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JGR/South African Sanctions (6 of 6)
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/South African Sanctions
(6 of 6)
Box: 50
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
Document No.
303298ss
WHITE-HOUSE STAFFING MEMORANDUM
DATE:
9/26/85
ACTION/CONCURRENCE/COMMENT DUE BY:
4:30 P.M. TODAY
SUBJECT: EXECUTIVE ORDER ENTITLED "PROHIBITION OF THE IMPORTATION OF
SOUTH AFRICAN KRUGERRAND"
ACTION FYI
ACTION FYI
VICE PRESIDENT
LACY
REGAN
McFARLANE
WRIGHT
OGLESBY
BUCHANAN
ROLLINS
CHAVEZ
RYAN
CHEW
P
SPEAKES
DANIELS
SPRINKEL
FIELDING
SVAHN
FRIEDERSDORF
THOMAS
HENKEL
TUTTLE
HICKEY
Clerk
HICKS
KINGON
REMARKS:
Please provide any comments/recommendations by 4:30 p.m. today, 9/26.
Thank you.
RESPONSE:
David L. Chew
Staff Secretary
Ext. 2702
303298
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON D.C 20503
Receivados
September 26, 1985
MEMORANDUM FOR: THE PRESIDENT
FROM:
JOSEPH R. WRIGHT, JR.
ACTING DIRECTOR
SUBJECT:
PROPOSED EXECUTIVE ORDER ENTITLED
"PROHIBITION OF THE IMPORTATION OF THE
SOUTH AFRICAN KRUGERRAND"
SUMMARY. This memorandum forwards for your consideration a
proposed Executive order, submitted by the Department of State,
that would prohibit import of the South African Krugerrand
effective October 11, 1985.
BACKGROUND. Executive Order No. 12532 of September 9, 1985
prohibited certain trade and other commercial transactions with
South Africa, pursuant to the President's authority under the
International Emergency Economic Powers Act (IEEPA) and other
statutes, because of the policy of apartheid maintained by the
Government of South Africa. Section 5 (a) of that Order also
directed the Secretary of State and the United States Trade
Representative to consult with other parties to the General
Agreement on Tariffs and Trade (GATT) with a view toward adopting
a prohibition on the import of South African Krugerrands.
The Department of State and the United States Trade
Representative have completed those consultations and believe it
appropriate for the President to prohibit the importation of
Krugerrands. As set forth in the accompanying memorandum from
the Legal Adviser of the Department of State, the Department
believes that strong legal arguments can be made that a
prohibition on import of Krugerrands is consistent with the
international legal obligations of the United States under the
GATT. The Department also notes that none of the countries
consulted objected to the ban, and that several GATT countries
have reached similar conclusions.
At the request of the Department of the Treasury, the import ban
will take effect on October 11, 1985, so that Treasury may have
sufficient time to develop the regulations necessary to enforce
the import prohibition.
In order to ban the import of Krugerrands, it will be necessary
for the President to invoke the provisions of IEEPA. In the view
of the Department of State, current conditions in South Africa
are sufficient to warrant this additional step in order to deal
with the continuing emergency.
In order to comply with the notification provisions of IEEFA,
after signing the proposed Executive order, the President also
must sign the attached notification informing Congress that he
has exercised his authority under that statute and stating the
reasons why he believes such action is necessary to deal with the
circumstances that constitute the unusual and extraordinary
threat to the United States.
As revised, none of the affected agencies has objected to
issuance of the proposed Executive order.
RECOMMENDATION. I recommend that you sign the proposed Executive
order.
Enclosure
EXECUTIVE ORDER
PROHIBITION OF THE IMPORTATION OF THE
SOUTH AFRICAN KRUGERRAND
By the authority vested in me as President by the
Constitution and laws of the United States of America, including
the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), in order to take steps additional to those set forth in
Executive Order No. 12532 of September 9, 1985, to deal with the
unusual and extraordinary threat to the foreign policy and
economy of the United States referred to in that Order, and in
view of the continuing nature of that emergency, the
recommendations made by the United Nations Security Council in
Resolution No. 569 of July 26, 1985, and the completion of
consultations by the Secretary of State and the United States
Trade Representative directed by Section 5 (a) of Executive Order
No. 12532, it is hereby ordered that the importation into the
United States of South African Krugerrands is prohibited
effective 12:01 a.m. Eastern Daylight Time October 11, 1985. The
Secretary of the Treasury is authorized to promulgate such rules
and regulations as may be necessary to carry out this
prohibition.
THE WHITE HOUSE,
TO THE CONGRESS OF THE UNITED STATES:
On September 9, 1985, I informed the Congress pursuant to
Section 204 (b) of the International Emergency Economic Powers
Act, 50 U.S.C. 1703 (b), that I had exercised my statutory
authority to prohibit certian transactions involving South Africa
(Executive Order No. 12532). I also informed the Congress that
the Executive Order directed the Secretary of State and the
United States Trade Representative to consult with other parties
to the General Agreement on Tariffs and Trade with a view toward
adopting a prohibition on the import of Kruggerrands.
In order to deal with the unusual and extraordinary threat to
the foreign policy and economy of the United States referred to
in Executive Order No. 12532, and in view of the continuing
nature of that emergency, and in view of the successful
completion of those consultations, I am today exercising my
statutory authority to prohibit such imports effective
October 11, 1985.
All of the measures I have adopted against South Africa are
directed at apartheid and the South African Government, and not
against the people of that country or its economy. The
Kruggerrand measure ordered today was taken in recognition of the
fact that the Kruggerrand is perceived in the Congress as an
important symbol of apartheid. This view is widely shared by the
U.S. public. I am directing this prohibition in recognition of
these public and Congressional sentiments.
V
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
STATE SECUTIVE UNITED and OFFICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
September 25,1985
Danarable John Roberts
Enclosed is a proposed Executive order entitled "Prohibition on
the Importation of the South African Krugerrand".
In accordance with the provisions of Executive Order No. 11030,
as amended, it was submitted to this office, along with the
enclosed transmittal memorandum and draft notification to
Congress, by the Department of State.
On behalf of the Director of the Office of Management and Budget,
I would appreciate receiving any comments you may have concerning
this proposal. The State Department has requested that the
proposal be circulated expeditiously so that it may be presented
to the President on Thursday, September 26, 1985. Accordingly,
if you have any comments or objections they should be received no
later than the close of business on Wednesday, September 25,
1985.
Comments or inquiries may be submitted by telephone to Mr. John
F. Cooney of this office (395-5600).
Sincerely,
John F Michael J. Cooney
Horowitz
Counsel to the Director
Enclosure
Executive Order
Prohibition on the Importation of the
South African Krugerrand
By the authority vested in me as President by the
Constitution and laws of the United States of America,
including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), and considering the findings made in
Executive Order No. 12532 of September 9, 1985 and the
authorities relied upon in that order, and in view of the
completion of consultations by the Secretary of State and the
United States Trade Representative directed by Section 5 of
Executive Order No. 12532, I hereby prohibit the importation
into the United States of South African Krugerrands effective
November 4, 1985. The Secretary of the Treasury is authorized
to promulgate such rules and regulations as may be necessary to
carry out this prohibition.
THE WHITE HOUSE
September
0107A
United States Department of State
The Legal Adviser
Washington, D.C. 20520
LIMITED OFFICIAL USE
September 25, 1985
MEMORANDUM
TO:
Joseph R. Wright, Jr.
Acting Director
Office of Management and Budget
FROM:
Abraham D. Sofaer ADSbynDu
Attached is a copy of the recommendation made today to the
President by the Acting Secretary of State regarding an
executive order prohibiting the import of Krugerrands. In
accordance with established procedures, I am forwarding the
draft executive order and draft report to Congress for formal
OMB coordination.
As indicated in the memorandum to the President, the
consultations required under Section 5 of Executive Order No.
12532 have been completed. None of the countries consulted
objected to the ban. We are now satisfied that we can make a
strong legal argument that the Krugerrand ban is consistent
with our international legal obligations under the GATT.
Several of the GATT countries consulted volunteered that they
had reached similar GATT conclusions and none questioned our
view.
It is important in terms of Congressional strategy that the
order be signed quickly, preferably on Thursday. It is
consequently requested that the order be reviewed on an
expedited basis.
Attachments:
As stated.
LIMITED OFFICIAL USE
CAS. 7/20/05
DEPARTMENT OF STATE
WASHINGTON
LIMITED OFFICIAL USE
MEMORANDUM FOR THE PRESIDENT
From:
John Whitehead after Acting
Subject: Executive Order Prohibiting the Import of Krugerrands
Your September 9 Executive Order on South Africa provides
that the Secretary of State and the USTR are to consult with
other GATT parties with a view toward adopting a prohibition on
the import of Krugerrands into the U.S. Key posts were
instructed last week to engage in these consultations, and they
have now been completed. None of our key partners objected to
the ban, and most indicated that they remain under substantial
pressure to adopt similar measures directed at South Africa.
As you know, Senators Dole and Lugar were successful during
the week of September 9 in their three attempts to prevent a
vote on the Conference bill. It is now widely assumed that
attempts will be made to force a vote on the bill by proposing
it as an amendment to the debt ceiling bill or some other
legislation (e.g., the foreign assistance appropriations bill
or a continuing resolution). In light of the close votes two
weeks ago (we were able to prevent a vote on the bill only by
two votes), the likelihood that the bill could be adopted
remains substantial.
The major criticism of the September 9 Executive Order is
that it did not contain an immediate ban on Krugerrand
imports. Many claimed to believe that the GATT provision on
consultations was simply a ploy to stall on this issue.
Signing an executive order on Krugerrands at this time should
help Senators Dole and Lugar and other members of Congress in
arguing against any further votes on the Conference bill.
Given our clear and categorical statements on the issue, I
believe the South African Government already expects us to
proceed with this largely symbolic measure. We believe that we
should act now, and I recommend that you sign an executive
order this week prohibiting the import of Krugerrands.
The USTR and Treasury concur in imposing a ban at this time.
Attachments:
1. Executive Order
2. Report to Congress
LIMITED
OFFICIAL
USE
CAS
7/28/05
Executive Order
Prohibition on the Importation of the
South African Krugerrand
By the authority vested in me as President by the
Constitution and laws of the United States of America,
including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), and considering the findings made in
Executive Order No. 12532 of September 9, 1985 and the
authorities relied upon in that order, and in view of the
completion of consultations by the Secretary of State and the
United States Trade Representative directed by Section 5 of
Executive Order No. 12532, I hereby prohibit the importation
into the United States of South African Krugerrands effective
November 4, 1985. The Secretary of the Treasury is authorized
to promulgate such rules and regulations as may be necessary to
carry out this prohibition.
THE WHITE HOUSE
September
TO THE CONGRESS OF THE UNITED STATES:
On September 9, I informed the Congress pursuant to Section
204 (b) of the International Emergency Economic Powers Act, 50
U.S.C. 1703 (b), that I had exercised my statutory authority to
prohibit certain transactions involving South Africa (E.O.
12532). I also informed the Congress that the Executive Order
directed the Secretary of State and the United States Trade
Representative to consult with other parties to the General
Agreement on Tariffs and Trade with a view toward adopting a
prohibition on the import of Krugerrands into the United States.
The consultations have been completed, and I am today
exercising my statutory authority to prohibit such imports
effective November 4, 1985.
All of the measures I have adopted against South Africa are
directed at apartheid and the South African Government, and not
against the people of that country or its economy. The
Krugerrand measure ordered today was taken in recognition of
the fact that the Krugerrand is perceived in the Congress as an
important symbol of apartheid. This view is widely shared by
the U.S. public. I am directing this prohibition in
recognition of these public and Congressional sentiments and
the strong symbolic value it would have in the United States.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON DC 20503
September 26, 1985
Honorable Edwin Meese, III
United States Attorney General
Washington, D.C. 20530
Dear Mr. Attorney General:
Enclosed, in accordance with the provisions of Executive Order
No. 11030, as amended, is a proposed Executive order entitled
"Prohibition of the Importation of South African Krugerrands",
that would prohibit import of the South African Krugerrand
effective October 11, 1985.
Executive Order No. 12532 of September 9, 1985 prohibited certain
trade and other commercial transactions with South Africa,
pursuant to the President's authority under the International
Emergency Economic Powers Act (IEEPA) and other statutes, because
of the policy of apartheid maintained by the Government of South
Africa. Section 5 (a) of that Order also directed the Secretary
of State and the United States Trade Representative to consult
with other parties to the General Agreement on Tariffs and Trade
(GATT) with a view toward adopting a prohibition on the import of
South African Krugerrands.
The Department of State and the United States Trade
Representative have completed those consultations and believe it
appropriate for the President to prohibit the importation of
Krugerrands. As set forth in the accompanying memorandum from
the Legal Adviser of the Department of State, the Department
believes that strong legal arguments can be made that a
prohibition on import of Krugerrands is consistent with the
international legal obligations of the United States under the
GATT. The Department also notes that none of the countries
consulted objected to the ban, and that several GATT countries
have reached similar conclusions.
At the request of the Department of the Treasury, the import ban
will take effect on October 11, 1985, so that Treasury may have
sufficient time to develop the regulations necessary to enforce
the import prohibition.
In order to ban the import of Krugerrands, it will be necessary
for the President to invoke the provisions of IEEPA. In the view
of the Department of State, current conditions in South Africa
are sufficient to warrant this additional step in order to deal
with the continuing emergency.
In order to comply with the notification provisions of IEEPA,
after signing the proposed Executive order, the President also
must sign the attached notification informing Congress that he
has exercised his authority under that statute and stating the
reasons why he believes such action is necessary to deal with the
circumstances that constitute the unusual and extraordinary
threat to the United States.
Your staff may direct any questions concerning this proposed
Executive order to Mr. John F. Cooney of this office (395-5600).
This proposed Executive order has the approval of the Director of
the Office of Management and Budget.
Sincerely,
John Michael F. Cooney J.
Horowitz
Counsel to the Director
EXECUTIVE ORDER
PROHIBITION OF THE IMPORTATION OF THE
SOUTH AFRICAN KRUGERRAND
By the authority vested in me as President by the
Constitution and laws of the United States of America, including
the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), in order to take steps additional to those set forth in
Executive Order No. 12532 of September 9, 1985, to deal with the
unusual and extraordinary threat to the foreign policy and
economy of the United States referred to in that Order, and in
view of the continuing nature of that emergency, the
recommendations made by the United Nations Security Council in
Resolution No. 569 of July 26, 1985, and the completion of
consultations by the Secretary of State and the United States
Trade Representative directed by Section 5 (a) of Executive Order
No. 12532, it is hereby ordered that the importation into the
United States of South African Krugerrands is prohibited
effective 12:01 a.m. Eastern Daylight Time October 11, 1985. The
Secretary of the Treasury is authorized to promulgate such rules
and regulations as may be necessary to carry out this
prohibition.
THE WHITE HOUSE,
TO THE CONGRESS OF THE UNITED STATES:
On September 9, 1985, I informed the Congress pursuant to
Section 204 (b) of the International Emergency Economic Powers
Act, 50 U.S.C. 1703 (b), that I had exercised my statutory
authority to prohibit certian transactions involving South Africa
(Executive Order No. 12532). I also informed the Congress that
the Executive Order directed the Secretary of State and the
United States Trade Representative to consult with other parties
to the General Agreement on Tariffs and Trade with a view toward
adopting a prohibition on the import of Kruggerrands.
In order to deal with the unusual and extraordinary threat to
the foreign policy and economy of the United States referred to
in Executive Order No. 12532, and in view of the continuing
nature of that emergency, and in view of the successful
completion of those consultations, I am today exercising my
statutory authority to prohibit such imports effective
October 11, 1985.
All of the measures I have adopted against South Africa are
directed at apartheid and the South African Government, and not
against the people of that country or its economy. The
Kruggerrand measure ordered today was taken in recognition of the
fact that the Kruggerrand is perceived in the Congress as an
important symbol of apartheid. This view is widely shared by the
U.S. public. I am directing this prohibition in recognition of
these public and Congressional sentiments.
Executive Order
Prohibition on the Importation of the
South African Krugerrand
By the authority vested in me as President by the
Constitution and laws of the United States of America,
including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), and considering the findings made in
Executive Order No. 12532 of September 9, 1985 and the
authorities relied upon in that order, and in view of the
completion of consultations by the Secretary of State and the
United States Trade Representative directed by Section 5 of
Executive Order No. 12532, I hereby prohibit the importation
into the United States of South African Krugerrands effective
November 4, 1985. The Secretary of the Treasury is authorized
to promulgate such rules and regulations as may be necessary to
carry out this prohibition.
THE WHITE HOUSE
September
TO THE CONGRESS OF THE UNITED STATES:
On September 9, I informed the Congress pursuant to Section
204 (b) of the International Emergency Economic Powers Act, 50
U.S.C. 1703 (b), that I had exercised my statutory authority to
prohibit certain transactions involving South Africa (E.O.
12532). I also informed the Congress that the Executive Order
directed the Secretary of State and the United States Trade
Representative to consult with other parties to the General
Agreement on Tariffs and Trade with a view toward adopting a
prohibition on the import of Krugerrands into the United States.
The consultations have been completed, and I am today
exercising my statutory authority to prohibit such imports
effective November 4, 1985.
All of the measures I have adopted against South Africa are
directed at apartheid and the South African Government, and not
against the people of that country or its economy. The
Krugerrand measure ordered today was taken in recognition of
the fact that the Krugerrand is perceived in the Congress as an
important symbol of apartheid. This view is widely shared by
the U.S. public. I am directing this prohibition in
recognition of these public and Congressional sentiments and
the strong symbolic value it would have in the United States.
THE VIITE HOUSE
NASFINCTON
March 14, 1986
MEMORANDUM FOR DAVID L. CHEW
STAFF SECRETARY AND DEPUTY ASSISTANT
TO THE PRESIDENT
FROM:
JOHN G. ROBERTS
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Report to Congress on South Africa
National Emergency
Counsel's Office has reviewed the above-referenced draft report.
In line 9 of the second paragraph on page 2, change "the latter"
to "that." In line 4 on page 3, change "Krugerrand" to
"Krugerrands." In line 7 on page 3, change "5" to "5(a)." In
line 16 on page 3, change "11" to "9." In line 16 on page 4,
change "8" to "6."
ID #
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o OUTGOING
H INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
David Chew
MI Mail Report
User Codes: (A)
(B)
(C)
Subject:
Report to Congress on South Africa
National Emergency.
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUHOLL
ORIGINATOR 86,03,14
/ /
Referral Note:
CUAT18 18
R 86,03,14
S 86,03,14
Referral Note:
12 noon
/ /
/
/
-
Referral Note:
/ /
/
/
-
Referral Note:
/ /
/ /
-
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A. Appropriate Action
1. . Info Copy Only/No Action Necessary
A - Answered
C Completed
C . Comment/Recommendation
R - Direct Reply w/Copy
B - Non-Special Referral
S Suspended
D Draft Response
S - For Signature
F. Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE:
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 3/14/86
ACTION/CONCURRENCE/COMMENT DUE BY:
NOON TODAY
SUBJECT: REPORT TO CONGRESS ON SOUTH AFRICA NATIONAL EMERGENCY
ACTION FYI
ACTION FYI
VICE PRESIDENT
LACY
REGAN
POINDEXTER
MILLER
RYAN
BALL
SPEAKES
BUCHANAN
SPRINKEL
CHAVEZ
SVAHN
CHEW
P
SS THOMAS
DANIELS
TUTTLE
FIELDING
Clerk
HENKEL
HICKS
KINGON
REMARKS: Please provide any comments/recommendations on the attached
by Noon today. Thank you.
RESPONSE:
David L. Chew
Staff Secretary
THE WHITE HOUSE
WASHINGTON
1839
March 13, 1986
MEMORANDUM FOR THE PRESIDENT
THRU:
EXECUTIVE CLERK
FROM:
JOHN M. POINDEXTER
SUBJECT:
Your Report to Congress on the South
Africa Executive Order
Issue
To forward a report to Congress on the South Africa Executive
Order.
Facts
Under the International Emergency Economic Powers Act, you are
required to submit a report to the Congress on the actions taken
with respect to the national emergency on South Africa at the
close of each six-month period following the declaration of that
emergency. The national emergency on South Africa was declared
on September 9, 1985, in Executive Order 12532, in which you
declared that the policies and actions of the South African
Government constituted an unusual and extraordinary threat to the
foreign policy and economy of the U.S.
Discussion
At Tab A is a draft of the first six-month report to the
Congress prepared by the Department of State. It has been
cleared by NSC, the Executive Clerk's office, the Departments of
Commerce and Treasury.
Recommendation
OK
No
Approve the attached Report to Congress.
Attachment
Tab A
Draft Report to Congress
Prepared by Helen Soos
CC: Vice President
Message to the Congress Reporting on Actions Taken pursuant
to Executive Order No. 12532 of September 9, 1985.
March , 1986
To the Congress of the United States:
On September 9, 1985, in Executive Order 12532 (50 Fed.
Reg. 36861, Sept. 10, 1985), I declared a national emergency
to deal with the threat posed by the policies and actions of
the Government of South Africa to the foreign policy and
economy of the United States.
Pursuant to that Order, I prohibited certain
transactions, including the following: (l) the making or
approval of bank loans to the South African Government, with
certain narrow exceptions; (2) the export of computers and
related goods and technology to certain government agencies
and any apartheid enforcing entity of the South African
Government; (3) nuclear exports to South Africa and related
transactions, with certain narrow exceptions; (4) the import
into the United States of arms, ammunition, or military
vehicles produced in South Africa; and (5) the extension of
export marketing support to U.S. firms employing at least
twenty-five persons in South Africa which do not adhere to
certain fair labor standards.
