[Federal Register Volume 62, Number 56 (Monday, March 24, 1997)]
[Notices]
[Pages 13932-13933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7272]


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DEPARTMENT OF STATE

Office of Defense Trade Controls
[Public Notice 2521]


Statutory Debarment Under the International Traffic in Arms 
Regulations

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed statutory debarment pursuant to Section 127.7(c) of the 
International Traffic in Arms Regulations (22 CFR Parts 120-130) (ITAR) 
for all export license applications and other requests for approval 
involving the Armaments Corporation of South Africa, Ltd. (Armscor); 
Kentron (Pty) Ltd. (Kentron); the Denel Group (Pty) Ltd. (Denel); and, 
any divisions, subsidiaries, associated companies, affiliated persons, 
and successor entities.

EFFECTIVE DATE: February 27, 1997.

FOR FURTHER INFORMATION CONTACT:
Philip S. Rhoads, Chief, Compliance and Enforcement Branch, Office of 
Defense Trade Controls, Department of State (703-875-6644).

SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the Arms Export Control 
Act (22 U.S.C. 2778) (AECA) prohibits licenses and other requests for 
approval for the export of defense articles and the furnishing of 
defense services to be issued to a person, or any party to the export, 
convicted of violating or conspiring to violate the AECA. This notice 
is provided in order to make the public aware that the following 
entities are prohibited from participating directly or indirectly in 
the export from the United States of defense articles, related 
technical data, or defense services for which a license or other 
approval is required from the Department of State under the AECA:

1. The Armaments Corporation of South Africa, Ltd., (Armscor), Private 
Bag X337, 0001 Pretoria, South Africa
2. The Denel Group (Pty) Ltd. (Denel), P.O. Box 8322, 0046 Hennopsmeer, 
South Africa
3. Kentron (Pty) Ltd., P.O. Box 7412, 0046 Hennopsmeer, South Africa.

    Effective June 8, 1994, the Department of State implemented a 
policy of denial pursuant to Sections 38 and 42 of the AECA and 
Sections 126.7(a) (1) and (a)(2) of the ITAR for Armscor, Denel, 
Kentron, and, any divisions, subsidiaries, associated companies, 
affiliated persons, and successor entities in response to an indictment 
returned in the U.S. District Court for the Eastern

[[Page 13933]]

District of Pennsylvania charging Armscor and Kentron with violating 
and conspiring to violate the AECA. Denel, which is related to Armscor, 
was included in the policy of denial (see 59 FR 33811, June 30, 1994).
    Armscor and Kentron have entered pleas of nolo contendere to 
charges of violating the AECA. Pursuant to the Agreement between the 
Government of the United States and the Government of the Republic of 
South Africa concerning cooperation of defense trade controls, Armscor, 
Denel, and Kentron will be subject to statutory debarment until further 
notice.
    This notice involves a foreign affairs function of the United 
States encompassed within the meaning of the military and foreign 
affairs exclusion of the Administrative Procedure Act. Because the 
exercise of this foreign affairs function is discretionary, it is 
excluded from review under the Administrative Procedure Act.

    Dated: March 12, 1997.
William J. Lowell,
Director, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, U.S. Department of State.
[FR Doc. 97-7272 Filed 3-21-97; 8:45 am]
BILLING CODE 4710-25-M