weapons, or high-yield explosives.

Non-state actors play an important role in the international
environment. Nongovernmental organizations are important in combating
international terrorism and we will work with them to prevent
terrorists from taking advantage of their services.

_Objective: End the state sponsorship of terrorism_. The United States
will assume a clear and pragmatic approach in prosecuting the campaign
against terrorism. This will include incentives for ending state
sponsorship. When a state chooses not to respond to such incentives,
tough decisions will be confronted. At all times within this new
dynamic we will balance a nation's near-term actions against the
long-term implications and consequences.

The United States currently lists seven state sponsors of terrorism:
Iran, Iraq, Syria, Libya, Cuba, North Korea, and Sudan. We are firmly
committed to removing countries from the list once they have taken the
necessary steps under our law and policy. A checkered past does not
foreclose future membership in the coalition against terrorism.

It is important for all countries to adopt a "zero tolerance" policy
for terrorist activity within their borders. In the new global
environment it is also important for states to understand how
terrorists and their supporters may use legitimate means of
communication, commerce, and transportation for illegal activities.

Each state that gets out of the business of sponsoring terrorism
represents a significant step forward and offers a tangible measure of
success. America will never seek to remove states from the sponsorship
list by lowering the bar; instead, these states should be
encouraged--or compelled--to clear the bar.

We will not have a single, inflexible approach to handling the
recognized state sponsors of terrorism. Each case is unique, with
different interests and legacy issues involved. Each situation demands
specifically tailored policies.

We will be open to overtures from states that want to put their
sponsorship of terrorism behind them, but we will not compromise on the
essential principle that there are no "good" or "just" terrorists. We
will be relentless in discrediting terrorism as a legitimate means of
expressing discontent.

To ensure we have a well orchestrated and synchronized policy, the
Department of State will take the lead in developing policy action
plans that employ both incentives and disincentives to end state
sponsorship of