New Leaders for Defense Trade
Bureau of Politico-Military Affairs Gets New Leadership

The Center for Defense Trade enters the new
Fiscal Year with a change of leadership. Rob-
ert L. Gallucci was confirmed as the Assistant
Secretary of State for Politico-Military Affairs
on July 13, succeeding Richard A. Clarke.
Rand Beers, currently the Deputy Assistant
Secretary of State for Security Assistance and
Defense Trade, replaced Charles A. Duelfer.
Both gentlemen bring extensive defense trade
experience to their new positions.

Robert L. Gallucci. Previously the Senior
Coordinator responsible for nonproliferation
and nuclear safety initiatives in the former
Soviet Union for the Deputy Secretary of
State, he assumed his duties as Assistant Sec-
retary of State for Politico-Military Affairs on
July 13. Gallucci returned to Washington
from New York this past February where he
had been the Deputy Executive Chairman of
the UN Special Commission overseeing the
disarmament of Iraq.

Gallucci began his foreign affairs career at the
Arms Control and Disarmament Agency in
1974. In 1978 he became a division chief in
the State Department's Bureau of Intelligence
and Research, and from 1979 to 1981 was a
member of the Secretary of State’s Policy
Planning Staff. He has served as an office
director in both the Bureau of Near Eastern
and South Asian Affairs and the Bureau of
Politico-Military Affairs. In 1984 Gallucci was
named Deputy Director General of the Multi-
national Force and Observers in Rome where
he served until 1988. He then joined the fac-
ulty of the National War College where he
served until his departure for the UN in 1991.
He was born in Brooklyn, New York, and

earned his bachelors degree from the State
University of New York at Stony Brook, fol-
lowed by a masters and doctorate in political
science from Brandeis University. Before join-
ing the State Department he taught at several
colleges and universities including
Swarthmore, Johns Hopkins, and
Georgetown. He has written a number of
publications on political-military issues, in-
cluding Neither Peace Nor Honor: The Politics of
American Military Policy in Vietnam (Johns
Hopkins University Press, 1975). In 1991 he
was the recipient of the Department of the
Army’s Outstanding Civilian Service Award.

Rand Beers. A member of the Senior Execu-
tive Service, he is currently the Deputy Assis-
tant Secretary of State for Security Assistance
and Defense Trade in the Bureau of Politico
Affairs (PM). He joined the Foreign Service in
1971, after serving 4 years in the U.S. Marine
Corps. Prior to assuming his current duties,
he served 4 years as the Director for Counter-
terrorism and Counternarcotics on the Na-
tional Security Council Staff. Beers is no
stranger to the PM Bureau, having previously
served as the Deputy for Strategy and Opera-
tions and as Coordinator for Regional Affairs
and Security Assistance. He has also served
as Director of the Office of Security Analysis
and the Office of International Security Policy,
as well as Deputy Director of the Office of
Policy Analysis. During his tenure in the For-
eign Service, Beers was Deputy Political Ad-
visor to the Supreme Allied Commander, Eu-
rope. A native of Washington, D.C., he re-
ceived a BA in History from Dartmouth in
1964, and an MA in History from the Univer-
sity of Michigan in 1971.

Page 20

Defense Trade News, Volume 3, Number 4, October 1992



a
CONTACTING THE CENTER FOR DEFENSE TRADE (CDT)

Center for Defense Trade

PM, Room 7321

Bureau of Politico-Military Affairs
U.S. Department of State
Washington, D.C. 20520-7321
(202) 647-6977 FAX: (202) 647-1346

Office of Defense Trade Controls (DTC) Office of Defense Trade Policy (DTP)
Postal Mailing Address

PM/DTC, SA-6, Room 228 PM/DTP, Room 7815

Office of Defense Trade Controls Office of Defense Trade Policy

Bureau of Politico-Military Affairs Bureau of Politico-Military Affairs

USS. Department of State U.S. Department of State

Washington, D.C. 20522-0602 Washington, D.C. 20520-7815

Express Mail and Courier Delivery Address

PM/DTC, Room 200 PM/DTP, Room 7815

Office of Defense Trade Controls Office of Defense Trade Policy
Bureau of Politico-Military Affairs Bureau of Politico-Military Affairs
US. Department of State U.S. Department of State

1701 N. Fort Myer Drive (Nash St. Entrance) Washington, D.C. 20520-7815

Arlington, VA 22209-3113
Telephone Numbers

General Information: (703) 875-6644 General Information: (202) 647-4231
Licensing: (703) 875-6644 #3 Embassy Support: (202) 647-4231
Registration /Compliance: (703) 875-6650
Office Director and Deputies: (703) 875-7050
Congressional Cases: (703) 875-6641
Commodity Jurisdictions: (703) 875-7041/5655
License Status Staff: (703) 875-6652
Automated License Status Systems:
ALISS (Telephonic): (703) 875-7374
ROBB (Electronic): (703) 875-6650

Facsimile Numbers

Licensing /Management/Forms: (703) 875-6647 PM/DTP: (202) 647-4232
Registration /Compliance/ROBB: (703) 875-5663

Department of State Publication 9783
Bureau of Politico-Military Affairs
Revised November 1992


continued from page 12

* Reference the applicable executable prod-
uct that was transferred to the Department of
Commerce.

¢ Include information on whether or not the
source code has been modified by deleting
the encryption algorithm, its associated key
management routine(s), and all calls to the
algorithm from the source code, or provide
the encryption algorithm and associated key
management routine(s) in object code with all
calls to the algorithm hidden. Provide all
technical details on how the source code was
modified.

¢ Include a copy of the sections of the
source code that contain the encryption algo-
rithm, key management routine(s), and their
related calls.

* Provide any additional information which
you believe would assist in the review pro-
cess.

d. Mail your completed CJ request letter ac-
cording to the instructions in the box on page
15.

Fifteen-Day Cases. The following informa-
tion outlines procedures for preparation and
submission of CJ requests eligible for 15-day
handling.

a. If the software product meets only the cri-
teria in paragraph 1 (see box on page 13), two
copies of the CJ request must be prepared.
See page 15 instructions on sending com-
pleted CJ requests to DTC.

b. The following information must be pro-
vided in the CJ request letter.

¢ The subject line must be “Mass Market
Software with Encryption — 15 Day Expe-
dited Review Requested.”

* Give the name of the software product
being submitted for review. Remember that a
separate CJ request must be submitted for
each product.

¢ In the letter, state that you have reviewed
the software and determined that it meets the
criteria of paragraph 1 of the “Criteria For
Determining Eligibility of A Mass Market
Software Product for Expedited Handling.”

* State that a duplicate copy has been sent
to the 15-day CJ Request Coordinator.

¢ Include brochures, specifications, or other
documentation relating to the software, as
well as any additional descriptive information
which you believe would assist in the review
process.

Additional Information. Prior to submitting
a CJ request, contact Major Gary Oncale at
(703) 875-5655 or Chris Elder at (703) 875-
7041. This will facilitate the submission of the
proper documentation. Although DTC will
accept expedited CJ requests via fax, courier,
or overnight mail, fax is recommended to
avoid delays incurred due to in-house pro-
cessing of mail.

See box on page 15 for the CJ Team fax num-
ber and instructions for transmission of CJ
requests by this method or via mail or express
delivery. DTC suggests that applicants call
Major Oncale or Chris Elder one day after
transmitting CJ requests to verify receipt and
obtain the assigned CJ case number for future
reference. #

Page 14

Defense Trade News, Volume 3, Number 4, October 1992



ELISA Update

DOD offers electronic bulletin board. DISA (Defense Technology Security Administration) is the
DOD (Department of Defense) agency which reviews most of the export license applications for
defense articles. DTSA provides status of export license applications direct to the exporter when-
ever the application has been referred to DOD. The Export License Advisor (ELISA) is a remote
electronic bulletin board system that provides up-to-date status information to the exporter The
system was established in 1985 and is accessible via computer world-wide. Over 200 registered
users contact ELISA 3,000 times annually.

ELISA Operation. ELISA operates 24 hours a day, except for 7-10 AM, Monday through Friday,
Eastern Standard Time when the system status is updated on business days to reflect the most cur-
rent status. Instructions on the use of ELISA are provided upon accessing the system via the tele-
phone information line at (703) 697-6109. Each new applicant establishes an individual password
during the initial session. To receive status information, callers must have the export license appli-
cation number assigned by the Department of State or Commerce. ELISA will display the follow-
ing formatted information:

Application Date Date Status Action Officer
Number Received Closed or Action Name & Telephone Number

Additional Information. ELISA users may also submit suggestions, comments, or questions about
pending license applications directly to DISA using the electronic mail capability within the pro-
gram. The ELISA system administrator will quickly respond to user input. For further informa-
tion, please contact Lt. Col. Ken Freshwater, Chief of DISA’s Information Services Division, by
Datafax as the preferred mode for routine items at (703) 693-5305, or via telephone for urgent re-
quests at (703) 697-7840.

Department of Defense
Export License Status Advisor

ELISA (703) 697-6109

Remote Electronic Bulletin Board
Operating 24 Hours Daily
(Except 7-10 AM Eastern Time, Mon-Fri)

1200 or 2400 Baud, No Parity,
8 Data Bits & 1 Stop Bit

Editors Note: Look for additional articles about DTSA and
its role in the defense trade process in upcoming issues.

Page 24 Defense Trade News, Volume 3, Number 4, October 1992



DTAG Leadership
Stewards of the Working Groups

Following are biographies of the leadership of
the Defense Trade Advisory Group (DTAG).

William Schneider, Jr.: Chairman of the
DTAG and of the Policy Working Group. He
is president of International Planning Ser-
vices, Arlington, Virginia. He has served in
both the Legislative and Executive branches
of the U.S. Government from 1971 to 1986,
including service as Associate Director for
National Security and International Affairs in
the Office of Management and Budget, and
Under Secretary of State for Security Assis-
tance, Science, and Technology. An econo-
mist by training, with a Ph. D from New York
University, he has also been a professional
staff member of New York’s Hudson Insti-
tute.

R. James Woolsey: Vice-Chairman of the
DTAG. Ambassador Woolsey is a partner of
the law firm, Shea & Gardner, Washington, D.
C. He has served as General Counsel to the
Senate Armed Services Committee (1970-73),
as Under Secretary of the Navy (1977-79), and
as Ambassador and U.S. Representative to the
Negotiation on Conventional Armed Forces
in Europe (CFE) in Vienna (1989-91). He is a
1968 graduate of Yale Law School and earned
an M.A. in 1965 as a Rhodes Scholar at St.
John’s College of Oxford University. He is a
Regent of the Smithsonian Institution and has
served on three Presidential Commissions; on
Strategic Forces (1983), Defense Management
(1985-86), and Federal Ethics Law Reform
(1989).

