[Federal Register Volume 59, Number 67 (Thursday, April 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8334]
[[Page Unknown]]
[Federal Register: April 7, 1994]
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DEPARTMENT OF STATE
Office of Defense Trade Controls
[Public Notice 1981]
Munitions Exports Involving Rexon Technology Corp., et al.
AGENCY: Department of State.
ACTION: Notice.
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SUMMARY: Notice is hereby given that all existing licenses and other
approvals, granted pursuant to section 38 of the Arms Export Control
Act, that authorize the export or transfer by, for or to, Rexon
Technology Corporation, Gary D. Kauf, Jerome S. Shafir, James A.
Bittel, Ronald L. Laib, Ordnance Technologies, Ltd., John Paul Grecian,
and Bryan Mason, and any of their subsidiaries, associated companies,
or successor entities, of defense articles or defense services are
suspended. In addition, 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 above cited 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 (22 CFR parts 120-130)
(ITAR).
EFFECTIVE DATE: February 24, 1994.
FOR FURTHER INFORMATION CONTACT:
Clyde G. Bryant, Jr., Chief, Compliance and Enforcement Branch, Office
of Defense Trade Controls, Bureau of Political-Military Affairs,
Department of State (703-875-6650).
SUPPLEMENTARY INFORMATION: Two indictments were returned on December
13, 1993, in the U.S. District Court, District of New Jersey. The
first, a five (5) count indictment, charging Rexon Technology
Corporation, Gary D. Kauf, Jerome S. Shafir, James A. Bittel, and
Ronald L. Laib, with conspiracy (18 U.S.C. 371) to violate and
violating section 38 of the Arms Export Control Act (22 U.S.C. 2778)
(AECA) and its implementing regulations, the ITAR. Second, a four (4)
count indictment, charging Ordnance Technologies, Ltd., John Paul
Grecian, and Bryan Mason with conspiracy (18 U.S.C. 371) to violate and
violating section 38 of the Arms Export Control Act (22 U.S.C. 2778)
(AECA) and its implementing regulations, the ITAR. The indictment
charges that the defendants conspired to export illegally 300,000 sets
of United States-origin fuze components to Iraq, while stating that the
fuzes in question were for use by the Jordanian Armed Forces, without
having first obtained the U.S. Department of State requisite
authorization. Also, the defendant was charged with causing a false
statement to be made in applications to the Department of State for
licenses to export those defense articles to Iraq by supplying a cover
story that stated the fuzes were going to be assembled in Jordan and
used by the Jordanian Armed Forces. (United States v. Rexon Technology
Corporation, U.S. District Court, District of New Jersey, Criminal
Docket No. CR-93-610).
On February 24, 1994, the Department of State suspended all
licenses and other written approvals (including all activities under
manufacturing license and technical assistance agreements) concerning
exports of defense articles and provision of defense services by, for
or to Rexon Technology Corporation, Gary D. Kauf, Jerome S. Shafir,
James A. Bittel, Ronald L. Laib, Ordnance Technologies, Ltd., John Paul
Grecian, and Bryan Mason and any of their subsidiaries, associated
companies or successor entities. Furthermore, the Department of State
precluded the use, in connection with the named persons, of any
exemptions from licenses or other approvals included in the ITAR.
This action has been taken pursuant to sections 38 and 42 of the
AECA (22 U.S.C. 2778 & 2791) and 22 CFR 126.7(a)(2) and 126.7(a)(3) of
the ITAR. 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 U.S. 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 named in an indictment for an AECA-related violation may
submit a written request for reconsideration of the suspension/denial
decision 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, inter alia, 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 whether the
exception has been granted.
Dated: February 24, 1994.
Robert L. Gallucci,
Assistant Secretary, Bureau of Political-Military Affairs, Department
of State.
[FR Doc. 94-8334 Filed 4-6-94; 8:45 am]
BILLING CODE 4710-25-M
