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JGR/South African Sanctions (6 of 6)
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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. # # #