Ramona B. Hazera: Chairperson of the Regu-
latory Working Group. Hazera who works
for Northrop Corporation, a multinational

aerospace and electronics firm, has been Man-
ager, International Licensing since 1982. She
manages all aspects of defense and commer-
cial licensing and international technology
transfer, and is responsible for Latin Ameri-
can regional marketing analysis. On the
Board of Directors of the Society of Interna-
tional Affairs (SIA), Hazera is a former presi-
dent of that organization. She also chaired
numerous defense industry committees and
directed several licensing conferences. She
has written a number of articles on defense
trade for publication and is coauthor of a de-
fense licensing handbook soon to be pub-
lished.

John B. Walsh: Chairman of the Technical
Working Group. Formerly Vice President,
Research and Engineering Programs, Boeing
Defense and Space Group, he was named
Vice President Strategic Analysis at Boeing in
March 1992. Prior to joining Boeing, Walsh
held the Department of Defense Chair in Sys-
tems Acquisition Management and was Dean
of the Executive Institute at the Defense Sys-
tems Management College, from which he
now holds the title of Professor Emeritus. He
has held a variety of other positions; military,
government, and civilian, including Assistant
to the President's Science Advisor and Assis-
tant Secretary General for Defense Support,
NATO. He is also the author of four text
books, many articles and technical papers and
is a licensed professional engineer. Walsh
earned a Bachelor of Electrical Engineering
from Manhattan College and an M.S, degree
from Columbia University. #

Defense Trade News, Volume 3, Number 4, October 1992

Page 5



Vessel Name Ship Type DWT Call Sign Owner
SURVEY LAUNCH
No. 1 Res N/A N/A State Org. of Iraqi Ports
SURVEY LAUNCH
No. 2 Res N/A N/A State Org. of Iraqi Ports
SURVEY LAUNCH
No.3 Res N/A N/A State Org. of Iraqi Ports
TADMUR Tkr 3,627 HNTID Iraqi Oil Tankers Company
TAHREER Sve 4,649 YITR State Org. of Iraqi Ports
TARIK IBN ZIYAD Tkr 118,139 HNTZ Iraqi Oil Tankers Company
THEEQAR Tug 220 YIAC State Org. of Iraqi Ports
UR Tug 368 YIUR State Org. of Iraqi Ports
WORK BOAT No. 6 Brg N/A N/A State Org. of Iraqi Ports
WORKSHIP 3 Sve N/A N/A State Org. of Iraqi Ports
YANBU 31 Sve N/A N/A Iraqi State Company for Oil Projects
(flag: Saudi Arabia)
YOUSIFAN Tug 386 YIYN State Org. of Iraqi Ports
ZAIN AL Cgo 9,247 HNZQ Iraqi Enterprise for Water Transport
ZAMZAM Tkr 544 YIAZ State Org. of Iraqi Ports
ZANOOBIA Cgo 3,549 HNZN Iraqi State Enterprise for Water Trans-
port. Represented by Ceylon Shipping
Co., Colombo, Sri Lanka.
ZUBAIDY Fsh N/A YIBO State Org. of Iraqi Ports
1 ATHAR Tkr 1,502 HNAR Iraqi Oil Tankers Company
1 HURIZAN Tkr 1,502 HNHN Iraqi Oil Tankers Company
7 NISSAN Tkr 1,502 HNNN Iraqi Oil Tankers Company


United States Department of State

Assistant Secretary of State
for Politico-Military Affairs

Washington, D.C. 20520

i

Robert L. Gallucci

A Message to Industry

There has been a lot of change in how State handles defense trade since I last worked in PM.
I’ve returned to a much invigorated process—State has put real effort into restructuring the arms
export function to make it work better for American exporters—nevertheless, the international
market has never been tougher. This means we will have to be more innovative and focused in our
efforts to regulate munitions exports and support the defense industry. That is our charge from
Acting Secretary Eagleburger, and we are ready to work with the defense export community in
meeting this challenge. The newly-established Defense Trade Advisory Group is one example of
this Administration’s commitment to join with you to make munitions control work. I look for-

ward to your advice and support.

Our door is always open.


el

Name Position Phone
Area Code (703)

Commodity Jurisdictions Section

MAJ Gary Oncale (GMO) Munitions Control Analyst 875-5655

Christopher Elder Staff Assistant 875-7041

Compliance Analysis Division

* Registers all U.S. manufacturers and exporters of defense articles and those furnishing defense
services.

« Ensures compliance with federal regulations.

* Coordinates and directs action on issues of debarment, licensing eligibility, and voluntary (writ-
ten and oral) disclosure.

Clyde G. Bryant Division Chief 875-6629
Nadia Brown Secretary 875-6650
Thomas R. Smith Coordinator for Enforcement,

U.S. Customs Service 875-7049
Annette McKisson Exodus Liaison, U.S. Customs Service 875-6630
Robert Huffman Compliance Clerk
Ruth Jackson Compliance Specialist 875-5085
Celeste Lewis Compliance Specialist 875-6649
Nancy Meyer Compliance Specialist 875-5659
Mary Sweeney Compliance Specialist 875-6628
Eva Tyler Compliance Specialist 875-7051
Martha A. Wright Compliance Specialist 875-5080
Wendy Payne Compliance Operations Specialist (Registration) 875-6653

Administrative Section

* Comprised of several support specialists and contract data entry operators. Receives and dis-
tributes all office correspondence.

* Processes license applications and other requests for approval upon receipt.
Handles cases through various stages of processing including: assigning case number and ac-
tion officer, data entry, preparation for interagency staffing, receipt and distribution of
interagency comments, and final distribution of cases.

Journice Fleming Chief of Section 875-6644

Defense Trade News, Volume 3, Number 4, October 1992 Page 29



Reporting Export Control Violations

The Office of Defense Trade Controls (DTC)
works closely with U.S. Customs in the inves-
tigation of export control diversions and other
violations of the Arms Export Control Act
(AECA). Individuals having knowledge of
violations of the AECA are encouraged to call
DTC at (703) 875-5650 and report them. All
allegations will be carefully reviewed and
appropriate follow-up action will be taken.
This number is staffed Monday through Fri-
day during the hours of 9am to 4pm. At
other times, information can be left on the
answering machine tape. Callers are asked to
leave a name and contact number in the event
DTC or Customs must obtain additional in-
formation. Information provided will be held
in the strictest confidence.

During the past 10 years, the U.S. Customs
Service has successfully seized over $870 mil-
lion in illegal exports at our ports and borders
and has arrested over 1,800 defendants.
Many of the significant cases were accom-
plished with information and assistance pro-
vided by private industry. Suspicious activi-
ties involving possible violations of export
laws should be reported to your local U.S.
Customs Office or to the U.S. Customs Law

Enforcement Coordinator at DTC (Tom Smith
at (703) 875-7049). All information provided
to Customs in connection with suspected vio-
lations will remain confidential. Suspected
violations of the Arms Export Control Act can
also be reported to DTC at (803) 875-5650

Defense Trade News Available in
Electronic Form

Defense Trade News is now electronically avail-
able to the general public. Beginning with the
January 1992 issue (Volume 3, Number 1),
Defense Trade News is available to subscribers
of the Computer Information Delivery Service
(CIDS). For subscription information, contact
the CIDS Message Center at (703) 802-5070
(specify State Department) or write to: CIDS—
State Department, Martin Marietta Corpora-
tion, 4795 Meadow Wood Lane, Chantilly, VA
22021.

DTC Registrant Code Can Have More
Digits

In the article on registration in our July issue
(Volume 3, Number 3, July 1992, page 13)
reference was made to the final four digits of
the PM/DTC Company Code as the identifi-
cation of the registrant. While most registra-
tion codes have a hyphen and four digits (e.g.,
1292-4321), the number of registrants has
made it necessary to issue five digit codes to
some newly-registered firms. These PM/
DTC Company Codes do not have a dash
separating the expiration date and company
identification (e.g., 129254321). The first four
digits of the code will continue to identify the
month and year of expiration of registration, ,
while the remaining digits will identify the
specific registrant. #

Defense Trade News, Volume 3, Number 4, October 1992

Page 23





Commodity Jurisdiction
Determinations

The following chart provides selected Commodity Juris-
diction (CJ) determinations. The commodity descrip-
tions are intentionally general to ensure the confidential-
ity of all proprietary information related to the indi-
vidual cases. These determinations apply only to the

specific commodity reviewed in the CJ process. If you believe one of your products is similar to
one of those listed as having been placed on the Commerce Department’s Commerce Control List
(CCL), please submit a CJ request letter (ITAR) § 120.5. Refer to the articles “Guidelines for Prepar-
ing CJs” and “Expedited CJ’s For Mass Market Software” in this issue, and “Class and Multiple CJ
Requests” in Vol. 3, No. 1, January 1992, for guidance in preparing the CJ request letter.

COMMODITY JURISDICTION,
Air Conditioners, Shipboard CCL 8A94F
Air Vehicle, Specifically Designed

for Surveillance and Reconnaissance USML VIII (a)

Battery Charger, not Specifically Designed

for Military Use CCL9A96G
Broaching Machine CCL 2B18A
Building Access Control! Equipment ccLs
Cargo Trucks
With the Ability to
Mount a Weapons Kit USML VII (d)
Modified to Remove the Ability to
Mount a Weapons Kit CCL9A18A,
Cargo Hook for Use on Helicopters CCL 9A4F
Cellular Telephone System CCLSAIA
Commercial Imaging System,
Employing a Military Gen Il Image
Intensification Tube USML XII (e)

Computer, Ruggedized for Industrial Use ccLTM

Control Display Specifically Designed
for Military Helicopters USML VIII ()

Copy Protection Software Program cc”
Cryptographic Components for

Implementation of the DES Algorithm USML XIII (b)
Disk Drives Designed or Modified for USML XI (e) &
Military or Space Application USML VIII ()
Not Designed or Modified for
Military or Space Application CCL4A96G
Drilling Probe CCL 7A23B

Electrical Power Generating Systems
Specifically Designed for Military Aircraft USML VIII G)

Electronic Mail Program CCLS5DI3A
Emission Microscope Containing a Gen II

Image Intensification Tube USML XII (e)
Engine Monitors Programmed for

‘Commercially Certified Engines CCL9AME

Programmed for Military Engines USML VIII ()

COMMODITY JURISDICTION
Explosives, RDX and PETN Based USML V (a)
GPS Receiver, Capable of Receiving

only C/A Navigation Code CCL 7A94F

High Temperature Superconductivity Technology CCL 3E01A

Liquid Hydroxyterminated Polybutadiene
(HTPB), Not Meeting Parameters for

USML Control CCL 1031B
Logarithmic Video Amplifier Integrated Circuit USML XI (d)
Mass Data Storage System CCL 4A96G
Military Fuel Thickener USML V (b)

