ACCESSION NUMBER:00000
FILE ID:96070903.ECO
DATE:07/09/96
TITLE:09-07-96  EASED EXPORT CONTROLS EXPECTED SOON ON JET ENGINE, SATELLITES

TEXT:
(Kantor remarks hint jurisdiction disputes resolved)  (450)
By Bruce Odessey
USIA Staff Writer

Washington -- Secretary of Commerce Mickey Kantor says the Clinton
administration will soon issue regulations allowing the Commerce
Department to license exports for all commercial communications
satellites as well as what is called "hot-section" technology used in
civil jet engines.

During a Commerce export-control conference July 9, Kantor indicated
that forthcoming regulations from the Commerce and State departments
would reflect settlement of a longstanding jurisdictional dispute
between the two agencies.

"With this, American exporters will be on equal footing with their
foreign competitors while protecting our essential security and
foreign-policy interests," Kantor said.

The crucial decision was made in March when President Clinton signed
an order reclassifying the satellite and jet engine exports as
dual-use items (having commercial and military applications) regulated
by Commerce instead of as munition items regulated more strictly by
State.

Critical components sold separately would remain on the State
Department munitions list, however. Also, the State Department and
some other agencies would have opportunity to object to pending
Commerce license applications.

At the time of the March decision, a State Department spokeswoman
predicted development of the regulations within 30 days, but that
deadline passed months ago. Whether Kantor's remarks signaled
resolution of lingering inter-agency jurisdiction disputes was not
clear.

The U.S. aerospace industry has long complained about State and other
agencies blocking jet engine and satellite sales for foreign-policy
reasons.

Hughes Electronic Corporation, for example, lost a contract for
commercial satellite sales to China worth more than $2,000 million to
a German company after the State Department claimed jurisdiction under
missile-proliferation export controls.

Joel Johnson, vice president of the Aerospace Industries Association
in Washington, said in a July 9 interview he hoped the regulations
would go forward now. As of a week ago, he said, the agencies were
reported near agreement on two jet-engine hot-section technology
jurisdiction issues but still apart on two satellite issues.

Johnson said the disputes over jet propulsion technology concern
whether to require State licenses for sales to an
international-consortium military-jet project and sales to a joint
U.S.-foreign commercial jet engine project.

He said the areas of concern on satellite exports were China, Russia
and Ukraine, all now promoting commercial launch capabilities. He said
the jurisdiction disputes concern whether to require State licenses
for the satellites themselves or for components not embedded in the
satellites called kick motors. Kick motors, which propel satellites
into final orbit, could be used to position military satellites or
point missiles toward their targets.
NNNN

.