[Federal Register Volume 59, Number 166 (Monday, August 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21265]


[[Page Unknown]]

[Federal Register: August 29, 1994]


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DEPARTMENT OF STATE

Bureau of Economic and Business Affairs
[Public Notice 2054]

 

Export-Import Bank Financing for Brazil's Purchase of Counter-
Narcotics Aircraft Equipment

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: The Secretary of State has determined that, pursuant to 
section 2(b)(6) of the Export-Import Bank Act of 1945 (as amended), and 
Executive Order 11958 of January 18, 1977 (as amended by Executive 
Order 12680 of July 5, 1989), (1) the U.S. content of five early 
warning aircraft systems, for which the Government of Brazil has 
requested Export-Import Bank financial guarantees, will be used 
primarily for counternarcotics purposes and (2) the sale of such 
defense articles and services is in the national interest of the United 
States.

EFFECTIVE DATE: July 11, 1994.

FOR FURTHER INFORMATION CONTACT:
Karen Brown, Office of Development Finance, Bureau of Economic and 
Business Affairs, Department of State (202-647-9462).

SUPPLEMENTARY INFORMATION: A U.S. corporation competing to lead a 
consortia in constructing an integrated surveillance network for the 
Amazon Surveillance Project (SIVAM) has requested a U.S. Export-Import 
Bank (Eximbank) guarantee to assist in financing the early-warning 
surveillance aircraft portion of this project.
    Eximbank's charter generally prohibits it from financing the export 
of U.S. defense articles and services. However, Eximbank may support 
the sale of defense articles or services if the President determines 
that the defense articles or services will be used primarily for 
counternarcotics purposes and that the sale is in the national 
interest, taking into account whether the sale is consistent with U.S. 
counternarcotics policy, whether the recipient country is a major drug 
producing or drug transit country, and whether the recipient country 
has a democratic form of government. The President's authority to make 
such determinations has been delegated to the Secretary of State.
    Pursuant to section 2(b)(6) of the Export-Import Bank Act of 1945, 
as amended, and Executive Order 11958 of January 18, 1977, as amended 
by Executive Order 12680 of July 5, 1989, the Acting Secretary of State 
determined on July 11, 1994 that:
    (1) The defense articles and services for which the Government of 
Brazil has requested Export-Import Bank financial guarantees, i.e., the 
U.S. content of five early warning aircraft systems, are being sold 
primarily for counternarcotics purposes;
    (2) The sale of such defense articles and services would be in the 
national interest of the United States.
Jay Dehmlow,
Acting Director, Office of Development Finance.
[FR Doc. 94-21265 Filed 8-26-94; 8:45 am]
BILLING CODE 4710-07-M