Action Affecting Export Privileges; Aldrich Hazen Ames, Also Known as ``Kolokol'' and as ``K''; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Aldrich Hazen Ames, Also

Known as ``Kolokol'' and as ``K''; Order Denying Permission To Apply

for or Use Export Licenses

Aldrich Hazen Ames, also known as ``Kolokol'' and as ``K''

currently incarcerated at: Allenwood USP, Inmate Number 40087-083,

P.O. Box 3500, White Deer, Pennsylvania 17887.

On April 24, 1994, Aldrich Hazen Ames, also known as ``Kolokol''

and as ``K'' (Ames), was convicted in the United States District Court

for the Eastern District of Virginia on, inter alia, once count of

violating Section 794(c) of the Espionage Act (18 U.S.C.A. Secs. 792-

799 (1976 & Supp. 1998)). Ames 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 Union of Soviet Socialist Republics (U.S.S.R.) and

later Russia, to knowingly and unlawfully communicate, deliver, and

transmit to a foreign government, that is to U.S.S.R. and Russia, and

to representatives, officers, and agents thereof, documents, writings,

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 U.S.S.R.

and Russia.

Section 11(h) of the Export Administration Act 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 CFR parts 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

CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of

August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3

CFR, 1996 Comp. 298 (1997)), August 13, 1997 (3 CFR 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 Ames's conviction for violating Section

793(c) of the Espionage Act, and following consultations with the

Director, Office of Export Enforcement, I have decided to deny Ames

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 April 24, 2004. I have also decided to

revoke all licenses issued pursuant to the Act in which Ames had an

interest at the time of his conviction.

Accordingly, it is hereby

Ordered

I. Until April 24, 2004, Aldrich Hazen Ames, also known as

``Kolokol'' and as ``K,'' currently incarcerated at: Allenwood USP,

Inmate Number 40087-083, P.O. Box 3500, White Deer, Pennsylvania 17887,

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. Applying 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, 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 Ames 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.

[[Page 15345]]

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

until April 24, 2004.

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

shall be published in the Federal Register.

Dated: March 23, 1999.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 99-7881 Filed 3-30-99; 8:45 am]

BILLING CODE 3570-DT-M