[Federal Register Volume 67, Number 88 (Tuesday, May 7, 2002)]
[Notices]
[Pages 30749-30750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11273]


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DEPARTMENT OF STATE

[Public Notice 4011]


Bureau of Political-Military Affairs; Rescission of Policy of 
Denial for China National Aero-Technology Import and Export Corporation 
(CATIC), China National Aero-Technology International Supply Company, 
CATIC (USA) Inc., Yan Liren and Hu Boru (Employees of CATIC), McDonnell 
Douglas Corporation, Douglas Aircraft Company and Robert Hitt (Employee 
of McDonnell Douglas Corporation and Douglas Aircraft Company); 
Continuation of Policy of Denial for Tal Industries Inc.

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that Public Notice 3195, establishing 
as a policy of the Department of State the denial of all export 
applications and other requests of approval pursuant to section 38 of 
the Arms Export Control Act (``AECA'') is partially rescinded. This 
rescission applies only to China National Aero-Technology Import and 
Export Corporation (CATIC), China National Aero-Technology 
International Supply Company, CATIC (USA) Inc., Yan Liren, Hu Boru, 
McDonnell Douglas Corporation, Douglas Aircraft Company and Robert 
Hitt. The Policy of Denial announced in Public Notice 3195 for Tal 
Industries, Inc. will continue to be in effect.
    Public Notice 3195 stated that it would be the Department of 
State's policy to deny all export license applications and other 
requests for approval pursuant to section 38 of the AECA, for the 
export of, or the brokering activity involving the transfer of, defense 
articles or defense services by, for, or to the aforementioned persons 
and entities as well as any of their subsidiaries, affiliates, or 
successor entities.

EFFECTIVE DATE: The date of the dismissal of all charges: July 14, 2000 
for Robert Hitt; May 15, 2001 for CATIC, CATIC (USA) Inc., Yan Liren, 
and Hu Boru; and November 14, 2001 for McDonnell Douglas and Douglas 
Aircraft.

FOR FURTHER INFORMATION CONTACT: David Trimble, Director, Compliance 
Division, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, Department of State (202) 633-2700.

SUPPLEMENTARY INFORMATION: Effective October 19, 2001 the Department of 
State, pursuant to sections 38 and 42 of the AECA, 22 U.S.C. 2778 and 
2791, and 22 CFR 126.7(a)(2) and 126.7(a)(3) of the International 
Traffic in Arms Regulations (``ITAR''), instituted a policy of denial 
of all requests for licenses and other written approvals (including all 
activities under manufacturing license and technical assistance 
agreements and brokering activities) concerning exports of defense 
articles and provision of defense services or other transactions 
involving directly or indirectly CATIC, China National Aero-Technology 
International Supply Company, CATIC (USA) Inc., Tal Industries, Inc., 
Yan Liren, Hu Boru, McDonnell Douglas Corporation, Douglas Aircraft 
Company, and Robert Hitt and any of their affiliates, subsidiaries, or 
successor entities. Furthermore, the Department precluded the use of 
any exemptions from licenses or other approvals included in the ITAR 
except as those exemptions directly pertained to licenses or other 
written approvals granted prior to October 19, 1999.
    This policy of denial was instituted in response to a sixteen-count 
indictment in the US District Court for the District of Columbia 
charging CATIC, CATIC (USA) Inc., TAL Industries, Inc., Yan Liren, Hu 
Boru, McDonnell Douglas Corporation, Douglas Aircraft Company, and 
Robert Hitt with violating, inter alias, the Export Administration Act 
of 1979 (EAA), 50 U.S.C. App. 2410 and the International Emergency 
Economic Powers Act (IEEPA), 50 U.S.C. 1701-1706.
    With the exception of TAL Industries, all of the defendants have 
had their charges dismissed. The charges against Robert Hitt were 
dismissed on July 14, 2000. Subsequently, on May 15, 2001, the charges 
against CATIC, CATIC (USA) Inc., Yan Liren, and Hu Boru were dismissed. 
Finally, on November 14, 2001, the charges against McDonnell Douglas 
and Douglas Aircraft were

[[Page 30750]]

dismissed. TAL Industries Inc., however, was convicted of violating the 
EAA and was sentenced on May 11, 2001 to five years of corporate 
probation, payment of a $1 million fine and payment of a special 
assessment of $200.
    As a result, the Department of State has decided to rescind the 
policy of denial instituted against CATIC, CATIC (USA) Inc., Yan Liren, 
Hu Boru, and Robert Hitt and against McDonnell Douglas Corporation, 
Douglas Aircraft Company and any of their subsidiaries, affiliates or 
succesor entities. The policy of denial against TAL Industries, Inc., 
in accordance with section 38(g)(4) of the AECA, will continue to be in 
effect, due to its conviction for violating the EAA.
    This action has been taken pursuant to sections 38 and 42 of the 
AECA, 22 USC 2778 and 22 USC 2791, and sections 126.7 and 127.11 of the 
ITAR, 22 CFR 126.7(a)(4) and 22 CFR 127.11.

    Dated: March 7, 2002.
Lincoln P. Bloomfield, Jr.,
Assistant Secretary of State, Bureau of Political-Military Affairs, 
Department of State.
[FR Doc. 02-11273 Filed 5-6-02; 8:45 am]
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