To Contact The Center for Defense Trade:

Postal Service Mailing Addresses:

PM/DTC SA-6 Room 228
Office of Defense Trade Controls
Bureau of Politico-Military Affairs
U.S. Department of State

2201 C Street, N.W.

Washington, D.C. 20520-0602

PM/DTP Room 7815

Office of Defense Trade Policy
Burcau of Politico-Military Affairs
U.S. Department of State

2201 C Street, N.W.

Washington, D.C. 20520

Express Mail/Courier Service Delivery
Address:

PM/DTC Room 228

Office of Defense Trade Controls
Bureau of Politico-Mililary Affairs
U.S. Department of State

1701 N. Fort Myer Drive

Arlington, VA 22209

Telephone Numbers:

PM/DTC

General Information: (703) 875-6644

License Status Inquiry: (703) 875-6652

Commodity Jurisdiction Licensing
Team: (703) 875-6644

Registration/Compliance Information:
(703) 875-6650

PM/DTP: (202) 647-4231
Fascimile Numbers:

PM/DTC Licensing: (703) 875-6647
Compliance: (703) 875-5663
PM/DTP — (202) 647-1346

Defense Trade News

Vol. 1 No. 1 March 1990

Published by: Center for Defense Trade
U.S. Department of State

Editor-in-Chief, Richard A. Levy

Associate Editor, Marsha F. Filtrante

4
:



under the control of the Secretary of State. But
second, there is a real need to improve--within
the bounds imposed for sound foreign policy
and national security reasons--the ability of our
defense industry to compete overseas.

Removing unnecessary impediments to
defense trade. It was thus concluded that de-
fense trade must be regulated by foreign policy
decision makers in such a manner so as to avoid
unnecessarily impeding trade.

Specifically, the new team decided that
Congressional and industry complaints about
the understaffing and underfunding of OMC
were entirely legitimate. Furthermore, it was
agreed that the amount of licensing demanded
by the current system exceeded legitimate com-
pliance needs. It was also evident that--given
the growing competitiveness of the global arms
marketand political changes around the world--
the Department needed to be more active on
policy issues related to defense trade.

Clarke forthright in confirmation hearings.
In his confirmation hearings, Clarke presented
the view of the new leadership at the Depart-
ment in response toa question about problems
at OMG, saying:

“The Department of State has consis-
tently underfunded the Office of Muni-
tions Control. That office has two ex-

tremely important functions. First, it
should support U.S. defense trade by
making timely and prudent decisions on
munitions export license applications.
Second, it should protect U.S. defense-
related technology and weapons from
falling into the wrong hands by ensuring
that the export of such items is limited
only to reliable end-users. In carrying
out both functions, OMCisa vital instru-
ment of foreign policy that can be highly
responsive and sometimes subtle.

Thave discussed OMC with the highest
levels of the Departmentona numberof
occasions recently. I have been given
the full support of the Department as a
matter of highest priority to improve the
Support given to OMC. | am assured
that additional personnel and funds will
be made available as required to bring
OMC up to a level of support such that
itcan carry out its important missions ef-
fectively. At the same time, we will be
reducing workload...”

The bottom line: reorganization, resources,

work reduction. The agreed-upon course of
action was to reorganize the defense trade fune-
tion and inject substantial new resources while
undertaking a thorough workload reduction
initiative. Thus was the Center for Defense
Trade created.

Controls Office Expanding

Faster, More Responsive Licensing The Goat

10% growth at the Controls Office. With
the backing of the State Department leader-
ship, the new Center for Detense Trade re-
ceived a commitment of significant new re-
Sources ata time of major budgetcuthacks. The
lion’s share of these new resources is going to
the Controls Office.

Defense Trade News, Volume |, Number 1, March 1990

To enable the Controls Office to better fa-
cilitate defense trade while enforcing the nec-
essary, strict export controls imposed by the
USS. Munitions List (USML), the Department
allocated an additional $1.5M in FY90 to DTC.
DTC will also add a minimum of 23 new, full-
time employees in 1990--expanding the office
by 70%--with further growth planned in FY91.

