[Federal Register Volume 85, Number 98 (Wednesday, May 20, 2020)]
[Notices]
[Page 30783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10863]



[[Page 30783]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

[Public Notice 11119]


Bureau of Political-Military Affairs; Rescission of Policy of 
Denial Concerning BAE Systems Saudi Arabia Limited (BAES SAL) a 
Subsidiary of BAE Systems plc Under the International Traffic in Arms 
Regulations

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the Department of State has 
rescinded the policy of denial concerning BAES SAL, a subsidiary of BAE 
Systems plc, included in Federal Register notice of May 23, 2011 (76 FR 
29814).

DATES: This notice is effective on May 20, 2020.

FOR FURTHER INFORMATION CONTACT: Jae Shin, Director, Office of Defense 
Trade Controls Compliance, Bureau of Political-Military Affairs, 
Department of State (202) 632-2107.

SUPPLEMENTARY INFORMATION: On March 2, 2010, a judgment was filed 
against BAE Systems plc (BAES) for conspiring to commit offenses 
against the United States in violation of 18 U.S.C. 371, including 
conspiring to violate the Arms Export Control Act (AECA) and the 
International Traffic in Arms Regulations (ITAR). Subsequent to this 
conviction, the Department and BAES agreed to enter into a Consent 
Agreement in order to settle and dispose of all potential civil charges 
and penalties.
    Upon signature of the agreement in 2011, BAES was statutorily 
debarred, and a rescission of debarment was concurrently issued. 
However, the Department chose to impose a policy of denial on the 
business units responsible for the majority of the violations: BAE 
Systems CS&S International, Red Diamond Trading Ltd., and Poseidon 
Trading Investments Ltd., including their divisions and business units, 
and successor entities. The Department announced the policy of denial 
by Federal Register notice in May 2011 (76 FR 29814, May 23, 2011).
    According to BAES, sometime after the announcement of the policy of 
denial, BAE Systems CS&S International, Red Diamond Trading Ltd., and 
Poseidon Trading Investments Ltd. have ceased to exist. However, BAE 
SAL is a successor entity to BAE Systems CS&S International and remains 
subject to the policy of denial.
    In response to a request from BAES for rescission of this policy of 
denial, the Department has conducted a thorough review of the 
circumstances surrounding the conviction and the imposition of the 
policy of denial. The Department has determined that it is in the 
national security and foreign policy interests of the United States to 
rescind the policy of denial concerning BAE SAL, including its 
divisions and business units, and successor entities.

R. Clarke Cooper,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 2020-10863 Filed 5-19-20; 8:45 am]
 BILLING CODE 4710-25-P