to sanctions or pressures to resolve such problems." the spokesman said, calling for a resolution "on the basis of mutual respect through dialogue and consultations held on an equal footing."

Russian Foreign Ministry harshly criticized US President Bill Clinton for ordering sanctions against companies.

The bill "contradicts international law and is unacceptable." ministry spokesman Vladimir Andreyev said at a news briefing.

Whafs more, it "will not fa-

cilltate stabilization in the Middle East and will not help in the fight against terrorism." the Interfax news agency quoted Andreyev as saying.

Canada expressed its opposition to the new US sanctions designed to punish foreign companies.

In-a joint statement. Foreign Minister Lloyd Axworthy and International Commerce Minister Art Eggleton said Canada would meet with the European Union and other allies to "determine how best to address the extraterritorial impact of the act."

Axworthy said the act, • signed into law by President Bill Clinton, who accuses the two countries of engaging in terrorism, as "an inappropriate application of such legislation."

Australia will do "all it can to resist" US efforts to penalise non-American firms which have invested in Iran or Libya. Trade Minister and Deputy Prime Minister Tim Fisher said.

He said in a radio interview Wednesday that Australia was strongly opposed to terrorism, but believed threatened US sanctions against innocent countries and companies were wrong in principle and could harm Australian trade

'Italian Foreign Minister Lamberto Dini said in an interview published Tuesday "that US moves to punish foreign companies were mainly symbolic and would do little to deter terrorism.

He repeated the initial comment by the Foreign Ministry that Washington's action was "inappropriate" and that Italy and its European partners must respond.

But he told La Repubblica newspaper : We must react but without being hysterical. Also because I have the impression that some of our partners are moving more to defend their commercial interests than out of questions of principle."

Norway doubted the effectiveness of the new US sanctions law against Iran and Libya Judging that an international initiative would have better results.

Norwegian oil companies said, meanwhile that they would not be affected by the law.

"We are not certain that individually penalizing companies is the best way to put pressure on these countries." Norwegian foreign affairs ministry spokesman Ingvard Havneri said Tuesday.