Page §

§


Step 4. Upon receipt of the referral agen-
cies’ recommendations, DTC weighs the vari-
ous analyses and in those cases where the vari-
ous agencies’ recommendations differ, DTC
makes a tentative determination. DTC then
notifies the referral agency whose recommen-
dation differs from DTC’s tentative determina-
tionof the tentative determination. Ifit chooses,
this agency can then send DTC further argu-
mentation.

Step 5. Taking into consideration the refer-
ral agencies’ inputs, DTC makes its final deter-
mination and notifies the referral agencies and
the submitter of the determination. Internally,
DTC’s final determination is made jointly by the
heads of both the licensing division (Biancaniello)
and the compliance division (Bryant).

In the 440 CJ determinations made in 1988
and 1989, DTC determined 70% of the time that
the item under consideration was a non-muni-
tions item and thus not covered by the USML.

Appeal

Step 6, In June 1989, two appeal steps were
addedat the Department of State by Under Sec-
retary for Security Assistance, Science, and
Technology Reginald Bartholomew. In the first
step, if the U.S. citizen, company, or govern-

mentagency that submitted the CJ requestis not
satisfied with DTC’s determination, then they
may appeal the determination to Center Direc-
tor Duelfer. Any such appeal, however, should
be made within ten days.

Upon receipt of an appeal, Duelfer will
ordinarily convene an interagency meeting with
representation by all of the involved referral
agencies. Based on that meeting, he will notify
all concerned parties of his determination. This
process should be completed within thirty days
of receipt of the appeal.

Step 7. If that determination is also found to
be unsatisfactory, or if no decision is reached in
the first appeal in 30 days, appeal can be made
directly to Under Secretary Bartholomew. Such
appeal, however, should be made within ten
days. The Under Secretary’s determination will
be based, as appropriate, on consultations with
concerned parties, and notification of his deter-
mination should occur within thirty days of the
appeal.

Step 8. Cabinet officers can appeal a State
Department CJ determination to the President
and the National Security Council Staff, who
then review the case and either uphold or over-
turn State’s determination.

Personnel Updates

The new personnel in the Center for De-
fense Trade each bring with them unique expe-
riences and backgrounds, strengthening the
Center’s diversity and depth of knowledge. To
familiarize you with the staff, we will include
brief profiles on Center personnel in each news-
letter. For this newsletter, we have selected to
profile three military licensing officers, one ci-
vilian licensing officer, and two secretaries.

LCDR William R. Mas

je reported to DTC
January 20 as the first of six military officers
detailed to the Center. He recently completed

Defense Trade News, Volume |, Number 1, March 1990

a tour as the Operations and Executive Officer
onthe USS Hewitt, a strike destroyer based out
of San Diego. LCDR Massie’s varied back-
ground includes tours onboard USS Long Beach
(CCN-9), USS Ellusive (MSO-448), USS Peo-
ria (LST-1183), and USS Thomalton (LSD-28).
He possesses hands-on expertise in naval com-
munications and operations, engineering, Anti-
Submarine Warfare (ASW), and mine warfare.
Massie is a 1979 graduate of the U.S. Naval
Academy. He is currently working primarily on
National Disclosure Policy issues.

Page 10



ad

Qur continuing, weekly challenge: to get As part of the effort to institutionalize Proj-
more out than in, We recognize that, to date, ect Accelerate, we are continuing overtime hours
Project Accelerate represents only anear-term and maintaining a cadre of temporary employ-
success, and are working to institutionalize this ees to work alongside the growing numbers of
“surge” progress. The challenge we are taking new, permanent, full-time personnel.
head-on is to continue mailing out more licenses
each week than we receive, thereby steadily de-
creasing licensing time.

WORKLOAD REDUCTIONS |

ie
DSP-61s For Repairs & Warranty Exchanges Being Eliminated ‘
A package of ideas. Our effort to improve licensing efficiency, primarily through resource i
expansion, is coupled with an effort to reduce the licensing workload--for you and for us.
The Center has already identified a number of areas where licensing could be simplified, jit

ifnot eliminated altogether, without weakening our ability to enforce the necessary export con-
trols. Such ideas include exporter distribution licenses and elimination of temporary licenses
for static hardware display. Furthermore, the Center hopes to encourage industry to make
greater use of the Commodity Jurisdiction (CJ) procedure as a means of reducing licensing
workload.

