By Roger Simon
                   Tribune Staff Writer

                   GENEVA -- In an attempt to mollify European nations furious with U.S.
                   trade sanctions, the United States has agreed to soften a U.S. law that
                   punishes businesses that use property seized by the Cuban government, the
                   White House announced Monday.

                   In return, the 15 nations of the European Union have promised to discourage
                   such practices in the future.

                   The U.S. also agreed to waive sanctions against three European companies
                   pouring $2 billion into Iran in return for a Russian promise to help control
                   worldwide terrorism and the spread of weapons of mass destruction.

                   Toning down the Cuban sanctions law, known as the Helms-Burton Act, will
                   require congressional approval, which senior White House officials say is
                   likely. Granting waivers to companies doing business with Iran and Libya
                   under the so-called D'Amato act does not require such approval.

                   Senior administration officials described the actions as "breakthroughs"
                   achieved in time for President Clinton's speech Monday to the World Trade
                   Organization in Geneva.

                   Clinton's speech was attended by Cuban President Fidel Castro, who politely
                   applauded from the front row after Clinton finished. The two did not greet
                   each other.

                   The European Union has strongly opposed the U.S. sanction laws, which it
                   considers illegal under world trade agreements. It has threatened to sue the
                   United States and to impose sanctions on U.S. companies in retaliation.

                   "We have now avoided a major conflict with Europe," said a senior
                   administration official.

                   The Helms-Burton Act, sponsored by Sen. Jesse Helms (R-N.C.) and Rep.
                   Dan Burton (R-Ind.), was passed in March 1996 after Cuban jet fighters shot
                   down two unarmed planes owned by a Cuban exile group and carrying
                   several Cuban-American civilians.

                   The law's purpose was to deter businesses from investing in expropriated
                   property. There have been more than 6,000 claims, mainly by Cuban
                   nationals who are now U.S. citizens, against the Castro government for
                   seizing such property.

                   There are two chief sanctions under the act. In one, corporate officials from
                   businesses investing in such property, along with their spouses and children,
                   are forbidden to enter the United States. This sanction, called Title IV, has
                   aroused the most anger from foreign governments; it has been invoked only
                   once, to deny entry to a Canadian executive.

                   "It's a pride thing," one official said.

                   Title IV is the part of the Helms-Burton Act that the Clinton administration
                   will ask Congress to waive. Title III, under which U.S. citizens can sue
                   foreign companies that use their seized property, will remain in effect.

                   In return, the nations of the European Union will agree to police their own
                   corporations, denying them loans, grants, subsidies, political risk insurance
                   and government investment if they use improperly seized property.

                   "This will chill investments in Cuba in the greatest way since Castro came to
                   power," said an administration official.

                   The official also said, "At each stage, we have kept Sen. Helms and Rep.
                   Burton informed of our progress. Helms said, `Keep negotiating, I'm
                   interested.' Burton said, `I think you're on to something.' "

                   The official also said, however, "Nobody gave us a specific commitment of
                   support."

                   On Monday, however, Helms denounced the deal, saying he was "puzzled by
                   reports that the administration expects me to react favorably to an agreement
                   that lets the European Union off the hook and legitimizes the EU's theft of
                   American property in Cuba."

                   Sen. William Roth (R-Del.), chairman of the influential Senate Finance
                   Committee, also expressed reservations, saying he was "disappointed" that
                   the initial announcements put little emphasis on "enforcement mechanisms"
                   that would provide some path of legal recourse for Americans.

                   The changes in the 1996 D'Amato act -- formally known as the Iran-Libya
                   Sanctions Act -- present a knottier problem for the White House because the
                   compromise basically acknowledges that Iran will be enriched by $2 billion
                   provided by Russian, French and Malaysian businesses that are developing
                   an Iranian oil field.

                   The White House still disapproves of the investment but will waive sanctions
                   against the three companies in return for a Russian agreement to control the
                   transfer of missile technology, high-tech equipment and software to parties
                   who may engage in terrorism or construct weapons of mass destruction.

                   "I want to emphasize that our position on Iran has not changed," Secretary of
                   State Madeleine Albright said in London. "We will continue to press for
                   enhanced international cooperation to counter Iran's efforts to acquire
                   weapons of mass destruction and their delivery systems and its support for
                   terrorism."

                   However, on Monday, Russia and Iran said they hope to increase their
                   cooperation in developing nuclear technology for nonmilitary purposes.
                   Currently, the two nations are cooperating on the construction of a nuclear
                   power plant at Bushehr in Iran, but Russian Atomic Energy Minister Yevgeny
                   Adamov indicated that Moscow and Tehran now hope to broaden and
                   expand their efforts beyond the Persian Gulf port plant.