A concerned citizen emailed me this a short time ago.  It appears that there are some who are trying to make things even less transparent.  The better to commit fraud, waste and abuse with I suspect.  I wonder if  James McNerney had anything to do with this?  This must be stopped.  GFS

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The Government Accountability Office (GAO) seriously needs to coordinate with the Department of State and the Directorate of Defense Trade Controls.  If 75 FR 15388, March 29 2010 Public Notice 6931 is allowed to stand, this amendment to the International Traffic in Arms Regulations (ITAR) will further damage and weaken any effective protection of technologies critical to United States national security interests and all the good work that GAO is trying to do under their “High Risk List” program.
 
There have been many instances where industry has offered too much information and technology to foreign governments and corporations during the solicitation and negotiation phases of the international contracting process.  Once the information and technology have been offered by a U.S. corporation it is almost impossible for the government to then intervene and withdraw that offer.  This appears to be yet one more effort by the Defense Trade Advisory Group’s (DTAG) industrial community members, and the Chairman of the President’s Export Advisory Council (Jim McNerney) to further weaken the export compliance process.
 
 
http://www.pmddtc.state.gov/FRN.html  )
 
U.S. Department of State, Directorate of Defense Trade Controls
Federal Register Notices    2010
75 FR 15388, March 29, 2010, Public Notice 6931.
Amendment to the International Traffic in Arms Regulations: Removing Requirement for Prior Approval for Certain Proposals to Foreign Persons Relating to Significant Military Equipment
The Department of State is amending the International Traffic in Arms Regulations (ITAR) to remove the requirements for prior approval or prior notification for certain proposals to foreign persons relating to significant military equipment at section 126.8 of the ITAR.
 
DEPARTMENT OF STATE, 22 CFR Parts 124, 126, and 129, [Public Notice: 6931], RIN 1400–AC62, Amendment to the International Traffic in Arms Regulations: Removing Requirement for Prior Approval for Certain Proposals to Foreign Persons Relating to Significant Military Equipment
AGENCY: Department of State.
ACTION: Proposed rule.
 
SUMMARY: The Department of State is amending the International Traffic in Arms Regulations (ITAR) to remove the requirements for prior approval or prior notification for certain proposals to foreign persons relating to significant military equipment at section 126.8 of the ITAR.
 
DATES: Effective Date: The Department of State will accept comments on this proposed rule until May 28, 2010.
 
ADDRESSES: Interested parties may submit comments within 60 days of the date of the publication by any of the following methods:
• E-mail:DDTCResponseTeam@state.gov with an appropriate subject line.
• Mail: Department of State, Directorate of Defense Trade Controls, Office of Defense Trade Controls Policy, ATTN: Regulatory Change, Section
126.8, SA–1, 12th Floor, Washington, DC 20522–0112.
• Persons with access to the Internet may also view this notice by going to the U.S. Government regulations.gov
Web site at http://regulations.gov/index.cfm.
 
FOR FURTHER INFORMATION CONTACT:
Director Charles B. Shotwell, Office of Defense Trade Controls Policy, Department of State
Telephone (202)663–2803 or Fax (202) 261–8199; E-mail DDTCResponseTeam@state.gov. ATTN: Regulatory Change, Section 126.8.
 
SUPPLEMENTARY INFORMATION: Effective September 1, 1977, the Department of State amended the International Traffic in Arms Regulations (ITAR) at 22 CFR 123.16, to require Department of State approval before a proposal or presentation is made that is designed to constitute the basis for a decision to purchase significant combat equipment, involving the export of an item on the U.S. Munitions List, valued at $7,000,000 or more for use by the armed forces of a foreign country (42 FR 41631, dated August 18, 1977). Also, 22 CFR 124.06, entitled ‘‘Approval of proposals for technical assistance and manufacturing license agreements,’’ was amended to require similar prior approval requirements with respect to proposals and presentations for technical assistance and manufacturing license agreements involving the production or assembly of significant combat equipment.  ‘‘Proposals to foreign persons relating to significant military equipment’’ became section 126.8 in a final rule effective January 1, 1985 (49 FR 47682, dated December 6, 1984). Section 126.8 did not require prior approval of the Department of State when the proposed sale was to the armed forces of a member of the North Atlantic Treaty Organization (NATO), Australia, Japan, or New Zealand, except with respect to manufacturing license agreements or technical assistance agreements.  A prior notification requirement, instead of prior approval, was added to section 126.8 in a final rule effective March 31, 1985 (50 FR 12787, dated April 1, 1985). Prior notification to the Department of State was required 30 days in advance of a proposal or presentation to any foreign person where such proposals or presentations concern equipment previously approved for export.  The current section 126.8 requires prior approval or prior notification for certain proposals and presentations to make a determination whether to purchase significant military equipment valued at $14,000,000 or more (other than a member of NATO, Australia, New Zealand, Japan, or South Korea), or whether to enter into a manufacturing license agreement or technical assistance agreement for the production or assembly of significant military equipment, regardless of dollar value.  These types of proposals and presentations usually involve large dollar amounts. Before the defense industry undertakes the effort involved in formulating its proposals and presentations, if there is any doubt that the corresponding license application or proposed agreement would not be authorized by the Department of State, the industry may request an advisory opinion (See 22 CFR 126.9). The written advisory opinion, though not binding on the Department, helps inform the defense industry whether the Department would likely grant a license application or proposed agreement.  Currently, the time between submitting a license application or proposed agreement and obtaining a decision from the Department of State whether to authorize such transactions has been decreased sufficiently that requiring prior approval or prior notification for proposals is unnecessary and imposes an administrative burden on industry.

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