We are in the midst of discussing our workload reduction ideas with the appropriate fed-
eral agencies, such as Defense and Customs, and are optimistic that many of these ideas will
be agreed-upon and implemented.

Many DSP-61s soon to be eliminated. Already the Center has secured interagency agree-
ment tocliminate the need for DSP-61 temporary import licenses for repairs and warranty ex-
changes (on a one-to-one b: Once announced formally in the Federal Register sometime
in the next several weeks, this change will eliminate the need for several thousand license ap-
plications each year, facilitating U.S. defense industry’s supplier relationship with overseas
purchasers. (The extension of license validity from two to three years, published in the Federal
Register October 17, also eliminated some 3000-4000 renewal licenses each year.)

Defense Trade News, Volume I, Number 1, March 1990 Page 7


Twelve new, permanent employees at DTC
already. Of the 23 new, full-time people coming
to DTC in 1990, 12 had already started work
when we went to press in mid-March (not in-
cluding the addition of Duelfer, Frazier and
Miller outside of DTC). This includes 7 Micens-
ing officers, 2. secretarie 2 data entry/typist
contractors, and 1 Deputy Office Director.

By the end of March, 2 more licensing off-
cers will have begun workat DTC. The Controls
Office will also have begun interviewing candi-

dates for 6 more licens
followed shortly by interviews for more clerical

rofficer positions. to be
support.

This represents only the permanent gt owth
in DTC that has taken place so far in 1990. On
a temporary basis, DTC has also added |3 other
people: 4 detailees from elsewhere in PM, 4 re-
tired foreign service officers, 2 file clerk contrac-

tors, J administrative assistant, 1 computer spe-
cialist, and 1 management assistant. (These
temporary people are being gradually dismissed
as new permanent employees arrive.)

Ultimate aim: faster, more responsive li-
censing. The ultimate aim of this expansion at
DTC is to provide U.S. defense industry with a
more efficient, responsive, and predictable li-

censing process at the Department of State. We
simply want toget license applications and other
submissions that are sent to the Office of De-
fense Trade Controls reviewed, decided upon,
and mailed back out as quickly as possible.

We also aim to respond to public inquiries in
a timely manner. Although we believe we have
made progress in this re rard, we are aware that
there continue to be difficulties contacting our
staff by phone. We are working on improving
this both internally and with AT&T.

Project Accelerate A Success

11,000 + Licenses Issued in Seven Weeks

Project_Accelerate. Aiming to improve
State’s licensing service: and to do so quickly~~
the Office of Defense Trade Controls immedi-
ately began Project Accelerate. The Project’s
near-term aim was to eliminate the backlog
that accumulated in OMC in December and
early January due to the combination of the
holidays, the move from the eighth to the sec-
ond floor of State Annex 6, and the temporary
shutdown of the computer system. The long-
term aim was to begin institutionalizing a faster

licensing process.

To achieve the near-term aim quickly, the
Controls Office began working from 8a.m. to9
p-m. weekdays and 6 a.m. to 2 p.m, Saturdays.
Inaddition, many new personnel were added to
DTC, namely, the 13 temporary and 12 perma-
nent newemployees mentioned above. And in
the evenings and on Saturdays, 9 -10 overtime

Defense Trade News, Volume 1, Number 1, March 1990

employees from elsewhere in the Department
helped out the DTC statt,

64% more licenses issued weekly than ever
before. By March 5, Project Accelerate had
achieved the near-term objective of eliminating
the December backlog while also handling the
continuous flow of incoming license applica-

tions. Specifically, in the seven weeks from
January 16 to March 5, DTC ed 11,675 li-
censes. This represents a rate of issuance 64%
greater than the average in 1988-1989.

Average Licensing Rate
(Licenses/Week)
1988-1989 1990 (To Date

1,020 1,668

Page 6



In an effort to keep this promise, DTC has
designated two new licensing officers as the
Commodity Jurisdiction licensing team. Mi-
chael Van Atta and Gary Oncale can be reached

at (703) 875-6644 to answer inquiries about CJ
procedures (see next article). They will also be
handling all CJ cases for DTC.

