Nonproliferation

1
Nonproliferation Export Control Update
Briefing Steven Clagett Director Missile and
Nuclear Technology Control Divisions
2
Trends in Export Control and Nonproliferation
Policy after 9/11

• The Multilateral Nonproliferation Regimes remain
  focused on the fundamental goal of preventing the
  spread of technologies that may contribute to the
  development of weapons of mass destruction (WMD).
• The Nuclear Suppliers Group (NSG), Missile
  Technology Control Regime (MTCR), and the
  Australia Group (AG) recognize the increased need
  for effective multilateral export controls.
• Regime members continue to update and modify the
  lists of controlled commodities and implement
  catch all controls.

3
U.S. Efforts to Strengthen Export Controls

• Proposals to modify the Multilateral Export
  Control Regime Guidelines Annexes (Control
  Lists)
• NSG proposal to notify Partners of approvals for
  controlled nuclear items to non-partners
• Support for multilateral initiatives, such as the
  International Code of Conduct (ICOC) against
  Ballistic Missile Proliferation
• Ensure effective implementation of catch all
  controls for all commodities to end users
  (countries, companies, or individuals) of concern
• Provide multilateral notifications of U.S.
  denials to utilize the no undercut policies

4
U.S. Efforts to Strengthen Export Controls

• Sanctions
• Consultations with foreign governments and
  commercial entities
• Outreach efforts with U.S. industry to stress the
  importance of export control compliance
• Strong enforcement of the law against violators
• International outreach programs to assist other
  nations implement a effective export controls

5
MTCR Update

• Plenary September 2002 Warsaw, Poland
• Technical Experts Meeting (TEM) to discuss
  changes to Annex controls
• Update on the new International Code of Conduct
  (ICOC) Against Missile proliferation
• Focus on regional nonproliferation issues.
• MTCR Plenary has added an Enforcement Experts
  component.

6
NSG Update

• Plenary convened May 2002 in Prague, Czech Rep.
• Enforcement experts meeting held in conjunction
  with the Plenary.
• Member States continued discussions on sharing
  NSG license approval data and proposed
  notification requirements.
• Regional nonproliferation issues.

7
Missile Technology Applications Processed (2001)
Received 1036 Value 2.2 billion
Nuclear Technology Applications Processed (2001)
Received 949 Value 154.3 million
8
Distribution of Missile Technology Licenses by
Country (2001)
9
Distribution of Nuclear Technology Licenses by
Country (2001)
10
EPCI Catch All Controls

• The Enhanced Proliferation Control Initiative
  (EPCI) is designed to
• Strengthen multilateral non-proliferation
  efforts
• Prevent the export of technology that could
  contribute to missile, chemical, biological, and
  nuclear-weapons proliferation and
• Minimize the impact on legitimate commerce.
• EPCI places export controls on end use and end
  users rather than a particular item.

11
EPCI

• License may be denied if destined for missile,
  nuclear, or CBW activities or facilities.
• License must be obtained if the exporter knows
  the commodities will be used in CBW or missile
  activities or facilities.

• BIS may inform exporters at anytime that a
  license is required for a specific end-user if
  there is a possibility of nuclear, CBW, or
  missile activities.
• Any U.S. participation in nuclear, CBW, or
  missile activities or facilities requires a
  license.

12
Evaluation Factors

• Country
• Commodity
• End-Use
• Significance for Missile/Nuclear Development
• Non-Proliferation Credentials
• Assurances and Guarantees
• Risk of diversion
• Sanctions

13
Missile Technology Projects and Countries of
Concern

• Listed in Supplement 1 in Part 740 of the EAR
• Programs in Countries
• China -- M-series, CSS-2
• India -- Prithvi, Agni, SLV-3, Augmented
  Satellite Launch Vehicle (ASLV), Polar Satellite
  LV (PSLV), Geostationary Satellite LV (GSLV)
• Iran -- Surface-to-surface, Scud
• No. Korea -- No Dong, Scud
• Pakistan -- Hatf-series missiles
• Other Countries (Mostly Middle East)
• Bahrain, Egypt, Iraq, Israel, Jordan, Kuwait,
  Lebanon, Libya, Oman, Qatar, Saudi Arabia, UAE,
  Yemen

14
Entities List

• The Entities List notifies exporters of a
  requirement for exports/reexports to specified
  end users.
• See Supplement Number 4 to part 744 of the EAR.

15
India/Pakistan Sanctions

• On September 22, 2001, President Bush lifted
  missile sanctions placed on India and Pakistan.
• On October 1, BIS reinstated a case-by-case
  license review policy for exports of MT and NP
  commodities to India and Pakistan and removed a
  significant number of entities from the Entity
  List.
• Entities affiliated with Indian and Pakistani
  missile development and their nuclear programs
  remain listed entities.
• The United States does not support Indian
  unsafeguarded nuclear power industry or the
  satellite launch vehicle development programs.

16
PRC Issues

• Ongoing missile and nuclear proliferation
  concerns with the Peoples Republic of China
  (PRC).
• All commodities controlled for missile
  proliferation concerns - except inertial
  navigation systems for commercial aircraft -
  require presidential certification prior to
  export.
• The U.S. continues to conduct missile talks with
  the PRC in an effort to decrease Chinese
  proliferation activities.
• Success of these talks could affect U.S. export
  licensing in the future.

17
Questions? Steve Clagett Director, Missile and
Nuclear Technology Divisions 202-482-4188 SClagett
_at_bis.doc.gov www.bis.doc.gov