[Federal Register Volume 70, Number 116 (Friday, June 17, 2005)]
[Notices]
[Page 35333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12011]


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DEPARTMENT OF STATE

[Public Notice 5111]


Debarment Involving Hughes Network Systems (Beijing) Co. Ltd.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed an administrative debarment against Hughes Network Systems 
(Beijing) Co. Ltd. pursuant to a January 26, 2005 Consent Agreement and 
other authority based upon section 127.7(a) and (b)(2) of the 
International Traffic in Arms Regulations (ITAR) (22 CFR sections 120 
to 130).

DATES: Effective Date: January 26, 2005.

FOR FURTHER INFORMATION CONTACT: David Trimble, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State (202) 663-2700.

SUPPLEMENTARY INFORMATION: Section 127.7 of the ITAR authorizes the 
Assistant Secretary of State for Political-Military Affairs to debar 
any person who has been found pursuant to Section 128 of the ITAR to 
have committed a violation of the Arms Export Control Act (AECA) or the 
ITAR of such character as to provide a reasonable basis for the Office 
of Defense Trade Controls Compliance to believe that the violator 
cannot be relied upon to comply with the AECA or ITAR in the future. 
Such debarment prohibits the subject from participating directly or 
indirectly in the export of defense articles or defense services for 
which a license or approval is required by the ITAR.
    Debarred persons are generally ineligible to participate in 
activity regulated under the ITAR (see e.g., sections 120.1(c) and (d), 
126.7, 127.1(c), and 127.11(a)). The Department of State will not 
consider applications for licenses or requests for approvals that 
involve any debarred person.
    Hughes Network Systems (Beijing) Co. Ltd. (HNS China), a wholly 
owned subsidiary of Hughes Network Systems Corporation (``HNS''), was 
under a Consent Agreement dated March 2003 for their activities related 
to failed launches in the People's Republic of China (PRC). The DirecTV 
Group Inc. (``DTV''), successor to Hughes Electronics Corporation, is 
the parent company of HNS. The internal investigation determined that 
many of the practices, which led to the March 2003 Consent Agreement 
had not been corrected within HNS China, and in fact, continued, in 
violation of the ITAR. As a result, on May 14, 2004, DDTC imposed a 
policy of denial against HNS for a period of one year.
    On January 5, 2005, the Department of State served a Sanction 
Letter to DTV for violating terms of its 2003 Consent Agreement. On 
January 26, 2005, the Department and DTV and HNS entered a new Consent 
Agreement, which debarred HNS (China) until May 14, 2005.
    Reinstatement after May 14, 2005 is not automatic, but is 
contingent on full compliance with the terms of the January 26, 2005 
Consent Agreement and evidence that the underlying problems that gave 
rise to the violations have been addressed. At the end of the debarment 
period, licensing privileges may be reinstated only at the request of 
the debarred person following the necessary Departmental review. Until 
licensing privileges are reinstated, HNS China will remain debarred.
    This notice is provided in order to make the public aware that the 
persons listed above are prohibited from participating directly or 
indirectly in any brokering activities and in any export from or 
temporary import into the United States of defense articles, related 
technical data, or defense services in all situations covered by the 
ITAR.
    Exceptions may be made to this denial policy on a case-by-case 
basis at the discretion of the Directorate 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 U.S. foreign 
policy or national security interest; whether an exception would 
further law enforcement concerns that are consistent with the foreign 
policy or national security interests of the United States; or whether 
other compelling circumstances exist that are consistent with the 
foreign policy or national security interests of the United States, and 
do not conflict with law enforcement concerns.
    This notice involves a foreign affairs function of the United 
States encompassed within the meaning of the military and foreign 
affairs exclusion of the Administrative Procedure Act. Because the 
exercise of this foreign affairs function is discretionary, it is 
excluded from review under the Administrative Procedure Act.

    Dated: June 10, 2005.
Rose M. Likins,
Acting Assistant Secretary for Political-Military Affairs, Department 
of State.
[FR Doc. 05-12011 Filed 6-16-05; 8:45 am]
BILLING CODE 4710-25-P