CJ Procedure Clarified

The Commodity Jurisdiction (CJ) procedure
is the mechanism for determining if a commod-
ity, for export control purposes, is a munitions
item, and thus is covered by the USML. It is dis-
cussed in ITAR Section 120.5.

As Center Director Duelfer pointed out in
his Congressional hearing (see previous article),
the Center is eager to receive more CJ requests
and thereby remove more commodities, as
appropriate, from the strict export controls
imposed by the USML. To encourage the sub-
mission of more CJ requests and expedite the
handling of such requests, DTC has designated
two licensing officers full-time as the CJ licens-
ing team.

The following description of the CJ proce-
dure is provided to clarify how this procedure
works.

Submission

Step 1. A US. citizen, company or govern-
ment agency submits a letter to DTC requesting
a CJ determination of a specific good or service.
Such a submission often includes arguments as
to why the item under consideration should not
be designated a munitions item and therefore
should not be covered by the USML.

Asubmission is made for one of two reasons.
First, the submitter is unsure whether the item
or service is considered a munitions item by
DTC for export contro! purposes and therefore
covered by the USML. Second, the submitter
believes a good argument can be made that an
item or service that is currently considered a
munitions item should no longer be designated
as such.

Defense Trade News, Volume |, Number 1, March 1990

Any US. citizen, company, or government
agency may submit a CJ case; the individual or
company does not need to be registered with
DTC. Furthermore, a CJ request does not in
any way affect DTC’s review of export license
applications for that item during the CJ process.

Determination

Step 2. Upon receipt, a CJ request is logged
into DTC’s database and assigned a chronologi-
cal CJ number. A CJ licensing officer then re-
views the request and refers a copy of the entire
request to Commerce and to the government
agency with relevant technical expertise on the
item under consideration.

Specifically, DTC refers all new CJ requests
to the Department of Commerce. The Depart-
ment of Defense is the appropriate technical
agency in the CJ referral process about 95% of
the time. A small percentage of CJ requests are,
however, referred to other agencies, such as
NASA and the Department of Energy.

Step 3. After evaluation of the CJ case,
Commerce, Defense, and the other technical
referral agencies each provide DTC with their
recommendation as to whether the item under
consideration should or should not be consid-
ered a munitions item. DTC tracks referred CJ
requests and makes periodic calls to referral
agencies that are slow in responding to a case.

In 1988-1989, Defense recommended 63%
of the time that the item under consideration be
designated a non-munitions item. In this same
period, Commerce recommended removal from
the USML’s coverage more than 90% of the
time.

Page 9


©

United States Department of State
Bureau of Politico-Military Affairs

DEFENSE TRADE NEWS
The Bulletin of the Center for Defense Trade

Voiume !, Number 1 Washington, D.C. March 1990
Features
Page
Fresh Start for the ‘90s 2

New Organization Replaces OMC

Defense Trade Priority at State 4
New Leadership Addressed Problems Early On

Controls Office Expanding 5
Faster, More Responsive Licensing The Goal

Project Accelerate A Success 6
11,000 + Licenses Issued In Seven Weeks

Workload Reductions Underway 7
DSP-61s For Repairs & Warranty Exchanges
Being Eliminated

8
Center Offering New Services
EC92, CJ Hot Lines Effective Immediately

9
CJ Procedure Clarified

12
Registration Notice

Departments

Personnel Updates 10
Tips And Tidbits 3

Written and Edited by the Center for Defense Trade



Registration Notice

Who needs to register? In accordance
with U.S. law (22 USC Sec. 2778 (b) (1)) and
regulation (22 CFR Sec. 122.1), every busi-
nessentity or individual person who engages
in the United States in the business of:

1. manufacturing defense articles, which
includes components, parts, accessories and
attachments, and modifications thereto;

2. exporting defense articles, which in-
cludes components, parts, accessories and
attachments; or,

3. furnishing defense services to foreign
persons in the U.S. or abroad;

is required to register with DTC. Manufac-
turers who do not engage in exporting must
nevertheless register. Exceptions to the reg-
istration requirement are set forth in 22
CFR Sec. 122.1 (b), which is included in the
registration packet available from DTC. (A
“defense article or service” is any commod-
ity or function whose purpose is inherently
military or which has been modified for
military purposes, regardless of end-use.)

