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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 12825

DEFENSE 

Agreement Between the 

UNITED STATES OF AMERICA

and SOUTH AFRICA

Signed at Pretoria January 24, 1997
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NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89–497, approved July 8, 

1966 (80 Stat. 271; 1 U.S.C. 113)—

‘‘. . . the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of 

maritime jurisdiction, and in all the tribunals and public offices 

of the United States, and of the several States, without any further proof or authentication thereof.’’

For sale by the Superintendent of Documents, U.S. Government Printing Office, 

Washington, D.C. 20402
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(1) TIAS 12825

SOUTH AFRICA 

Defense 

Agreement signed at Pretoria January 24, 1997; 

Entered into force January 24, 1997.
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TIAS 12825

AGREEMENT BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA 

CONCERNING COOPERATION ON DEFENSE TRADE CONTROLS

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 

GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA (HEREINAFTER 

REFERRED TO AS THE "PARTIES"),

SHARING AN INTEREST IN NORMALIZING DEFENSE TRADE BETWEEN 

THE TWO COUNTRIES, ON THE BASIS OF MUTUAL RESPECT AND 

MUTUAL BENEFIT;

RECOGNIZING THAT FUNDAMENTAL CHANGES IN THE POLITICAL 

AND LEGAL REGIMES IN SOUTH AFRICA MAKE THIS A UNIQUE 

CASE;

ACKNOWLEDGING THE VALUE OF EXCHANGING RELEVANT EXPERIENCE AND STRENGTHENING TECHNICAL COOPERATION ON 

DEFENSE TRADE CONTROLS; AND

RECALLING THE DECISION OF THE PARTIES TO NEGOTIATE A SOUTH 

AFRICAN DEFENSE INDUSTRY COMPLIANCE PROGRAM MUTUALLY 

AGREEABLE TO THE PARTIES;

HAVE AGREED AS FOLLOWS:

ARTICLE I

-- (A) THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA, AS 

THE SOLE SHAREHOLDER OF THE ARMAMENTS CORPORATION OF 

SOUTH AFRICA ("ARMSCOR") KENTRON (PTY) LTD. ("KENTRON") AND 

DENEL (PTY) LTD ("DENEL") SHALL ENSURE THAT ARMSCOR, 

KENTRON AND DENEL, AND ANY OF THEIR OPERATING DIVISIONS, 

SUBSIDIARIES, SUCCESSORS OR ASSIGNEES (REFERRED TO COLLECTIVELY HEREINAFTER AS THE "COMPANIES"), ESTABLISH AN 

INTERNAL COMPLIANCE PROGRAM REGARDING THE USE OR 

TRANSFER AFTER THE DATE THAT THIS AGREEMENT ENTERS INTO 

FORCE OF UNITED STATES ORIGIN DEFENSE ARTICLES, SERVICES 

AND TECHNICAL DATA THAT NAVE BEEN OR MAY IN THE FUTURE 
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TIAS 12825

BE EXPORTED OR OTHERWISE TRANSFERRED TO THE COMPANIES 

(THE "PROGRAM") AND THAT IS MUTUALLY ACCEPTABLE TO THE 

PARTIES.

-- (B) THE PROGRAM SHALL BE ADMINISTERED BY THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA WITH PROVISIONS FOR 

FULL TRANSPARENCY AND VERIFIABILITY TO ENABLE THE 

GOVERNMENT OF THE UNITED STATES TO DETERMINE TO ITS 

SATISFACTION THAT THE PROGRAM IS BEING FULLY IMPLEMENTED. 

THE PROGRAM SHALL CONTAIN PROVISIONS FOR:

-- (1) PREPARATION OF A WRITTEN MANUAL THAT ADDRESSES THE 

HANDLING OF UNITED STATES-ORIGIN DEFENSE ARTICLES, SERVICES OR TECHNICAL DATA, AND THAT REQUIRES ALL EMPLOYEES 

OF EACH COMPANY TO FOLLOW THE COMPANY’S COMPLIANCE 

PROCEDURES;

-- (2) A TRANSPARENT AND VERIFIABLE PROCESS FOR ASSESSING 

THE PERFORMANCE OF EACH COMPANY IN IMPLEMENTING THE 

PROGRAM, WHICH SHALL INCLUDE:

-- (A) PROVISIONS FOR THE COMPANY TO SHARE, UPON REQUEST 

OF EITHER PARTY, ON TERMS MUTUALLY ACCEPTABLE TO THE 

PARTIES, APPROPRIATE RECORDS CONCERNING DEFENSE ARTICLES, 

SERVICES OR TECHNOLOGY OF UNITED STATES ORIGIN; AND

-- (B) PROVISIONS FOR ARRANGING AND FACILITATING, BY 

REQUEST OF EITHER PARTY, ON TERMS MUTUALLY ACCEPTABLE 

TO THE PARTIES, VISITS BY OFFICIALS OF THAT PARTY TO THE 

COMPANY;