- 2 -
In addition, I directed (6) the Secretary of State and
the United States Trade Representative to consult with other
parties to the General Agreement on Tariffs and Trade with a
view toward adopting a prohibition on the import of
Krugerrands; (7) the Secretary of the Treasury to complete a
study within 60 days regarding the feasibility of minting
U.S. gold coins; (8) the Secretary of State to take the
steps necessary to increase the amounts provided for
scholarships in South Africa for those disadvantaged by the
system of apartheid and to increase the amounts allocated
for South Africa in the Human Rights Fund; and (9) the
Secretary of State to establish an Advisory Committee to
provide recommendations on measures to encourage peaceful
change in South Africa.
The declaration of emergency was made pursuant to the
authority vested in me as President by the Constitution and
laws of the United States, including the International
Emergency Economic Powers Act, 50 U.S.C. 1701 et seq., and
the National Emergencies Act, 50 U.S.C. 1601 et seq. I
submitted a report regarding the declaration to the Congress
on September 9, 1985, pursuant to Section 204 (b) of the
International Emergency Economic Powers Act. Pursuant to
Section 204 (c) of the latter act, I am today reporting on
the major actions taken in the exercise of the authorities
contained in that act and Executive Order 12532. The
- 3 -
following actions are listed in chronological order, and a
copy of all implementing rules and regulations is enclosed.
On October 1, 1985, in Executive Order 12535, I
prohibited the importation of the South African Krugerrand
into the United States effective October 11, 1985. (50 Fed.
Reg. 40325, Oct. 3, 1985). This order implemented the
course of action contemplated in Section 5 of Executive
Order 12532.
On October 7, 1985, the Bureau of Alcohol, Tobacco and
Firearms of the Department of the Treasury issued
regulations on the Importation of Articles on the United
States Munitions Import List (50 Fed. Reg. 42157, Oct. 18,
1985). These regulations implemented the prohibition of
certain arms imports contained in Section 1 (d) of Executive
Order 12532.
On October 11, 1985, the Office of Foreign Assets
Control of the Department of the Treasury issued the South
African Transactions Regulations (50 Fed Reg. 41682, Oct.
15, 1985). These regulations implemented the ban on the
importation of the Krugerrand.
On October 22, 1985, the Department of State published
a notice in the Federal Register regarding the Establishment
- 4 -
of the Advisory Committee on South Africa (50 Fed. Reg.
42817, Oct. 22, 1985). The Charter of the Advisory
Committee has been filed with the Senate Foreign Relations
Committee, the House Foreign Affairs Committee, and the
Library of Congress. The Committee shall render a report to
the Secretary of State within one year of its first meeting,
which was held on January 29-30.
On November 4, 1985, the Department of State issued
proposed regulations for public comment on South Africa and
Fair Labor Standards (50 Fed. Reg. 46455, Nov. 8, 1985).
The draft regulations were designed to implement the fair
labor provisions stated in Section 2 of Executive Order
12532. Final regulations were issued by the Department of
State on December 23, 1985 (50 Fed. Reg. 53308, Dec. 31,
1985).
On November 8, 1985, the Office of Foreign Assets
Control of the Department of the Treasury issued the South
African Transactions Regulations (50 Fed. Reg. 46726, Nov.
12, 1985). These regulations implemented the bank loan
prohibition of Section (a) of Executive Order 12532.
On November 8, 1985, the Secretary of Treasury
submitted a report on the feasibility of minting U.S. gold
coins. On December 17, 1985, I signed the Gold Bullion Coin
- 5 -
Act of 1985 (Pub. L. 99-185), which requires the minting of
such coins.
On November 14, 1985, the International Trade
Administration of the Department of Commerce issued
regulations on Export Controls on the Republic of South
Africa (50 Fed. Reg. 47363, Nov. 18, 1985). These
regulations implemented the computer export prohibition in
Section 1 (b) and the prohibition against licensing exports
to nuclear production and utilization facilities in Section
1 (c) of Executive Order 12532.
The policies and actions of the Government of South
Africa continue to pose an unusual and extraordinary threat
to the foreign policy and economy of the United States. I
shall continue to exercise the powers at my disposal to
apply the measures contained in Executive Order 12532 as
long as these measures are appropriate, and will continue to
report periodically to Congress on significant developments
pursuant to 50 U.S.C. 1703(c).
The White House
March , 1986
Enclosures
Rules and Regulations Issued in
Implementation of Executive Orders 12532 and 12535
1. Arms Imports Regulations (Treasury, Bureau of Alcohol,
Tobacco, and Firearms)
2. Krugerrand Regulations (Treasury, Office of Foreign Assets
Control)
3. South Africa Fair Labor Standards (State) : Proposed
regulations
4. South Africa Fair Labor Standards (State) : Final regulations
5. Bank Loan Regulations (Treasury, Office of Foreign Assets
Control)
6. Computer Export Regulations (Commerce)
Enclosure 1
Federal Register 1 Vol. 50, No. 202 1 Priday. October 18. 1985 1 Rules and Regulations
42157
DEPARTMENT OF THE TREASURY
peace. and the external security and
to United Nations Security Council
foreign policy of the United States. After
Resolution 415 of November 1. 1977.
Bureau of Alcohol, Tobacco and
consultation with the Departments of
Exports of items covered by this
Firearms
State and Defense. the provisions of 27
embargo are consequently prohibited by
CFR Part 47 are revised to conform to
the Department of State pursuant to the
27 CFR Part 47
the State Department ITAR and
International Traffic in Arms
ITD. ATF-215)
Executive Order 12532 (50 FR 36861
Regulations (22 CFR 126.1). On
(1885)).
December 13, 1984. the United States
importation of Articles on the United
Editorial Changes. Throughout the
voted in favor of Security Council
States Munitions Import List
document we have amended all
Resolution 558 regarding the import of
references to "26 CFR" to refect "27
AGENCY: Bureau of Alcohol. Tobacco
arms. ammunition. and military vehicles
CFR" and "sec. 414 of the Mutual
and Firearms (ATF). Treasury.
produced in South Africa. The
Security Act of 1954" to reflect "Sec. 88.
ACTION: Final rule (Treasury decision).
Department of State has confirmed that
Arms Export Control Act of 1976".
Additionally. all references pertaining to
imports covered by this embargo which
SUMMARY: On December 6, 1964. the
the Canal Zone have been daleted as the
are subject to the import jurisdiction of
Department of State published a final
Canal Zone is no longer under the
the Office of Munitions Control (e.g.,
rule (49 FR 47682 (1984)) revising the
temporary imports) are also prohibited
International Traffic in Arms
furisdiction of the United States
Regulations (ITAR). This final rule
pursuant to the Panama Canal Treaty of
pursuant to 22 CFR 126.1. in addition. on
1977.
September 9. 1985. the President signed
conforms the regulations in = CFR Part
47 to the revised ITAR and improves the
Revision of the U.S. Munitions Import
Executive Order 12532 prohibiting trade
List The defense articles controlled
and certain other transactions involving
regulatory scheme established under the
under Part 47 are known as the U.S.
South Africa. Category XXII has been
Arms Export Control Act of 1976 to
Munitions Import List. This List is an
added to restrict the importation of
control the import of defense articles
and defense services. This final rule also
expurgated list of the articles controlled
defense articles. and technical date
under the ITAR and known as the U.S.
relating to defense articles. from South
implements U.N. Security Council
Munitions List The organization of the
Resolution 558 and Executive Order
Africa. Finally. the United Nations
U.S. Munitions Import List has basically
12532 (50 FR 36861 (1985)) regarding
import embargo on materials originating
stayed the same. The modifications
certain imports from South Africa.
to Southern Rhodesia is no longer in
which are made simplify and modernize
DATE: This final rule is effective
force. and consequently an import
the terminology in the various
retroactive to October 11, 1985.
embargo on Items originating in
categories. Notable additions to the list
Southern Rhodesia contained in
FOR FURTHER INFORMATION CONTACT:
are "combat shotguns" and "Insurgency-
$ 47.52(c) is repealed.
Lonnie Muncy or Teri Byers. Bureau of
counterinsurgency" type firearms having
Alcohol. Tobacco and Firearms, 1200
special military application in Category
Exemptions from Canada. The import
Pennsylvania Avenue. NW.,
1 Murzle-loading (blackpowder)
permit exemption for articles in
Washington. DC 20226. ATTN: Firearms
firearms and bayonets have been
Categories 1. II Ш and IV coming from
and Explosives Imports Branch.
deleted from Category L
Canada has been eliminated. Import
Telephone No. (202) 566-7151.
Procedures for becoming a Registered
permits for these articles (except for
SUPPLEMENTARY INFORMATION:
Importer. The procedures to register as
certain components. parts and
Background
an importer have not changed. However,
accessories) are required under Parts
the fees have been increased to conform
178 and 179. This change will eliminate
Executive Order 11958 of January 18.
to the fees charged to register as 8
the inconsistency between the
1977. as amended (42 FR 4321 (1077))
manufacturer or exporter under the
regulations and the confusion as to
delegated authority to control exports of
ITAR. This fee increase is the first since
which components, parts and
defense articles and defense services to
1969. Additionally. refunds will be
accessories require an import permit.
the Secretary of State. The above
considered at the written request of the
Executive Order also delegated to the
importer prior to the beginning of any
Administrative Procedure Act
Secretary of the Treasury the authority
year for which a refund is claimed.
Under I 47.54. the functions conferred
to control the import of defense articles
Procedures for Filing ATF Form 6A.
under section 38 of the Arms Export
and services.
The procedures for filing ATF Form 6A.
Control Act of 1976 are excluded from
On January 25. 1974. 27 CFR Part 47
Relesse and Receipt of Firearms,
the operation of Chapter 5
was published in its current form (39 FR
Ammunition and Implements of War,
(Administrative Procedure) of Title 5.
8251 (1974)). Since that time there has
are changed to require that the U.S.
been no substantial revision to Part 47.
United States Code, with respect to Rule
Customs officer and the importer return
On December 14. 1960. the Office of
Making and Adjudicating. Such
a copy to the address specified on the
Munitions Control. Department of State,
functions are concerned with "a military
form instead of to the Regional Director
published a proposed comprehensive
(Compliance).
or foreign affairs function of the United
revision of the International Traffic in
Restrictive Countries. The
States." Accordingly. this regulation
Arms Regulations (ITAR). issued under
Department of State revised the list of
may be adopted without prior
the Arms Export Control Act of 1976 (45
countries or areas for which licenses
publication of 8 notice of proposed
FR 83970 (1980)). On December 6. 1964,
and other approvals for shipments of
rulemaking or opportunity for hearing.
the Department of State published a
defense articles and services will be
final rule effective January 1. 1985.
Drafting Information
denied. The list of countries or areas for
revising the ITAR (49 FR 47682 (1985))
which import restrictions apply in
The principal authors of this final rule
which is codified at 22 CFR Parts 121-
I 47.52 has been revised to conform to
are Lonnie Muncy and Teri Byers.
130. Pursuant to I 47.55. ATF is guided
the Department of State List.
Firearms and Explosives Imports
by the views of the Departments of State
Additionally. the U.S. maintains an arms
Branch Bureau of Alcohol. Tobacco and
and Defense on matters affecting world
embargo against South Africa pursuant
Firearms.
List of Subjects in D CFR Part w
articles and adding the words
models. mockups. and other such thems
Administrative practice and
"US. Munitions Import" before the word
which reveal technical data directly
procedures, Arms control. Arms and
"List" in the second sentence of
relating to 47.21 or 97.22. For
anunitions, Authority delegations,
paragraph (c): in paragraph (d) replacing
purposes of Category XXII. any Item
Customs daties and inspection, Imports,
"the Mutual Security Act of 1954" with
enumerated on the U.S. Munitions List
Penalties. Reporting requirements.
"Section 24. Arms Export Control Act of
(22 CFR Part 121).
1976"; and replacing "26 CFR" with "27
Defense services. (a) the furnishing of
Compliance with Executive Order 12201
CFR" in all paragraphs. The section is
assistance. including training. to foreign
This document is not subject to
revised to read as fallows:
persons in the design. engineering.
Executive Order 12291 of February 17,
47.2 Relation to other Laws and
development. production. processing.
1981 (46 FR 13193 (1981)) because it
regulations.'
manufacture. use. operation. overhaul.
concerns a military or foreign affairs
(a) AD of those items OD the U.S.
repair. maintanance. modification. or
function of the United States.
Munitions Import List (see I 47.21)
reconstruction of defense articles.
Paperwork Reduction Act
which are "firearms" or "ammunition"
whether in the United States or abroad:
The requirements to collect
M defined in 18 U.S.C. 921(a) are subject
or
information contained in this final rule
to the interstate and foreign commerce
(b) the furnishing to foreign persons of
controls contained in Chapter 44 of Title
any technical data. whether in the
have been reviewed and approved by
18 U.S.C. and 27 CFR Part 178 and if
United States or abroad.
the Office of Management and Budget
under the Paperwork Reduction Act of
they are "firearms" within the definition
1980, Pub. L 96-511. 44 U.S.C., Chapter
set out in 26 U.S.C. $845(a) are also
Firearms. a weapon. and all
25.
subject to the provisions of 27 CFR Part
components and parts therefor. not over
179. Any person engaged to the business
so caliber which will or is designed to
Forms
of importing firearms or ammunition as
or may be readily converted to expel a
This chart displays the centrol
defined in 10 U.S.C. @21(a) must obtain a
projectile by the action of an explosive.
numbers assigned to information
license under the provisions of 27 CFR
but shall not include BB and pellet guns.
collection requirements by the Office of
Part 178. and If be imports firearms
and muzzle loading (black powder)
Management and Budget persuant to the
which fall within the definition of 26
firearms (including any firearm with a
Paperwork Reduction Act of 1920. Pub.
U.S.C. 5845(a) must also register and pay
matchlock. flintlock percussion cap. or
L 96-511.
special tax pursuant to the provisions of
similar type of ignition system) or
27 CFR Part 179. Such licensing.
firearms covered by Category 1(a)
Quarant OMB
registration and special tax
established to have been manufactured
Suction - Identification
control No.
requirements are in addition to
in or before 1898.
(6-47-22(a)
registration under Subpart D of this part.
1618-0021
(47.320)
1512-0021
(b) The permit procedures of Subpart
United States. When used in the
64733
1512-0021
E of this part are applicable to all
14742
6512-6017
geographical sense. includes the several
94746
1512-0018
importations of articles on the U.S.
States. the Commonwealth of Puerto
64751
8825-0084
Munitions Import List not subject to
Rico. the insular possessions of the
mentrols under D CFR Part 178 or 179.
United States. the District of Columbia,
U.S. Munitions import List articles
and any territory over which the United
Regulatory Flexibility Act
subject to controls under 17 CFR Part
States exercises any powers of
Because a notice of proposed
176 or 27 CFR Part 179 are subject to the
administration, legislation. and
rulemaking is not required for this final
import permit procedures of those
furisdiction.
rule under 5 U.S.C. 553(b). the provisions
regulations if imported into the United
of the Regulatory Flexibility Act (Pub. L
States (within the meaning of Z7 CFR
96-354. 91 Stat. 1165, 5 U.S.C. 601 et seq.)
Parts 178 and 179).
Par. 7. Section 47.21 is revised to read
relating to the preparation of &
4c) Articles on the U.S. Munitions
as follows:
regulatory flexibility analysis are not
Import List imported for the United
$47.21 The U.S. Munitions Import List.
applicable to this final rule.
States or any State or political
subdivision thereof are exempt from the
The U.S. Manitions List compiled by
Authority and Issuance
import controls of 27 OFR Part 178 but
the Department of State. Office of
are not exempt from control under
Munitions Control and published at =
Paragraph 1 The authority citation for
CFR 121.1. with the deletions indicated.
Part 47 continues to read as follows:
Section 38, Arms Export Control Act of
Authority: Section 38. Pub. L 94-329. to
1976. unless imported by the United
has been adopted as an enumeration of
Stat 744 (22 U.S.C. 2778). 44 U.S.C. 8504(h).
States or any agency thereof. All such
the defense articles subject to controls
importations not imported by the United
under this part. The expargated list. set
States or any agency thereof shall be
out below. shall. for the purposes of this
67.1 [Amonded]
subject to the import permit procedures
part be known as the U.S. Munitions
Par. 2. Section 47.1 is amended by
replacing "section 414 of the Mutual
of Subpart E of this part.
Import List:
Security Act of 1954" with "Section 56,
Par. 4. Section 47.11 is amended by
The U.S. Munitions Impurt List
adding the definitions of "Defense
Arms Export Control Act of 1976".
Category I-Firearms
Par. 1. Section 47.2 is revised by
articles" end Defense services" and by
revising the terms "Firearms" and
(a) Nonautomatic and samiautomatic
deleting paragraph (b) pertaining to the
firearms. to caliber so inclusive.
"United States" to read as follows:
Panama Canal Zone. and redesignating
shotguns. and shotguns with barrels less than
paragraphs (c) and (d) as (b) and (c):
$47.11 Meaning of terms.
18 inches in length. and all components and
deleting from paragraph (c) the phrase
parts for such Arearms.
coming into the Panama Canal
(b) Automatic firearms and all components
Defense articles. Any item designated
and parts for such firearms to caliber .50
Zone and to importations of all List
in 1 47.21 ar $ 022 This serve includes
inclusive.
Federal Register 1 Vol. 50, No. 202 1 Friday, October 18. 1985 / Rules end Regulations
42159
(c) insurgency-counterinsurgency type
and parts. launching racks and projectors.
(I) Patrol Combetants (PC. PHM)
firearms of other weapons having a special
pistols (exploders). igniters. fuze arming
(ii) Amphibious Helicopter/Landing Craft
military application (e.g. close assault
devices, intervalometers. guided missile
Carriers (LHA. LPD. LPH)
weapons systems) regardless of caliber and
Jaunchers and specialized handling
(III) Amphibious Landing Craft Carriers
all components and parts for such firearms.
equipment. and hardened missile launching
(LKA. LPA. LSD. LST)
(d) Firearms silencers and suppressors.
facilities.
(iv) Amphibious Command Ships (LCC)
Including flash suppressors.
(d) Missile and space vehicle powerplants.
(v) Mine Warfare Ships (MSO).
(e) Riflescopes manufactured to military
(e) Military explosive excavating devices.
(b) Auxiliaries:
specifications and specifically designed or
M Ablative materials fabricated or
(1) Mobile Logistics Support:
modified components therefor.
semifabricated from advanced composites
(i) Under way Replenishment (AD. AF.
Note: Rifles. carbines. revolvers. and
(e.g., silica. graphite. carbon. carbon/carbon.
APS, AO. AOE. AOR)
pistols. to caliber 50 inclusive. combat
and boron filaments) for the articles in this
(ii) Material Support (AD. AR AS).
shotguns. and shotguns with barrels less than
category that are derived directly from or
(2) Support Ships:
18 inches in length are included under
specifically developed or modified for
(i) Fleet Support Shipe (ARS. ASR. ATA.
Category 1(a). Machineguns, submachineguns.
defense articles.
ATF. ATS)
machine pistols and fully automatic rifles to
(s) Non/nuclear warbeads for rockets and
(ii) Other Auxiliaries (AG, AGDS. AGF.
caliber so inclusive are included under
guided missiles.
AGM. AGOR. AGOS. AGS. AH. AK. AKR.
Category 1(b).
(h) All specifically designed components or
AOG. AOT. AP. APB, ARC. ARL AVM.
Category II-Artillery Projectors
modified components. parts. accessories.
AVT).
attachments. and associated equipment for
(a) Gune over caliber .50. howitzers.
(c) Combetent Craft:
the articles in this category.
mortars. and recoiless rifles.
(1) Patrol Craft:
Note: Military demolition blocks and
(b) Military flamethrowers and projectors.
(i) Coastal Patrol Combetants (PB. PCF.
blasting caps referred to in Category IV(a) do
(c) Components. parts. accessories. and
PCH. PTF)
not include the following articles:
attachments for the articles in paragraphs (a)
(ii) River. Roadstesd Craft (ATC. PBR).
(a) Electric equibs.
and (b) of this category. including but not
(2) Amphibious Warfare Craft:
(b) No. a and No. 8 blasting caps, including
limited to mounts and carriages for these
(i) Landing Craft (AALC. LCAC. LCM
electric ones.
articles.
LCPL LCPR. LCU. LWT. SLWT)
(c) Delay electric blasting caps (including
(ii) Special Warfare Craft (LSSC. MSSC.
Category III-Ammunition
No. 6 and No. 6 millisecond ones).
(d) Seismograph alectric blasting cape
SDV. SWCL SWCM).
(a) Ammunition for the arms in Categories I
(including SSS. Static-Master, Vibrocap SR.
(3) Mine Warfare Craft:
and и of this section.
(b) Components. parts. accessories. and
and SEISMO SR).
(i) Mine Countermeasures Craft (MSB.
attachments for articles in paragraph (a) of
(e) Oil well perforating devices.
MSD. MSL MSM. MSR).
this category. including but not limited to
Note: Category V of "Munitions List"
(d) Support and Service Craft:
deleted as inapplicable to imports.
(1) Tugs (YTB. YTL YTM)
cartridge cases. powder bags. bullets. jackets.
(2) Tankers (YO. YOG. YW)
cores. shells (excluding shotgun shells).
