[Federal Register Volume 59, Number 125 (Thursday, June 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15920]


[[Page Unknown]]

[Federal Register: June 30, 1994]


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DEPARTMENT OF STATE
Office of Defense Trade Controls
[Public Notice 2027]

 

Munitions Exports Involving the Armaments Corporation of South 
Africa, Ltd., a/k/a ARMSCOR, and Related Entities and Individuals

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that it shall be the policy of the 
Department of State to deny all export license applications and other 
requests for approval involving, directly or indirectly: the Armaments 
Corporation of South Africa, Ltd, a/k/a ARMSCOR, an agency of the South 
African Government; the Denel Group (Pty) Ltd., a/k/a DENEL, a wholly-
owned company of the South African Government; Kentron (Pty) Ltd. 
(KENTRON); Fuchs Electronics (Pty) Ltd. (FUCHS); William Randy 
METELERKAMP. Vern DAVIS; Brian SCOTT, a/k/a ``Graham Craighness''; Bert 
QUINN; Johan LOMBARD; Jaco BUDRICKS; Gerrit PRETORIUS, a/k/a ``Bull''; 
and, any divisions, subsidiaries, associated companies, affiliated 
persons, or successor entities. This action also precludes the use in 
connection with such entities of any exemptions from license or other 
approval included in the International Traffic in Arms Regulations 
(ITAR) (22 CFR parts 120-130).

EFFECTIVE DATE: June 8, 1994.

FOR FURTHER INFORMATION CONTACT:
Mary F. Sweeney, Compliance Enforcement Branch, Office of Defense Trade 
Controls, Bureau of Political-Military Affairs, Department of State 
(703: 875-6650).

SUPPLEMENTARY INFORMATION: On October 31, 1991, a federal grand jury in 
the Eastern District of Pennsylvania returned an indictment charging 
the above cited persons, except DENEL, with conspiracy to violate and 
violating the Arms Export Control Act (AECA). The Department of State, 
therefore, has reasonable cause to believe that, during the period from 
1978 through 1989, ARMSCOR and the other cited entities have engaged in 
an ongoing conspiracy to export, and exported, defense articles and 
defense services to the Republic of South Africa and to Iraq without 
the requisite license(s) or approval(s) of the Department of State. 
During the period from 1978 through 1989, what is now DENEL was an 
integral part of ARMSCOR. DENEL reportedly came into being in 1992, in 
the separation and restructuring of ARMSCOR. It is a wholly owned 
company of the South African Government, operating as a commercial 
organization. Inasmuch as it is a successor to ARMSCOR, DENEL is also 
liable for AECA and/or ITAR related violations.
    This action has been taken pursuant to sections 38 and 42 of the 
Arms Export Control Act (AECA) (22 U.S.C. 2778 & 2791) and sections 
126.7(a) (1) and 126.7(a)(2) of the ITAR (22 CFR 126.7(a) (1) & (2)). 
It will remain in force until rescinded.
    Exceptions may be made to this policy on a case-by-case basis at 
the discretion of the Office of Defense Trade Controls. However, such 
an exception would be granted only after a full review of all 
circumstances, paying particular attention to the following factors: 
whether an exception is warranted by overriding foreign policy or 
national security interests; whether an exception would further law 
enforcement concerns; and whether other compelling circumstances exist 
which are consistent with the foreign policy or national security 
interests of the United States, and which do not conflict with law 
enforcement concerns.
    A person (as defined at 22 CFR 120.14) named in an indictment for 
an AECA-related violation may submit a written request for 
reconsideration of the denial policy to the Office of Defense Trade 
Controls. Such request for reconsideration should be supported by 
evidence of remedial measures taken to prevent future violations of the 
AECA and/or the ITAR and other pertinent documented information showing 
that the person would not be a risk for future violations of the AECA 
and/or the ITAR. The Office of Defense Trade Controls will evaluate the 
submission in consultation with the Departments of Treasury, Justice, 
and other necessary agencies. After a decision on the request for 
reconsideration has been rendered by the Assistant Secretary for 
Political-Military Affairs, the requester will be notified.

    Dated: June 16, 1994.
Thomas E. McNamara,
Principal Deputy, Assistant Secretary, Bureau of Political-Military 
Affairs Department of State.
[FR Doc. 94-15920 Filed 6-29-94; 8:45 am]
BILLING CODE 4710-25-M