Purpose of registration. While registra-
tion does not confer any export rights or
privileges, it is generally a precondition to
the issuance of an export license. An export
license may not be issued until the registra-
tion process is completed. Failure to regis-
ter or qualify for an exemption from regis-
tration may result in a processing delay or in
your request for an export license being re-
turned without action.

To obtain registration information and
materials. Registration information may be
requested by mail, express mail or fax from
DTC. Please include a complete return
address with any request for information
and forms, and mark your request “Atten-
tion: Registration.”

Registration expiration. If you have al-
ready registered, please check the first four
digits of your applicant code number to as
certain the month and year that your regi
tration expires. Your registration expires
the last day of the month indicated. Regis
trants should apply for renewal at least a
month in advance of the expiration date.

an

Defense Trade News, Volume I, Number 1, March 1990

Page 12



MAJ Martin Maier joined the Center Feb-
ruary 13, reporting from Andrews Air Force
Base where he served since May 1986 as a Test
Range Resource Manager for the Air Force
Systems Command. Assignments in his 13-year
military career have included Chief of the Guided
Weapons Test Branch at Eglin AFB, and Range
Development Manager for the Utah Test and
Training Range while assigned to Edwards AFB.
Maier brings diverse developmental and opera-
tional testing expertise to the Center, with expe-
rience in aircraft and armament systems incor-
porating “leading edge” technologies. Maier is
a 1977 graduate of the Air Force Academy. As
a Licensing Officer, he reviews Technical Assis-
tance Agreements (TAAs), Manufacturing Li-
cense Agreements (MLAs), and cases involving
the DoD Brilliant Pebbles program.

MAJ Gary Oncale also joined the Center
February 13, reporting from previous duty at

Headquarters, Air Force Systems Command,
Andrews AFB. There, Oncale worked as the
Advanced Tactical Weapons Program Manager
in the Requirements Directorate, attaining ex-
tensive knowledge of advanced weapons devel-
opmental programs. Oncale’s previous tours
include Eglin AFB, Incirlik CDI, Turkey, and
Malstrom AFB. Oncale’s 16 years service has
equipped him with specialized knowledge in Air
Force weapons programs. Oncale is currently
assigned as a Commodity Jurisdiction Licensing
Officer.

Defense Trade News, Volume |, Number 1, March 1990

Daniel Cook came to DTC January 14, after
serving at the Department of Commerce’s Bu-
reau of Export Administration for 4 years. At
Commerce, Dan was an Export Administration
Specialist in the Computer Systems Branch,
handling computers and specialized telecom-
munications equipment for export to both “free-
world” and proscribed countries. Cook is a 1986
cum laude graduate of Liberty University. He
currently works as a Licensing Officer handling
firearms and encryption equipment.

Nadia Brown joined the Center February
26, coming from PM’s Office of International
Security Policy. She has been with the Depart-
ment for 4 years, having worked in both PM and
the Latin America Bureau. At the Center, Brown
serves as a secretary in the Compliance Analysis
Division.

Joyce Diggs joined the Center March 12,
coming from the Department’s Foreign Service
Institute (FSI). Diggs had been employed as a
secretary at FSI for the past 3 years before
coming to DTC. She now works as a secretary
for the Electronics and Combat Systems Branch
in DTC’s Arms Licensing Division.

Other new personnel who have started work
at the Center in the past two months and will be
profiled in future newsletters are licensing offi-
cers Marsha Filtrante, Terry Davis, and Michael
Van Atta and data entry/typist contractors Trena
Blake and Mezzanyne Greene.

Page 11


Center Offering New Services

EC92, CJ Hot Lines Effective Immediately

This month, the Center for Defense Trade
will start offering two new services to industry:
an EC92 point of contact and a Commodity Ju-
risdiction licensing officer team.