Modular Avionics Systems Designed for
‘Commercial Aircraft ccLTM
Designed for Military Tanker/

Transport Aircraft USML XI (a)(2)

Munitions Demilitarization Equipment &
Related Technical Data USML XXI

Photovoltaic (Solar) Cells Specifically

Designed for Space Application USML VII ()
Printer, Ruggedized for Industrial Use CCL 4A96G
Protective Helmet, not Specifically

Designed for Military Use CCL 0A18A
Quartz Filters and Discriminators, Designed .

or Modified for Military Application USML XI (e)
Radiation Hardened Microelectronic Integrated

Circuit, Designed for Use in Space USML XI (c)(3)
Radiation Hardened Equipment for Use in

Space Applications USML VIII)
Random Password Generator CCLSALIA
Rate of Fire Recorder & Components

Specifically designed for Use with Small

Calibre Weapons USML XII (a) & (0)
Reversible Hydraulic Motor Pump CCL 9A94F
Satellite Television Receivers Employing

Digital Decryption Capability not

Limited to Audio, Video, or Management

Functions USML XIII (b)(1)

Page 18

Defense Trade News, Volume 3, Number 4, October 1992



Ls

Guidelines for Preparing CJs

Outline for Commodity Jurisdiction Requests

The purpose of a commodity jurisdiction (CJ)
request is to determine whether an item re-
quires a Department of State license to export.
A company in doubt about the jurisdiction of
an item should request a CJ determination.
CJ requests can also be used to ask that an
item be moved from State Department to
Commerce Department jurisdiction. Anyone
can request a CJ determination on any item,
but it should be kept in mind that this will
only identify the proper licensing authority,
and is not a license or approval to export an
item.

The CJ Process. Requests for CJ determina-
tions should be submitted to the Office of
Defense Trade Controls (DTC) in the form of
a letter along with supporting documents
identifying the item to be reviewed. Once
received by DTC, each CJ is assigned a case
number, and copies are forwarded to other
interested U.S. Government agencies for re-
view and comment. Nine complete sets of the
CJ (letter and attachments) should be sent to
DTC to avoid delay in the interagency coordi-
nation process. Upon receipt of other agency
recommendations, DTC makes a jurisdic-
tional determination which is then provided
to the requestor in writing.

Preparing the CJ Package. Use the following
guidelines in preparing the CJ letter and sup-
porting documentation. Prepare all corre-
spondence on company letterhead.

¢ Subject Line. On the subject line, identify
the letter as a “Commodity Jurisdiction Re-
quest for (item or items).” Be as specific as
possible when identifying an item. Give a
complete description, including the manufac-
turer, the model and/or part number, in addi-
tion to the name of the item. If a previous CJ
is being appealed, provide the previous CJ
case number.

° Description. State what the item is, what
it is a component of, what it does, how it

works, and any other information that de-
scribes the item.

* Origin of Commodity. State what the
item was originally designed for and/or why
the item was created. Identify whether the
item was designed specifically for military
use, for commercial use, or for both military
and commercial use. Give examples to sup-
port the claim. If the item was developed for
aU.S. Government agency or with U.S. Gov-
ernment funding, please state so and identify
the agency. It is also helpful in this section of
the letter to provide a brief product history.

* Current Use. Describe all current uses for
the item, and state whether or not uses have
changed significantly over time. Indicate
only what an item “is used for,” rather than
what it “can be used for.” Identify whether
most of the product market is military or
commercial.

© Special Characteristics. Describe any
military standards or specifications that the
item is designed to meet. Describe in detail
any special characteristics of the item, such as
radiation-hardening, hard points, TEMPEST
capability, intelligence gathering capability,
etc. If the item uses image intensification
tubes, give the level of technology (e. g. , Gen
Il, Gen III, etc.). If the item uses encryption
algorithms, state what the encryption is for
and describe the algorithm. Check with the
CJ staff before submitting CJ requests for
mass market software containing encryption.
© Other Information. In this section, pro-
vide any other information that would be
helpful in making a jurisdictional determina-
tion. If the applicant believes that an item
should fall under a particular jurisdiction, this
is the place to make the case. Name the rec-
ommended agency (State or Commerce), the
US. Munitions List Category or ECCN num-
ber, and the reasons for the recommendation.
© Attachments. Include brochures, specifi-
cation sheets, marketing literature, technical
data, or any other document that will assist
the government in making a determination.

Page 10

Defense Trade News, Volume 3, Number 4, October 1992



Vessel Name Ship Type DWT Call Sign Owner

DUMP BARGE II Sve 1,330 J8IZ Whale Shipping Ltd., c/o State Org. of
Iraqi Ports (flag: Gibraltar)

DUMP BARGE III Sve 1,330 J8JA Whale Shipping Ltd., c/o State Org. of
Iraqi Ports (flag: Gibraltar)

FIRE BOAT No. 705 Sve N/A N/A State Org. of Lraqi Ports

FIRE BOAT No. 706 = Sve N/A N/A State Org. of Iraqi Ports

FOREL Fsh 1,163 HNFL Rafidain Fisheries Co. Ltd., Basrah, Iraq

FURAT Tug 350 HNFT State Org. of Iraqi Ports

GAZA Sve 2,422 YIGZ State Org. of Iraqi Ports

HAMDAN Tug 387 YIHM State Org. of Iraqi Ports

HEET Tug 89 N/A State Org. of Iraqi Ports

HILLAH Sve 6,709 YIAR State Org. of Iraqi Ports

HIMREEN Sve 508 YIHN State Org. of Iraqi Ports

HITTIN Thr 155,210 HNHT Iraqi Oil Tankers Company

IBN KHALDOON Sve 12,670 HNIN State Org. of Iraqi Ports

IBN MAJID 6 Sve N/A N/A Iraqi State Company for Oil Projects (flag:
Saudi Arabia)

IMHEJRAN Tug 386 YIMH State Org. of Iraqi Ports

JABHA Tug 244 YA State Org. of Iraqi Ports

JAMBUR Tkr 35,338 HNJM Iraqi Oil Tankers Company

JAMHORIA Tug 368 YR State Org. of Iraqi Ports

KEFAL Fsh 1,170 HNKL Rafidain Fisheries Co. Ltd.

KERBALA Svc N/A N/A State Org. of Iraqi Ports

KHALID IBIN AL

WALEED Sve 2,235 YIBM State Org. of Iraqi Ports
KHANAQIN Tkr 35,338 HNKQ Iraqi Oil Tankers Company
KHAWLA BINT
AL ZAWRA RO/RO- 3,985 HNKH Iraqi State Enterprise for Water Trans-

port

KIRKUK Tkr 35,338 HNKK Iraqi Oil Tankers Company

MANDALI Sve 6,977 YIQS State Org. of Iraqi Ports. Formerly the
ALKADISIYAH.

MAYSALOON Tug 368 YIMY State Org. of Iraqi Ports

MEASAN Tug 310 YIMN State Org. of Iraqi Ports

METHAQ Tug 248 YIMQ State Org. of Iraqi Ports

MOON LADY RO/RO 3,985 HNNZ Pandora Shipping Co.,S.A., Honduras. -
Managed by Petra Navigation & Interna-
tional Trading Co. Ltd., Amman, Jordan.
Formerly the Iraqi-owned AL-ZAHRAA.
(flag: Honduras)

NAGROOR Fsh 140 N/A Government of the Republic of Iraq, Min-
istry of Agriculture & Agrarian Reform,
State Fisheries Company, Baghdad, Iraq

NAINAWA Tug 310 YINW State Org. of Iraqi Ports

NISR Svc 744 YISR State Org. of Iraqi Ports

NO. 1 Sve 30 N/A State Org. of Iraqi Ports

NO. 2 Sve 30 N/A State Org. of Iraqi Ports

NUWAIBI Fsh 140 N/A Iraqi State Fisheries Co.


This publication is designed as an unofficial reference tool listing “Specially Designated Ves-
sels,” i.e., Vessels in which the Government of Iraq and/or Specially Designated Nationals of Iraq
have an interest to assist the public in complying with the various programs administered by the
Office of Foreign Assets Control. A list of vessels in which Cuba or Vietnam have an interest was
published separately (Defense Trade News, July 1992). These lists are not intended as a substitute for
official listings published in the Federal Register. New Federal Register notices with regard to Spe-
cially Designated Vessels of any sanctioned government may be published at any time. Users are
advised to check the Federal Register routinely for additional names or other changes to these lists.
Current information with regard to these lists may be obtained by calling the Office of Foreign As-
sets Control.

WARNING: Vessels identified on these lists are blocked property in which a sanctioned govern-
ment has an interest and are subject to all the prohibitions applicable to that sanctioned govern-
ment. This means that the vessels cannot be used in any manner by U.S. persons and that the ves-
sels will be taken into custody if they enter U.S. waters.

EDITOR'S NOTE: This is the third and last of a series of tear-out sections referencing the Specially Desig-
nated Nationals (SDN’s) and Prohibited Vessels.

For further information contact the:
OFFICE OF FOREIGN ASSETS CONTROL
U.S. Department of the Treasury

1500 Pennsylvania Avenue NW
Washington, D.C. 20220

Phone: (202) 622~2420
Data Fax: (202) 622-1657


eS

Approval for the export of items related to
chemical and biological warfare (CBW) will
be strictly limited to protective articles, such
as individual chemical agent detectors.

Full review will continue for

¢ allitems controlled by non-proliferation
regimes,

¢ all lethal USML items, and

* forall USML items going to military,
paramilitary, or security organizations.

Export licenses or other approvals relating to
significant military equipment, either as a
complete weapon or weapons system, will be
reviewed using the following criteria.

* Does it introduce new military capabilities
into the region?

* Does it contribute to a regional arms race?
* Does it maintain a preexisting defensive
capability?

For updates or additional information, con-
tact:

Office of Defense Trade Policy
PM/DTP, Room 7815
Washington, D.C. 20520-7815
Phone: (202) 647-4231

Fax: (202) 647-4232

Yugoslavia Embargo
UN and U.S. Sanctions Continue

Following the outbreak of hostilities in the
former Yugoslavian republic, the United
States, along with its European allies, im-
posed a general arms embargo in an effort to

curtail the level of violence inflicted upon the
Yugoslavian population. Shortly afterwards,
the United Nations Security Council also sup-
ported an arms embargo aimed at suppress-
ing long-term conflict. The Security Council
imposed stringent economic and political
sanctions against Serbia and

Montenegro for their involvement

HUNGARY

Luka Tuzlae
BOSNIA AND

HERZEGOVINA
Sarajevo ®

sKragujevac
Serbia’

{international boundary
Republic boundary

* National capital

© Republic or other capital

ROMANIA

in perpetuating the conflict. The
provisions and requirements of
both the U.S. and UN arms embar-
goes remain in effect.