-- AND THE PROVISIONS DESCRIBED IN SUBPARAGRAPHS (A) AND 

(B) SHALL REMAIN IN EFFECT FOR A PERIOD OF FIVE YEARS, 

EXCEPT THAT IT IS THE PRESENT INTENTION OF THE PARTIES UPON 

SATISFACTORY IMPLEMENTATION OF THE PROGRAM TO EXCHANGE 

LETTERS TO TERMINATE SUCH PROVISIONS AT THE END OF A 

PERIOD OF THREE YEARS; AND

-- (3) APPOINTMENT BY THE GOVERNMENT OF THE REPUBLIC OF 

SOUTH AFRICA OF AN IMPARTIAL AND INDEPENDENT OMBUDSMAN, 

WHO SHALL BE A CITIZEN OF THE REPUBLIC OF SOUTH AFRICA, TO 
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MONITOR THE PERFORMANCE OF THE COMPANY TO ENSURE THAT 

THE PROGRAM IS BEING FULLY IMPLEMENTED, AND TO MAKE 

REPORTS AT REGULAR INTERVALS, WHICH REPORTS SHALL BE 

MADE AVAILABLE TO THE PARTIES.

ARTICLE II

-- UPON THE ESTABLISHMENT OF A PROGRAM IN ACCORDANCE 

WITH THIS AGREEMENT, INCLUDING THE COMPLETION OF THE 

MANUAL DESCRIBED IN ARTICLE I(B)(1), THAT IS MUTUALLY SATISFACTORY TO THE PARTIES, AND THE ENTRY OF A PLEA OF NOLO 

CONTENDERE BY ARMSCOR AND KENTRON IN UNITED STATES V. 

ARMSCOR AND KENTRON (THE "PLEA OF NOLO CONTENDERE"), THE 

FOLLOWING SHALL APPLY:

-- (A) ARMSCOR AND KENTRON EACH SHALL MAKE AVAILABLE AN 

AMOUNT EQUAL TO FIFTY PERCENT OF THE FINE IMPOSED AGAINST 

EACH ENTITY AS A RESULT OF THE ENTRY OF THE PLEA OF NOLO 

CONTENDERE FOR A PROGRAM TO BE ESTABLISHED AND ADMINISTERED BY THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA 

TO SUPPORT THE EFFECTIVE IMPLEMENTATION OF THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA’S NATIONAL EXPORT 

CONTROL REGIME.

-- (B) (1) THE UNITED STATES DEPARTMENT OF STATE SHALL 

RESCIND THE POLICY DESCRIBED IN PUBLIC NOTICE 2027, PUBLISHED IN THE FEDERAL REGISTER ON JUNE 30, 1994 (59 FR 33811), 

REGARDING DENIAL OF EXPORT LICENSE APPLICATIONS AND 

OTHER REQUESTS FOR APPROVAL UNDER THE ARMS EXPORT CONTROL ACT WITH RESPECT TO THE COMPANIES COVERED BY THE 

PROGRAM; AND

-- (2) WITH RESPECT TO VIOLATIONS AS TO WHICH THE PLEA OF 

NOLO CONTENDERE HAS BEEN ENTERED-

-- (A) THE UNITED STATES DEPARTMENT OF STATE SHALL SUSPEND DEBARMENT UNDER THE ARMS EXPORT CONTROL ACT OF 

COMPANIES COVERED BY THE PROGRAM; AND

-- (B) THE UNITED STATES DEPARTMENT OF COMMERCE SHALL 

SUSPEND INVOKING ITS AUTHORITY TO DENY COMPANIES COV-
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TIAS 12825

ERED BY THE PROGRAM EXPORT PRIVILEGES UNDER SECTION 11(H) 

OF THE EXPORT ADMINISTRATION ACT.

-- (C) IF IT IS DETERMINED THAT THE PROGRAM IS NOT BEING 

FULLY ADHERED TO UNDER ARTICLE I, OR THAT THIS AGREEMENT 

IS NOT OTHERWISE BEING COMPLIED WITH, THE GOVERNMENT OF 

THE REPUBLIC OF SOUTH AFRICA SHALL ENSURE THAT THE 

COMPANIES SHALL PAY CIVIL FINES IN THE AMOUNTS SPECIFIED IN 

PARAGRAPH (A) TO THE UNITED STATES DEPARTMENT OF STATE, 

AND THE SUSPENSIONS REFERRED TO IN PARAGRAPH (B) (2) MAY 

BE LIFTED.

ARTICLE III

-- THIS AGREEMENT IS NOT INTENDED TO CREATE, NOR DOES IT 

CREATE, ANY RIGHTS FOR THE COMPANIES OR ANY OTHER THIRD 

PARTIES, INCLUDING ANY RIGHTS TO ADMINISTRATIVE OR 

JUDICIAL REVIEW, ENFORCEABLE AGAINST EITHER OF THE PARTIES 

TO THIS AGREEMENT.

-- THIS AGREEMENT SHALL ENTER INTO FORCE UPON SIGNATURE.

DONE THIS 24th OF JANUARY, 1997, IN DUPLICATE.

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:

Ambassador James Joseph

FOR THE REPUBLIC OF SOUTH AFRICA:

Deputy Minister Aziz Pahad