Category VI-Vassels of War and Special
(3) Lighters (YC. YCF. YCV. YF. YFN,
projectiles. boosters. fuzes and components
Noval Equipment
YFNB. YFNX. YFR. YFRN. YFU. YG. YGN.
therefor. primers. and other detonating
YOGN. YON. YOS. YSR. YWN)
devices for such ammunition.
(a) Warships. amphibious warfare vessels.
(c) Ammunition belting and linking
landing craft. mine warfare vessels. patrol
(4) Floating Dry Docks (AFDB. AFDL
machines.
vessels. auxiliary vessels and service craft.
AFDM. ARD. ARDM. YFD)
(d) Ammunition manufacturing machines
experimental types of naval ships and any
(5) Miscellaneous (APL DSRV. DSV. IX.
vessels specifically designed or modified for
NR. YAG. YD. YDT. YFB. YFND. YEP. YFRT.
and ammunition loading machines (except
handloading ones).
military purposes.
YHLC. YM. YNG. YP. YPD. YR. YRB. YRBN.
Note: Cartridge and shell casings are
(b) Turrets and gun mounts. arresting gear.
YRDH. YRDM. YRR. YRST. YSD).
included under Category III unless. prior to
special waspons systems. protective systems.
(e) Coast Guard Patrol and Service Vessels
submarine storage batteries. catapults and
and Craft:
their importation. they have been rendered
uscless beyond the possibility of restoration
other components. parts. attachments. and
(1) Coast Guard Catters (CGC. WHEC.
for use as a cartridge or shell casing by
accessories specifically designed or modified
WMEC)
means of beating. flame treatment. mangling.
for combetant vessels.
(2) Partol Craft (WPB)
crushing. cutting. or popping.
(c) Mine sweeping equipment. components.
(3) loobreakers (WAGB)
parts. attachments and accessories
(4) Oceanography Vessels (WAGO)
Calegory IV-Lounch Vehicles. Guided
specifically designed or modified therefor.
(5) Special Vessels (WIX)
Missiles. Ballistic Missiles. Rockets.
(d) Harbor entrance detection devices
Torpedoes. Bombs and Mines
(6) Buoy Tenders (WLB. WLM. WLI. WLR.
(magnetic. pressure. and acoustic ones) and
WLIC)
(a) Rockets (including but not limited to
controls and components therefor.
(7) Tugs (WYTM. WYTL)
meteorological and other sounding rockets).
(e) Naval nuclear propulsion plants. their
(8) Light Ships (WLV).
bombs. grenades. torpedoes. depth charges.
land prototypes and special facilities for their
land and naval mines. as well as launchers
construction. support and maintenance. This
Cotegory VII-Tanks and Military Vehicles
for such defense articles. and demolition
Includes any machinery. device. component.
(a) Military type armed or armored
blocks and blasting caps.
or equipment specifically developed or
vehicles. military railway trains. and vehicles
(b) Leunch vehicles and missile and anti-
designed or modified for use in such plants or
specifically designed or modified to
missile systems including but not limited to
facilities.
accommodate mountings for arms or other
guided. tactical and strategic missiles.
Note: The term "vessels of war" includes.
specialized military equipment or fitted with
Inunchers. and systems.
but is not limited to the following:
such items.
(c) Apparatus. devices. and materials for
(a) Combatant vessels:
(b) Military tanks. combet engineer
the handling. control. activation. monitoring.
(1) Warships (including nuclear-powered
detection. protection. discharge. or
vehicles. bridge launching vehicles.
versions):
detonation of the articles in paragraphs (a)
balftracks and gun carriers.
(i) Aircraft carriers (CV. CVN)
and (b) of this category. Articles in this
(c) Self-propelled guns and howitzers.
(ii) Battleships (BB)
Note: Category VII (d) and (e) of
category include. but are not limited to. the
following Fuses and components for the
(iii) Cruisers (CA. CG. CGN)
"Munitions List" deleted as inspplicable to
(iv) Destroyers (DD. DDG)
items in this calegory. bomb racks and
imports.
sheckles. bomb shackle release units. bomb
(v) Frigates (FF. FFG)
If Amphibious vehicles.
exectors. torpedo tubes. torpedo and guided
(vi) Submarines (SS. SSN. SSBN. SSG.
(s) Engines specifically designed or
SSAG).
minsile boosiers. guidance system equipment
modified for the vehicles in paragraphs (a).
(2) Other Combetant Classifications:
(b). (c). and If) of this category.
(h) All specifically designed or modified
articles in pangraphs (c) and (d) this
is part from technology developed by a for
components and parts. accessories,
category.
the U.S. Arrand Forces.
attachments. and associated equipment for
Note: A chemical agent is Category XIV(s)
(c) Any of the articles in Category VI and
the articles in this category. including but not
is 8 substance having military application
elsewhere in this part specifically designed or
limited to military bridging and deep water
which by its ordinary and direct chemical
modified for were with submersible vessels,
fording kits.
action produces 8 powerful physiological
and oceanographic . associated equipment
Nota: An "amphibious vehicle" is Category
effect. The term "chemical agent" includes.
assigned a military designation.
VII(I) is an automotive vehicle or chassis
but is net limited in the following chemical
(d) Equipment. components. parts.
which embodies all-wheal drive, which to
compounds
accessories. and attachments specifically
equipped to meet special military
(a) Lung imitants:
requirements. and which has sealed electrical
(1) Diphenylcysnoarsine (DC).
designed for any of the articles in paragraphs
systems and adaptation features for deep
(2) Fluorise (but not Nuorene).
(a) and (b) of this category.
water fording.
(3) Trichloronitre methane (chioropiczia
Category XXI-Miscellansous Articles
PS).
Category VIII-Airtralt Spececraft, and
(b) Vesicants:
Any article not specifically enumerated in
Associated Equipment
(2) B-Chlorovinyldichloroarsine (Lewimite,
the other categories of the U.S. Munitions List
1).
which has substantial military applicability
(a) Aircraft. including but not limited to
(2) Bis(dichlorathyl) sulphide (Mustead Gas.
and which has been specifically designed or
helicopters. non-expansive balloons. drunes
and lighter-than-air aircraft. which are
HD or H)
modified for military purposes. The decision
specifically designed. modified. or equipped
(3) Ethyldichloroarsine (ED)
on whether any article may be Included in
for military purposes. This includes but is not
(4) Methyldichlorcarsine (MD).
this category shall be made by the Director,
limited to the following military purposes:
(c) Lachrymators and tear gues:
Office of Munitions Centrol Department of
gunnery, bombing. rocket or missile
(1) A-Brombenzyl cyanide (EBC).
State, with the concurrence of the
launching. electronic and other surveillance.
(2) Chloroscatopbenone (CN).
Department of Defense.
reconnaissance. refueling. serial mapping.
(3) Dibromodimethyl ether.
military liaison. cargo carrying or dropping
(4) Dichlorodimethyl ether (CICI).
Category XXII-South Africa
personnel dropping airborns warning and
(5) Ethyldibromoarsine.
(a) Defense articles enumerated on the U.S.
control. and military training.
(6) Phenylcarbylamine chlorida.
Munitions List (22 CFR Part 121).
Note: Category VIII (b) through @ and
(7) Tear gas solutions (CNB and CNS).
(b) Technical date relating to defense
Categories DC X XL XII and XIII of
(8) Tear pli
articles anumerated on the U.S. Munitions
"Munitions List" deleted as inspplicable to
orthochlorobenzalmalononitrfle (CS).
Use
(d) Sternutators and trritant smoker:
imports.
Note: This category is applicable eaty to
Notic in Category VIII "aircraft" means
(1) Diphenylamine chloroarsine (Adamsite,
South Africa.
DM).
aircraft designed. modified. or equipped for a
(2) Diphenylchlorearsine (BA).
Note: "Technical date" means. for purposes
military purpose. including atrcraft described
(3) Liquid pepper.
of this category:
as "demilitarized" All streraft bearing as
(e) Nerve agents. gases, and ecrosols.
(1) Classified information relating to
original military devignation are included to
These are taxic compounds which affect the
defense articles and defense services:
Category VIII However, the following
actvous system. such as:
(2) information covered by an invention
aircraft are not so included so long as they
(1) Ditmethylaminoethoxycyamsphosphine
secrecy order.
have not been specifically equipped.
exide (GA).
(3) Information which is directly related to
reequipped. or modified for military
(2) Methylisoprepoxyfhuorephesphize
the design. engineering. development.
operations:
exide (CB).
production. processing. manufacture. use.
(a) Cargo aircraft bearing C designations
(3) Methylpinacolylexyflusriphosphine
operation. overheul repair. maintenance,
and numbered C-45 through C-118 inclusive.
exide (GD).
modification. or reconstruction of defense
and G-121 through C-125 inclusive, and C-
(f) Antipient chemicals. such as: Baryl 2
articles. This includes. for example.
BL using reciprocating engines only.
(LNF).
information in the form of blueprints.
(b) Trainer aircraft bearing T
Category XV-(Ressrved)
drawings. photographa plans. instructions.
designations and using reciprecating engines
computer software and documentation. This
or turboprop engines with less than 800
Ostegory XVI-Neclear Weapons Design
also includes information which advances the
horsepower (s.h.p.).
and Test Equipment
state of the art of articles - the U.S.
(c) Utility sircraft bearing U designations
and using reciprocating engines only.
for Any article. material. equipment. or
Munitions List. This does not include
(d) All liaison strent bearing an "2"
device. which to specifically designed K
information concerning general scientific.
designation.
modified for use to the design. development.
mathematical or engineering principles.
(e) All observation aircraft bearing "O"
or fabrication of nuclear wespons or suclear
explosive devices.
Par. 6. Section 07.22 is revised by
designations and using reciprocating angines.
(b) Any article. material. equipment or
changing the definition of forgings.
Category XIV-Taxicological Agents and
device. which is specifically designed or
castings, and machined bodies. The
Equipment and Radiological Equipment
medified for we is the devising. cerrying out.
section is revised to read - follows:
(a) Chemical agents. including but not
or evaluating of nucleur wespons tests or any
limited to lung irritants. vesicants,
other nuclear explosions. except such Items
47.22 Forgings, castings, and mechined
as are in normal commercial are for other
bodies.
and tear gases (except lear gas
formulations containing 1% or less CN or CS,
Nota: Categories XVII. XVIII and XIX of
Articles on the U.S. Munitions Import
sternutators and irritant smoke. and narve
gases and incapacitating agents.
"Munitions List" delated as imapplicable to
List include articles in a partially
(b) Biological agents
imports.
completed state (such as forgings.
castings, extrusions. and machined
(c) Equipment for dissemination detection,
Category XX-Submeraible Veasals
bedies) which have reached a stage in
and identification of and defense against the
Oceanographic and Associated Equipment
articles in paragraphs (a) and (b) of this
manufacture where they are clearly
(a) Submersible vessels. manned and
category.
identifiable as defense articles. If the
unmanned. designed or medified for military
(d) Naclear rediation detection and
end-item is an article on the U.S.
purposes or having independent capability to
measuring devices manufactured to military
maneuver vartically . burizontally at depths
Munitions Import List. (including
specification.
below 1.000 feet. or powered by nuclear
components. accessories. attachments
(e) Components, parts. accessories,
propulsion plants.
and parts) then the particular forging.
attachments. and associated equipment
(b) Submersible vessels. manned or
casting, extrusion. machined body. etc.
specifically designed or medified for the
unmanned. designed or medified is article or
is-considesed a defense article subject to
the controls of this part. except for such
List" with U.S. Munitions import List"
$ 47.42 Application for permit.
items as are in normal commercial use.
to paragraph (b).
Persons required to obtain a permit as
147.31 [Amanded]
Par. 11. The beading of Subpart E is
provided in 1 47.41 shall file a Form 8
revised by replacing "Importations
Part L in triplicate. with the Director. On
Par. 7. Section 47.31 is amended by
Other Than Those Subject to Import
approval of the application by the
replacing "Import List" with "U.S.
Controls Under 26 CFR Parts 178 and
Director. be will return the original to
Munitions import List".
179" with "Permits". The subpart
the applicant Such approved
Par. Section 47.32 is revised to
heading is revised to read as follows:
application will serve or the permit.
change the beeding of the section: to
increase the registration fees in
(Approved by the Office of Management and
paragraph (b): to amend the procedures
Subpart E-Permits
Budget under control number 1512-0017)
for refund of fees paid. and replace
$ 47.44 [Amended]
"Imports List" with "U.S. Munitions
Par. 12 Section 47.41 is revised by
import List" in paragraph (c): and to add
deleting paragraph (b) pertaining to the
Par. 14. Section (7.44(a) is amended
the Office of Management and Budget
Panama Canal Zone and redesignating
by replacing "section 04 of the Mutual
control number for Form 4587 at the end
paragraphs (c) and (d) as (b) and (c):
Security Act of 1934" with "Section 38.
of the section.
replacing "26 CFR" with "27 CFR". and
Arms Export Control Act of 1976".
Section 47.32 is amended by revising
replacing "Imports List" with "U.S.
Par. 15. Section 47.45 is revised to
paragraphs (b) and (c) and adding the
Munitions Import List" in paragraphs (a)
change the procedure for filing Form 6A
OMB control number to the end of the
through (c): and adding additional
with the Director: replacing "regional
section to read as follows:
categories which are not exempt from
regulatory administrator" with
import controls in paragraph (c)- The
"Director"; and to add the Office of
$47.32 Application for registration and
refund of fee.
section is revised to read as follows:
Management and Budget control number
for Form SA at the end of the section.
647.41 Permit requirement.
The section is revised to read as follows:
(b) Registration may be effected for
(a) Articles on the U.S. Munitions
periods of from 1 to 3 years at the option
Import List not subject to import control
$47.45 importation.
of the registrant by identifying on Form
under 27 CFR Parts 178 and 179 shall not
(a) Articles subject to the import
4587 the period of registration desired.
be imported into the United States
permit procedures of this subpart
The registration fees are as follows:
except pursuant to a permit under this
imported into the United States may be
subpart issued by the Director.
released from Customs custody to the
1 year
8250
(b) Articles on the U.S. Munitions
person authorized to import same upon
2 years
500 Import List intended for the United
his showing that be has a permit from
3 years
700 Sistes or any State or political
the Director for the importation of the
4 years
850 subdivision thereof. or the District of
article or articles to be released. in
5 years
1.000 Columbia. which are exempt from
obtaining the release from Customs
import controls of 27 CFR 178.115 shall
custody of an article imported pursuant
not be imported into the United States.
(c) Fees paid in advance for whole
to permit, the permit holder shall
except by the United States or agency
future years of a multiple year
thereof. without first obtaining 8 permit
prepare Form 6A. in duplicate. and
registration will be refunded upon
issued by the Director under this
furnish the original and copy to the
request If the registrant caases to engage
subpart
Customs officer releasing the article.
in importing articles OD the U.S.
The Customs officer shall. after
(c) A permit Is not required for the
Munitions Import List A request for a
importation of (1) the U.S. Munitions
certification. forward the original Form
refund must be submitted to the
Import List articles from Canada not
BA to the address specified on the form.
Director. Bureau of Alcohol. Tobacco
subject to the import controls of 27 CFR
(b) Within 15 days of the date of their
and Firearms. Washington. DC 20226.
Part 178 or 179. except articles
release from Customs custody. the
Attention: Pirearms and Explosives
enumerated tn Categories L II. III. IV.
importer of the articles released shall
Imports Branch. prior to the beginning of
VI(e). Vill(a). XVL and XX: and nuclear
forward to the address specified on the
any year for which a refund is claimed.
weapons strategic delivery systems and
form a copy of Form 6A on which shall
(Approved by the Office of Management and
all specifically designed components,
be reported any GITOT or discrepancy
Budget under control number 1512-0021)
parts. accessories. attachments. and
appearing on the Form 6A certified by
Par. 9. Section 47.33 is amended to
associated equipment thereof (see
Customs. (Approved by the Office of
add the Office of Management and
Category XXI): or (2) minor components
Management and Budget under control
and parts for Category I(a) firearms.
number 1512-0019)
Budget control number for Form 4587 at
the end of the section to read as follows:
except barrels. cylinders. receivers
(frames) or complete breech
$47.46 [Amended]
4 47.33 Notification of changes in
mechanisms. when the total value does
Par. 15. Section 47.46 is amended to
Information furnished by registrants.
not exceed $500 wholesale in any single
add the phrase "under this part" at the
transaction.
end of the first sentence.
(Approved by the Office of Management and
Par. 13. Section 47.42 is revised by
Par. 17. Section 47.51 is revised to
Budget under control number 1512-6021)
adding the phrase "Part I" after the
replace "Form FC-826/ATF 4522' with
phrase "Form 6"; and to add the Office
$ 47.84 [Amended]
"Form ITA-665P/ATF-4522/DSP53";
of Management and Budget control
replace "Import List" with "U.S.
Par. 18. Section 47.34 is amended by
number for Form 6 Part 1 at the end of
Munitions Import List": replace
replacing "28 CFR" with "2) CFR" in
the section. The section is revised to
"Delivery Verification (Form FC-902)"
paragraph (a): and replacing "Import
read as follows:
with "Delivery Verification Certificate
(U.S. Department of Commerce Form
(b) A defense article authorized for
ITA-647P)": and to add the Office of
importation under this part may not be
Management and Budget control number
shipped on a vessel. aircraft or other
for Form 4522 at the and of the section.
means or conveyance which is owned or
The section is revised to read as follows:
operated by. or leased to or from. any of
147.51 Import certification and delivery
the countries or areas covered by
verification.
paragraph (a) of this section.
Pursuant to agreement with the United
- (c) In accordance with United Nations
States. certain foreign countries are
Security Council Resolution 558 of
entitled to request certification of
December 13. 1984. and Executive Order
legality of importation of articles on the
12532 of September 9. 1985. it is the
U.S. Munitions Import List. Upon request
policy of the United States to deny
of a foreign government. the Director
license) and other approvals with
will certify the importation. on Form
respect to defense articles. and technical
ITA-645P/ATF-4322/DSP53. for the U.S.
data relating to defense articles, from
importer. Normally. the U.S. importer
South Africa.
will submit this form to the Director at
the time he applies for an import permit.
This document will serve as evidence to
$47.53 [Amended]
the government of the exporting
company that the U.S. importer has
Par. 19. Section 47.53(b) is amended to
complied with import regulations of the
replace "Import List" with "U.S.
U.S. Government and is prohibited from
Munitions Import List".
diverting. transshipping. or reexporting
the material described therein without
£47.54 [Amended]
the approval of the U.S. Government.
Par. 20. Section 47.54 is amended to
Foreign governments may also require
documentation attesting to the delivery
replace "section 414 of the Mutual
of the material into the United States.
Security Act of 1954" with "Section 28.
When such delivery certification is
Arms Export Control Act of 1976".
requested by a foreign government. the
U.S. importer may obtain directly from
£47.56 [Amended]
the U.S. District Director of Customs the
Par. 21. Section 47.56 is amended to
authenticated Delivery Verification
replace "26 CFR" with "27 CFR". and
Certificate (U.S. Department of
"Import List" with "U.S. Munitions
Commerce Form ITA-647P) for this
Import List".
purpose.
(Approved by the Office of Management and
47.51 (Amended)
Budget under control number 0625-0064)
Par. 22. Section 47.61 is amended to
Par. 18. Section 47.52 is revised to
replace "Import List" with "U.S.
reflect the addition and deletion of
Munitions Import List" in paragraphs (a)
certain restrictive countries in
and (b): and to increase the fine from
paragraph (a) and to revise paragraph
"$25.000" to "$100,000" in paragraph (c).
(b) and (c).
Section 47.52 is amended by revising
£ 47.82 [Amended]
paragraphs (a)-(c) to read as follows:
Par. 23. Section 47.82 is amended to
447.52 Import restrictions applicable to
increase the fine from "825.000" to
certain countries.
"$100,000".
(a) It is the policy of the United States
to deny licenses and other approvals
$47.83 [Amended]
with respect to defense articles and
Par. 34. Section 47.63 is amended to
defense services originating in certain
replace "Import List" with "U.S.
countries or areas. This policy also
Munitions Import List" and to add a
applies to imports from these countries
citation to the source reference at the
or areas. This policy applies to Albania.
end of the section to read as follows:
Bulgaria. Cuba. Czechoslovakia. East
"(18 U.S.C. 545)".
Germany. Estonia. Hungary.
Kampuchea. Latvia. Lithuania. North
Signed: October 7. 1985.
Korea. Outer Mongolia. Poland.
Stephen E Higgins,
Rumania. the Soviet Union and Vietnam.
Director.
This policy applies to countries or areas
Approved: October 9. 1985.
with respect to which the United States
maintains an arms embargo. If also
David D. Queen,
applies when an import would not be in
Acting Assistant Secretary (Enforcement and
furtherance of world peace and the
Operations).
security and foreign policy of the United
(FR Doc. 85-24719 Filed 10-17-85: 8:45 am)
States.
SILLING CODE 4810-21-M
Enclosure L
41682
Federal Register / Vol. 50. No. 199 / Tuesday, October 15, 1985 / Rules and Regulations
Accordingly. 81 CFR Chapter V is
fb) No license or authorization under
amended as set forth below:
this part authorizes any transaction
New Part 545 is added as follows:
prohibited by cas of the other parts of
this chapter or any other provision of
PART 545-BOUTH AFRICA
law, or relieves the parties involved
TRANSACTIONS REGULATIONS
from complying with any other
applicable laws or regulations.