EC92_point of contact. In an interview
published in the Society for International Af-

fairs Newsnotes, January 1990, Assistant Secre-
tary Clarke responded to a question about the
impact of EC92, saying:

“Defense industry in general is going to
be affected by EC92 and probably af-
fected negatively if it doesn’t develop
strategies for dealing with a unified
Europe. Those strategies have to in-
volve co-production and co-development
arrangements with European compa-
nies. We are prepared to look at innova-
tive arrangements to help them.

The traditional argument has been that
the Europeans will not doco-production
or co-development with us because of
the long arm of licensing. We are going
tocontinue to have a long arm on licens-
ing. It is up to industry to come up with
some new proposals and I’ve invited that
several times and I haven’t heard any-
thing, but we are perfectly willing, in fact,
eager, to look at industry proposals.”

In an effort to facilitate a dialogue with in-
dustry, the Office of Defense Trade Policy has
designated Deputy Director Scott Miller as the
Center’s point of contact on EC92-related is-
sues. Miller can be reached at (202) 647-4231.

Commodity Jurisdiction licensing team. Ina
joint subcommittee hearing before the House
Foreign Affairs Committee February 8, Center
Director Duelfer summarized the Center’s view

Defense Trade News, Volume |, Number 1, March 1990

onthe Commodity Jurisdiction (CJ) procedure.
He stated:

“IT want a smooth CJ process for two
reasons. First, the more CJs we do, the
more items we can remove from the
USML, thus reducing our workload.
Second, and most importantly, the more
CJs industry requests (or anyone else,
for that matter), the more items that will
be removed from the USML, thus the
fewer items that will need to be subject
to the strict USML export regulations.

The bottom line is that we recognize it is
a matter of vital national interest for
American business to be able to operate
as freely as possible in today’s competi-
tive international environment. Although
the USML’s strict export controls still
remain absolutely necessary for foreign
policy/national security reasons, we do
not want to impose them on any more
commodities than necessary.

1 would like to reiterate that I welcome
more CJ requests and point out that any
US. citizen, company, or government
agency can submit a CJ request to the
Office of Defense Trade Controls. Twill
be watching this process personally with
my colleagues at Commerce and De-
fense. I cannot promise instant deci-
sions on every case, since the signiti-
cance of each CJ determination merits
careful analysis and discussion. How-
ever, | will promise that as cases arrive,
they will get quick attention and that any
disagreements will be addressed in a
timely fashion at the appropriate lev-
els.”

Page &

~


on defense trade issues and the creation of the
Center. Before coming to PM, Levy served in
State’s Bureau of Intelligence and Research as
an analyst on Afghanistan and Iran. On detail
from State, Levy has also served in the U.S.
House of Representatives and on the National
Security Council Staff.

Rose Marie H. Biancaniello is the Arms
Licensing Division Chief in DTC, a job she has
held for the past year. Prior to this job, Bian-
caniello was the Chief of the Aerospace and
Ordnance Branch in the Arms Licensing Divi-
sion, Since joining the government, Biancaniello
has been at OMC, on and off, for more than 18
years.

Clyde _G. Bryant, Jr. is the Compliance

is Division Chief, handling the compli-
aspects of the International Traffic in Arms
Regulations (ITAR). Bryant came to State in
1958, and has been at OMC 23 years. He has
been involved with the compliance aspects of
the ITAR since 1970, first as the Intelligence As-
sistant and later as the Support Services Divi-
sion Chief.

The Office of Defense Trade Policy (PM/
DTP)islargely a new office, drawing partiallyon
the former Office of Strategic Technology Af-
fairs (STA). Although the work of the Policy
Office overlaps that of the Controls Office, DTP
focuses primarily on setting policy guidelines for

commercial defense trade, whereas DTC con-
centrates on the actual implementation of the
ITAR, i.e., licensing and enforcement. In addi-
tion to providing policy guidelines, DTP will also
undertake various efforts to further assist indus-

try.

Robert S. Pace is the Director of the Policy
Office. Pace comes to this position with 2 years
experience in PM as the Deputy Director of the
Office of Security Assistance and Sales. Pace’s
other Foreign Service tours include service, largely
on politico-military issues, in Turkey, Bolivia,
Viet Nam, and Spain. (Former DTP Office
Director Kevin L. Kearns has left the State
Department towork at the Economic Strategies
Institute.)

