34952 Federal Register / Vol. 63, No. 123 / Friday, June 26, 1998 / Notices

7NASD Regulation notes that few government

securities claims involving public customers have

been filed or attempted to be filed with the Office.

Most of the claims involving government securities

have involved member-to-member claims.

8NASD Regulation proposed an amendment to

Rule 10304, rule filing SR–NASD–97–44, pending

approval with the SEC. Under the proposed rule

change all claims are presumed to be eligible;

however, the presumption could be overcome if the

respondent challenges the claim on the basis that

more than six years have elapsed since the act or

occurrence giving rise to the claim.

9 15 U.S.C. 78o–3.

10 In Notice to Members 96–66, published in

October 1996, the NASD announced the

consolidation of its Government Securities Rules

into the Conduct Rules, ending the regulatory

distinction between the activities of general

securities broker/dealers and government securities

broker/dealers. See Securities Exchange Act Release

No. 37588 (August 20, 1996) 61 FR 44100 (August

27, 1996).

11As noted above, general securities broker/

dealers are already required to arbitrate all their

claims, including those involving government

securities.

12As required by Section 19(b)(5) of the Act, the

Commission has consulted with the Treasury

Department on this proposal.

13 15 U.S.C. 78s(b)(2).

14 17 CFR 200.30–3(a)(12).

Conduct Rules. NASD Regulation now

regulates the activities of members

engaged in government securities

activities that are both general securities

broker/dealers and limited purpose

government securities broker/dealers.

Under the new policy, a member that

is registered solely as a government

securities broker/dealer and that has a

dispute with a customer over a

transaction in exempted securities shall

be required to submit the dispute to

arbitration upon the demand of the

customer.7 Such disputes also may be

compelled to arbitration pursuant to a

valid predispute arbitration agreement.

Intra-industry disputes involving

exempted securities also will be subject

to mandatory arbitration upon the

request of one of the parties.

NASD Regulation also believes the

policy should permit any claim

involving exempted securities to be

submitted for arbitration without regard

to when the transaction occurred;

however, if more than six years have

elapsed from the transaction,

occurrence, or event giving rise to the

claim, under Rule 10304 of the Code,

the claim will not be eligible for

submission to arbitration.8 All claims

involving general securities broker/

dealers will continue to be accepted for

arbitration consistent with past practice.

Claims previously submitted that the

Office has already declined to arbitrate

under the old policy cannot be

resubmitted under the new policy.

III. Discussion

The Commission believes that the

proposed rule change is consistent with

the provisions of Section 15A(b)(6) of

the Act 9 in that eliminating a barrier to

the arbitration of disputes involving

exempted securities will allow public

customers and members access to the

arbitration forum for the resolution of

such disputes. The Commission believes

it is reasonable, given the broadening of

NASD Regulation’s regulatory

jurisdiction over government securities

and the recent adoption of amendments

to the NASD’s rules in recognition of the

broader jurisdiction,10 for NASD

Regulation to amend its arbitration

policy to include claims involving

government securities by members

engaged exclusively in exempted

securities activities 11 within the scope

of those claims that are subject to

mandatory arbitration under the Code.12

IV. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,13 that the

proposed rule change (SR–NASD–98–

04) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–17083 Filed 6–25–98; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice #2843]

Determination on Export-Import Bank

Support for the Sale to Venezuela of

Defense Articles or Services To Be

Used Primarily for Counter-Narcotics

Purposes

Pursuant to section 2(b)(6) of the

Export-Import Bank Act of 1945, as

amended, and Executive Order 11958 of

January 18, 1977, as amended by

Executive Order 12680 of July 5, 1989,

I hereby determine that:

(1) The defense articles and services

for which the Government of Venezuela

has requested Export-Import Bank

financial guarantees, parts and services

for the refurbishment of seventeen (17)

OV–10 aircraft, are being sold primarily

for anti-narcotics purposes;

(2) the sale of such defense articles

and services would be in the national

interest of the United States;

(3) The requirement for a

determination that the Government of

Venezuela has complied with all

restrictions imposed by the United

States on the end-use of defense articles

or services for which the Export-Import

Bank has provided guarantees or

insurance under section 2(b)(6) of the

Export-Import Bank Act is inapplicable

because the pending financing will be

the first Ex-Im Bank transaction with

Venezuela made under section 2(b)(6) of

the Act;

(4) the requirement for a

determination that the Government of

Venezuela has not used defense articles

or services for which the Export-Import

Bank has provided guarantees or

insurance under section 2(b)(6) of the

Export-Import Bank Act to engage in a

consistent pattern of gross violations of

internationally recognized human rights

is inapplicable because the pending

transaction will be the first Ex-Im Bank

transaction with Venezuela made under

section 2(b)(6) of the Act.

The determination shall be reported

to Congress and shall be published in

the Federal Register.

Dated: June 12, 1998.

Strobe Talbott,

Acting Secretary of State.

[FR Doc. 98–17021 Filed 6–25–98; 8:45 am]

BILLING CODE 4710–19–M

DEPARTMENT OF STATE

[Public Notice No. 2842]

United States International

Telecommunications Advisory

Committee (ITAC) Development Sector

(ITAC–D); Notice of Meeting

The Department of State announces a

meeting, under the International

Telecommunications Advisory

Committee (ITAC), of Study Groups 1

and 2 of the Telecommunications

Development Sector (ITAC–D). The

meeting will be held on Wednesday,

July 8, 1998, 10:00 a.m.–12:00 noon, in

Room 1207 of the Department of State,

2201 ‘‘C’’ Street, NW., Washington, DC.

The purpose of ITAC is to advise the

Department on policy, technical and

operational matters and to provide

strategic planning recommendations,

with respect to international

telecommunications and information

issues. The purpose of this meeting is to

develop U.S. positions for the upcoming

ITU–D meetings. The meeting agenda

will include preparation for planned

ITU–D meetings of Study Group 1

(Telecommunications & Development

Strategies and Policies) and Study

Group 2 (Development, Harmonization,

Management and Maintenance of

Telecommunication Networks and

Services, including Spectrum

Management). Questions regarding the

agenda or ITAC–D Sector activities in

general may be directed to Doreen