Subpart A-Reistion M this Part to Other
Lows and Regulations
Subpert B-Prohibitions
Sec.
645.101 Relation of this part to other laws
i 545.201 Prohibition on the Importation
and regulations.
of Krugerrands.
Office of Foreign Assets Control
Subpart B-Prohibitions
Except as authorized under this part.
645.201 Prohibition on the importation of
the importation into the United States of
31 CFR Part 545
Krugerrands.
South African Krugerrands is prohibited.
South African Transactions
$45.203 Effective date.
I 545.203 Effective date.
Regulations
545.204 Evasions.
(a) The effective date of the
AGENCY: Office of Foreign Assets
Subpart C-General Definitions
prohibition in section 545.201 shall be
Control. Treasury.
$45.301 Krugerrands.
12:01 a.m. Eastern Daylight Time.
ACTION: Final rule.
$45.302 United States.
October 11. 1985.
SUMMARY: On October 1. 1985, the
Subpert D-interpretations
1 $45.204 Evasions.
President issued Executive Order No.
Subpart 545.401 Reference to amended
Any transaction for the purpose of. or
12535. imposing a ban on the
sections.
which has the effect of. evading any of
importation of Krugerrands into the
545.402 Effect of amendment of sections of
the prohibitions in this part is
United States. In implementation of that
this chapter or of other orders. etc.
order. the Office of Foreign Assets
545.403 Krugerrend jewelry.
prohibited.
Control is issuing the South African
Subpert E-Licenses, Authorizations and
Subpart C-General Definitions
Transactions Regulations. prohibiting
Statements of Licensing Policy
the importation of Krugerrands into the
I 545.301 Krugerrands.
845.501 Effect of subsequent Mornee or
United States.
authorization.
The term "Krugerrands" includes
EFFECTIVE DATE: 12:01 a.m. Eastern
545.502 Exclusion from licenses and
Krugerrands of all denominations and
Daylight Time. October 11. 1985.
authorizations.
sizes. and Krugerrands that have been
FOR FURTHER INFORMATION CONTACT:
modified. as by addition of a clasp or
Marilyn L Muench. Chief Counsel
Subpart F-Reports
loop. into items that can be worn as
Office of Foreign Assets Control.
645.601 Required records.
jewelry.
Department of the Treasury.
545.602 Reports to be furnished on demand.
I $45.302 United States.
Washington. DC 20220: 202/376-0408.
Subpart G-Pensities
The term "United States" means the
SUPPLEMENTARY INFORMATION: Since the
$45.701 Penalties.
United States and all territories under
regulations involve a foreign affairs
the jurisdiction thereof. including the
function. the provisions of the
Subport H-Procedures
Trust Territory of the Pacific Islands.
Administrative Procedure Act 5 U.S.C.
$45.801 Licensing.
553. requiring notice of proposed
545.802 Decisions.
Subpert D-Interpretations
rulemaking. opportunity for public
545.803 Amendment. modification. or
participation. and delay in effective
revocation.
I $45.401 Reference to amended sections.
date. are inapplicable. Because no
$45.804 Rulemaking.
Reference to any section of this
notice of proposed rulemaking is
$45.805 Delegation by the Secretary of the
chapter or to any regulation. ruling.
required for this rule. the Regulatory
Treasury.
order, instruction. direction or license
Flexibility Act. 5 U.S.C. 601. et seq., does
545.806 Rules governing availability of
not apply. Because the regulations are
information.
issued pursuant to this chapter shall be
deemed to refer to the same as currently
issued with respect to a foreign affairs
Subport I-{Reserved}
amended unless otherwise so specified.
function of the United States. they are
not subject to Executive Order 12291 of
Authority: so U.S.C. 1701 gt seq.: E.O.
12535. 50 FR 40325. OCL a. 1985.
5 545.402 Effect of amendment of
February 17. 1961. dealing with Federal
sections of this chapter or of other orders,
Regulations. The information collection
etc.
requests contained in this document are
Subpart A-Relation of this Part to
Other Laws and Regulations
Any modification of this chapter or of
being submitted to the Office of
any regulation. ruling. order. instruction.
Management and Budget under the
direction or license issued by the
Paperwork Reduction Act of 1980. 44
$ 545.101 Relation of this part to other
Secretary of the Treasury pursuant to
U.S.C. 8501 et seq. Notice of OMB action
laws and regulations.
Executive Order No. 12535 shall not.
on these requests will be published in
(a) This part is independent of the
unless otherwise specifically provided.
the Federal Register.
other parts of this chapter and all other
be deemed to affect any act performed
List of Subjects to 31 CFR Part 545
provisions of law. No license or
or omitted. or any civil or criminal
authorization under another part of this
proceeding commenced. prior to such
South Africa. Imports. Krugerrands.
chapter or any other provision of law
modification. and all penalties.
Penalties. Reporting and recordkeeping
authorizes any transaction prohibited by
forfeitures. and liabilities under any
requirements.
this part.
such provision shall continue and may
be enforced as if such modification had
to the custody or control of the persons
of New York Foreign Assets Control
not been made.
required to make such reports. Reports
Division, 23 Liberty Street, New York.
with respect to transactions may be
NY 10045. Any person having an interest
I 545.403 Krugerrand jewetry.
required either before or after such
in a transaction or proposed transaction
Section 545.201 prohibits the
transactions are completed The
may file an application for a license
importation into the United States of
Secretary of the Treasury may. through
authorizing such transaction, and there
Krugerrands that have been modified. as
any person or agency. conduct
is no requirement that any other person
by the addition of a clasp or loop. fate
investigations, hold hearings, administer
having as interest to such transaction
items that can be word as jewalry. For
eaths. examine witnesses, receive
shall or should join in making or filing
example. importation of a necklace
evidence, take depositions. and require
such application.
consisting of a Krugerrand mounted 80 a
by subpoena the attendance and
(3) Information to be supplied. The
chain would be prohibited. Section
testimony of witnesses and the
applicant must supply all information
845.201 does not prohibit the
production of all books. papers. and
specified by the respective forms and
reimportation into the United States of
documents relating to any matter under
instructions. Such documents as may be
Krugerrand jewelry which was
investigation.
relevant shall be attached to each
originally imported into the United
application except that documents
States prior to October 11. 1985.
Subpart G-Pensities
previously filed with the Office of
Subpert E-Licenses, Authorizations
545.791 Penalties.
Foreign Assets Control may. where
(a) A civil penalty of not to exceed
appropriate. be incorporated by
and Statements of Licensing Policy
reference. Applicants may be required
$10,000 may be imposed on any person
4 645.501 Effect of subsequent license or
to furnish such further information as is
who violates any license. order. or
authorization.
regulation issued under this title.
deemed necessary to a proper
No license or other authorization
(b) Whoever willfully violates any
determination by the Office of Foreign
contained in this chapter or otherwise
license. order. or regulation issued under
Assets Control. Failure to furnish
issued by or under the authority of the
this title shall upon conviction. be fined
necessary information will not be
Secretary of the Treasury pursuant to
not more than $50,000, or, if a natural
excused because of any provision of
Executive Order 12535 shall be deemed
person. may be imprisoned for not more
South African law. If an applicant or
to authorize or validate any transaction
than ten years. or both: and any efficer.
other party in interest desires to present
effected prior to the issuance thereof,
director. or agent of any corporation
additional information or discuss or
unless such license or other
who knowingly participates in such
argue the application. be may do so at
authorization specifically so provides.
violation may be punished by s like fine.
any time before or after decision.
imprisonment, or both.
Arrangements for oral presentation
4 545.502 Exclusion from Scanses and
should be made with the Office of
authorizations.
(80 U.S.C. 1705)
Foreign Assets Control.
The Secretary of the Treasury
(c) Whoever. in any matter within the
(4) Effect of denial. The denial of a
reserves the right to exclude any person
jurisdiction of any department or agency
license does not preclude the reopening
or property from the operation of any
of the United States knowingly and
of an application or the filing of a further
license or to restrict the applicability
willfully falsifies. conceals or covers up
application. The applicant or any other
thereof to any person or property. Such
by any trick. scheme. or device a
party to interest may at any time request
action shall be binding upon all persons
material fact. or makes any false.
explanation of the reasons for a denial
receiving actual or constructive notice
fictitious or fraudulent statements or
by correspondance or personal
thereof.
representation or makes or uses any
interview.
false writing or document knowing the
(5) Reports under specific licenses. As
Subpert F-Reports
same to contain any false. fictitious or
a condition of the issuance of any
I 545.601 Required records.
fraudulent statement or entry. shall be
license. the licensee may be required to
Every person engaging to any
fined not more than $10,000 or
file reports with respect to the
transaction subject to this gart shall
imprisoned not more than five years, or
transaction covered by the license, in
keep a full and accurate record of each
both.
such form and at such times and places
transaction in which be engages,
(18 U.S.C. 1801)
as may be prescribed in the license or
including any transaction effected
otherwise.
pursuant to license or otherwise. and
Subpert H-Procedures
(6) Issuance of license. Licenses will
such records shall be available for
be issued by the Office of Foreign
examination for at least two years after
I 545.901 Lisensing.
Assets Control acting on behalf of the
the date of such transaction.
(a) General licenses. [Reserved]
Secretary of the Treesury or by the
(b) Specific licenses. Transactions
Federal Reserve Bank of New York.
545.602 Reports to be furnished on
prohibited under subpart B may be
acting in accordance with such
demand.
effected only under specific license.
regulations. rulings. and instructions as
Every person is required to furnish
(1) The specific licensing activities of
the Secretary of the Treasury or the
under oath. in the form of reports or
the Office of Foreign Assets Control are
Office of Foreign Assets Control may
otherwise, at any time as may be
performed by its Washington Office and
from time to time prescribe. or licenses
required. complete information relative
by the Foreign Assets Control Division
may be issued by the Secretary of the
to any transaction subject to this part,
of the Federal Reserve Bank of New
Treasury acting directly or through a
regardless of whether such transaction
York.
designated person. agency. or
is effected pursuant to license or
[2] Applications for specific licenses.
instrumentality.
otherwise. Such reports may be required
Applications for specific licenses to
to include the production of any books
engage in any transaction prohibited
1 540,892 Decisions.
of account. contracts, letters. and other
under this part are to be filed in
The Office of Foreign Assets Control
papers connected with any transaction
duplicate with the Federal Reserve Bank
or the Federal Reserve Bank of New
York will advise each applicant of the
and other provisions of the regulations
decision respecting filed applications.
on the disclosure of records of the Office
The decision of the Office of Foreign
of the Secretary and of other bureaus
Assets Control with respect to an
and offices of the Department issued
application shall constitute a final
under 5 U.S.C. 552 and published as part
agency action.
1 of this Title 31 of the Code of Federal
Regulations.
4 545.903 Amendment, modification, or
revocation.
(b) Any form Issued for use in
connection with this part may be
The provisions of this part and any
obtained in person from or by writing to
rulings. licenses. authorizations,
instructions. orders or forms issued
the Office of Foreign Assets Control.
hereunder may be amended. modified.
Treasury Department. Washington. DC
20220, or the Foreign Assets Control
or revoked at any time.
Division. Federal Reserve Bank of New
4 545.804 Rulemaking.
York. 33 Liberty Street, New York. NY
(a) All rules and other public
10045.
documents are issued by the Secretary
of the Treasury upon recommendation of
Subpart I-Miscellaneous [Reserved]
the Director of the Office of Foreign
Dated: October 9. 1985.
Assets Control. Except to the extent that
Dennis M. O'Connell,
there is involved any military. naval. or
Director. Office of Foreign Assets Control.
foreign affairs function of the United
States or any matter relating to the
Approved October 9. 1985.
agency management or personnel or to
Devid D. Queen,
public property, loans. grants. benefits.
Acting Assistant Secretary Enforcement o
or contracts, and except when
Operations.
interpretive rules. general statements of
(FR Doc. 86-34640 Filed 10-10-86; 2:17 pan]
policy. or rules of agency organization.
BILLING CODE 4810-01-88
practice. or procedure are involved. or
when notice and public procedure are
impracticable, unnecessary. or contrary
to the public interest. interested persons
will be afforded an opportunity to
participate in rulemaking through the
submission of written data. views. or
arguments. with oral presentation in the
discretion of the Director. in general.
rulemaking by the Office of Foreign
Assets Control involves foreign affairs
functions of the United States. Wherever
possible. however, it is the practice to
hold informal consultations with
interested groups or persons before the
issuance of any rule x other public
document.
(b) Any interested person may
petition the Director of the Office of
Foreign Assets Control in writing for the
issuance. amendment or revocation of
any rule.
4 545.805 Delegation by the Secretary of
the Treasury.
Any action which the Secretary of the
Treasury is authorized to take pursuant
to Executive Order 12535 may be taken
by the Director of the Office of Foreign
Assets Control. or by any other person
to whom the Secretary of the Treasury
has delegated authority so to act.
4 545.906 Rules governing availability of
Information.
(a) The records of the Office of
Foreign Assets Control which are
required by 5 U.S.C. 552 to be made
available to the public shall be made
available in accordance with the
definitions. procedures. payment of fees.
Enclosure 3
Federal Register / Vol. 50, No. 217 / Friday. November 8. 1985 / Proposed Rules
46455
DEPARTMENT OF STATE
22 CFR Parts 60, 61, 62, 63, 64 and 65
[SD-193]
South Africa and Fair Labor Standards
AGENCY: Department of State.
ACTION: Proposed rule.
SUMMARY: Executive Order 12532 of
September 9, 1985 (50 FR 36861)
provides that no department or agency
of the United States may intercede after
December 31. 1985 with any foreign
government regarding the export
marketing activities of certain U.S. firms
operating in South Africa unless they
adhere to the fair labor principles stated
in the Executive Order. It is the purpose
of this proposed rule to implement the
fair labor provisions of executive Order
12532.
DATE: Comments should be received no
later than December 9, 1985.
ADDRESS: Comments should be sent to
Mr. Edward Cummings. Office of the
Legal Adviser. Room 6420, Department
of State. 2201 C St., N.W., Washington.
D.C. 20520. All comments received will
be available for public inspection in the
Reading Room of the Department of
State.
FOR FURTHER INFORMATION CONTACT:
Ms. Sue Keogh. Country Officer for
South Africa, (202) 632-8433; or Ms.
Lynde Clarizio, (202) 632-3736, Office of
the Legal Adviser, Department of State.
SUPPLEMENTARY INFORMATION: E.O.
12532 of September 9. 1985 (50 FR 36861)
and E.O 12535 of October 1. 1985 (50 FR
40325) prohibit certain transactions
involving South Africa. These
prohibitions and the other measures
directed by the President are designed
to encourage peaceful change in South
Africa and to express the unequivocal
opposition of the United States to the
policy and practice of apartheid. They
are not designed to harm the nationals
or economy of South Africa. Rather. it is
the policy of the United States to use its
influence in a positive and visible
manner in South Afirca. One of the
means of doing so involves encouraging
U.S. firms and institutions in South
Africa to take measures to influence
change in that country.
Sections 2 and 3 of E.O. 12532 deal
fide participants in the system are
should be directed to the Office of
with the labor practices of U.S.
exempted from certain reporting
Information and Regulatory Affairs of
nationals and their firms in South
requirements established by the
OMB. Attention: Ms. Francine Picoult
Africa, as well as the practices of the
proposed rule.
(202) 395-7231.
U.S. diplomatic and consular missions in
The proposed regulations also take
South Africa. Section 2 praises the
into account the past experience of the
List of Subjects
efforts of U.S. firms which have
United States with respect to the
22 CFR Part 60
voluntarily applied fair labor practices
position of the South African
United States investments abroad,
in that country. It states that it is the
Government regarding business and
financial reporting requirements of
Fair labor standards. South Africa.
national policy of the United States to
encourage strongly all U.S. firms in
foreign governments, the experience of
22 CFR Part 61
South Africa to follow this
the Sullivan signatories, and the
United States investments abroad,
commendable example. It is the policy
experience of European Community
of the U.S. to encourage firms to remain
countries with their codes of conduct.
Fair labor standards, South Africa.
in South Africa and to work for change.
In particular, section 2(b)(9) of the
22 CFR Part 62
The example referred to in the
Export-Import Bank Act of 1945 contains
Executive Order has been set primarily
a number of restrictions on Export-
United States investments abroad.
by the U.S. firms which have voluntarily
Import Bank support for exports to
Fair labor standards. South Africa,
subscribed to the Sullivan Code, a set of
South Africa. For example, no financing
Reporting and recordkeeping
principles originally proposed in 1977 by
may be provided in support of exports to
requirements.
the Reverend Leon Sullivan. The
private purchasers in South Africa
22 CFR Part 63
majority of U.S. firms in South Africa
unless the purchaser has endorsed
apply these principles voluntarily. Their
certain fair labor provisions and has
United States investments abroad,
labor practices are monitored by a
proceeded toward their implementation.
Fair labor standards. South Africa.
private organization in the U.S.
These principles are comparable to
22 CFR Part 64
These firms have set an important
those specified in E.O. 12532. The
example of how to treat workers with
Government of South Africa objected to
United States investments abroad,
dignity despite a system of government
some of the initial U.S. Government
Fair labor standards, South Africa,
that requires severe distinctions based
reporting requirements established
Reporting and recordkeeping
exclusively on race. In light of the
under this provision. This had the effect
requirements.
unique situation in South Africa, E.O.
of preventing the implementation of the
22 CFR Part 65
12532 provides that the U.S. Government
reporting requirements. These
will henceforth not provide certain kinds
differences were ultimately resolved.
United States investments abroad.
of assistance to U.S. firms (described in
The proposed rule takes into account the
Fair labor standards, South Africa,
§ 60.2) which do not adhere to fair labor
objections made in the past by the South
Exports. Penalties.
standards in that country.
African Government regarding the
Subchapter G (heading) of Chapter 1
E.O. 12532 contains a list of fair labor
application of the reporting
of Title 22, Code of Federal Regulations,
principles to which U.S. firms are
requirements established under the
is removed and a new Subchapter G is
expected to adhere. E.O. 12532 reflects a
Export-Import Bank Act as well as the
proposed to be added to read as follows:
policy of encouraging change in South
fact that the new reporting requirements
SUBCHAPTER G-SOUTH AFRICA AND
Africa through the labor practices of
relate to activities in a foreign country.
FAIR LABOR STANDARDS
U.S. firms. and in particular by the
Finally, it should be noted that this
application of the principles stated in
proposed rule establishes a new and
PART 60-PURPOSE OF SCOPE OF
section 2 of the Executive Order.
unusual regulatory scheme. The
APPLICATION
The proposed rule defines adherence
experience of the Department of State in
(§ 61.1) and establishes a reporting
enforcing the final rule could lead to
PART 61-DEFINITIONS
system to verify adherence (Part 63).
proposals for significant changes in the
The reporting system contemplates that
regulations. and members of the public
PART 62-REGISTRATION
firms will complete a detailed
and the firms regulated are welcomed to
questionnaire regarding their labor
provide comments at any time to the
PART 63-GENERAL POLICIES AND
practices on an annual basis, one
Department of State.
REPORTING REQUIREMENTS
comparable to that required under the
These regulations deal with a foreign
voluntary Sullivan system.
affairs function of the United States and
PART 64-ADMINISTRATIVE
The E.O. requirements apply to U.S.
are thus excluded from the major rule
PROVISIONS
nationals who employ at least 25
procedures of Executive Order 12291 (46
persons in South Africa. The proposed
FR 13193) and the procedures of 5 U.S.C.
PART 65-NON-ADHERENCE AND
rule defines the U.S. nationals who are
553 and 554. The Department of State
PENALTIES
subject to the reporting requirements of
nonetheless believes that the public
the E.O. (e.g., § 61.5 and 5 60.2).
should have an opportunity to comment
Appendix to Subchapter G-Examples
It has been the consistent policy of the
on the proposed regulations before they
of Fair Labor Practices
U.S. Government to encourage voluntary
are promulgated as a final rule.
adherence to the Sullivan Code and this
Accordingly, the public is invited to
PART 60-PURPOSE AND SCOPE OF
remains the policy of the U.S. The
comment on the regulations during the
APPLICATION
proposed rule is not intended to
next thirty days.
undercut or affect the highly efficient
Sec.
The collection of information
Sullivan system. The E.O. takes into
60.1 General.
requirements of this rule have been
account the effectiveness and integrity
60.2 Scope of application.
submitted to OMB for review pursuant
of the Sullivan Code monitoring system.
Authority: Sec. 203. International
to § 3504(h) of the Paperwork Reduction
Accordingly, U.S. firms that are bona
Emergency Economic Powers Act (50 U.S.C.
Act of 1980. Comments on this matter
1701); E.O. 12532, Sep. 9. 1985 (50 FR 36861).
s 60.1 General.
(whether directly or indirectly) 25
of significantly increasing their
(a) General. Section 2 of Executive
percent or more of the voting securities
representation in such jobs;
Order 12532 of September 9, 1985 (50 FR
of the foreign subsidiary or entity. If AO
(6) Taking reasonable steps to
36861) provides that it is the policy of
other person owns or controls (whether
improve the quality of employee's lives
the United States to encourage all
directly or indirectly) an equal or larger
outside the work environment with
United States firms in South Africa to
percentage;
respect to housing. transportation.
adhere to certain fair labor standards. If
(2) The foreign subsidiary or entity is
schooling. recreation. and health:
provides furthermore that no
operated by the domestic concern
identified in (b) pursuant to the
(7) Implementing fair labor practices
department or agency of the U.S. may
provisions of an exclusive management
by recognizing the right of all
intercede with any foreign government
regarding the export marketing activities
contract;
employees, regardless of racial or other
in any country of any national of the
(3) A majority of the members of the
distinctions. to self-organization and to
U.S. employing more than 25 individuals
board of directors of the foreign
form. join or assist labor organizations.
in South Africa who does not adhere to
subsidiary or entity are also members of
freely and without penalty or reprisal.
the principles stated in the Order. It is
the comparable governing body of the
and recognizing the right to refrain from
the purpose of this subchapter to
domestic concern identified in (b):
any such activity.
implement these requirements of E.O.