U.S. Actions. The U.S. embargo
began on July 11, 1991, for all of the
former Yugoslavia. It remains in
effect until further notice. The pro-
visions of the U.S. embargo are indi-
cated below.

The U.S. suspended all licenses for
export of items covered by the U.S.
Munitions List (USML), Section

121.1 of the International Traffic in

entity has not bean formally recognized as a stale by the United Siate:

a8 a state by the United States,

Names and boundary representation
are not necessarily authoritative,

* Serbia and Montenegro have assed the formation of ajo independent stato, bt tis

+ Macedonia nas deciared independent statehood, but has no! been formally recognized

2077 11-92 STATE (INAIGE}

Arms Regulations (ITAR).

* The embargo includes spares
and repair parts.

Defense Trade News, Volume 3, Number 4, October 1992

Page 7



Trade with Former Eastern Bloc Countries

Policy on Arms Exports to Former Soviet Union & Warsaw Pact

Historically, the United States maintained a
general policy of denial of licenses for export
of U.S. Munitions List (USML) items to coun-
tries on the “Prohibited List,” Section 126.1 of
the International Traffic in Arms Regulations
(ITAR). The former Soviet Union and mem-
bers of the Warsaw Pact organization have
been on this list. On July 12, 1991, the Depart-
ment approved the removal of Hungary, Po-
land, and Czechoslovakia from the list.

Remaining on the list at this time are Albania,
Bulgaria, Cambodia, Cuba, Estonia, Latvia,
Lithuania, North Korea, Mongolia, Romania,
the Soviet Union, and Vietnam. The prohibi-
tions that applied to the Soviet Union remain
applicable to the 12 newly independent re-
publics of Armenia, Azerbaijan, Belarus,
Georgia, Kazakhstan, Kyrgyzstan, Moldova,
Russia, Tajikistan, Turkmenistan, Ukraine,
and Uzbekistan. The general policy of denial
of export licenses for USML items will remain
in effect for countries still on the list. The pos-
sibility exists, however, for waiver of the de-
nial and approving an export on an excep-
tional basis.

Removing a country from the prohibited list
lifts the general presumption of denial of li-
censes for direct commercial sales of defense
articles and services to that country. No
country is eligible for government-to-govern-
ment sales (FMS), however, until a Presiden-
tial determination of eligibility is made under
Section 53 of the Foreign Assistance Act of
1961, as amended, and Section 3(a)(1) of the
Arms Export Control Act, as amended. To
date, such determinations have been made
only for Hungary, Poland, and Czechoslova-
kia.

Lifting the prohibition against direct commer-
cial sales to a country allows U.S. companies
to sell defense articles and provide defense
services and to utilize companies in that
country to do subcontract and joint venture

work, subject to license or other approval by
the Office of Defense Trade Controls (DTC),
and COCOM approval where necessary, on a
case-by-case basis. In conjunction with the
decision to remove Hungary, Poland, and
Czechoslovakia from the prohibited destina-
tions list, interim policy guidance was pre-
pared to clarify exactly which USML items
could be exported. This guidance will be
valid for the transfer of items under the FMS
program as well, whenever determinations of
FMS eligibility are made.

The following is the policy which applies to
defense trade, commercial, and government-
to-government, with those countries already
removed from the prohibited list, and to addi-
tional countries as they are removed.

The proposed export of technology, parts, or
components that represent an upgrade or
modernization of existing military systems
will be evaluated in light of arms control, pro-
liferation, regional stability, and technology
transfer concerns.

In considering export licenses and other re-
lated requests, especially requests for reexport
authority, particular regard will be given to
the recipient country’s progress in imple-
menting defense export control policies and
procedures consistent with U.S. accountabil-
ity requirements.

COCOM obligations and procedures, where
applicable, will continue to apply.

Priority will be given to exports for end use in
civilian applications having public health or
public safety aspects.

Export of Missile Technology Control Regime
(MTCR) Category 1 commodities will not be
approved. Category 2 exports will be consid-
ered on a case-by-case basis, with appropriate
end use assurances required for any ap-
proved transfer.

Page 6

Defense Trade News, Volume 3, Number 4, October 1992



COMMODITY JURISDICTION
Sealant, Used in Aircraft Fuel Tanks ccL
Signal Analysis System,

Without TEMPEST Library CCL 4A03A,
With TEMPEST Library USML XI (b)
Silicone Brake Fluid ccL**

Software Specifically Designed for Military

Data Collection and Analysis USML XVIII
Software, using Encryption for Authentication,

Virus Protection ccL
Software for Password Decryption USML XIII (b)
Software Designed for Geographic Data

Collection and Analysis ccL
Software, Employing Encryption for User

Authentication cc
Software using Data Encryption Standard (DES)

to Encrypt Files USML XIII (b)

COMMODITY JURISDICTION

Software Designed to Analyze and Integrate

Battlefield Intelligence USML XII (a)
Sonar Image Processing System CCL 6A94F
Space Rover, not Space Qualified CCL 9A96G
Switched Filter Banks CCL 3A96G
Synthesizers, not Specifically Designed

for Military Use CCL 3A93F
Tactical Airborne Navigation System

Designed for Military Use USML XI (a)(2)
Technical Data on Small Calibre Weapons USML I é II
Test Sets Specifically Designed to Test Military

Meteorological Equipment USML XI (e)
Time Management Software CCL5DI3A
Tomography Equipment CCL 9B07A

Related Technical Data CCL 9E03A
Trichloroacetonitrile USML XIV (a)

** A specific Export Commodity Classification Number (ECCN) was not provided by the Department of Commerce. For the ECCN
number, please file a commodity classification request with the Bureau of Export Administration (BXA), Department of Commerce,

P.O. Box 273, Washington, DC 20044.

Personnel Updates

Brian McCleary recently completed his as-
signment to the Bureau of Politico- Military
Affairs, where he served as Deputy Director
of the Office of Defense Trade Policy (DTP)

and as Executive Editor of Defense Trade News.

Following a temporary assignment to the
Commerce Department’s Bureau of Export
Administration (BXA), he returned to the
State Department as Advisor to the Deputy
Secretary, with responsibilities for policy and
resource issues.

Defense Trade News, Volume 3, Number 4, October 1992

Page 19



ne meal

Identifying High-Risk Exports

Standards for Industry Screening of Potential Exports

Applicants must ascertain the specific end-user
and end-use prior to submitting an export ap-
plication to the Office of Defense Trade Con-
trols (DTC). Exporters must also ascertain the
specific end-user and end-use prior to claiming
an exemption under the International Traffic in
Arms Regulations (ITAR, 22C.F.R. §123.9).

To aid applicants and exporters in performing,
this duty, DTC developed standards to use
when analyzing a proposed export transaction
in order to identify a high-risk export. If a pro-
posed transaction appears risky, the applicant
or exporter should be especially cautious and
exert every effort to verify the information pre-
sented on end-user and end-use. The following
“Standards for Identifying High-Risk Exports”
appeared as Public Notice 1081 in the Federal
Register on September 26, 1988 (See 53 Fed.
Reg. 37382).

1. Requested equipment does not match
known requirements or inventory of the foreign
end-user.

2. Requests for spare parts are in excess of
projected needs or are for systems not in the
foreign end-user’s inventory.

3. There is a private intermediary in the pro-
posed export, particularly in sales involving
major weapon systems.

4. Customer or purchasing agent is reluctant
to provide foreign end-use or foreign end-user
information.

5. Performance/design requirements are in-
compatible with the foreign end-user’s re-
sources or environment, or with the foreign
consignee’s line of business.

6. Stated end-use is incompatible with the cus-
tomary or known applications for the equip-
ment being purchased.

7. Stated end-use is incompatible with the for-
eign consignee’s line of business.

8. Stated end-use is incompatible with the
technical capability of the foreign consignee or
end-user.

9. Customer is willing to pay cash for a large
value item or order.

10. Little or no customer business background
information is available.

11. Apparent lack of customer familiarity with
the commodity’s performance/design charac-
teristics or uses.

12. Customer/ purchasing agent refuses instal-
lation or service contracts that are normally
accepted in similar transactions.

13. Vague delivery dates or delivery locations
that are inconsistent with the type of commod-
ity or established practices.

14. Freight forwarders are designated as for-
eign consignees or foreign end-users.

15. Use of foreign intermediate consignee(s)
whose location /business is incompatible with
purported foreign end-user’s nature of business
or location.

16. Packaging or packing inconsistent with
shipping mode and/or destination.

17. Suspect or inadequate information is avail-

able on foreign intermediate consignee or for-
eign end-user.

18. Evasive responses to questions regarding
any of the foregoing, as well as whether equip-
ment is for domestic use, export or reexport. #

Defense Trade News, Volume 3, Number 4, October 1992

Page 9



Cl

All About Contacting DTC

Principal Sections and Phone Numbers of the Office of Defense Trade Controls

One of the main goals of the Office of Defense
Trade Controls (DTC) is easy information
access for industry, from the status of a li-
cense application to the latest policy on ex-
ports to a particular country. The following
general information, office functional descrip-
tions, and directory (which contains names,
phone numbers, and, where relevant, duty
assignments and initials for DTC personnel)
will enhance industry access to essential in-
formation.

Office and Telephone Hours. DTC’s office
hours are 8:15 am to 5 pm, Monday through
Friday (excluding Federal holidays). Because
of the volume of incoming license applica-

Office of the Director

tions and other paperwork, however, DTC
requests that licensing officers not be called
until after 11 am. Licensing officers should
also not be called to obtain license status in-
formation. This information can be obtained
automatically through ALISS (from a Touch-
Tone phone), or ROBB (via computer). You
can also contact the License Status Staff dur-
ing the hours of 9 am to 12 noon and 2 to 5
pm. Eastern Standard Time, Monday through
Friday. DTC receives a large volume of calls
each day, so callers are asked to be patient.
Mail and facsimile queries might also be con-
sidered for requests that are not urgent or
time sensitive.

Name Position Phone
Area Code (703)
William B. Robinson Director 875-7050
Charles A. Ray Special Assistant to the Director 875-5664
Sandra Glenn Office Administrator 875-7050
Michael T. Dixon Deputy Director 875-6625
Rose H. Biancaniello Acting Deputy Director 875-6618
MAJ Marsha Finley Managing Editor, Defense Trade News 875-5660

Arms Licensing Division

* Reviews and takes final action on all license applications or other requests for authority regard-
ing the export and temporary import of defense articles and defense services.