W. Scott Miller, Ilis the Deputy Director of
DTP. Miller comes to State from Science Appli-
cations International Corporation (SAIC), where
he worked since 1987 as an analyst on Defense
Acquisition issues. From 1985 to 1987, Miller
worked in the Arms Control and Disarmament
Agency as Special Assistant to the Director.

Again, all of us in the management team at
the new Center for Defense Trade are eager to
serve U.S. defense industry and the general pub-
lic. We look forward to working with you as we
fix the problems that have led in recent years to
much frustration with OMC.

Defense Trade Priority At State

New Leadership Addressed Problems Early On

Background on the reorganization. The
idea of reorganizing the Department’s handling
of commercial defense trade emerged early in
discussions among the new leadership at State.
Aware of Congressional and industry concerns
over the execution of State’s responsibilities in
this area, the new Department leadership held
a series of meetings, chaired by Deputy Secre-

Defense Trade News, Volume 1, Number 1, March 1990

tary of State Eagleburger, last summer to exam-
ine the defense trade function.

After reviewing the various aspects of this
function, the new leadership in the Department
concluded the following. First, defense trade
remains primarily a foreign policy/national se-
curity function, and thus must continue to be

Page 4

i
NG



~

Department of State Publication 9783
Bureau of Politico-Military Affairs
Released April 1990



New and old faces. The Center for Defense
Trade incorporates both familiar and unfamil-
jar faces--in the PM “front office,” in the Con-
trols Office, and in the Policy Office.

Richard A. Clarke heads the Bureau of
Politico-Military Affairs, confirmed as Assistant
Secretary of State for Politico-Military Affairs
on August 4, 1989. Clarke immediately set as
one of his highest priorities transforming OMC
into a much larger Center for Defense Trade. In
addition to overseeing the Center for Defense
Trade, Clarke’s area of responsibility includes
the various arms control negotiations, prolifera-
tion issues, and regional security relations, in-
cluding security assistance. Prior to this posi-
tion, Clarke was the Deputy Assistant Secretary
of State for Regional Analysis in the Bureau of
Intelligence and Research.

Charles A. Duelfer is the Director of the
Center for Defense Trade, and Assistant Secre-
tary Clarke’s Deputy for Defense Trade. Du-
elfer’s position is new, created by PM to provide
full-time, front office leadership on commercial
defense trade issues. Before assuming this
position, Duelfer served as Director of PM’s
Office of International Security Policy for 5 years.
In that job, he directed PM’s activities in re-
gional security issues, such as insurgency/counter-
insurgency programs, base negotiations, crisis
management, and bilateral security arrange-
ments.

Before coming to State, Duelfer worked at
the Office of Management and Budget’s Na-
tional Security Division where he was respon-
sible for strategic, communications, and space
Defense programs. In his 5 years at OMB, he
worked extensively with both Defense contrac-
tors and DoD program managers on such sys-
tems as MX, ASAT, FLTSATCOM, and B-1, as
well as an assortment of C3I programs. Prior to
his government service, Duelfer worked on a
private space launch venture.

Defense Trade News, Volume I, Number 1, March 1990

Pamela L. Frazier is Deputy Director of the
Center. Frazier brings 15 years of government
experience on defense trade and technology
transfer issues to the front office. Before com-
ing to the Center, she was Deputy Director of
PM’s Office of Security Assistance and Sales,
where she managed State’s foreign military
assistance programs. Prior to that, Frazier was
Deputy Director of PM’s Office of Strategic
Technology Affairs, working a variety of CO-
COM and bilateral technology programs. Be-
fore joining PM, Frazier served on the National
Security Council Staff, where she worked on
strategic trade issues.

The Office of Defense Trade Controls (PM/
DTC) is the former Office of Munitions Con-
trol, regulating the export of U.S. defense ar-
ticles and services. There has been far more
than just a name change at OMC though; in
1990, the office will add at least 23 new, full-time
people and undertake numerous initiatives to
improve licensing services for industry.