(4) The domestic concern identified in
(b) The supplement to this subchapter
12532
(b) has the authority to appoint the
contains illustrative examples of the fair
(b) Relation to the Voluntary Sullivan
majority of the members of the board of
practices referred to in this subchapter.
System. It has been the policy of the
directors of the foreign subsidiary OF
United States since 1977 to encourage
entity: or
§ 61.3 Office of Southern African Affairs.
voluntary adherence to the Sullivan
(5) The domestic concern has the
"Office of Southern African Affairs"
Code agreed to by a majority of U.S.
authority to appoint the chief operating
means the Office of Southern African
business firms that operate in South
officer of the foreign subsidiary or
Affairs, Bureau of African Affairs.
Africa. The requirements of the
entity.
Department of State, Washington. D.C.
voluntary Code exceed those of the E.O.
20520.
12532 in certain respects, and the
PART $1-DEFINITIONS
voluntary nature of the code has set an
$ 61.4 United States.
example for all firms in South Africa.
Sec.
61.1 Adherence.
"United States." when used in the
The regulations set forth in this
61.2 Fair labor standards.
subchapter recognize that some U.S.
geographical sense. includes the several
61.3 Office of Southern African Affairs.
nationals are not willing to subscribe to
States. the Commonwealth of Puerto
61.4 United States.
the Sullivan Code, and these regulations
61.5 U.S. national.
Rico, the insular possessions of the
do not require firms to subscribe to the
United States. and the District of
Authority: Sec. 203, International
voluntary system. All U.S. nationals
Columbia.
Emergency Economic Powers Act (50 U.S.C.
described in $ 62.2 and $ 63.1 are
1701): E.O. 12532, Sep. 9, 1985 (50 FR 36861).
$ 61.5 U.S. national.
subject to the requirements of this
subchapter. Such nationals who are
§ 61.1 Adherence.
For purposes of this subchapter, "U.S.
bona fide participants in the Sullivan
For purposes of this subchapter,
national" means:
system are exempt from certain
adherence means (a) agreeing to
(a) Citizens or nationals of the United
reporting requirements in accordance
implement the principles specified in
States or permanent residents of the
with $ 63.1(d).
§ 61.2 in South Africa, (b) taking good
United States (defined in the
faith measures to implement each of
§ 60.2 Scope of application.
Immigration and Nationality Act (8
these principles. and (c) reporting
The requirements of this subchapter
U.S.C. 1101. $ 101(a) 20, 60 Stat. 163));
accurately to the Department of State on
and
are applicable to U.S. nationals (defined
the measures taken to implement the
in Section 61.5) who:
principles in accordance with $ 63.1.
(b) Corporations. partnerships. and
(a) Employ at least 25 individuals in
other business associations organized
South Africa:
$ 61.2 Fair labor standards.
under the laws of the United States. any
(b) Own or control more than 50
(a) The fair labor standards referred
state or territory thereof. or the District
percent of the outstanding voting
to in this subchapter are as follows:
of Columbia.
securities of a foreign subsidiary or
(1) Desegregating the races in each
other entity that employs at least 25
employment facility:
PART 62-REGISTRATION
individuals in South Africa: or
(2) providing equal employment
(c) Control in fact any other foreign
opportunity for all employees without
Sec.
entity that employs at least 25
regard to race or ethnic origin:
62,1 Registration.
individuals in South Africa. Such control
(3) Assuring that the pay system in
62.2 Notification of changes in information
furnished by registrats.
consists of the authority or ability of the
South Africa is applied to all employees
domestic concern to establish or direct
62.3 Maintenance of records by registrants.
without regard to race or ethnic origin;
the general policies or day-to-day
(4) Establishing a minimum wage and
Authority: Sec. 203. International
operations of a foreign subsidiary or
salary structure based on the
Emergency Economic Powers Act (50 U.S.C.
1701): E.O. 12532. Sep. 9, 1985 (50 FR 36861).
entity in South Africa. Such authority or
appropriate local minimum economic
ability will be presumed under the
level which takes into account the needs
§ 62.1 Registration.
circumstances described below. subject
of employees and their families.
Any U.S. national referred to in $ 60.2
to rebuttal by competent evidence
(5) Increasing by appropriate means
is required to register with the
provided to the Department of State at
the number of persons in managerial.
Department of State and to indicate
the time of registration (see 5 62.1):
supervisory. administrative. clerical and
whether the U.S. national or entity
(1) The domestic concern identified in
technical jobs who are disadvantaged
referred to in $ 60.2 agrees to implement
(b) benefictally SWITS or controls
by the apartheid system for the purpose
the principles stated in § 61.2. They may
also indicate whether they are
(b) Any such U.S. national who does
outside the workplace by measures such
participants in the voluntary Sullivan
not register with the Department of
as (a) supporting the right of all
system. Registration can be
State prior to February 1, 1986, in
businesses, regardless of the racial
accomplished by filing a completed form
accordance with $ 62.1 shall be
character of their owners or employees,
DSP-X with the Office of Southern
ineligible for the assistance specified in
to locate in urban areas: (b) by
African Affairs. Any such national who
$ 65.1.
influencing other companies in South
believes that it should not be required or
(c) All U.S. nationals subject to the
Africa to follow the principles specifed
is unable to report on the fair labor
requirements of this subchapter shall
in $ 61.2; (c) by supporting the freedom
practices of a foreign subsidiary or
provide an annual report to the
of mobility of all workers. regardless of
entity described in $ 60.2 (c) of this
Department of State describing their
race, to seek employment opportunities
subchapter should provide a detailed
implementation of the fair labor
wherever they exist, and (d) by making
explanation of the reasons. The
principles specified in 61.2, including
provision for adequate housing and
explanation should be in the form of a
implementation by any entity described
education for families of employees
letter. and should accompany the
in $ 60.2. They shall do so by submitting
within the proximity of the employee's
completed registration form. A detailed
8 completed questionnaire furnished by
place of work.
questionnaire on fair labor practices will
the Department of State et the time of
be provided by the Office of Southern
registration to the Office of Southern
4 63.3 State Department review.
African Affairs on an annual basis to all
African Affairs. The first report shall be
(a) The Office of Southern African
registrants. No fee is required for
provided no later than February 15,
Affairs shall review each report
registration.
1987.
submitted pursuant to $ 63.1(c) to
(d)(1) Any U.S. national who is a bona
determine whether the U.S. national is
§ 62.2 Notification of changes in
fide participant in the Sullivan reporting
adhering to the principles stated in
information furnished by registrants.
and implementing system is exempt
$ 61.2.
A registered U.S. national must notify
from submitting the questionnaire
(b) If the Office of Southern African
the Department of State of any material
referred to in subsection (c). "Bona fide"
Affairs concludes that a person is not
changes in the information contained in
participation means (1) subscribing to
taking such steps, it shall afford the
the registration. Examples of material
the Sullivan Code and (2) filing the
person thirty days to provide additional
changes include the establishment,
report required by the Sullivan
written information to the Department of
acquisition. or sale of a subsidiary or of
monitoring mechanism with that
State.
a foreign affiliate, a merger, a change of
organization and (3) receiving a
(c) If a U.S. national who was a
location, or engaging in a different kind
Category I or II standing. Bona fide
participant in the Sullivan system does
of business in South Africa. Such
participants are deemed to be adhering
not file the reports required by the
information should be provided within
to the fair labor standards for purposes
Sullivan monitoring system or otherwise
60 days from the date of the material
of this subchapter. Such U.S. nationals
fails to meet the standards for continued
change.
shall be required to file a letter with the
participation in the Sullivan system. the
Office of Southern African Affairs on an
$ 62.3 Maintenance of records by
U.S. national shall immediately inform
registrants.
annual basis certifying that they are
the Department of State. Such
(a) A U.S. national who is required to
bona fide participants in the Sullivan
notification should be provided no later
system. Each such letter shall be
register pursuant to $62.1 must maintain
than 30 days after receipt of a
provided not later than January 31.of
records concerning the fair labor
notification from the Sullivan system
each calander year, commencing on
practices employed in South Africa by
that the person is no longer a bona fide
January 31, 1987. Each such letter shall
the U.S. national or any entity referred
participant.
include the following statement:
to in $ 6.2 effective January 1. 1986. Such
I certify that [name of firm) is a bona fide
$ 63.4 Walver.
records must be maintained for a period
of 3 years.
participant in the Sullivan system for fiscal
The Director, Office of Southern
(b) Records maintained under this
year [insert]. and the firm received a [insert]
African Affairs. may make exceptions to
rating from the Sullivan system for that
section shall be available at all times for
the provisions of this subchapter in
period.
inspection by the Director of the Office
cases of exceptional or undue hardship
of Southern African Affairs or a person
(2) Any U.S. national participating in
or when it is otherwise in the interest of
designated by the Director.
the Sullivan system who receives a
the United States Government.
Category III (A) standing may also use
PART 63-GENERAL POLICIES AND
the procedures specified in this
PART 64-ADMINISTRATIVE
REPORTING REQUIREMENTS
subsection. However, such nationals
PROVISIONS
Sec.
may use this procedure only once after
63.1 General policies.
receiving such a rating. If such a
Sec.
national does not receive a Category I or
64.1 Administrative procedures.
63.2 Influencing activities outside the
II standing for the next fiscal year. it
64.2 Annual report.
workplace.
63.3 State Department review.
shall not be deemed to be a bona fide
64.3 Disclosure of information to the public.
63.4 Waiver.
participant pursuant to this subsection
Authority: Sec. 203. International
Authority: Sec. 203. International
and must thereafter complete the
Emergency Economic Powers Act (50 U.S.C.
Emergency Economic Powers Act (50 U.S.C.
required State Department
1701); E.O. 12532 Sep. 9. 1985 (50 FR 36861).
1701); E.O. 12532. Sep. 9. 1985 (50 FR 36861).
questionnaire.
§ 64.1 Administrative procedures
§ 63.1 General policies.
(a) If the Director, Office of Southern
(a) Any U.S. national or entity
i 63.2 Influencing activities outside the
African Affairs, concludes that a U.S.
described in I 60.2 who does not adhere
workplace.
national or entity referred to in $ 60.2 is
to the fair labor standards stated in
U.S. nationals referred to in
not adhering to the principles specified
$61.2 of this subchapter shall be
subsection § 60.2 are encouraged to take
in § 61.2, the Office of Southern African
ineligible to receive the assistance
reasonable measures to extend the
Affairs shall immediately inform the
specified in s 65.1(b).
scope of their influence on activities
U.S. national concerned and other U.S.
Government agencies by appropriate
complying firm in pursuit of a bid or
regulation. order, direction, or
means.
project, unless such intervention is
instruction issued hereunder. These
(b) Any U.S. national who has been
necessary to ensure a foreign
criminal and civil penalties are
the subject of an adverse decision
government's compliance with its
applicable to failures to comply with the
pursuant to subsection (a) shall be
obligations. if any, under the Agreement
registration and reporting requirements
entitled to file a written appeal within 30
on Government Procurement of April 12.
established in this subchapter. However.
days of notification of the decision with
1979 (T.I.A.S. No. 10403):
they are not applicable to failures to
the Board of Appellate Review of the
(3) Assisting non-complying firms in
adhere to the principles stated in § 61.2
Department of State. The requirements
obtaining end-user or other foreign
(b) Attention is also directed to 18
of Part 7 of subchapter 1 of CFR this title
government certificates or
U.S.C. 1001, which provides:
shall be applicable to proceedings
documentation necessary for the
Whoever. in any manner within the
before the Board of Appellate Review.
issuance of U.S. export licenses;
jurisdiction of any department or agency of
(4) Taking any action to assist a non-
the United States knowingly and willfully
§ 64.2 Annual report.
complying firm in selling its products,
falsifies. conceals or covers up by any trick,
The Office of Southern African Affairs
services or technology with respect to a
scheme. or device a material fact. or makes
shall prepare an annual report regarding
foreign government. including assistance
any false. fictitious or fraudulent statement or
implementation of Part 63 of this
in making appeals regarding foreign
representation or makes or uses any false
subchapter. which shall be forwarded to
government procedures and practices
writing or document knowing the same to
other affected U.S. Government agencies
adversely affecting the firm's ability to
contain any false. fictitious or fraudulent
and the appropriate standing
gain access to the foreign marketplace:
statement or entry, shall be fined not more
committees of the United States
than $10,000 or imprisoned not more than five
(5) Participation by non-complying
years. or both.
Congress.
firms in Department of Commerce or
certified trade exhibitions and video
(c) This section does not apply to the
§ 64.3 Disclosure of information to the
public.
catalog shows in foreign countries;
financing of exports by the Export-
Subchapter R of this title of CFR
(6) Authenticating documents
Import Bank to South Africa. Such
pursuant to Part 131 of Subchapter N of
financing continues to be the subject of
contains regulations on the availability
this title with respect to the other
the requirements contained in Section
to the public of information and records
activities under this subsection.
2(b)(9) of the Export-Import Bank Act of
of the Department of State. The
provisions of subchapter R apply to such
(c) The following activities with
1945, as amended.
disclosures by the Office of Southern
respect to non-complying firms are not
Appendix to Subchapter G-Examples of Fair
African Affairs.
prohibited pursuant to this section of the
Labor Practices
Executive Order:
The following are illustrative examples of
PART 65-NON-ADHERENCE AND
(1) Preparing market research for use
the fair labor standards specified in $ 61.2
PENALTIES
by more than one company and
(1) Desegregating the races in each
providing general export information:
employment facility:
Sec.
(a) Removing all race designation signs;
65.1 Denial of export marketing support.
(2) Distributing generally available
65.2 Civil and criminal penalties.
informational publication such as
(b) Desegregating all eating. medical.
Overseas Business Reports. Foreign
recreation. and work facilities: and
Authority: Sec. 203. International
Economic Trends, and Business
(c) Terminating all regulations which are
Emergency Economic Powers Act [50 U.S.C.
America: and
based on racial discrimination or preference.
1701): E.O. 12532. Sep. 9. 1985 (50 FR 36861).
(2) Providing equal employment
(3) Multilateral and bilateral,
opportunity for all employees without regard
§ 65.1 Denial of export marketing support.
government-to-government trade
to race or ethnic origin:
(a) In accordance with Part 63 of this
negotiations to resolve trade issues
(a) Assuring that any health. accident.
subchapter. no department or agency of
which may affect non-complying firms.
pension. or death benefit plans that are
the United States may intercede with
established are nondiscriminatory and open
$ 65.2 Civil and criminal penalties.
any foreign government regarding the
to all employees without regard to race or
export marketing activity in any country
(a) This subchapter is promulgated
ethnic origin: and
of any U.S. national or entity referred to
pursuant to the authority of E.O. 12532
(b) Implementing equal and
in $ 60.2 who does not adhere to the
and the International Emergency
nondiscriminatory terms and conditions of
principles stated in § 61.2 with respect
Economic Powers Act (50 U.S.C. 1705)
employment for all employees. abolishing job
to that U.S. national's operations in
(IEEPA)). Section 206 of this Act
restrictions and differential employment
criteria which discriminate on the basis of
South Africa.
provides that:
race or ethnic origin.
(b) For purposes of this section.
A civil penalty of not to exceed $10,000
(3) Assuring that the pay system is applied
"export marketing activity" includes any
may be imposed on any person who violates
to all employees without regard to race or
contact by U.S. Government personnel
any license. order. or regulation issued under
ethnic origins:
with officials of any foreign government,
this title.
(a) Assuring that any wage and salary
which involves or contemplates any
Whoever willfully violates any license.
structure that is implemented is applied
order. or regulation issued under this title
equally to all employees without regard to
effort to assist in selling a good. service,
shall. upon conviction. be fined not more than
.race or ethnic origin:
or technology in a foreign market. The
$50,000. or. if a natural person. may be
(b) Eliminating any distinctions between
following are examples of the activities
imprisoned for not more than ten years. or
hourly and salaried job classifications on the
prohibited:
both: and any officer. director. or agent of
basis of race or ethnic origin: and
(1) Assisting non-complying firms by
any corporation who knowingly participates
(c) Eliminating any differences in seniority
arranging appointments with foreign
in such violation may be punished by a like
and in grade benefits which are based on
government officials relating to the
fine. imprisonment, or both.
race or ethnic origin.
pursuit by the firm of a bid, project. or
Section 206 of the International
(4) Establishing a minimum wage and
other commercial activity:
salary structure based on the appropriate
Emergency Economic Powers Act is
local minimum economic level which takes
(2) Intervening with a foreign
applicable to violations of this
into account the needs of employees and
government on behalf of a non-
subchapter and to any license. ruling.
their families:
(a) Offering a minimum wage or salary
encouraging or discouraging membership in
structure that is 30 percent or more higher
any labor organization by discrimination in
than the most recent University of South
regard to hiring. lenure. promotion. or other
Africa Minimum Living Level for a family of 5
condition of employment. (iv) discharging or
or 6 for the area in which the South African
otherwise disciplining or discriminating
subsidiary or affiliate operates: or
against any employee who has exercised any
(b) Offering a minimum wage or salary that
rights of self-organization under this
is 30% or more higher then the most recent
principle. and (v) refusing to bargain
University of Port Elizabeth Household
collectively with any organization freely
Subsistence Level for a family of 5 or 6 for the
chosen by employees pursuant to this
area in which the South African subsidiary or
principle.
affiliate operates.
(b) Allowing employees to exercise rights
(5) Increasing. by appropriate means, the
of self-organization. including solicitation or
number of persons in managerial,
fellow employees during nonworking hours.
supervisory, administrative. clerical. and
distribution and posting of union literature by
technical jobs who are disadvantaged by the
employees during nonworking hours.
apartheid system for the purpose of
nonworking areas, and reasonable access to
significantly increasing their representation
labor organization representatives to
in such jobs:
communicate with employees on the
(a) Developing training programs that will
employer's premises at reasonable times
prepare substantial numbers of persons
where there are no other available channels
disadvantaged by apartheid for such jobs as
which will enable the labor organization to
soon as possible, including: (i) Expending
communicate with employees through
existing programs and forming new programs
reasonable efforts
to train, upgrade. and improve the skills of all
Dated November 4. 1985.
categories of employees, including
establishing and expanding programs to
Ronald L Spiers,
enable employees to further their education
Under Secretary of State for Management
and skills at recognized educational facilities;
[FR Doc. 85-26811 Filed 11-7-85; 8:45 am]
and (ii) creating on-the-job training programs
BILLING CODE 4710-00-M
and facilities to assist employees to advance
to higher paying jobs requiring greater skills.
(b) Establishing procedures to assess.
identify. and actively recruit employees with
potential for further advancement;
(c) Identifying persons disadvantaged by
apartheid with significant management
potential and enrolling them in accelerated
management programs: and
(d) Establishing timetables to carry out this
principle.
(6) Taking reasonable steps to improve the
quality of employee's lives outside the work
environment with respect to housing.
transportation. schooling. recreation. and
health:
(a) Providing assistance to employees
disadvantaged by apartheid for housing.
health care. transportation. and recreation
either through the provision of facilities or
services or providing financial assistance to
employees for such purposes, including the
expansion or creation of in-bouse medical
facilities or other medical programs to
improve medical care for employees
disadvantaged by apartheid and their
dependents: and
(b) Participating in the development of
programs that address the educational needs
of employees. their dependents. and the
community.
(7) Implementing fair practices by
recognizing the right of all employees.
regardless of racial or other distinctions. to
self-organization and to form. join, or assist
labor organizations. freely and without
penalty or reprisal. and recognizing the right
to refrain from any such activity:
(a) Refraining from: (i) Interfering with,
restraining. or coercing employees in the
exercise of their rights of self-organization
under this paragraph: (ii) dominating or
interfering with the formation or
administration of any labor organization or
sponsoring. controlling. or contributing
financial or other assistance to it. (iii)
Enclosure 4
53308
Federal Register / Vol. 50, No. 251 / Tuesday. December 31, 1985 / Rules and Regulations
DEPARTMENT OF STATE
22 CFR Parts 60 Through 65
(Departmental Regulations 108.846]
South Africa and Fair Labor Standards
AGENCY: Department of State.
ACTION: Final rule.
SUMMARY: On November 8. 1985, the
Department of State published a
proposed rule (50 FR 46455) to
implement the fair labor provisions of
Executive Order 12532 of September 9.
1985 (50 FR 36861). This final rule
implements the EO's fair labor
provisions. taking into account the
public comments received.
EFFECTIVE DATE: January 1. 1986.
FOR FURTHER INFORMATION CONTACT:
Paula Reed Lynch. Program Officer,
(202) 331-9275; F. Allen Harris. Deputy
Office Director. Office of Southern
African Affairs (202) 647-8252: or Mr.
Edward Cummings. (202) 647-1571.
Office of the Legal Adviser. Department
of State.
