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23 May 2003

Text: U.S. Sanctions Chinese Firm For Sale of Missile Technology

(May 23 Federal Register notice) (720)
The State Department has imposed a two-year ban on U.S. imports from
North China Industries Corporation (NORINCO) because the Chinese firm
engaged in proliferation activities, according to a notice in the May
23 Federal Register.
The notice adds that, pursuant to the provisions of the International
Traffic in Arms Regulations, U.S. exports and other transfers of
defense articles and defense services to NORINCO will be suspended
until further notice.
According to news reports, NORINCO provided missile technology to
Iran.
Following is the text of the May 23 Federal Register announcement:
(begin text)
Federal Register May 23, 2003
Volume 68, Number 100
Notices
From the Federal Register Online via GPO Access
DEPARTMENT OF STATE
Public Notice 4370
Bureau of Nonproliferation; Imposition of Nonproliferation Measures on
an Entity in China, Including a Ban on U.S. Government Procurement
AGENCY: Bureau of Nonproliferation, Department of State.
ACTION: Notice.
SUMMARY: The U.S Government has determined that a foreign entity has
engaged in missile technology proliferation activities that require
the imposition of measures pursuant to Executive Order 12938 of
November 14, 1994, as amended by Executive Order 13094 of July 28,
1998.
EFFECTIVE DATE: May 9, 2003.
FOR FURTHER INFORMATION CONTACT: On general issues: Vann H. Van
Diepen, Office of Chemical, Biological, and Missile Nonproliferation,
Bureau of Nonproliferation, Department of State, (202-647-1142). On
import ban issues, Rachelle Stern, Director, Policy Planning and
Program Management, Office of Foreign Assets Control, Department of
the Treasury, (202-622-2500). On U.S. Government procurement ban
issues: Gladys Gines, Office of the Procurement Executive, Department
of State, (703-516-1691).
SUPPLEMENTARY INFORMATION: Pursuant to the authorities vested in the
President by the Constitution and the laws of the United States of
America, including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C.
1601 et seq.), the Arms Export Control Act (22 U.S.C. 2751 et seq.),
and section 301 of title 3, United States Code, and Executive Order
12938 of November 14, 1994, as amended, the U.S. Government determined
on May 9, 2003 that the following Chinese person has engaged in
proliferation activities that require the imposition of measures
pursuant to sections 4(b), 4(c), and 4(d) of Executive Order 12938:
North China Industries Corporation (NORINCO)
Accordingly, pursuant to the provisions of Executive Order 12938, the
following measures are imposed on this entity, its subunits, and
successors for two years:
1. All departments and agencies of the United States Government shall
not procure or enter into any contract for the procurement of any
goods, technology, or services from these entities including the
termination of existing contracts;
2. All departments and agencies of the United States government shall
not provide any assistance to these entities, and shall not obligate
further funds for such purposes;
3. The Secretary of the Treasury shall prohibit the importation into
the United States of any goods, technology, or services produced or
provided by these entities, other than information or informational
materials within the meaning of section 203(b)(3) of International
Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).
These measures shall be implemented by the responsible departments and
agencies as provided in Executive Order 12938.
In addition, pursuant to Sec. 126.7(a)(1) of the International Traffic
in Arms Regulations, it is deemed that suspending the above-named
entity from participating in any activities subject to Section 38 of
the Arms Export Control Act would be in furtherance of the national
security and foreign policy of the United States.
Therefore, until further notice, the Department of State is hereby
suspending all licenses and other approvals for:
(a) Exports and other transfers of defense articles and defense
services from the United States;
(b) transfers of U.S.-origin defense articles and defense services
from foreign destinations; and
(c) temporary import of defense articles to or from the above-named
entity.
Moreover, it is the policy of the United States to deny licenses and
other approvals for exports and temporary imports of defense articles
and defense services destined for this entity.
Dated: May 16, 2003
John S. Wolf, Assistant Secretary of State for Nonproliferation
Department of State
(end text)
(Distributed by the Bureau of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)