The administration opposes legislative proposals that would authorize Sudan-related divestments by state and local governments, saying it would risk creating a "multiplicity" of foreign policy initiatives and diminish the president's powers in this area.

A senior Treasury official has also said that Congress should refrain from passing legislation that requires a list of all companies doing business in Sudan because it would alienate allies and may hurt international efforts to end violence in Darfur.

"Such a list likely will be viewed by our allies as a U.S. government 'blacklist' and therefore as an unwelcome effort by the United States to expand the scope of our sanctions," said Adam Szubin, Director of the Office of Foreign Assets Control at the U.S. Department of the Treasury, in testimony prepared for delivery to a subcommittee of the U.S. Senate Banking Committee. Creation of a list of companies would also impose ongoing burdens on the agency that would divert resources from other activities, Szubin said.

In July, the U.S. House of Representatives passed a Sudan divestment bill that would require the U.S. government to establish a list of companies that have business ties to the Bashir regime. The House bill must pass the Senate and be signed by President George W. Bush before it would become law.

U.S. companies are generally prohibited from investing in and conducting business in Sudan without a license from OFAC.

The Darfur conflict in Sudan has claimed the lives of an estimated 200,000 people since 2003.