SUPPLEMENTARY INFORMATION: Section 2
of E.O. 12532 (50 FR 36861) deals with
the labor practices of U.S. nationals and
their firms in South Africa. On
November 8. the Department of State
published draft implementing
requirement apply only to firms
provides furthermore that no
regulations as 8 proposed rule for public
employing more than 50. The purpose of
department or agency of the U.S. may
comment (50 FR 46455). The
these regulations is to implement the EO
intercede with any foreign government
supplementary information portion of
and accordingly such comments were
regarding the export marketing activities
the proposed rule explains the
not accepted in preparing the final rule.
in any country of any national of the
background for the regulations and the
U.S. employing more than 25 individuals
basic scheme established.
List of Subjects
in South Africa who does not adhere to
Six written comments were received
22 CFR Part 60
the principles stated in the Order. It is
from the public. The Department of
:United States investments abroad.
the purpose of this subchapter to
State has reviewed the comments and
Fair labor standards. South Africa.
implement these requirements of E.O.
has made certain changes to the
12532.
regulations as a result. (The changes are
22 CFR Part 61
(b) Relation to the Voluntary Sullivan
to 63.1(a). 63.1(b). 63.1(d)(1),
United States investments abroad.
System. It has been the policy of the
63.1{d)(2). 63.1(d)(3), 64.1. 65.1(b),
Fair labor standards. South Africa.
United States since 1977 to encourage
65.1(b)(5). and 65.1(b)(6).)
voluntary adherence to the Sullivan
The comments dealt primarily with
22 CFR Part 62
Code agreed to by a majority of U.S.
the relation of the requirements of the
United States investments abroad.
business firms that operate in South
voluntary Sullivan system to those of
Fair labor standards. South Africa,
Africa. The requirements of the
the proposed regulations. For example. it
Reporting and recordkeeping
voluntary code exceed those of the E.O
was pointed out that the evaluation
method of the Sullivan system takes into
requirements.
12532 in certain respects. and the
22 CFR Part 63
voluntary nature of the code has set an
account the performance of firms in
relation to each other with respect to
example for all firms in South Africa.
United States investments abroad,
some of the principles. Questions were
The regulations set forth in this
Fair labor standards. South Africa.
raised as to whether the Department
subchapter recognize that some U.S.
would do likewise with respect to those
22 CFR Part 64
nationals are not willing to subscribe to
firms that choose to report directly to
the Sullivan Code. and these regulations
United States investments abroad.
the Department of State. The
do not require firms to subscribe to the
Fair labor standards. South Africa,
Department intends to make decisions
voluntary system. All U.S. nationals
Reporting and recordkeeping
on good faith compliance based on an
described in $ 62.2 and 63.1 are
requirements.
evaluation of each report on a case-by-
subject to the requirements of this
case basis. The Department does not
22 CFR Part 65
subchapter. Such nationals who are
intend to rate the companies in relation
United States investments abroad.
bona fide participants in the Sullivan
to each other.
Fair labor standards. South Africa.
system are exempt from certain
Another Sullivan-related question
reporting requirements in accordance
Exports. Penalties.
dealt with the reporting requirements for
with s 63.1(d).
Subchapter G. consisting of Parts 60
firms that sign the Sullivan principles
through 65 and an Appendix, is added to
during 1986. A new subsection (d)(3)
60.2 Scope of application.
was added to $ 63.1 to address this
Chapter I of Title 22. Code of Federal
Regulations. to read as follows:
The requirements of this subchapter
issue.
are applicable to U.S. nationals (defined
Section 61.1(a)(6) of the proposed rule
SUBCHAPTER G-SOUTH AFRICA AND
in 1 61.5) who:
would have prohibited the furnishing of
FAIR LABOR STANDARDS
(a) Employ at least 25 individuals in
routine authentication services related
Part
South Africa:
to the other penalties described in that
60 Purpose and scope of application.
(b) Own or control more than 50
subsection to firms that do not adhere to
61 Definitions.
percent of the outstanding voting
the principles. Upon review. and based
62 Registration.
securities of a foreign subsidiary or
in part on public comments. the
63 General policies and reporting
other entity that employs at least 25
Department has concluded that it is
requirements.
individuals in South Africa: or
highly unlikely that routine
64 Administrative procedures.
authentication services would be
65 Non-adherence and penalties.
(c) Control in fact any other foreign
involved in such instances. Maintaining
Appendix to Subchapter G-Examples of Fair
entity that employs at least 25
Labor Practices
individuals in South Africa. Such control
a specific provision on this matter would
give the erroneous impression that
consists of the authority or ability of the
routine authentications are to be denied
PART 60-PURPOSE AND SCOPE OF
domestic concern to establish or direct
even in cases where there is no
APPLICATION
the general policies or day-to-day
intercession of the kind proscribed in
operations of a foreign subsidiary or
Sec.
the EO. The Department has accordingly
entity in South Africa. Such authority or
60.1 Purpose.
decided not to include a specific
60.2 Scope of application.
ability will be presumed under the
provision on this matter. Authentication
circumstances described below. subject
Authority: Sec. 203. International
services will be denied if the services
Emergency Economic Powers Act (50 U.S.C.
to rebuttal by competent evidence
requested constitute intercession within
1701): E.O. 12532, Sept. 9. 1985 (50 FR 36861).
provided to the Department of State at
the meaning of I 65.1(b).
the time of registration (see $ 62.1):
Some of the comments dealt with the
$60.1 Purpose.
(1) The domestic concern beneficially
basic requirements of the EO. For
(a) General. Section 2 of Executive
owns or controls (whether directly or
example. one comment recommended
Order 12532 of September 9, 1985 (50 FR
indirectly) 25 percent or more of the
that firms employing less than 25
36861) provides that if is the policy of
voting securities of the foreign
individuals in South Africa be subject to
the United States to encourage all
subsidiary or entity. if no other person
the requirements of the regulations.
United States firms in South Africa to
owns or controls (whether directly or
while another suggested that the
adhere to certain fair labor standards. It
indirectly) an equal or larger percentage:
(2) The foreign subsidiary or entity is
(7) Implementing fair labor practices
explanation of the reasons. The
operated by the domestic concern
by recognizing the right of all
explanation should be in the form of a
pursuant to the provisions of an
employees, regardless of racial or other
letter, and should accompany the
exclusive management contract;
distinctions, to self-organization and to
completed registration form. A detailed
(3) A majority of the members of the
form. join or assist labor organizations.
questionnaire on fair labor practices will
board of directors of the foreign
freely and without penalty or reprisal.
be provided by the Office of Southern
subsidiary or entity are also members of
and recognizing the right to refrain from
African Affairs on an annual basis to all
the comparable governing body of the
any such activity.
registrants. No lee is required for
domestic concern:
(b) The aupplement to this subchapter
registration.
(4) The domestic concern has the
contains illustrative examples of the fair
authority to appoint the majority of the
labor practices referred to in this
1622 Notification of changes in
members of the board of directors of the
aubchapter.
information furnished by registrants.
foreign subsidiary or entity; or
A registered U.S. national must notify
(5) The domestic concern has the
$61.3 Office of Southern African Aftairs.
the Department of State of any material
authority to appoint the chief operating
"Office of Southern African Affairs"
changes in the information contained in
officer of the foreign subsidiary or
means the Office of Southern African
the registration. Examples of material
entity.
Affairs, Bureau of African Affairs,
changes include the establishment.
Department of State, Washington. D.C.
acquisition, or sale of a subsidiary or of
PART 61-DEFINITIONS
20520.
a foreign affiliate, a merger. a change of
Sec.
location, or engaging in a different kind
$61.4 United States.
61.1 Adherence.
of business in South Africa. Such
"United States." when used to the
61.2 Fair labor standards.
61.3 Office of Southern African Affairs.
geographical sense, includes the several
information should be provided within
61.4 United States.
States. the Commonwealth of Puerto
60 days from the date of the material
61.5 U.S. national
Rico. the insular possessions of the
change.
Authority: Sec. 203. International
United States. and the District of
1023 Meintenance of records by
Emergency Economic Powers Act (50 U.S.C.
Columbia.
registrants.
1701): E.O. 12532 Sept. 9. 1885 (50 PR 36861).
461.5 U.S. National.
(a) A U.S. national who is required to
$61.1 Adherence.
For purposes of this subchapter, "U.S.
register pursuant to I 62.1 must maintain
For purposes of this subchapter.
national" means:
records concerning the fair labor
adherence means-
(a) Citizens or nationals of the United
practices employed in South Africa by
(a) Agreeing to implement the
States or permanent residents of the
the U.S. national or any entity referred
principles specified in 4 61.2 in South
United States (defined in the
to in I 60.2 effective January 1. 1986.
Africa.
Immigration and Nationality Act (8
Such records must be maintained for a
(b) Taking good faith measures to
U.S.C. 1101, 101(a)20, 60 Stat. 163)): and
period of 3 years.
implement each of these principles, and
(b) Corporations. partnerships, and
(b) Records maintained under this
(c) Reporting accurately to the
other business associations organized
section shall be available at all times for
Department of State on the measures
under the laws of the United States. any
inspection by the Director of the Office
taken to implement the principles in
state or territory thereof. or the District
of Southern African Affairs or a person
accordance with 4 63.1.
of Columbia.
designated by the Director.
$61.2 Fair labor standards.
PART 62-REGISTRATION
PART 63-GENERAL POLICIES AND
(a) The fair labor standards referred
REPORTING REQUIREMENTS
to in this subchapter are as follows:
Sec.
82.1 Registration.
Sec.
(1) Desegregating the races in each
62.2 Notification of changes in information
63.1 General policies.
employment facility:
furnished by registrants
63.2 Influencing activities outside the
(2) Providing equal employment
82.3 Maintenance of records by registrants.
workplace.
opportunity for all employees without
Authority: Sec 203, International
63.3 State Department review.
regard to race or ethnic origin:
Emergency Economic Powers Act (50 U.S.C.
63.4 Waiver.
(3) Assuring that the pay system in
1701): E.O. 12532 Sept. 2. 1985 (50 FR 38861)
Authority: Sec. 203. International
South Africa is applied to all employees
Emergency Economic Powers Act (50 U.S.C.
without regard to race or ethnic origin;
$62.1 Registration.
1701): E.O. 12532 Sept. 9. 1985 (50 FR 36861)
(4) Establishing a minimum wage and
Any U.S. national referred to in 1 60.2
salary structure based on the
is required to register with the
63.1 General policies.
appropriate local minimum economic
Department of State and to indicate
(a) General. Any U.S. national or
level which takes into account the needs
whether the U.S. national or entity
entity described in I 60.2 who does not
of employees and their families:
referred to in I 60.2 agrees to implement
adhere to the fair labor standards stated
(5) Increasing by appropriate means
the principles stated in s 61.2 They may
in I 61.2 of this subchapter shall be
the number of persons in managerial.
also indicate whether they are
ineligible to receive the assistance
supervisory, administrative, clerical and
participants in the voluntary Sullivan
specified in I 65.1 (b).
technical jobs who are disadvantaged
system. Registration can be
(b) Failure to register. Any such U.S.
by the apartheid system for the purpose
accomplished by filing a completed form
national who does not register with the
of significantly increasing their
DSP-95 with the Office of Southern
Department of State prior to February
representation in such jobs:
African.Affairs. Any such national who
15, 1986, in accordance with $ 62.1 shall
(6) Taking reasonable steps to
beheves that H should not be required or
be ineligible for the assistance specified
improve the quality of employees' lives
is unable to report on the fair labor
in I 65.1 and shall be subject to the
outside the work environment with
practices of a foreign subsidiary or
penalties specified in I 65.2
respect to housing. transportation.
entity described in I 60.2 (c) of this
(c) Annual reports. All U.S. nationals
schooling, recreation, and health:
subchapter should provide a detailed
subject to the requirements of this
subchapter shall provide an annual
to locate in urban areas: (b) by
U.S. national concerned and other U.S.
report to the Department of State
influencing other companies in South
Government agencies by appropriate
describing their implementation of the
Africa to follow the principles specified
means.
fair labor principles specified in I 61.2.
in i 62.2; (c) by supporting the freedom
(b) Any U.S. national who has been
including implementation by any entity
of mobility of all workers. regardless of
the subject of an adverse decision
described in $ 60.2. They shall do so by
race. to seek employment opportunities
pursuant to paragraph (a) of this section
submitting a completed questionnaire
wherever they exist. and (d) by making
shall be entitled to file a written appeal
furnished by the Department of State at
provision for adequate housing and
within 30 days of notification of the
the time of registration to the Office of
education for families of employees
decision with the Board of Appellate
Southern African Affairs. The first
within the proximity of the employee's
Review of the Department of State. The
report shall be provided no later than
place of work.
requirements of Part 7 of Subchapter A
February 15. 1987.
of this title of CFR shall be applicable to
(d)(1) Sullivan participants. Any U.S.
I 63.3 State Department review.
proceedings before the Board of
national who is a bona fide participant
(a) The Office of Southern African
Appellate Review.
in the Sullivan reporting and
Affairs shall review each report
implementing system is exempt from
submitted pursuant to i 63.1(c) to
I 64.2 Annual report.
submitting the questionnaire referred to
determine whether the U.S. national is
The Office of Southern African Affairs
in paragraph (c) of this "Bona fide"
adhering to the principles stated in
shall prepare an annual report regarding
participation means (i) subscribing to
$61.2. The Office of Southern African
implementation of Part 63 of this
the Sullivan Code and (ii) filing the
Affairs may request additional
report required by the Sullivan
information from the U.S. national and
subchapter. which shall be forwarded to
other affected U.S. Government agencies
monitoring mechanism with that
take any steps. that may be deemed
and the appropriate committees of the
organization and (iii) receiving a
necessary to verify the information
United States Congress.
Category 1. II. or IIIA standing. Bona fide
submitted.
participants are deemed to be adhering
(b) If the Office of Southern African
64.3 Disclosure of Information to the
to the fair labor standards for purposes
Affairs concludes that a person is not
public.
of this subchapter. Such U.S. nationals
taking such steps. it shall afford the
Subchapter R of this title of CFR
shall be required to file a letter with the
person thirty days to provide additional
contains regulations on the availability
Office of Southern African Affairs on an
written information to the Department of
to the public of information and records
annual basis certifying that they are
State.
bona fide participants in the Sullivan
(c) If a U.S. national who was a
of the Department of State. The
system. Each such letter shall be
participant in the Sullivan system does
provisions of Subchapter R apply to
such disclosures by the Office of
provided not later than February 15 of
not file the reports required by the
Southern African Affairs.
each calendar year. commencing on
Sullivan monitoring system or otherwise
February 15. 1987. Each such letter shall
fails to meet the standards for continued
PART 65-NON-ADHERENCE AND
include the following statement:
participation in the Sullivan system. the
PENALTIES
I certify that [name of firm) is a bona fide
U.S. national shall immediately inform
participant in the Sullivan system for fiscal
the Department of State. Such
Sec.
year [insert]. and the firm received a [insert]
notification should be provided no later
65.1 Denial of export marketing support.
rating from the Sullivan system for that
than 30 days after receipt of a
65.2 Civil and criminal penalties.
period.
notification from the Sullivan system
Authority: Sec. 203. International
Any U.S. national participating in the
that the person is no longer a bona fide
Emergency Economic Powers Act (50 U.S.C.
Sullivan system who receives a
participant.
1701): E.O. 12532 Sept. 9. 1985 (50 FR 36861)
Category IIIB standing must inform the
63.4 Walver.
Department of State by February 15. If
4 65.1 Denial of export marketing support.
such a national receives a Category IIIB
The Director. Office of Southern
(a) In accordance with Part 63 of this
standing for the next fiscal year. it shall
African Affairs. may make exceptions to
subchapter. no department or agency of
not be deemed to be 8 bona fide
the provisions of this subchapter in
the United States may intercede with
participant pursuant to this subsection
cases of exceptional or undue hardship
and must thereafter complete the
or when it is otherwise in the interest of
any foreign government regarding export
required State Department
the United States Government.
marketing activity in any country of any
U.S. national or entity referred to in
questionnaire.
(2) U.S. nationals who become
PART 64-ADMINISTRATIVE
60.2 who does not adhere to the
PROVISIONS
principles stated in I 61.2 with respect
participants in the Sullivan system in
to that U.S. national's operations in
1986 will be required to submit the first
Sec.
South Africa.
letter referred to in paragraph (d)(1) of
64.1 Administrative procedures.
this section no later than November 15.
(b) For purposes of this section,
64.2 Annual report.
"intercede with any foreign government
1987.
64.3 Disclosure of information to the public.
regarding export marketing activity"
Authority: Sec. 203. International
$ 63.2 Influencing activities outside the
Emergency Economic Powers Act (50 U.S.C.
means any contact by U.S. Government
workplace.
1701): E.O. 12532 Sept. 9. 1985 (50 FR 36861)
personnel with officials of any foreign
U.S. nationals referred to in
government which involves or
subsection I 60.2 are encouraged to take
I 64.1 Administrative procedures.
contemplates any effort to assist in
reasonable measures to extend the
(a) If the Assistant Secretary for
selling a good. service. or technology in
scope of their influence on activities
African Affairs concludes that a U.S.
a foreign market. The following are
outside the workplace by measures such
national or entity referred to in I 60.2 is
examples of the activities prohibited:
as (a) supporting the right of all
not adhering to the principles specified
(1) Assisting non-complying firms by
businesses. regardless of the racial
in I 61.2. the Office of Southern African
arranging appointments with foreign
character of their owners or employees.
Affairs shall immediately inform the
government officials relating to the
pursuit by the firm of a bid. project. or
imprisoned for not more than ten years. or
(b) Eliminating any distinctions between
both: and any officer. director. or agent to
hourly and salaried job classifications on the
other commercial activity.
(2) Intervening with a foreign
any corporation who knowingly participates
basis of race or ethnic origin: and
in such violation may be punished by a like
(c) Eliminating any differences in seniority
government on behalf of a non-
fine. imprisonment, or both.
and in grade benefits which are based on
complying firm in pursuit of a bid or
race or ethnic origin.
project. unless such intervention is
Section 206 of the International
(4) Establishing 8 minimum wage and
necessary to ensure a foreign
Emergency Economic Powers Act is
salary structure based on the appropriate
government's compliance with its
applicable to violations of this
local minimum economic level which takes
obligations, if any under the Agreement
subchapter and to any license. ruling.
into account the needs of employees and
on Government Procurement of April 12.
regulation, order. direction. or
their families:
1979 (T.I.A.S. No. 10403);
instruction issued hereunder. These
(a) Offering a minimum wage or salary
(3) Assisting non-complying firms in
criminal and civil penalties are
structure that is 30 percent or more higher
than the most recent University of South
obtaining end-user or other foreign
applicable to failures to comply with the
Africa Minimum Living Level for a family of 5
government certificates or
registration and reporting requirements
or 6 for the area in which the South African
documentation necessary for the
established in this subchapter. However,
subsidiary or affiliate operates: or
issuance of U.S. export licenses;
they are not applicable to failures to
(b) Offering a minimum wage or salary that
(4) Taking any action to assist a non-
adhere to the principles stated in I 61.2.
is 30 percent or more higher than the most
complying firm in selling its products,
(b) Attention is also directed to 18
recent University of Port Elizabeth Household
services or technology with respect to a
U.S.C. 1001, which provides:
Subsistence Level for a family of 5 or 6 for the
foreign government. including assistance
area in which the South African subsidiary or
in making appeals regarding foreign
Whoever, in any manner within the
affiliate operates.
government procedures and practices
furiadiction of any department or agency of
(5) Increasing. by appropriate means. the
the United States knowingly and willfully
adversely affecting the firm's ability to
number of persons in managerial.
falsifies. conceals or covers up by any trick.
gain access to the foreign marketplace;
supervisory. administrative. clerical. and
scheme. or device a material fact. or makes
technical jobs who are disadvantaged by the
(5) Participation by non-complying
any false. fictitious or fraudulent statement or
apartheid system for the purpose of
firms in Department of Commerce
representation or makes or uses any false
significantly increasing their representation
sponsored trade exhibitions and video
writing or document knowing the same to
in such jobs:
catalog shows. trade missions and
contain any false. fictitious or fraudulent
(a) Developing training programs that will
certified shows in foreign countries in
statement or entry. shall be fined not more
prepare substantial numbers of persons
which business is conducted primarily
than $10,000 or imprisoned not more than five
disadvantaged by apartheid for such jobs as
with the host government:
years. or both.
soon as possible, including: (i) Expanding
(6) Intervening with foreign
(c) This section does not apply to the
existing programs and forming new programs
government officials on behalf of a non-
to train. upgrade. and improve the skills of all
financing of exports by the Export-
complying firm at any trade fairs. trade
categories of employees. including
Import Bank to South Africa. Such
missions, and video catalogue shows
establishing and expanding programs to
financing continues to be the subject of
enable employees to further education and
(i.e., other than those in paragraph (b)(5)
the requirements contained in section
skills at recognized educational facilities: and
of this section).
2(b)(9) of the Export-Import Bank Act of
(ii) creating on-the-job training programs and
(c) The following activities with
1945, as amended.
facilities to assist employees to advance to
respect to non-complying firms are not
higher paying jobs requiring greater skills.
prohibited pursuant to this section of the
Appendix to Subchapter G-Examples of Fair
(b) Establishing procedures to assess.
Executive Order:
Labor Practices
identify. and actively recruit employees with
(1) Preparing market research for use
The following are illustrative examples of
potential for further advancement:
by more than one company and
the fair labor standards specified in 1 61.2.
