The United States Congress has delayed legislation aimed at imposing stock-market sanctions on companies operating in Sudan, news agencies reported on Tuesday.

The US House of Representatives withdrew a motion last week designed to settle differences with the US State Department over the proposed Sudan Peace Act, which, if enacted, would close US stock exchanges to companies operating in Sudan.

The House of Representatives in June adopted the Sudan Peace Bill with 422 votes in favour and two against. If enacted in its original form, the Bill would remove Canadian oil company, Talisman, from the New York Stock Exchange, compel the US government to officially condemn alleged bomb attacks by Sudanese government forces on civilian targets in south Sudan, and make available US $10 million to the Sudanese opposition coalition group, the National Democratic Alliance. The US Senate in August adopted a version of the Bill which did not include the stock-market sanctions.

The oil industry publication 'Oil Daily' quoted congressional aides as saying it would have been difficult for the US government to pass a less stringent version of the Act as this could have been perceived as a failure to impose sanctions on Sudan. In the wake of the 11 September terror attacks, US pressure groups, including the Congressional Black Caucus and conservative Christian groups, have been stepping up their calls for action against Khartoum. Some observers say Osama bin Laden - widely regarded as prime suspect in the terror attacks and hosted by Sudan until 1996 - has maintained links with the Khartoum regime.