Order Denying Permission To Apply for or Use Export Licenses; Action Affecting Export Privileges; Harold J. Nicholson, Also Known as ``Nevil R. Strachey'' and as ``Batman''

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Order Denying Permission To Apply for or Use Export Licenses;

Action Affecting Export Privileges; Harold J. Nicholson, Also Known as

``Nevil R. Strachey'' and as ``Batman''

In the Matter of: Harold J. Nicholson, also known as ``Nevil R.

Strachey'' and as ``Batman'' currently incarcerated at: Sheridan

Federal Correction Institute, Inmate Number 49535-083, 27072

Ballston Road, Sheridan, Oregon 97378, and with an address at: 1699

North Terry Sp 161, Eugene, Oregon 97492.

On June 5, 1997, Harold J. Nicholson, also known as ``Nevil R.

Strachey'' and as ``Batman'' (Nicholson), was convicted in the United

States District Court for the Eastern District of Virginia on one count

of violating Sections 794(a) and (c) of the Espionage Act (18 U.S.C.A.

Secs. 792-799 (1976 & Supp. 1998)). Nicholson was convicted of

unlawfully and knowingly combining, conspiring, confederating and

agreeing with other persons, both known and unknown, including officers

of the intelligence services of the Russian Federation, to knowingly

and unlawfully communicate, deliver, and transmit, and attempt to

communicate, deliver, and transmit, to representatives of a foreign

government, specifically the Russian Federation, directly or

indirectly, documents, photographic negatives and information relating

to the national defense of the United States, with the intent and

reason to believe that the same would be used to the injury of the

United States and to the advantage of the Russian Federation.

Section 11(h) of the Export Administration of 1979, as amended

(currently codified at 50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp.

1998)) the Act),\1\ provides that, at the discretion of the Secretary

of Commerce,\2\ no person convicted of violating Sections 793, 794, or

798 of the Espionage Act, or certain other provisions of the United

States Code, shall be eligible to apply for or use any license,

including any License Exception, issued pursuant to, or provided by,

the Act or the Export Administration Regulations (currently codified at

15 C.F.R. Part 730-774 (1998)) (the Regulations), for a period of up to

10 years from the date of the conviction. In addition, any license

issued pursuant to the Act in which such a person had any interest at

the time of conviction may be revoked.

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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3

C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of

August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)), August 14, 1996

(3 C.F.R., 1996 Comp. 298 (1997)), August 13, 1997 (3 C.F.R., 1997

Comp. 306 (1998)), and August 13, 1998 (63 FR 44121, August 17,

1998), continued the Export Administration Regulations in effect

under the International Emergency Economic Powers Act (50 U.S.C.A.

Secs. 1701-1706 (1991 & Supp. 1998)).

\2\ Pursuant to appropriate delegations of authority that are

reflected in the Regulations, the Director, Office of Exporter

Services, in consultation with the Director, Office of Export

Enforcement, exercises the authority granted to the Secretary by

Section 11(h) of the Act.

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Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon

notification that a person has been convicted of violating Sections

793, 794, or 798 of the Espionage Act, the Director, Office of Exporter

Services, in consultation with the Director, Office of Export

Enforcement, shall determine whether to deny that person permission to

apply for or use any license, including any License Exception, issued

pursuant to, or provided by, the Act and the Regulations, and shall

also determine whether to revoke any license previously issued to such

a person.

Having received notice of Nicholson's conviction for violating

Sections 794(a) and (c) of the Espionage Act, and following

consultations with the Director, Office of Export Enforcement, I have

decided to deny Nicholson permission to apply for or use any license,

including any License Exception, issued pursuant to, or provided by,

the Act and the Regulations, for a period of 10 years from the date of

his conviction. The 10-year period ends on June 7, 2007. I have also

decided to revoke all licenses pursuant to the Act in which Nicholson

had an interest at the time of his conviction.

Accordingly, it is hereby

Ordered

I. Until June 7, 2007, Harold J. Nicholson, also known as ``Nevil

R. Strachey'' and as ``Batman,'' currently incarcerated at: Sheridan

Federal Correction Institute, Inmate Number 49535-083, 27072 Ballston

Raod, Sheridan, Oregon 97378, and with an address at: 1699 North Terry

Sp 161, Eugene, Oregon 97492, may not, directly or indirectly,

participate in any way, in any transaction involving any commodity,

software or technology (hereinafter collectively referred to as

``item'') exported or to be exported from the United States, that is

subject to the Regulations, or in any other activity subject to the

Regulations, including, but not limited to:

A. Apply for, obtaining, or using any license, License Exception,

or export control document;

B. Carrying on negotiations concerning, or ordering, buying,

receiving, using, selling, delivering, storing, disposing of,

forwarding, transporting, financing, or otherwise servicing in any way,

any transaction involving any item exported or to be exported from the

United States that is subject to the Regulations, or in any other

activity subject to the Regulations; or

C. Benefiting in any way from any transaction involving any item

exported or to be exported from the United States that is subject to

the Regulations, or in any other activity subject to the Regulations.

II. No person may, directly or indirectly, do any of the following:

A. Export or reexport to or on behalf of the denied person any item

subject to the Regulations;

B. Take any action that facilitates the acquisition or attempted

acquisition by the denied person of the ownership, possession, or

control of any item subject to the Regulations that has been or will be

exported from the United States, including financing or other support

activities related to a transaction whereby the denied person acquires

or attempts to acquire such ownership, possession or control;

C. Take any action to acquire from or to facilitate the acquisition

or attempted acquisition from the denied person of any item subject to

the Regulations that has been exported from the United States;

D. Obtain from the denied person in the United States any item

subject to the Regulations with knowledge or reason to know that the

item will be, or is intended to be, exported from the United States; or

E. Engage in any transaction to service any item subject to the

Regulations that has been or will be exported from the United States

and which is owned, possessed or controlled by the denied person, or

service any item, of whatever origin, that is owned, possessed or

controlled by the denied person if such service involves the use of any

item subject to the Regulations that has been or will be exported from

the United States. For purposes of this paragraph, servicing means

installation,

[[Page 15346]]

maintenance, repair, modification or testing.

III. After notice and opportunity for comment as provided in

Section 766.23 of the Regulations, any person, firm, corporation, or

business organization related to Nicholson by affiliation, ownership,

control, or position of responsibility in the conduct of trade or

related services may also be subject to the provisions of this Order.

IV. This Order does not prohibit any export, reexport, or other

transaction subject to the Regulations where the only items involved

that are subject to the Regulations are the foreign-produced direct

product of U.S.-origin technology.

V. This Order is effective immediately and shall remain in effect

until June 7, 2007.

VI. A copy of this Order shall be delivered to Nicholson. This

Order shall be published in the Federal Register.

Dated: March 23, 1999.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 99-7880 Filed 3-30-99; 8:45 am]

BILLING CODE 3510-DT-M