(c) Identifying persons disadvantaged by
providing general export information:
(1) Desegregating the races in each
apartheid with significant management
(2) Distributing generally available
employment facility:
potential and enrolling them in accelerated
informational publications such as
(a) Removing all race designation signs;
management programs: and
Overseas Business Reports. Foreign
(b) Desegregating all eating. medical,
(d) Establishing timetables to carry out this
recreation. and work facilities: and
principle.
Economic Trends. and Business
(c) Terminating all regulations which are
(6) Taking reasonable steps to improve the
America: and
based on racial discrimination or preference.
quality of employee's lives outside the work
(3) Multilateral and bilateral.
(2) Providing equal employment
environment with respect to housing
government-to-government trade
opportunity for all employees without regard
transportation. schooling. recreation. and
negotiations to resolve trade issues
to race or ethnic origin:
health:
which may affect non-complying firms.
(a) Assuring that any health. accident.
(a) Providing assistance to employees
pension. or death benefit plans that are
disadvantaged by apartheid for housing.
4 85.2 Civil and criminal penelties.
established are nondiscriminatory and open
health care. transportation. and recreation
(a) This subchapter is promulgated
to all employees without regard to race or
either through the provision of facilities or
pursuant to the authority of E.O. 12532
ethnic origin: and
services or providing financial assistance to
and the International Emergency
(b) Implementing equal and
employees for such purposes. including the
Economic Powers Act (50 U.S.C. 1705)
nondiscriminatory terms and conditions of
expansion or creation of in-house medical
(IEEPA)). Section 206 of this Act
employment for all employees. abolishing job
facilities or other medical programs to
restrictions and differential employment
improve medical care for employees
provides that:
criteria which discriminate on the basis of
disadvantaged by apartheid and their
A civil penalty of not to exceed $10,000
race or ethnic origin.
dependents: and
may be imposed on any person who violates
(3) Assuring that the pay system is applied
(b) Participating in the development of
any license. order. or regulation issued under
to all employees without regard to race or
programs that address the educational needs
this title.
ethnic origins:
of employees. their dependents. and the
Whoever willfully violates any license.
(a) Assuring that any wage end salary
community.
order. or regulation issued under this title
structure that is implemented is applied
(7) Implementing fair practices by
shall. upon conviction. be fined not more than
equally to all employees without regard to
recognizing the right of all employees
$50.000. or. if a natural person. may be
race or ethnic origin:
regardless of recial or other distinctions. to
self-orgunization and to form. join, or assist
labor organizations. freely and without
penalty or reprisal. and recognizing the right
to refrain from any such activity:
(a) Refraining from: (i) interforing with.
restraining. or coercing employ ses in the
exercise of their rights of self-organization
under this paragraph: (ii) dominating or
interfering with the formation or
administration of any labor organization or
sponsoring. controlling. or contributing
financial or other assistance to it; (iii)
encouraging or discouraging membership in
any labor organization by discrimination in
regard to hiring. tenure. promotion. or other
conditions of employment: (iv) discharging or
otherwise disciplining or discriminating
against any employee who has exercised any
rights of self-orgunization under this
principle: and (v) refusing to burgain
collective with any organization freely
chosen by employees persuant to this
principle.
(b) Allowing employees to exercise rights
of self-organization. including solicitation of
fellow employees during nonworking hours,
distribution and posting of union literature by
employees during nonworking hours in
nonworking areas. and reasonable access to
labor organization representatives to
communicate with employees on the
employer's premises at reasonable times
where there are no other available channels
which will enable the labor org-nization to
communicate with employees through
reasonable efforts.
Dated: December 23. 1885.
George P. Shultz,
The Secretary of State.
(FR Doc. 05-30928 Filed 12-30-85 0:45 am]
BILLING CODE 4710-06-M
Enclosure 5
46726 Federal Register / Vol. 50, No. 218 / Tuesday. November 12, 1985 / Rules and Regulations
DEPARTMENT OF THE TREASURY
Regulations. The information collection
Subpert I-Miscellaneous
requests contained in this document are
$45.901 Paperwork Reduction Act Notice.
Office of Foreign Assets Control
being submitted to the Office of
Management and Budget under the
3. New I 545.202 is added to read as
Paperwork Reduction Act of 1980, 44
follows:
31 CFR Part 545
U.S.C. 3501 et seq. Notice of OMB action
I 545.202 Prohibition on loans to the
on these requests will be published in
South African Transactions
Government of South Africa.
the Federal Register.
Regulations
(a) Except as authorized under this
List of Subjects in 31 CFR Part 545
AGENCY: Office of Foreign Assets
part. no financial institution in the
Control. Treasury.
South Africa, Imports. Krugerrands,
United States may make or approve any
ACTION: Final rule.
Loans, Penalties, Reporting and
loan, directly or indirectly. to the
recordkeeping requirements
Government of South Africa as defined
SUMMARY: The Office of Foreign Assets
in this part.
Contol is amending the South African
PART 545-AMENDED
(b) The prohibition in paragraph (a) of
Transactions Regulations to prohibit
31 CFR Chapter V, Part 545, is
this section shall not apply to any loan
financial institutions in the United
amended as set forth below:
which a financial institution in the
States from making loans to the South
1. The "Authority" citation for Part
United States is obligated to make under
African Government or its controlled
545 is revised to read as follows:
an agreement entered into before
entities. and for other purposes.
EFFECTIVE DATE: 12:01 a.m. Eastern
Authority: 50 U.S.C. 1701 et eeq.: E.O.
September 9. 1985.
12532. 50 FR 36861. Sept. 9. 1985; E.O. 12535.
Standard Time. November 11. 1985.
50 FR 40325. October 3, 1985.
4. Section 545.203 is revised to read as
FOR FURTHER INFORMATION CONTACT:
follows:
Marilyn L Muench. Chief Counsel.
2 The table of contents for Part 545 is
Office of Foreign Assets Control,
amended by adding entries for i 545.202
$545.203 Effective dates.
Department of the Treasury.
to Subpart B. 545.303-545.310 to
(a) The effective date of the
Washington, DC 20220; 202/376-0408.
Subpart C. " 545.404-545.410 to Subpart
prohibition in $ 545.201 shall be 12:01
SUPPLEMENTARY INFORMATION: On
D. II 545.503 and 545.504 to Subpart E.
a.m. Eastern Daylight Time. October 11.
September 9. 1985, the President issued.
and by adding a new Subpart I as
1985.
follows:
Executive Order 12532. finding that the
(b) The effective date of the
policies and actions of the Government
prohibition in I 545.202 shall be 12:01
of South Africa constitute an unusual
Subpart B-Prohibitions
a.m. Eastern Standard Time. November
and extraordinary threat to the foreign
Sec.
11. 1985.
policy and economy of the United States
545.202 Prohibition on loans to the
-5. New $ 545.303 is added to read as
and invoking the authority. inter alia. of
Government of South Africa.
follows:
the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.).
I 545.303 Importation.
Among other measures taken through
Subpart C-General Definitions
The term "importation" means the
the Executive Order. the President
bringing of any item within the
prohibited financial institutions in the
$45.303 importation.
furisdictional limits of the United States
United States from making or approving
545.304 Loan.
loans to the South African Government
545.305 Financial institution.
with the intent to unlade it
or its controlled entities. except in
$45.306 The Government of South Africa
6. New $ 545.304 is added to read as
certain narrowly specified
South African Government.
follows:
circumstances. The order delegated
645.307 Entities controlled by the South
African Government.
authority to implement the loan
545.304 Loan.
545.308 Person.
prohibitions to the Secretary of the
545.309 Entity.
The term "loan" means any transfer
Treasury. These amendments to the
545.310 Affiliate.
or extension of funds or credit on the
South African Transactions Regulations.
including the definitions of certain terms
Subpart D-Interpretations
basis of an obligation to repay. or any
assumption or guarantee of the
used therein. have been adopted for the
sole purpose of implementing the
545.404 Rescheduling existing loans to the
obligation of another to repay an
extension of funds or credit. The term
provisions of the Executive Order.
South African Government.
545.405 Trade related credits.
"loan" includes. but is not limited to:
Since the regulations involve a foreign
545.406 Loans through intermediaries.
Overdrafts: currency swaps; the
affairs function. the provisions of the
545.407 Substitution of the South African
purchase of debt securities issued by the
Administrative Procedure Act, 5 U.S.C.
Government as obligor.
South African Government after
553. requiring notice of proposed
545.408 Approval of loans by foreign
rulemaking. opportunity for public
November 11, 1985; the purchase of a
affiliates.
participation. and delay in effective
545.409 Lean participations.
loan made by another person: the sale of
date. are inapplicable. Because no
545.410 South African law.
financial assets subject to an agreement
notice of proposed rulemaking is
to repurchase: and a renewal or
Subpart E-Licenses, Authorizations and
required for this rule. the Regulatory
refinancing whereby funds or credits are
Statements of Licensing Policy
Flexibility Act. 5 U.S.C. 601 et seq., does
transferred or extended to the South
African Government. The term "loan"
not apply. Because the regulations are
545.503 Loans for educational housing. or
issued with respect to A foreign affairs
health facilities.
does not include reschedulings of
function of the United States. they are
$45.504 Loans to benefit persons
existing loans under 545.404.
not subject to Executive Order 12291 of
disadvantaged by the apartheid system.
7. New $ 545.305 is added to read as
February 17, 1981, dealing with Federal
follows:
Federal Register & Vol. 50, No. 218 / Tuesday, November 12. 1985 / Rules and Regulations #6727
$ 545.305 Financial institution.
13. New s 545.404 is added to read as
from complying with applicable taws,
The term "financial institution" means
follows:
regulations or other directives of the
any entity engaged in the business of
South African Government requiring or
& 545.404 Rescheduling existing loans to
accepting deposits or making,
the South African Government.
permitting the South African
transferring. holding, or brokering loans,
Government to become the primary or
Provided that no funds or credits are
including. but not limited to, banks,
secondary obliger with respect to an
thereby transferred or extended to the
savings banks, trust companies, savings
outstanding loan. provided that no funds
Government of South Africa, s 545.202
and loans associations, credit unions,
or credits are thereby transfersed or
does not prohibit a financial institution
securities brokers and dealers,
extended to the South African
in the United States from rescheduling
investment companies. employee
Government.
loans to the South African Government
pension plans. holding companies of
or otherwise extending the maturities of
17. New 1 545.408 is added to read as
such institutions. and subsidiaries of
such loans. or from charging fees. or
follows:
any of the foregoing.
interest at commercially reasonable
8. New § 545.306 is added to read as
rates, in connection therewith.
$ 545.408 Approval of loans by foreign
affiliates.
follows:
14. New § 545.405 is added to read as
follows:
Section 545.202 prohibits financial
$ 545.306 Government of South Africa;
institutions in the United States from
South African Government.
§ 545.405 Trade related credits.
approving loans by their foreign
The terms "Government of South
(a) Section 545.202 prohibits financial
affiliates to the South African
Africa" and "South African
institutions in the United States from
Government.
Government" include the national
opening. issuing, or confirming letters of
18. New & 545.409 is added to read as
government of South Africa: the South
credit or similar trade credits for which
follows:
African Reserve Bank: the government
the Government of South Africa is the
of any political subdivision of South
account party, except those which have
$ 545.409 Loan participations.
Africa: the government of any territory
been fully collateralized in such
Section 545.202 prohibits a financial
under the dominion of South Africa: the
institution by the South African
institution in the United States from
government of any "homeland"
Government in advance of payment.
purchasing. or otherwise acquiring a
established under the apartheid system,
Section 545.202 also prohibits financial
including Bophuthatswana. Ciskei,
institutions in the United States from
participation in, all or part of any loan
made by any other person or persons to
Transkei, and Venda: and any entity
creating or discounting acceptances or
the South African Government
controlled by the South African
similar instruments to provide financing
Government. as defined in & 545.307.
for the South African Government,
regardless of the date of the original
loan. unless such financial institution is
except acceptances which have been
9. New § 545.307 is added to read as
fully funded in such institutions by the
obligated to make the purchase under an
follows:
South African Government in advance
agreement entered into before
of creation or discounting.
September 9, 1985, or such acquisition is
$ 545.307 Entity controlled by the South
African Government.
(b) Section 545.202 does not prohibit
incidental to the purchase or acquisition
financial institutions in the United
of an institution or all or substantially
The term "entity controlled by the
States from opening, issuing, or
all of the assets of an institution that has
South African Government" includes
confirming letters of credits or similar
made or acquired participations in such
any corporation. partnership.
loans.
trade credits respecting exports of the
association or other entity in which the
South African Government. Section
19. New & 545.410 is added to read as
South African Government owns a
545.202 does not prohibit financial
follows:
majority or controlling interest. any
institutions in the United States from
entity managed or substantially funded
creating or discounting acceptances
$ 545.410 South African law.
by that government. and any entity
respecting exports of the South African
If, under applicable laws of South
which is otherwise controlled by that
Government.
Africa. a financial institution in the
government.
15. New & 545.406 is added to read as
United States cannot obtain enough
10. New $ 545.308 is added to read as
follows:
information from a person in South
follows:
Africa to enable it reasonably to
§ 545.406 Loans through intermediaries.
conclude that a loan is not being
$ 545.308 Person.
Section 545.202 prohibits a financial
obtained for or on behalf of the South
The term "person" means an
institution in the United States from
African Government, § 545.202 prohibits
individual or an entity.
making a loan to any person in the
the loan.
11. New $ 545.309 is added to read as
United States or a foreign country,
20. New § 545.503 is added to read as
where the institution has reason to
follows:
follows:
believe that the loan is being obtained
$ 545.309 Entity.
for or on behalf of the South African
§ 545.503 Loans for educational, housing,
The term "entity" means a
Government, and that the relevant funds
or health facilities.
or credit will be made available to the
corporation. partnership. association. or
Specific licenses may be issued to
South African Government.
other organization.
financial institutions in the United
16. New 545.407 is added to read as
States authorizing them to make loans to
12. New § 545.310 is added to read as
follows:
the South African Government, where
follows:
the loans will be used to benefit all
§ 545.407 Substitution of the South
§ 545.310 Affiliate.
persons on a non-discriminatory basis.
African Government as obligor.
and where it is determined that the
The term "affiliate" includes, but is
Section 545.202 does not prohibit a
loans are for educational, housing. or
not limited to, a branch or a subsidiary.
financial institution in the United States
health facilities.
21. New $ 545.504 is added to read as
follows:
4 545.504 Loans to benefit persons
disadvantaged by the apartheld system.
Specific licenses may be issued to
financial institutions in the United
States authorizing them to make loans to
the South African Government, where it
is determined that the loans will
improve the welfare or expand the
economic opportunities of persons in
South Africa disadvantaged by the
apartheid system. No such loan will be
authorized to any apartheid enforcing
entity.
22. New Subpart I. consisting of
$ 545.901 which is reserved. is added to
read as follows:
Subpert I-Miscellaneous
$ 545.901 Paperwork Reduction Act
Notice [Reserved.]
Dated: November 6, 1985.
Dennis M. O'Connell,
Director. Office of Foreign Assets Control.
Approved: November 8, 1985.
E.T. Stevenson,
Acting Assistant Secretary, Enforcement and
Operations.
[FR Doc. 85-27009 Filed 11-12-85; 12:44 pm)
BILLING CODE 4810-25-M
Enclosure 6
Federal Register 1 Vol. 50. No. 222 / Monday. November 18. 1985 / Rules and Regulations -47363
4 Requiring writien assurance for
export of technical data under General
License GTDR:
DEPARTMENT OF COMMERCE
5. Publishing a certification required
International Trade Administration
from consignees of computers or goods
to service computers in the Republic.of
15 CFR Parts 371, 373, 379, 385, 386,
South Africa and Namibia: and
309
a Requiring derial of licenses for
exports to nuclear utilization and
(Desket Ma. 51068-5163)
production facilities.
:
Export Controls on the Republic of
b addition. consistent with the
South Africa
Executive Order. the Office of Export
Administration (OEA) will institute and
AGENCY: Office of Export
vigorously administer an enhanced
Administrative Commerce.
system of end use verification. which
ACTION: Pinal rule.
will involve periodic verification by U.S.
SUMMARY: This rule prohibits certain
Government or exporter personnel of
trade and other transactions involving
location and use of certain computers.
South Africa set out to Executive Order
EFFECTIVE DATE: October 11. 1985.
12532 and in section a(n) of the Export
FOR FURTHER INFORMATION CONTACT:
Administration Act of 1979. as amended
James Allen. Policy Planning Division.
by the Export Administration
Office of Export Administration.
Amendments Act of 1985. The main
Department of Commerce. Washington.
effect of the provisions implementing
D.C. (Telephone: (202) 377-8622).
section (n) is to require validated
export licenses for all exports to the
SUPPLEMENTARY INFORMATION:
South African military and police. even
Rulemaking Requirements
though the export could be made under
general license to other parties in South
in connection with various rulemaking
Africa. Licenses 10 the military and
requirements. the Office of Export
police will be denied. except when
Administration has determined that:
specified medical and anti-bijacking
1. This rule is exampted. pursuant to
exceptions apply. The principal effect of
section 13(a) of the Export
the Executive Order is to prohibit
Administration Act of 1979. as amended.
exports of all computers. computer
from the provisions of the
software. or goods or technology to
Administrative Precedure Act requiring
service computers to all apartheid
notice of proposed relemaking. en
enforcing entities of the South African
opportunity for public participation. and
Government The Export Administration
a delay in affective date 15 U.S.C. 553).
regulations list entities that have been
This regulation involves a foreign affairs
determined to enforce apartheid. The
function of the United States.
Bst will be under continual review, and
2 This rule contains 8 collection of
likely will be modified and expanded
information requirement under the
periodically.
Paperwork Reduction Act of 1980. 44
Spectfically, these regulations provide
U.S.C. SEC1 or soq. These requirements
for:
1. Identifying the Republic of South
have been approved by the Office of
Africa agencies that enforce spartheid
Management and Budget under control
numbers 0625-0001. 0625-0052. and
or administer the black pasebook and
similar controls:
0625-0140. OMB approval is pending for
2 Imposing new validated license
the new reporting requirement
requirements for previously
contained in EAR 385.6(a)(9)(iv)(B).
euncontrolled personal computers.
Comments anay be submitted to the
computer software. and goods and
Office of Information and Regulatory
technical data to service computers:
Affairs. Office of Mangement and
3. Revising licensing policies to reflect
Budget. Washington. DC 20503.
the prohibitions:
Attention: Desk Officer for the
Department of Commerce/Internations
Trade Administration
2. Because a notice of proposed
rulerseking is not required to be
published for this rule. it is not a rule
within the meaning of section 801(2) of
the Regulatory Flexibility Act and is not
subject to the requirements of that Act.
Accordingly. no preliminary or final
Regulatory Analysis has been or will be
prepared.
47366 Federal Register / Vol. 50. No. 222 / Monday, November 18. 1985 / Rules and Regulations
4. Because this rule concerns a foreign
PART 373-(AMENDED)
(1) General Prohibition. No technical
affairs function of the United States. it is
data may be exported or reexported to
not a rule or regulation within the
2 Section 373.1 is amended by
the Republic of South Africa or Namibia
meaning of Section 1(a) of Executive
revising paragraph (a)(1)(iii) to read as
under this General License GTDR where
Order 12291 and. accordingly. is not
follows and by removing paragraph
the exporter or reexporter knows or has
subject to the requirements of that order.
(a)(3):
reason to know that the data or any
Accordingly. no preliminary or final
372.1 Intreduction.
products of the data are for delivery.
Regulatory Impact Analysis has been or
directly or indirectly. to or for use by or
will be prepared.
(a) Special Limitations. (1) ...
for military or police entities in these
Therefore. this regulation is issued in
(iii) Export or reexport any computers
destinations or for use in servicing
final form. Although there is no formal
covered by CCL entry 1565 or 6565G. or
equipment owned. controlled or used by
comment period. public comments on
any goods intended to service
or for such entities. As used in this
these regulations are welcome on e
computers. to or for use by or for
paragraph (e). the term "any products of
continuing basis.
apartheld enforcing entities of the
the data" includes the direct product 3 of
List of Subjects
Government of South Africa identified
the data and any subsequent products of
in Supplement No. 1 to Part 385.
the direct product. No technical data for
15 CFR Part 371
use in servicing computers. and no
Exports.
4. Section 373.3 is amended by
computer software. may be exported or
removing the comma. and placing a
reexparted to the Republic of South
15 CFR Part 373
colon after "Namibia" in the first
Africa or Namibia under this General
Exports.
sentence of (d)(3)(ii)(E)(3)(ii). and by
License GTDR where the exporter or
removing the remainder of the sentence
reexporter knows or has reason to know
15 CFR Part 379
and by revising the phrase "computer-
that the data will be made available to
Exports. Science and technology.
related equipment" in the first sentence
or for use by or for apartheid-enforcing
of (d)(3)(ii)(E)(3)(iii) to read "goods to
entities identified in Supplement No. 1 to
15 CFR Part 385
service computers" and by revising the
Part 985. in addition. no technical data
Communist countries. Exports.
certification in (d)(3)(ii)(E)(3)(iiii) to read:
relating to the commodities listed in
I(we) certify that the commodities and/or
Supplement No. 2 to this Part 379 may
15 CFR Part 386
technical date received under this license
be exported or reexported under this
Exports.
will not be sold or otherwise made available.
General License GTDR to any consignee
directly. or indirectly. to or for use by or for
in the Republic of South Africa or
15 CFR Part 399
the following entities in the Republic of South
Namibia.