© Coordinates interagency review of applications and other requests in the staffing process.

¢ Reviews, coordinates and takes final action on commodity jurisdiction cases.

* Provides license status information.

Rose H. Biancaniello

Myrna McKee Secretary

Division Chief

875-6618
875-6643

Defense Trade News, Volume 3, Number 4, October 1992

Page 25



United States Department of State ° Bureau of Politico-Military Affairs

Defense Trade News

The Bulletin of the Center for Defense Trade

ic

Volume.3, Number 4 . Washington, D.C. ° October 1992

Features

Defense Trade Advisory Group
Government-Private Sector Partnership in Action

Partnership of Concerns

DTAG Chairman Discusses Government-Private Sector Cooperation
DTAG Leadership

Stewards of the Working Groups

3
4a
5
Trade with Former Eastern Bloc Countries 6
7
9
0

Policy on Arms Exports to Former Soviet Union & Warsaw Pact

Yugoslavia Embargo
UN and U.S. Sanctions Continue

Identifying High-Risk Exports
Standards for Industry Screening of Potential Exports

Guidelines for Preparing CJs 1
Outline for Commodity Jurisdiction Requests

Expedited CJs For Mass Market Software 1 1
New Procedures Speed Jurisdictional Transfer for Software with Encryption Groups

Departments

U.S. Customs at DTC 16
Commodity Jurisdiction Determinations 18
Personnel Updates 19
Tips and Tidbits 23
ELISA Update 24
All About Contacting DTC 25
Principal Sections and Phone Numbers of the Office of Defense Trade Controls

Publications for Exporters - List of Iraqi Vessels 31

Written and Edited by the Center for Defense Trade


¢ Requests for review of products which
meet the criteria listed in paragraphs 1 and 2
will be processed within 7 working days of
receipt of a properly completed request.

© Those requests for products which meet
only the criteria in paragraph 1 will be pro-
cessed within 15 days or the requestor will be
notified to provide additional information
within 15 working days. When additional
information is requested, the request will be
processed within 15 working days of the re-
ceipt of the requested information..

* Products that do not meet the listed crite-
ria are not eligible for expedited handling and
will be processed using the normal CJ proce-
dures as described in 22 C.F.R. §120.5.

Applicants who want an expedited CJ on an
entire product line must submit separate CJ
requests for each product. A mass market
software commodity that runs on multiple
operating systems, however, can be submit-
ted as a single CJ request.

Seven-Day Cases. The following procedures
must be used in the preparation and submis-
sion of CJ requests eligible for 7-day handling.

a. If the software product meets the criteria in
paragraphs 1 and 2 (see box on page 13), the
applicant must call the Office of Defense
Trade Controls (DTC) to obtain “Supplemen-
tal Form For Mass Market Software Expedited
Review” which contains a test vector. The
test vector must be used in the CJ review pro-
cess to confirm that the software has properly
implemented the approved encryption
algorithm(s). Points of contact at DTC are
Major Gary Oncale at (703) 875-5655 or Chris
Elder at (703) 875-7041.

b. Upon receipt of the test vector, the appli-
cant must encrypt the test plain text input
provided using the commodity’s encryption
routine (RC2 and/or RC4) with the given key
value. Do not preprocess the test vector by
any compression or any other routine that
changes its format. Place the resultant test
cipher text output in hexadecimal format on
the “Supplemental Form For Mass Market

Software Expedited Review,” and submit the
form with the CJ request.

c. The following information must be pro-
vided in the CJ request letter.

¢ The subject line must state “Mass Market
Software with Encryption — 7 Day Expedited
Review Requested.”

¢ State the name of the software product
being submitted for review. Remember that a
separate CJ request must be submitted for
each product.

¢ In the body of the letter, state that you
have reviewed the software which is the sub-
ject of the CJ request, and determined that it
meets the criteria of paragraphs 1 and 2 of the
“Criteria For Determining Eligibility of A
Mass Market Software Product For Expedited
Handling.”

¢ State how the software has been written to
preclude user modification of the encryption
algorithm, key management mechanism, and
key space.

Provide the following information on the
software product:

« Whether the software uses the RC2
and/or the RC4 algorithm and how the
algorithm(s) is(are) used. If both of these al-
gorithms are used in the same product, also
state how the functionality of each is sepa-
rated to assure that no data is operated on by
both algorithms.

¢ Preprocessing information on plain
text data before encryption (e.g., the addition
of header information or compression of the
data).

* Postprocessing information on cipher
text data after encryption (e.g., the addition of
clear text header information or packetization
of the encrypted data).

* Whether or not a public key algorithm
or a symmetric key algorithm is used to en-
crypt keys and the applicable key space.

Additional Information on Source Code Re-
quests. A CJ request to transfer the source
code of a mass market software product that
meets the criteria listed in paragraphs 1 and 2
must also:

continued on page 14

Page 12

Defense Trade News, Volume 3, Number 4, October 1992



Getting Your Request to DTC. When send-
ing your CJ request to DTC, be careful to ad-
dress it correctly in order to avoid delays. If
sending it through the U.S. Postal Service
system (other than Express Mail), use the fol-
lowing address:

Office of Defense Trade Controls
PM/DTC, SA-6, Room 200

U.S. Department of State
Washington, D. C. 20522-0602

If you send your request by a courier service
such as UPS, Federal Express, or Express
Mail, address it as follows:

Office of Defense Trade Controls
PM/DTC, SA-6, Room 200

U.S. Department of State

1701 N. Fort Myer Drive
Arlington, VA 22209-3113

What Happens Next? DTC will normally
process a CJ case in approximately 45 days.
This includes the time needed to resolve con-
flicting interagency views and to complete the
internal review process. Processing time,
however, will vary depending upon the com-
plexity of the case (e. g. , need for additional
interagency coordination, additional reviews,
etc.) You will be advised when the process-
ing time required is in excess of 45 days.

CJ Case Status. Status of cases may be ob-
tained by calling the CJ staff at (703) 875-5655
or 875-7041. Upon receipt at DTC, a CJ re-
quest is assigned a case number and entered
into the DTC data banks before being for-
warded to the CJ staff. After 7 to 10 days,
applicants should call the C] staff to obtain
the case number. With this number, status of
the request can be obtained by calling the
automated license status line, ALISS at (703)
875-7374. Applicants who subscribe to the
Remote On-Line Bulletin Board (ROBB), can
obtain status information via computer on
(703) 875-6650.

Requests for Reconsideration. If an appli-
cant disagrees with a DTC determination in a
case, or if it is believed that changes in export
regulations cause a transfer of jurisdiction, a
request for reconsideration can be submitted.
The format for a request for reconsideration is
identical to an original CJ request. The case
number and title of the CJ to be reconsidered
should be given in the subject line. In the
body of the request for reconsideration, spe-
cific and detailed reasons for the submission
should be given along with appropriate justi-
fication and any other relevant information.

Points of Contact. For additional informa-
tion, the points of contact at DTC are Major
Gary Oncale (703)875-5655) and Christopher
Elder ((703) 875-7041). They can also be con-
tacted by fax at (703) 875-6647. #

Expedited CJ’s For Mass Market Software

New Procedures Speed Jurisdictional Transfer for Software that Contains Encryption

On April 27, 1992, as a result of public com-
ments on proposed rule changes regarding
cryptographic devices covered by the U.S.
Munitions List (USML), the Department of
State published a revised USML which clari-
fied the cryptographic devices and technical
data that are subject to USML controls. Addi-
tionally, on July 20, the State Department
published an interim final rule that an-
nounced a procedure to allow quicker trans-
fer to the Commerce Department’s Commerce

Control List (CCL) of some mass market soft-
ware products with encryption.

The criteria for determining eligibility of a
mass market software for expedited handling
is outlined in paragraphs 1 and 2 in the box
on page 13. All commodity jurisdiction (CJ)
requests for mass market software products
with encryption will be reviewed using the
criteria given in the checklist in one of the
following manners:

Defense Trade News, Volume 3, Number 4, October 1992

Page 11



Vessel Name ShipType DWT Call Sign Owner
ALEDREESI Cgo 3,550 HNID Iraqi State Enterprise for Water Transport
ALFARABI Cgo 8,342 HNFB Iraqi State Enterprise for Water Transport
ALFARAHIDI Tkr 149,441 HNFR Iraqi Oil Tankers Company
ALFIDAA Brg 1,662 HINFD Iraqi State Enterprise for Water Trans-
port. Formerly the SILOWAT.
ALKHANSAA Cgo 3,525 HNKN Iraqi State Enterprise for Water Transport
ALKINDI Cgo 8,342 HNKI Iraqi State Enterprise for Water Transport
ALMUSTANSIRIYAH Tkr 155,210 HNMS Iraqi Oil Tankers Company
ALMUTANABBI Tkr 130,241 HNMB Iraqi Oil Tankers Company
ALNAJAF Sve 4,740 YINEF State Org. of Iraqi Ports
ALQADISIYAH Tkr 155,210 HNQS Iraqi Oil Tankers Company
ALSUMOOD Sve 6,977 YISD State Org. of Iraqi Ports
ALTAAWIN
ALARABI Cgo 13,634 HNAI Iraqi State Enterprise for Water Transport
ALWAHDA Brg 1,662 HNAD Iraqi State Enterprise for Water Transport
ALWASITTI Cgo 8,343 HNWS Iraqi State Enterprise for Water Transport
ALYARMUK Tkr 149,371 HNYK Iraqi Oil Tankers Company
ALZUBAIR Sve 4,640 YIZR State Org. of Iraqi Ports
AMURIYAH Tkr 155,210 HNAM Iraqi Oil Tankers Company
ANTARA Sve 508 YIBD State Org. of Iraqi Ports
ARBEEL Tug 320 YIBB State Org. of Iraqi Ports
BABA GURGUR Tkr 36,397. HNGR Iraqi Oil Tankers Company
BABYLON Cgo 13,656 HNBB Iraqi State Enterprise for Water Transport
BADR 7 Sve 647 N/A Government of the Republic of Iraq, Min-
istry of Oil, State Company for Oil
Projects, Baghdad, Iraq. (flag: Saudi
Arabia)
BAGHDAD Sve 2,900 YIAD State Org. of Iraqi Ports
BAGHDAD Cgo 13,656 HNBD Iraqi State Enterprise for Water Transport
BALQEES RO/RO 3,985 HNBL State Organization for Iraq Government
BAROON Fsh 6,953 HGHRA (a.k.a. SEABANK (#129) a.k.a. BAHAR
AL ARABI, a.k.a. ALBAHR ALARAH
owned by Baroon Shipping Company, S
Library Ramp, Gibraltar. Last known
registry is Belize.
BASRA Sve 2,906 YIAB State Org. of Iraqi Ports
BASRAH Cgo 13,656 HNBS Iraqi State Enterprise for Water Transport
BUZURGAN Tkr 36,400 HNBR Iraqi Oil Tankers Company
DAMASCUS Tug 149 YIDS State Org. of Iraqi Ports
DAMEN
GORINCHEM 5716 Svc N/A N/A State Org. of Iraqi Ports
DAMEN
GORINCHEM 5717. Svc N/A N/A State Org. of Iraqi Ports
DAMEN
GORINCHEM 5718 Svc N/A N/A State Org. of Iraqi Ports
DEYALA Tug 350 YIBJ State Org. of Iraqi Ports
DIJLAH Tug 356 HNDJ State Org. of Iraqi Ports
DIVING LAUNCH 1 Svc N/A N/A State Org. of Iraqi Ports
DIWANIYA Tug 350 YIBK State Org. of Iraqi Ports
DOCKAN Tkr 528 YIDN State Org. of Iraqi Ports
DUMP BARGE I Sve 1,330 J8ty Whale Shipping Ltd., c/o State Org. of