William B. Robinson isthe Director of DTC.
After 15 years of heading OMC, Robinson is
now able to match the growth in defense trade
workload with growth in office resources. Prior
to heading OMC, Robinson served for 5 years as
Deputy Under Secretary of the Air Force for
International Affairs, where he completed a 27-
year career in the U.S. Air Force.

Michael T. Dixon is one of Robinson's two
new Deputies. Dixon came to this job from
PM’s Office of International Security Policy,
where he was Deputy Office Director for the
past 5 years. A former Foreign Service Officer,
Dixon has served in several U.S. embassies and
State offices. His Foreign Service specialty is in
East-West political economy and Latin Ameri-
can issues.

Richard A. Levy is the other Deputy Direc-
tor of DTC. Prior to this job, Levy served as As-
sistant Secretary Clarke’s Special Assistant for
Regional Security where he focused primarily

Page 3



Fresh Start For The '90s

New Organization Replaces OMC

On January 8, 1990, the State Department
created the Center for Defense Trade in the
Bureau of Politico-Military Affairs (PM), re-
placing the Office of Munitions Control. The
Center is comprised of two offices--the Office of
Detense Trade Controls and the Office of De-
fense Trade Policy.

The Department’s purpose in creating the
Center for Defense Trade is to provide im-
proved export licensing services and defense
trade policy guidelines to U.S. defense industry.
Together, these two new offices and the leader-

ship of the Bureau of Politico-Military Affairs
will work to achieve that aim.

At this critical time of decreasing defense
procurement, increasing global competitiveness
in defense trade, and dramatic global political
change, the Department decided a fresh start
had to be made at the former Office of Muni-
tions Control (OMC). The management team
and the entire staff at the new Center for De-
fense Trade are committed to making that fresh
start, and doing so quickly. We hope you let us
know how we are doing.

ye

CENTER FOR DEFENSE TRADE

=

Organizational Chart

Assistant Secretary of State for Politico-Military Affairs
Richard A. Clarke

Deputy to the Assistant Secretary and

Director of the Center for Defense Trade
Charles A. Duclfer

Deputy to the Center Director, Pamela L. Frazicr

1

Office of Defense Trade Controls
(PM/DTC)

Director, William B. Robinson

Deputy Directors,
Michael T. Dixon & Richard A. Levy

Chief, Arms Licensing Division,
Rose Marie H. Biancaniello

Chief, Compliance Analysis Division,
Clyde G. Bryant, Jr.

~

Office of Defense Trade Policy
(PM/DTP)

Director, Robert S. Pace

Deputy Director, W. Scott Miller, I

Defense Trade News, Volume I, Number 1, March 1990

Page 2

i
i


Tips And Tidbits

Japanese F-16 and F-15 Wright Patterson

Attachment of previous licenses. If, ona

Program. Applications for export of articles and
technical data for these programs may no longer
be submitted to Wright Patterson Air Force
Base (WPAFB) before coming to DTC. WPAFB
will continue to work the cases in their system,
but has begun to return to the applicant any new
cases for submission directly to DTC.

Policy concerning company acquisitions. Ifa
company has merged with another company or
a company was involved in an acquisition involv-
ing whole companies, subsidiaries, divisions of
companies, etc, the procedure for dealing with
licenses granted to the previous company is to
have the new company apply for a license under
its name for the unshipped balance. The proce-
dure for agreements is to have the newcompany
send in an administrative amendment to the
agreement signed by the new company, the
previous company, and the foreign company,
setting forth the change that has taken Place.

Defense Trade News, Volume 1, Number 7, Marcl 1990

license application, the applicant cites a previ-
ous license which might serve asa precedent for
the current application or for which the current
application is an “unshipped balance,” the
applicant should attach a copy of the previous li-
cense, including any proviso letter. This will
facilitate licensing and prevent unnecessary
staffing.

Reminders on end-users and Part 126.13
statement. Please remember that the applicant
is responsible for determining the end-user betore
applying for an export license. See 18A of the in-
structions on the DSP-5. Likewise, please re-
member to attach your ITAR Part 126.13 Certi-
fication Letter to all submissions to DTC, with
an original signature--no copies and no Faxs
please. The original and two copies of the
freight forwarder addendum, as appropriate,
are sufficient; seven copies are not necessary.

Page 13


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