Public Papers

Order on the China National Aero-Technology Import and Export Corporation Divestiture of MAMCO Manufacturing, Incorporated


Order Pursuant to Section 721 of the Defense Production Act of 1950

By the authority vested in me as President by the Constitution and statutes of the United States of America, including section 721 of the Defense Production Act of 1950 (``section 721''), 50 U.S.C. App. 2170,

Section 1. Findings. I hereby make the following findings:

(1) There is credible evidence that leads me to believe that, in exercising its control of MAMCO Manufacturing, Inc. (``MAMCO''), a corporation incorporated under the laws of the State of Washington, the China National Aero-Technology Import and Export Corporation (``CATIC'') might take action that threatens to impair the national security of the United States of America; and

(2) Provisions of law, other than section 721 and the International Emergency Economic Powers Act (50 U.S.C. 1701 - 1706), do not in my judgment provide adequate and appropriate authority for me to protect the national security in this matter.

Section 2. Actions Ordered and Authorized. On the basis of the findings set forth in section 1 of this Order, I hereby order that:

(1) CATIC's acquisition of control of MAMCO and its assets, whether directly or through subsidiaries or affiliates, is prohibited.

(2) CATIC and its subsidiaries and affiliates shall divest all of their interest in MAMCO and its assets by May 1, 1990, 3 months from the date of this Order, unless such date is extended for a period not to exceed 3 months, on such written conditions as the Committee on Foreign Investment in the United States (``CFIUS'') may require. Immediately upon divestment, CATIC shall certify in writing to CFIUS that such divestment has been effected in accordance with this Order.

(3) Without limitation on the exercise of authority by any agency under other provisions of law, and until such time as the divestment is completed, CFIUS is authorized to implement measures it deems necessary and appropriate to verify that operations of MAMCO are carried out in such manner as to ensure protection of the national security interests of the United States. Such measures may include but are not limited to the following: On reasonable notice to MAMCO, CATIC, or CATIC's subsidiaries or affiliates (collectively ``the Parties''), employees of the United States Government, as designated by CFIUS, shall be permitted access to all facilities of the Parties located in the United States --

(a) to inspect and copy any books, ledgers, accounts, correspondence, memoranda, and other records and documents in the possession or under the control of the Parties that concern any matter relating to this Order;

(b) to inspect any equipment, containers, packages, and technical data (including software) in the possession or under the control of the Parties; and

(c) to interview officers, employees, or agents of the Parties concerning any matter relating to this Order.

(4) The Attorney General is authorized to take any steps he deems necessary to enforce this Order.

Section 3. Reservation. I hereby reserve my authority, until such time as the divestment required by this Order has been completed, to issue further orders with respect to the Parties as shall in my judgment be necessary to protect the national security.

Section 4. Publication. This Order shall be published in the Federal Register.

George Bush

The White House,

February 1, 1990.

[Filed with the Office of the Federal Register, 4:52 p.m., February 2, 1990]

Note: The order was released by the Office of the Press Secretary on February 2.