Iraqi Ports (flag: Gibraltar)


“Specially Designated Vessels”
October 1992

Alphabetical listing of vessels in which the Government of Iraq and/or Specially Designated
Nationals of Iraq have an interest:

Vessel Name Ship Type DWT Call Sign Owner
AIN ZALAH Tkr 36,330 HNAZ Iraqi Oil Tankers Company, Basrah, Iraq
AL ANBAR Tug N/A YIAV Government of the Republic of Iraq.

Managed by the State Organization of
Iraqi Ports, Basrah, Iraq

AL FAO Res 80 YIAN State Org. of Iraqi Ports

AL KARAMAH Tkr 12,882 HNKM Iraqi Oil Tankers Company

AL KHALIDA Tkr 7,155 HNKD Iraqi Oil Tankers Company

AL MANSUR Ycht 1,223 HNMR Iraqi State Enterprise for Water Transport

AL MERBID Sve 4,649 YIMD State Org. of Iraqi Ports

AL MOSUL Sve 1,219 YIAS State Org. of Iraqi Ports

AL NAJAF Svc 4,740 YINF State Org. of Iraqi Ports

AL NASR Sve 2,444 DDRH State Org. of Iraqi Ports

AL NASR Tkr 1,502 HNNR Iraqi Oil Tanker Company

AL OMARAH Tug, 320 YIAW State Org. of Iraqi Ports

AL RAMADI Tug 320 YIAI State Org. of Iraqi Ports

AL RASHEED Svc 304 YIBE State Org. of Iraqi Ports

AL RATBA Tkr 544 YIBA State Org. of Iraqi Ports

AL SHUMOOKH Tug 375 N/A State Org. of Iraqi Ports

AL WALEED Res N/A YIBF State Org. of Iraqi Ports

AL ZAB Tug N/A YIBH State Org. of Iraqi Ports

AL ZAWRAA Cgo 3,549 HNZW Iraqi State Enterprise for Water Trans-
port, Baghdad

AL-ALYAA Tug 375 N/A State Org. of Iraqi Ports

AL-AMIN Tug 368 YIAM State Org. of Iraqi Ports

AL-BAATH Tkr 9,928 HNBT Iraqi Oil Tankers Company

AL-BAKR Res 390 YIBR State Org. of Iraqi Ports

AL-BAYAA Brg 1,662 HNHB Iraqi State Enterprise for Water Trans-
port. Formerly the HIBOOB.

AL-ENTISAR Tug 375 N/A State Org. of Iraqi Ports

AL-HATHER Tug 368 YIHR State Org. of Iraqi Ports

AL-KARRKH Tug 368 YIKH State Org. of Iraqi Ports

AL-KHALIJ AL-ARABI Svc 4,740 YIKA State Org. of Iraqi Ports

AL-NOHOODH Tug 375 YINU State Org. of Iraqi Ports

AL-QADISIYA Ycht 100 HNKS Iraqi State Enterprise for Water Trans-

ort
AL-RESSAFA Tug 368 YIRF State Org. of Iraqi Ports
AL-SAHIL
AL-ARABI Sve 6,396 HNSA Iraqi State Enterprise for Sea Fisheries,

Basrah, Iraq

AL-THIRTHAR Tkr 524 YITH State Org. of Iraqi Ports

AL-WAHDAH Tug 149 YIWH State Org. of Iraqi Ports

ALABID Brg 1,662 HNDB Iraqi State Enterprise for Water Trans-

port. Formerly the SANABUL.


ET

¢ The State Department's Office of Defense
Trade Controls (DTC) is currently returning
without action all applications for licenses
and other approvals for USML items intended
for export to all former Yugoslav republics.

¢ Requests for export of items for civilian
end-use outside the republics of Serbia and
Montenegro are being evaluated on a case-by-
case basis.

The U.S. will not approve government-to-
government sales of defense articles and ser-
vices.

Security assistance under the International
Military Education and Training (IMET) pro-
gram has been suspended.

On May 30, 1992, the President signed Execu-
tive Order 12808, immediately blocking all
property and interest in property in the
United States of the Government of the Social-
ist Federal Republic of Yugoslavia, the Gov-
ernment of the Federal Republic of Yugosla-
via, the Government of Serbia, and the Gov-
ernment of Montenegro. The Executive Order
does not include property belonging to the
republics of Croatia, Slovenia, Bosnia,
Hercegovina, and Macedonia.

On June 5, 1992, the President signed Execu-
tive Order 12810, ordering the United States
to comply with all provisions of UN Security
Resolution 757. This included a broad ban
against any transactions or financial dealings
with the Federal Republic of Yugoslavia
(Serbia and Montenegro).

UN Actions. The UN Security Council
adopted Resolution 757 on May 30, 1992. The
resolution instructs all member states to pre-
vent:

¢ The import or export of all commodities
and products originating in or going to the
Federal Republic of Yugoslavia (Serbia and
Montenegro), not including supplies intended
strictly for medical purposes and foodstuffs;
¢ The Federal Republic of Yugoslavia
(Serbia and Montenegro) or any commercial,
industrial, or public utility within the Federal
Republic of Yugoslavia (Serbia or

Montenegro) acquiring any funds or other
financial or economic resources;

¢ Any aircraft to take off from, land in, or
overfly their territory if it is destined to land
in or take off from the territory of the Federal
Republic of Yugoslavia (Serbia or
Montenegro);

¢ Any dealings with aircraft registered in or
operated on behalf of the Federal Republic of
Yugoslavia (Serbia or Montenegro);

© Scientific and technical cooperation in-
volving persons or groups officially spon-
sored by or representing the Federal Republic
of Yugoslavia (Serbia or Montenegro);

¢ Claims against a person, persons, or com-
pany which has business dealings with the
Federal Republic of Yugoslavia (Serbia or
Montenegro) that were adversely effected by
the embargo.

¢ Resolution 757 will not apply to the
United Nations Protection Force
(UNPROFOR), the Conference on Yugoslavia,
the European Community monitoring mis-
sion, and items in transit through the Federal
Republic of Yugoslavia (Serbia or
Montenegro) in accordance with the UN
Sanction Committee’s guidelines.

UN Resolution 757 affects only Serbia and
Montenegro. Two other resolutions, 713 and
743, apply to all the former Yugoslavian Re-
publics.

* Security Council Resolution 713, adopted
September 25, 1991: under paragraph 6, the
UN Security Council announced its decision
to implement a “general and complete em-
bargo on all deliveries of weapons and mili-
tary equipment to Yugoslavia.” This resolu-
tion remains in force.

* Under Security Council Resolution 743 of
February 21, 1992, the arms embargo does not
apply to UNPROFOR in Yugoslavia.

For further developments, contact:

Office of Defense Trade Policy
PM/DTP, Room 7815
Washington, D.C. 20520-7815
Phone: (202) 647-4231

Fax: (202) 647-4232 #

Page 8

Defense Trade News, Volume 3, Number 4, October 1992



continued from page 17

export paperwork to avoid U.S. Customs de-
tection. He then told the undercover to pro-
cure a phony export license, at a cost
of$50,000, to be on the safe side. Yun was
arrested. Caplan, his confederate, was in-
dicted on two felony counts, and is still at
large in the United Kingdom.

On September 18 1989, Yun was sentenced to
30 months in prison for conspiracy to violate
the Arms Export Control Act.

In his sentencing memorandum to the court,
Assistant United States Attorney Mark S.
Olinsky cited the following chilling fact:
Juwhan Yun would have earned $2.5 million,
at a minimum, for his part in the saccharine
conspiracy—and the shipment of Sarin con-
tained in excess of one billion lethal doses. #

Defense Trade News, Volume 3, Number 4, October 1992



Computer Support Staff

* Maintains U.S. Government database on commercial defense trade.

¢ Provides legislative and executive branches of government with regular reports.

¢ Point of contact for Automated License Status (ALISS) and Remote On-line Bulletin Board
(ROBB).

* Companies wishing to subscribe to ROBB should contact the systems manager.

James DePalma Systems Manager 875-7391
LeRoy L. Mills Computer Operator 875-6645
Randy Watkins Computer Operator 875-6646

Page 30 Defense Trade News, Volume 3, Number 4, October 1992



Partnership of Concerns

DTAG Chairman Discusses Government-Private Sector Cooperation

Editor's note: William Schneider, Jr., chairman of
the Defense Trade Advisory Group (DTAG), ad-
dressed the groups opening meeting on July 10,
1992. The following message, provided exclu-
sively to Defense Trade News, outlines the DTAG
aims and objectives.

The Defense Trade Advisory Group (DTAG)
has been established to support the Depart-
ment of State in carrying out its responsibili-
ties in the area of commercial arms transfers.
Within the context of the Department's obli-
gation to identify U.S. foreign policy and na-
tional security interests to justify specific arms
transfers, the DIAG will provide advice from
individuals with expertise in the policy, regu-
latory, and technical aspects of arms transfer
policy. The DTAG will advise the Depart-
ment of developments in the international
and domestic market which bear on the
implementation of its export promotion and
regulatory mission. Members of the DTAG
are selected on the basis of individual exper-
tise rather than institutional affiliation.

To implement the DTAG advisory mission,
activities will normally take place through
three working groups; policy, regulatory, and
technical. The Department’s decision to es-
tablish the DTAG reflects its recognition of
the role arms transfers play in the implemen-
tation of American foreign policy objectives
abroad, and the strengthening of the defense-
industrial base at home. The DTAG will ad-

vise the Department on constructive ap-
proaches to collaboration in international
arms transfers, and the strengthening of bilat-
eral and multilateral Memoranda of Under-
standing to facilitate successful American
participation in the internationalization of the
defense industry.