Africa or Namibia: police or military entities.
Exports.
any entity involved directly or indirectly in
(2) Written Assurance. In addition to
Accordingly. the Export
either a nuclear or sensitive nuclear and use.
any written assurances that may be
Administration Regulations (15 CFR
or entities identified by the U.S. Department
required by paragraph (f) of this section.
Parts 368-399) are amended as follows:
of State as enforcing spartheid as reflected in
no export or reexport of technical data.
Supplement No. 1 to Part-385 of the Export
1. The authority citations for 15 CFR
including computer software. may be
Administration Regulations. These
Parts 371. 373. 379. 385. 386 and 399 are
made under this General License GTDR
commodities are not to be used to service
revised to read as follows:
computers owned. controlled. or used by or
until the exporter has received written
for the entities indicated above.
assurance from the importer that neither
Authority: Pub. L 98-72 93 Stat 503, so
U.S.C. app. 2401 of seq., as amended by Pub.
Note-See sections 373.3(a)(2) and 378.3
the technical data nor the direct product
L 97-145 of December 20. 1981 and by Pub. L
for definitions relating to nuclear end use.
of the data will be made available to or
60-04 of July 12. 1985: E.O. 12525 of July 12.
5. Section 373.3(e)(1)(iii) is revised to
for use by or for military or police
1985 (50 FR 28757. July 18. 1985): Pub. L 85-
read as follows:
entities of the Republic of South Africa
223. 50 U.S.C. 1701 of seq.: E.O. 12532 of
or Namibia. If the technical data is
September 9. 1985 (50 FR 36861. September
10. 1985).
(a) (1)
intended to service computers or
(iii) A system for timely distribution to
consists of computer software. the
written assurance must also state that
PART 371-(AMENDED)
consignees and verification of receipt by
consignees of the Table of Denial
the date will not be made available to or
Section 371.2 is amended by adding
Orders (TDO) (Supplement No. 1 to Part
for use by or for the epartheid-enforcing
paragraph (c)(11). which was formerly
388). the list (where appropriate) of
entities identified in Supplement No. 1 to
reserved:
South African entities enforcing
Part 385. To facilitate this assurance. the
I 371.2 General Previsions.
apartheid (Supplement No. 1 to Part
potential exporter shall provide a
385). and other regulatory material
current copy of Supplement No. 1 to Part
necessary to ensure compliance:
385 to the intended recipient at the time
(c) Prohibited shipments.*
the written assurance is requested.
(11) The exporter or reexporter knows
or has reason to know that the
PART 370-(AMENDED)
commodity is for delivery. directly or
PART 365-(AMENDED)
indirectly. to or for use by or for military
6. Section 379.4(e) is revised to read as
or police entities in the Republic of
follows:
7. $385.4(a) is revised to read as
South Africa or Namibia. This includes
follows:
$379.4 General License GTDR: Technical
commodities for purposes of servicing
Data Under Restriction.
equipment owned. controlled or used by
The term "direct product." as used in this
or for such entities: or
(e) Restrictions Applicable to
peragraph. is defined to mean the ummediate
product (including processes and services) produ. I
Republic of South Africa and Namibia-
directly by use of the technical data
$285.4 Country Groups T&V.
qualify for export or reexport under the
delivered under this license. that we are not
(a) Republic of South Africa and
provisions of General License GTDR
affiliated with any apartheid-enforcing entity.
Namibia. In conformity with the United
must provide a written assurance to the
and that the commodities and/or technical
Nations Security Council Resolutions of
U.S. exporter as required by 4 379.4(e)(2)
date will not be sold or alberwise made
1963 and 1977 relating to exports of arms
of this chapter.
available. directly or indirectly. to or for use
by or for the following antities in the Republic
and munitions to the Republic of South
(4) Parts. components. materials and
of South Africa or Namibia: police or military
Africa. and consistent with U.S. foreign
other commedities exported from the
entities. any entity involved directly or
policy toward the Republic of South
United States under either a general or
indirectly to either a anclear or sensitive
Africa and Namibia. the Department of
validated export license may not be
nuclear end use. or entities identified by the
Commerce has established the following
used abroad to manufacture or produce
U.S. Department of State as enforcing
special policies for commodities and
foreign-made end-products where it is
apartheid as reflected in Supplement No. 1 to
technical date under its licensing
known or there is reason to know the
Part 305 of the Export Administration
jurisdiction.
end-product will be sold to or used by or
Regulations. Them ommmodities/techmical
(1) An embargo is in effect on the
for military or police entities in the
data are not to be used to service computers
owned. controlled. or used by or for the
export or reexport to the Republic of
Republic of South Africa or Namibia.
entities indicated above. I(We) will cooperate
South Africa and Namibia of arma
(See I 285.4(a)(7) and (10) for case-by-
with post-shipment inquiries by U.S. officials
munitions. military equipment and
case exceptions.)
to verify disposition or use of the
materials. and materials and machinery
(5) A validated export license is
commodities/techaical data. H requested by
for use in manufacture and maintenance
required for the export to the Republic
the experter. we will periodically provide
of such equipment. Commodities to
of South Africa and Namibia of any
information concerning the disposition or use
instrument and equipment particularly
of cummodities/tecknical data received
which this embargo applies are listed in
Supplement No. 2 to Part 379 of this
useful in crime control and detection. as
under this license. including the identity of
customers to whom the items were resold
chapter.
defined in I 376.14 of this chapter.
Note-See 11 373.3(a)(2) and 378.3 for
(2) An embargo is in effect on the
(6) General License GIT may not be
definitions relating to nuclear end uses.
export or reexport to the Republic of
used for any commedity destined for the
South Africa or Namibia of any
Republic of South Africa or Namibia
(iv)(A) Exporters shall make available
commedity. including commodities that
(see I 371.4(b) of this chapter).
to each witimate consignee a current
may be exported to any destination in
(7) Applications for validated licenses
copy of Supplement No. 1 to Part 385
Country Group V under a general
will generally be considered favorably
identifying apartheid enforcing entities.
license. where the exporter or
on a onse-by-case basis for the export of
OEA may require the licensee to certify
reexporter knows or has reason to know
medicines. medical supplies. medical
subsequent to delivery that the
that the commodity will be sold to or
equipment. related technical data. and
computers have not been retransferred
used by or for military or police entities
parts and components, to any and-user.
to unauthorized end-meas or end-users.
tn these destinations or used to service
(8) A validated license is required for
(B) When the license authorizes resale
equipment owned. controlled or used by
export to all consignees of aircraft and
within the Republic of South Africa or
or for such military or police entities.
helicopters. Applications will generally
Namibia, the requirement may include
(See I 385.4(a)(7) and (10) for case-by-
be considered favorably on a case-by-
Identification of customers to whom the
case exceptions.)
case basis for such exports for which
ultimate consignees have sold the
adequate written assurances have been
computers. with further identifications
(3) An embargo is in effect on the
export or reexport to the Republic of
obtained against military. paramilitary.
of customers to be provided at six
South Africa or Namibia of technical
or police use.
month intervals until all computers'
(9)(i) A validated license is required
exported under the license have been
data-except technical data generally
for the export or reexport to government
sold.
evattable to the public that meets the
conditions of General License GTDA-
consignees of computers as defined in
(10) Applications for validated
where (i) the technical data relate to the
CCL entries 1565A and 8365G. and of
licenses will generally be considered
commodities listed in Supplement No. 2
goods to service computers. "Goods to
favorably on a case-by-case basis for
to Part 879 of this chapter. (ii) the
service computers" include any national
the export of commodities and related
exporter or reexporter knows or has
security-controlled Item intended for
technical data. and parts and
reason to know that the technical data
such use. and any Items in ECCN 85D4F.
components. to be used in efforts to
Applications will be denied if the export
prevent acts of unlawful interference
or any product of the data as defined in
is likely to be used by or for apartheid
with international civil aviation.
4 379.4(e) of this chapter are for delivery
(11) Applications for validated
to or for use by or for the military or
enforcing entities identified in
police entities of these destinations or
Supplement No. 1 to Part 385. with case.
licenses for commodities and technical
for use in servicing equipment owned.
by-case exceptions possible for
data for nuclear production or utilization
controlled or used by or for these
humanitarian purposes. (ii) Insubstantial
facilities or those likely to be diverted to
entities (see I 385.4(a)(7) and (10) for
U.S. origin parts or peripherals in foreign
such facilities will be denied. except on
case-by-case exceptions). or (iii) the
origin computer systems may be
a case-by-case basis to assist
technical date consist of data to service
approved on a case-by-case basis.
International Atomic Energy Agency
computers or of computer software and
Content is generally considered to be
(RAEA) sufeguards or IAEA programs
the exporter or reexporter knows or has
insubstantial when it is 20% or less by
generally available to member states. or
reason to know that It will be made
value. (iii) Applications to export
for technical programs to reduce
available to or for use by or for
computers or goods to service computers
proliferation risks. or for exports that
apartheid enforcing entities identified in
to the Republic of South Africa or
are determined to be necessary for
Supplement No. 1 to Part 385 (with case-
Namibia must be accempanied by the
humanitarian reasons to protect the
by-case exceptions possible for
following certification signed by the
public health and safety.
humanitarian purposes). In addition.
ultimate consignee:
(12) License applications involving
users in the Republic of South Africa or
contracts entered into prior to the
I(Wel certify that we are the recipient of
Namibia of technical data that do
President's Executive Order of
the commodites and/or technical data to be
September 2. 1985. will be considered on
a case-by-case basis in accordance-with
Ltd., and Musgrave Manufacturers and
Available" paragraph to read as follows:
the regulations and policies that were in
Distributors)
6899G Other rubber and rubber
effect prior to the issuance of such
Department of Prisons
products. n.e.s.
Order. Applications involving contracts
"Homeland" Police and Armed Forces
entered into on or after September 9.
National Institute of Defense Research of
1985. will be subject to the October 11.
CSIR
Special South Africa and Namibia
1985, revisions to the regulations that
National Intelligence Services
Controls: A validated license is required
implement that Order.
South African Railways Police Force
for export or reexport to the Republic of
Wespons research activities of the Council
South Africa and Namibia if intended
for Scientific and Industrial Research
for delivery to or for use by or for
PART 385-(AMENDED)
(CSIR)
military or police entities in these.
& A new Supplement No. 1 to Part 385
2
destinations. or for use in servicing
(which was formerly reserved) is added
PART 306-[AMENDED]
equipment owned. controlled. or used by
as follows:
or for these entities. See I 385.4(a).
10. I 386.6(a)(2) is amended by
Supplement No. 1 to Part 285-South Africa
14. The Commodity Control List
Entities Enforcing Apartheid
removing the footnote.
(Supplement No. 1 to 399.1) is amended
11. in Supplement No. 1 to I 399.1 (the
The following have been identified as
by adding the following "Special South
South African entities that enforce apartheid.
Commodity Control List). Commodity
Africa and Namibia Controls"
Exporters should be aware that this list
Group 4 (Transportation Equipment).
paragraph immediately following the
cannot be all-inclusive because names of
ECCN 6499G is amended by revising the
"Special Licenses Available" paragraph
agencies are subject to change. and because
"Special South Africa and Namibia
to the below listed ECCN's:
agencies may assume apartheid enforcing
Controls" paragraph immediately
Special South Africa and Namibia
activities in the future. Before making
following the "Technical Data"
Controls: A validated license is required
commitments to export. exporters may wish
paragraph as follows:
to seek guidance from the Office of Southern
for export or reexport to the Republic of
6409G Other transportation
African Affairs (AF/S). Department of State.
South Africa and Namibia if intended
Washington. DC 20520. to ascertain whether
equipment. n.e.s.; and parts and
for delivery to or for use by or for
or not a potential customer is an "agency
accessories. n.e.s.
military or police entities in these
enforcing apartheid."
destinations. or for use in servicing
Ministry of Justice
Special South Africa and Namibia
equipment owned. controlled. or used by
Ministry of Home Affairs and National
Controls: A validated license is required
or for these entities. See I 385.4(a)
Education
for export or reexport to the Republic of
Ministry of Constitutional Development and
South Africa and Namibia if intended
GO98F
6399G
Planning
for delivery to or for use by or for
6099C
$565D
Ministry of Lew and Order
0191F
6598F
Ministry of Manpower
military or police antities in these
0199G
6599G
Ministry of Education and Developing Aid.
destinations. or for use in servicing
6299G
4699G
including the Development Boards and the
equipment owned. controlled. or used by
essoF
6699G
Rural Development Boards (formerly
or for these entities. See 1 385.4(a).
6391F
6779F
known as the Ministry of Cooperation.
12 In Supplement No. 1 to I 399.1 (the
0392F
6799G
Development and Education)
Commodity Control List). Commodity
8398G
6999G.
Other agencies enforcing apartheid
Group 5 (Electronics and Precision
(including local. regional and "Homeland
Instruments). ECCN 1565A is amended
15. in Supplement No. 1 to I 399.1 (the
agencies") e.g., those that regulate
employment. classification. or residence of
by revising the "Special South Africa
Commodity Control List). Commodity
and Namibia Controls" paragraph
Group 5 (Electronics and Precision
non-whites.
immediately following the "Special
Instruments). new ECCN's 6565G and
Note-The Department of State has
Licenses Available" paragraph to read
6594F are added in numerical order
determined that the following agencies are
as follows:
(disregarding the first digit).
not considered to be apartheid enforcing
entities:
1565A Electronic computers. "related
8565G Personal computers excepted from
equipment". equipment or systems
control under ECCN 1565A because they
Ministry of Communication and Public Works
(This includes post and telecommunication
containing electronic computers: and
meet the specifications of paragraph
agencies)
specially designed components and
(b)(2)(iv) of 1585A.
accessories for these electronic
Controls for ECCN 6585G
Ministry of Agricultural Economics and
computers and "related equipment".
Unit Report in number.
Water Affairs
-
Validated License Required: Country Groups
Ministry of Mineral and Energy Affairs
SZ.
Ministry of Finance.
Special South Africa and Namibia
GLV s Value Limit: General License GLV not
9. Supplement No. 2 to Part 385 is
Controls:
applicable: however, another general
amended by revising paragraph 1(a) and
Foreign policy export controls apply
license may apply.
removing 1(c) as follows:
to exports to or for use by or for
Special South Africa and Namibia Controls:
Supplement No. 2 to Part 285-Interprotations
government consignees in the Republic
A validated license is required for export
of South Africa and Namibia. See
or reexport to the Republic of South Aínca
1. The Department has received
(a) in addition to the military and police of
385.4(a)(9).
and Namibia if intended for delivery to or
for use by or for military or police entities
South Africa and Namibia. the following are
in these destinations or entities enforcing
considered to be police or military entities:
PART 399-{AMENDED]
apartheid identified in Supplement No. 1 to
ARMSCOR (Armaments Development and
13. In Supplement No. 1 to I 399.1 (the
Part 385. or for use in servicing equipment
Production Corporation) and its subsidiaries
(Nimrod. Atlas Aircraft Corporation. Eloptro
Commodity Control List). Commodity
owned. controlled. or used by or for these
entities. See I 385.4(a).
(Pty) Ltd.. Kentron (Pty) Ltd.. Infopian Ltd.,
Group 8 (Rubber and Rubber Products).
0594F Electronic equipment specially
Lyttieton Engineering Works (Pty) Ltd..
ECCN 6899G is amended by revising the
designed to service computers. n.e.s
Naschem (Pty) Ltd., Pretoria Metal Pressing
"Special South Africa and Namibie
(specify make and model).
(P.M.P.) (Pty) Ltd.. Somchem (Pty) Ltd.,
Controls" paragraph immediately
-Control for ECCN 6594F
Swartklip Products (Pty) Lid.. Telacast (Pty)
following the "Special Licenses
Unit: Report in "number".
Validated License Required: SZ. the Republic
of South Africa and Namibia:
GLV s Value Limit: so to all destinations.
Processing Code: EE
Special Licenses Available: See Part 373.
Advisory Note-Licenses are likely to be
approved for export to the Republic of South
Africa and Namibia if the recipient has
provided the written assurance required by
1 385.4(a)(9).
John K. Boldock,
Director. Office of Export Administration.
International Trade Administration.
November 14. 1985.
(FR Doc. 85-27482 Filed 11-14-85: 3:17 pm)
BILLING CODE 2610-DT-M
THE WHITE HOUSE
fate
Office of the Press Secretary
For Immediate Release
March 17, 1986
TO THE CONGRESS OF THE UNITED STATES:
On September 9, 1985, in Executive Order 12532 (50 Fed.
Reg. 36861, Sept. 10, 1985), I declared a national emergency
to deal with the threat posed by the policies and actions of
the Government of South Africa to the foreign policy and
economy of the United States.
Pursuant to that Order, I prohibited certain trans-
actions, including the following: (1) the making or approval
of bank loans to the South African Government, with certain
narrow exceptions; (2) the export of computers and related
goods and technology to certain government agencies and any
apartheid enforcing entity of the South African Government;
(3) nuclear exports to South Africa and related transactions,
with certain narrow exceptions; (4) the import into the
United States of arms, ammunition, or military vehicles
produced in South Africa; and (5) the extension of export
marketing support to U.S. firms employing at least twenty-five
persons in South Africa which do not adhere to certain fair
labor standards.
In addition, I directed (6) the Secretary of State
and the United States Trade Representative to consult with
other parties to the General Agreement on Tariffs and Trade
with a view toward adopting a prohibition on the import of
Krugerrands; (7) the Secretary of the Treasury to complete a
study within 60 days regarding the feasibility of minting
U.S. gold coins; (8) the Secretary of State to take the
steps necessary to increase the amounts provided for
scholarships in South Africa for those disadvantaged by the
system of apartheid and to increase the amounts allocated for
South Africa in the Human Rights Fund; and (9) the Secretary
of State to establish an Advisory Committee to provide recom-
mendations on measures to encourage peaceful change in
South Africa.
The declaration of emergency was made pursuant to
the authority vested in me as President by the Constitution
and laws of the United States, including the International
Emergency Economic Powers Act, 50 U.S.C. 1701 et seq., and
the National Emergencies Act, 50 U.S.C. 1601 et seq. I
submitted a report regarding the declaration to the Congress
on September 9, 1985, pursuant to Section 204 (b) of the
International Emergency Economic Powers Act. Pursuant to
Section 204 (c) of that act, I am today reporting on the major
actions taken in the exercise of the authorities contained in
that act and Executive Order 12532. The following actions are
listed in chronological order, and a copy of all implementing
rules and regulations is enclosed.
On October 1, 1985, in Executive Order 12535, I
prohibited the importation of the South African Krugerrands
into the United States effective October 11, 1985 (50 Fed.
Reg. 40325, Oct. 3, 1985). This Order implemented the course
of action contemplated in Section 5 (a) of Executive
Order 12532.
more
(OVER)
2
On October 7, 1985, the Bureau of Alcohol, Tobacco and
Firearms of the Department of the Treasury issued regulations
on the Importation of Articles on the United States Munitions
Import List (50 Fed. Reg. 42157, Oct. 18, 1985). These
regulations implemented the prohibition of certain arms
imports contained in Section 1(d) of Executive Order 12532.
On October 9, 1985, the Office of Foreign Assets Control
of the Department of the Treasury issued the South African
Transactions Regulations (50 Fed. Reg. 41682, Oct. 15, 1985).
These regulations implemented the ban on the importation of
the Krugerrand.
On October 22, 1985, the Department of State published a
notice in the Federal Register regarding the Establishment of
the Advisory Committee on South Africa (50 Fed. Reg. 42817,
Oct. 22, 1985). The Charter of the Advisory Committee has
been filed with the Senate Foreign Relations Committee, the
House Foreign Affairs Committee, and the Library of Congress.
The Committee shall render a report to the Secretary of State
within one year of its first meeting, which was held on
January 29-30.
On November 4, 1985, the Department of State issued
proposed regulations for public comment on South Africa and
Fair Labor Standards (50 Fed. Reg. 46455, Nov. 8, 1985). The
draft regulations were designed to implement the fair labor
provisions stated in Section 2 of Executive Order 12532.
Final regulations were issued by the Department of State on
December 23, 1985 (50 Fed. Reg. 53308, Dec. 31, 1985).
On November 6, 1985, the Office of Foreign Assets Control
of the Department of the Treasury issued the South African
Transactions Regulations (50 Fed. Reg. 46726, Nov. 12, 1985).
These regulations implemented the bank loan prohibition of
Section 1 (a) of Executive Order 12532.
On November 8, 1985, the Secretary of the Treasury
submitted a report on the feasibility of minting U.S. gold
coins. On December 17, 1985, I signed the Gold Bullion Coin
Act of 1985 (Public Law 99-185), which requires the minting of
such coins.
On November 14, 1985, the International Trade
Administration of the Department of Commerce issued
regulations on Export Controls on the Republic of South Africa
(50 Fed. Reg. 47363, Nov. 18, 1985). These regulations
implemented the computer export prohibition in Section 1 (b)
and the prohibition against licensing exports to nuclear
production and utilization facilities in Section 1(c) of
Executive Order 12532.
The policies and actions of the Government of
South Africa continue to pose an unusual and extraordinary
threat to the foreign policy and economy of the United States.
I shall continue to exercise the powers at my disposal to
apply the measures contained in Executive Order 12532 as long
as these measures are appropriate, and will continue to report
periodically to the Congress on significant developments
pursuant to 50 U.S.C. 1703(c).
RONALD REAGAN
THE WHITE HOUSE,
March 17, 1986.
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