The DTAG will assist the Department in
keeping abreast of current trends in the inter-
national defense market affecting its arms
transfer responsibilities in areas such as off-
sets, finance, foreign regulatory practices, and
export promotion activities of other nations
by providing detailed, precise, and opera-
tional recommendations. +

U.S. DEPARTMENT OF STATE

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Page 4 .

Defense Trade News, Volume 3, Number 4, October 1992



Transmitting Requests for Expedited CJ Determinations
Facsimile Transmission DTC Copy of CJ Requests (both 7- and 15-day requests)
To avoid delays, this is the preferred method for sending expedited CJ requests.

CJ requests for either 7- or 15-day processing transmitted via Fax should be sent to (703) 875-5845.
The cover letter should be addressed to Director, Office of Defense Trade Controls, ATTN: Maj

Gary Oncale—{insert 7 or 15) Day CJ Request.

Via Courier or Overnight Mail

A. If the software meets the criteria for
seven- day processing, send one copy to:

US. Department of State

Office of Defense Trade Controls

PM/DTC, SA-6, Room 200

ATTN: Maj Gary Oncale—7-Day CJ Request
1701 N. Fort Myer Drive

Arlington, VA 22209-3113

B. If the software meets the criteria for fif-
teen-day processing, make two copies. Send
the first copy to:

U.S. Department of State

Office of Defense Trade Controls

PM/DTC, SA-6, Room 200

ATTN: Maj Gary Oncale—15-Day CJ Request
1701 N. Fort Myer Drive

Arlington, VA 22209-3113

The second copy must be sent by Express
Mail to:

ATTN: 15 Day CJ Request Coordinator
P.O. Box 246
Annapolis Junction, MD 20701-0011

Defense Trade News, Volume 3, Number 4, October 1992

Page 15



Sarin. And the supervisor of the wiretap
knew well what Sarin was. It was the deadli-
est poison gas ever produced, developed by
the Nazis in the early stages of World War II
and tested upon humans in the death camps
during the Final Solution. Sarin, a non-persis-
tent nerve gas also known as GB, was so effi-
cient that it required no improvement or re-
finement over the years.

That Charles Caplan was interested in Sarin
meant that the Iran-Iraq peace talks were not
going smoothly. The Iranians were interested
in their own Final Solution.

Antidote to genocide. On October 31, 1988,
U.S. Customs special agents “went up” ona
unique wiretap in Newark, New Jersey.

It was the first time in law enforcement his-
tory that any federal agency had intercepted
fax messages, as well as conversations, on a
wiretap.

Not to be confused with telex, fax is the mod-
ern day replacement for business communica-
tion over telephone lines, enabling the con-
versing parties to exchange documents in-
stantaneously.

Whenever Yun, doing business as Komex
International, sent or received a fax message,
the SAC/Newark Strategic Group got a copy
simultaneously. One of the features that
makes fax so popular is security; its unique
digital nature guarantees total privacy-al-
most.

To break that security, Customs imported
experimental equipment from Denmark and
used it on-line in a court-ordered interception
designed around this completely untested
piece of equipment.

From late June 1988 through January 1989, the
Strategic Group also had an undercover agent
interacting with Yun. The undercover, posing
as a munitions supplier, was negotiating with
Yun for Tow missiles, Stinger missiles, classi-
fied U.S. missile technology, radar systems,
and other munitions items for export, unlaw-

fully, to Yun’s clients in Iran and the People’s
Republic of China.

These items, embargoed from export to both
countries, forced Yun to establish a sophisti-
cated code system with the undercover and
the end-users to ease communication and
negotiations. Shortly after the November 23
telephone conversation with Caplan, Yun
asked the U.S. Customs undercover agent if
he could provide Sarin in large quantity for
export, clandestinely, to Iran. The answer
was yes. Yun provided the code word—"“sac-
charine.”

Saccharine. During the following 45 days,
Yun, Caplan, and the Customs undercover
agent negotiated the sale and exportation of
the Sarin. Caplan indicated that the buyer
was interested in the Mark 94, a 500-pound
explosive device containing 108 pounds of
liquid Sarin, designed to be dropped from an
aircraft. Information was also furnished Yun
concerning the Mark 116, another 500-pound
bomb nicknamed “Weteye” because it con-
tained 348 pounds of Sarin. Weteye was un-
doubtedly the most lethal 500-pound package
ever created by man.

On January 9, 1989, Yun traveled to London
to meet Caplan and his principals, concluding
the financial transactions involving the Sarin.
While there, he opened an account at the Ko-
rea First Bank under a fictitious name for the
purpose of wire transferring funds to his
American supplier. On the following day he
returned to the States.

Crank shafts. On January 12, 1989, Yun was,
arrested by special agents as he entered the
Hemisphere Center in Newark. He was
enroute to meet with the supplier of Sarin,
whose office turned out to be that of the Spe-
cial Agent in Charge.

Ina meeting on the previous day, Yun had
stated that Caplan desired 500 Mark 94 and
500 Mark 116 bombs as an “initial order.”
Additionally, he gave the undercover agent
instructions to misdescribe the Sarin as ma-
chinery, specifically “crankshafts,” on the

continued on page 22

Defense Trade News, Volume 3, Number 4, October 1992

Page 17



Defense Trade Advisory Group

Government-Private Sector Partnership in Action

The Department of State established the De-
fense Advisory Group (DTAG) on March 26,
1992. A public notice of the group’s creation
appeared in the Federal Register on April 2.
The first meeting of the group was held on
July 10 in the State Department’s Loy
Henderson Auditorium, and was attended by
approximately 80 people. Observers from
other government agencies, Congressional
offices, and the media also attended. The 45
DTAG members who attended come from
defense firms, academia, and other organiza-
tions.

William Schneider, Jr., President of Interna-
tional Planning Services, chairs the DTAG.
Ambassador James Woolsey of the law firm
Shea & Gardner is Vice-Chair.

Then Assistant Secretary of State for Politico-
Military Affairs Richard A. Clarke opened the
session by explaining why the DTAG was
established and what benefits he hoped would
result from the institution. From its commit-
ment to reduce impediments to legitimate
defense exports, the Department established
the DTAG to allow for regular consultation
with defense trade experts from the private
sector.

Charles A. Duelfer, former Director of the
Center for Defense Trade, briefed the group
on the work of the Center and the Bureau of
Politico-Military Affairs. His talk was fol-
lowed by brief remarks from the chairpersons
of each of the three Working Groups, describ-
ing how they see their individual groups func-
tioning within the overall DTAG framework.

The Policy Working Group, chaired by
Schneider, will focus on broad issues concern-

ing defense trade, technology transfer, and
arms sales. Some of the issues which might
be addressed include EC-92, the NATO Code
of Conduct for Intra-Alliance Defense Trade,
defense conversion, and foreign ownership of
USS. firms.

Under the leadership of Ramona B. Hazera of
Northrop Corporation, the Regulatory Work-
ing Group will advise the Department on
how to improve U.S. regulations and proce-
dures governing defense trade. The Interna-
tional Munitions List (IML) is another topic
for consideration.

John B. Walsh of Boeing Defense & Space
Group will head the Technical Working
Group. This group will address technical
issues related to the U.S. Munitions List. The
Technical Working Group will rotate mem-
bers, based upon the issues before it.

The DTAG encourages broad participation
and welcomes recommendations from all
defense trade representatives, regardless of
whether they are formal DTAG members or
not.

The Center for Defense Trade’s Office of De-
fense Trade Policy (DTP) serves as the DTAG
Secretariat. DIP provides administrative
support for the DTAG, prepares reports of its
proceedings, and maintains all written prod-
ucts resulting from DTAG consultations. Di-
rect questions or comments about the DTAG °
to:

Office of Defense Trade Policy
PM/DTP, Room 7815
Washington, D.C. 20520-7815
Phone: (202) 647-4231

Fax: (202) 647-4232 #

Defense Trade News, Volume 3, Number 4, October 1992

Page 3



A

DEFENSE TRADE NEWS BULK RATE

United States Department of State POSTAGE & FEES PAID

Washington, D.C. 20522-0602 U.S. Department of State |
Permit No. G-130

OFFICIAL BUSINESS ~

PENALTY FOR PRIVATE USE $300

Address Correction Requested

SMON aDe11 aSuUaIaN 3281S 10 JUsUeEdSN *S'N

Z66L 48q0]90

VON ‘€ “10A


Name Position Phone
Area Code (703)

Nora T. Hunter (NTH) Munitions Control Analyst
Companies A thru J for categories reviewed
by Branch.
All DSP-61s and DSP-73s
DSP-5s for spare parts under $500,000
All license amendments
All amendments to Agreements
Companies A, B, H, I (all categories) 875-6637

Carolyn L. Lancaster (CLL) Munitions Control Analyst
Category VIII (fixed wing aircraft)
¢ All DSP-5s (except spare parts under $500,000),
* DSP-85s, GCs, and Distribution Agreements 875-6616

Suzanne M. Palmer (SMP) Munitions Control Analyst
Companies K thru Z, Categories J and II]
¢ All DSP-5s, 85s, GCs, and Distribution
Agreements 875-5657

Kenneth M. Peoples (KMP) Munitions Control Analyst

Category IV (torpedoes, space vehicles),
Category V, Category VIII (spacecraft &
satellites), Category XI (space electronics,
VHSIC, GPS), Category XIE (weapons and
space guidance/control systems), Category
XIV (nuclear radiation detection/measuring
devices), Category XVI (nuclear weapons), all
SDI cases

¢ All DSP-5s (except spare parts under $500,000),

* DSP-85s, GCs, and Distribution Agreements 875-6619

Agreements Section

LCDR L. Paul James (LPJ) Munitions Control Analyst
All Manufacturing License and Technical
Assistance Agreements for Companies
A, B,C, M/Mc 875-7044
Maj. Martin E. Maier (MEM) Munitions Control Analyst
All Manufacturing License and Technical
Assistance Agreements for Companies
D,H,1,J, K,L,N,0,P,Q,T 875-5653
Sue Plant (SAP) Munitions Control Analyst
All Manufacturing License and Technical

Assistance Agreements for Companies
E,F,G,S,U,V, W, W,Y,Z 875-5844

Page 28 _ .. .. _., Defense Trade News, Volume 3, Number 4, October 1992



Secretary of State
Lawrence A. Eagleburger,
Acting

Assistant Secretary
of State for
Politico-Military
Affairs
Robert L. Gallucci

Deputy Assistant
Secretary for
Security Assistance and
Defense Trade
Rand Beers

Executive Editor
Charles A. Ray

Managing Editor
Marsha S. Finley

Production Editor
Philip P. Scho!

Layout Design
Paula M. Lorfano

Graphics Design
Richard E. Florence
Contributing Editors

Commodity Jurisdictions:
Major Gary Oncale

U.S. Customs at DTC:
Thomas R. Smith

Defense Trade News (ISSN 1051~2845) is a quarterly publication (January,
April, July, October) of the Center for Defense Trade, Bureau of Politico-
Military Affairs, U.S. Department of State. Its purpose is to provide the public,
Congress, government agencies, and American industry with information on
defense trade policy, licensing practices, and compliance issues. The newsletter
contents include official policy statements and other official documents. Special
features, articles, and other supportive materials (such as maps, charts, graphs,
tables, and photographs) provide additional information on current issues but
should not necessarily be interpreted as official U.S. policy statements. The
Secretary of State has determined that the publication of this periodical is
necessary in the transaction of public business required by law.

Subscription and Address Changes: Firms registered with the Office of
Defense Trade Controls automatically receive this publication at their registered
address in the name of the registrant in Block 14 of Form DSP-9. Registrants
must notify the Office of Defense Trade Controls in writing, citing the applicant
code, whenever the mailing address changes (ITAR 122.4). Distribution is also
made to all U.S. Customs Regional and District offices and to all Director of
Industrial Security (DIS) cognizant offices. The editorial staff maintains a
separate list for other interested persons and organizations. Contact the Manag-
ing Editor, via mail or datafax, for addition to or address change for the editorial
mailing list.

Copyright: Most of this publication’s contents are in the public domain and are
not copyrighted. Such items may be reprinted; citation of their source as
Defense Trade News is appreciated. Permission to reproduce any copyrighted
material (including photographs) must be obtained from its original source.

Limited Reprint Authorization: All addressees who are registered with the
Office of Defense Trade Controls may reproduce this entire publication (exclud-
ing postal mailing label) for distribution within their respective organizations.
This permission is given to ensure proper distribution throughout companies
with multiple locations or offices and to reduce mailing costs.

Corrections, Contributions, and Correspondence: Address to Editor, Defense
Trade News, PM/DTC, SA-6, Room 200, U.S. Department of State, Washing-
ton, D.C. 20522-0602.

Postmaster: Send address changes to Defense Trade News, PM/DTC, SA-6,
Room 200, U.S. Department of State, Washington, D.C. 20522-0602.

Postage: Third-class postage paid in Washington, D.C. 20522-0602.


Vessel Name Ship Type DWT Call Sign Owner

OHOD 5 Sve N/A N/A Iraqi State Company for Oil Projects (flag:
Saudi Arabia)

OHOD 6 Sve N/A N/A Iraqi State Company for Oil Projects (flag:
Saudi Arabia)

OHOD 7 Sve N/A N/A Iraqi State Company for Oil Projects (flag:
Saudi Arabia)

OROOBA Tug 368 YIOB State Org. of Iraqi Ports

OTORIMARU No.2 — Sve N/A N/A State Org. of Iraqi Ports

PALESTINE Sve 4,649 YIFN State Org. of Iraqi Ports

PILOT 393 Svc N/A N/A State Org. of Iraqi Ports

PILOT 394 Sve N/A N/A State Org. of Iraqi Ports

POLICE 1 Ptrl N/A N/A State Org. of Iraqi Ports

POLICE 2 Perl N/A N/A State Org. of Iraqi Ports

POLICE 3 Perl N/A N/A State Org. of Iraqi Ports

RADHWA 18 Tug N/A N/A Iraqi State Company for Oil Projects

RADHWA 19 Tug N/A N/A Iraqi State Company for Oil Projects

RADHWA 20 Tug N/A N/A Iraqi State Company for Oil Projects
(flag: Saudi Arabia)

ROBIAN Fsh 129 N/A Iraqi State Fisheries Company

RUMAILA Tkr 36,330 HNRM Iraqi Oil Tankers Company

SAIF SAAD Sve 742 N/A State Org. of Lraqi Ports

SAMARRA Fer N/A YIBC State Org. of Iraqi Ports

SANAM Sve 508 YISM. State Org. of Iraqi Ports

SBOOR Fsh 129 HRN2 Iraqi State Fisheries Company

SEABANK Fsh/Cgo 6,953 HQHR4 Trading & Maritime Investments, Hondu-
ras. Managed by Arab Trans Trade Co.
S.A.E., Alexandria, Egypt. Formerly the
Iragi-owned AL-BAHAR AL-ARABI
(flag: Honduras)

SEAMUSIC II Cgo 26,7329 HYH2 Seamusic Shipping Co. Ltd., c/o
Thenamaris Ships Management, Athens,
Greece. Vessel seized by Government of
Iraq. (flag: Malta)

SEBAA NISSAN Tug 368 YISN State Org. of Iraqi Ports

SHABOOT Fsh 1,163 HNLK Rafidain Fisheries Co. Ltd.

SHATT AL BASRAH _ Fsh 404 HNSR Iraqi State Fisheries Company

SHOROOK Sve 403 YISH State Org. of Iraqi Ports

SHU’ ALAH Tug N/A N/A State Org. of Iraqi Ports

SIHAN Tug 387 YISI State Org. of Iraqi Ports

SINAI Sve 1,286 N/A State Org. of Iraqi Ports

SINJAR Sve N/A YIAY State Org. of Iraqi Ports

SKY SEA Cgo 8,334 HNRZ Pandora Shipping Co. S.A., Honduras.
Managed by Petra Navigation & Interna-
tional Trading Co. Ltd., Amman, Jordan.
Formerly the Iraqi-owned ALRAZI.
(flag:Honduras)

SOLNECHNIK Fsh 404 UOJE Iraqi State Fisheries Company

SULAIMANIYAH Sve N/A YIAG State Org. of Iraqi Ports


U.S. Department of the Treasury

Office of Foreign Assets Control

“Specially Designated Vessels”
Vessels in which the Government of Iraq and/or
Specially Designated Nationals of Iraq
have an Interest: lraq

October 1992


Criteria for Determining Eligibility of a
Mass Market Software Product for Expedited Handling

1. Inaccordance with the Note in 22 C.F.R. § 121.1 Category XIII(b)(1), published on July 20,
1992, a mass market software product that meets all the criteria established in this para-
graph will be processed in fifteen working days from receipt of the properly completed CJ
request:

a. The commodity must be mass market software. Mass market software is computer soft-
ware that is available to the public via sales from stock at retail selling points by means
of over-the-counter transactions, mail order transactions, or telephone call transactions.

b. The software must be designed for installation by the user without further substantial
support by the supplier. Substantial support does not include telephone (voice only)
help-line services for installation or basic operation, or basic operation training provided
by the supplier.

c. The software includes encryption for data confidentiality.

2. In accordance with the Note in 22 C.F.R. § 21.1 Category XIII(b)(1), published on July 20,
1992, a mass market software product that meets all the criteria established in this para-
graph will be processed in seven working days from receipt of the properly completed CJ
request:

a. The software meets all the criteria established in paragraphs 1a, 1b, and 1c, above.

b. The data encryption algorithm must be RC4 and/or RC2 with a key space of 40 bits. The
RC4 and RC2 algorithms are proprietary to RSA Data Security, Inc. To ensure that the
subject software is properly licensed and correctly implemented, contact RSA Data Secu-
rity at (415) 595-8782.

c. Ifboth RC4 and RC2 are used in the same software, their functionality must be separate.
That is, no data can be operated upon by both routines.

d. The software must not allow the alteration of the data encryption mechanism and its
associated key spaces by the users or any other program.

e. The key exchange used in data encryption must be:

(i) a public key algorithm with a key space less than or equal to a 512 bit modules and/
or

(ii) a symmetrical algorithm with a key space less than or equal to 64 bits.

f. The software must not allow the alteration of the key management mechanism and its
associated key space by the user or any other program.

Defense Trade News, Volume 3, Number 4, October 1992 . . Page 13



DEPARTMENTS

U.S.
Customs

AU.S. Customs Undercover Case
Involving a Deadly Substance

(Editor's Note: The following article is reprinted
from Volume 24, No. 3 of Customs Today. The
article, by SSA Richard F. Kennan, was titled
“Deadly Nerve Gas.” The U.S. Customs Service
Office of Enforcement, as the lead federal agency
in-export enforcement, utilizes a variety of investi-
gative techniques and undercover “sting” opera-
tions to catch criminals. The following article
recalls the events which lead to the arrest of a sus-
pect who attempted to illegally procure one of the
most deadly items controlled by the International
Traffic in Arms Regulations. (See Tips and Tid-
bits, page 22).

On the morning of November 23, 1988, a sin-
gular telephone call was made from a busi-
ness office in Summit, New Jersey, to London,
England.

Telephone calls are far from unique in them-
selves. It was perhaps one of 10 million made
in the United States that morning. But the
content of this particular call would echo
loudly throughout the world.

For the casual listener, the conversation
would seem innocuous enough: two busi-
nessmen, a product name, request for a quote,
delivery times, et cetera. To the incidental
listener, this was hardly unusual.

The phone call in question was made by a
New Jersey businessman in response to a fax
message received the day before. Eager for

business, Juwhan Yun carefully dialed the
London number and was put through to
Charles Caplan immediately.

The causal listener heard two well acquainted
professionals exchange pleasantries and then
get down to business. Caplan was interested
in a product called Sarin and gave Yun the
chemical name: methy] fluoro-phosphonate
isopropyl. And he wanted 500 units as soon
as possible.

To the casual listener, this might have been a
new toothpaste or cleanser, urgently needed
for the London market. Or a new antibiotic
being ordered by a pharmaceutical house or a
weed-resistant fertilizer or a motor oil addi-
tive.

Yun listened carefully, making notes, asking
for more details and promising instant action.
Sourcing, pricing, and delivery, after all, were
his forte.

The accidental listener in an adjoining office
would not have even raised an eyebrow at the
preceding telephone call. It was the everyday
conversation of two commodity traders work-
ing for percentages and margins, supplying
so many metric tons of this or bushels of that
to the world market.

However, there were listeners, but not unin-
tentional listeners. There were listeners
whose job it was to eavesdrop—not on just
anyone—but on the telephone conversations
of Juwhan Yun. For Yun, a savvy and pros-
perous Korean-American exporter, was the
subject of a federal wiretap concerning his
munitions business. And Charles Caplan was
an international arms diverter, a convicted
felon in the United Kingdom, notorious for
his Iranian and Libyan dealings.

Page 16

Defense Trade News, Volume 3, Number 4, October 1992