128. Memorandum From the President’s Assistant for National Security
Affairs (McFarlane) to Secretary
of State Shultz, Secretary of the
Treasury Regan, Secretary of
Defense Weinberger, Secretary of
Commerce Baldrige, Secretary of Energy Hodel, Director of Central Intelligence Casey, and the President’s Science
Adviser and Director, Office of Science and Technology Policy (Keyworth)1
Washington,
September 5,
1984
SUBJECT
- Control Data Disk Drives for Assembly in Romania (S)
In the matter of the Control Data Corporation proposal to assemble 200
megabyte disk drives in Romania, the President has approved the
safeguards plan as prepared by the Department of Commerce with the
following amendment:
“In addition to the ten other enumerated safeguard provisions,
responsible Western representatives of Control Data will be assigned to
be at the facility to ensure constant control and monitoring of the
assembled and unassembled 9780 disk drive units. They will submit
written reports every month to OEA concerning the fulfillment of all of
the safeguard provisions.” (S)
[Page 352]
With this amendment, the safeguards plan and the license for the Control
Data transaction are approved. This approval does not constitute
approval of the sale of the assembled disk drives to Romania. (S)
FOR THE PRESIDENT:
Attachment
Paper Prepared in the Department of Commerce2
Proposed Safeguard Conditions for The Export License
Authorizing Assembly of 200 Megabyte Disc Drives by ROM/CDC in Romania
- 1)
- The technical data shall:
- a)
- include nothing related to the design, manufacture, or
repair of magnetic heads, servos, or magnetic surfaces,
actuators; and
- b)
- be limited in content and quality to that necessary
and appropriate for the manufacture of 9780’s, as
described in CDC’s
applications.
- 2)
- This authorization relates to the export of the technical
data, associated parts, and tools as described in the submitted
applications.
- 3)
- Within 30 days following the issuance of an export license to
CDC, CDC shall submit to OEA a written
statement, signed by a responsible representative of ROM, and
certifying that:
- a)
- The technical data will be used only for the
production of 9780’s in Romania. These drives may be
shipped to Country Groups T and V only.3
- b)
- The technical data will not be transferred to a third
party, or otherwise disseminated or disposed of, without
written permission from OEA;
- c)
- ROM’s production facilities will not be moved outside
the territory of Romania, and responsible Western
representatives of CDC
will have the right of access to ROM’s production
facilities during normal working hours;
- d)
- Within 30 days following the end of each calendar
quarter after issuance of an export license, ROM shall
report in writing to CDC, for
[Page 353]
both such calendar quarter and
also cumulatively since the issuance of the export
license:
- i)
- the number of 9780’s produced by ROM;
- ii)
- the number of 9780’s transferred to Country
Groups T and V;4
- iii)
- the number of 9780’s remaining at ROM.
- e)
- CDC will be promptly
notified in writing of any significant change in the
facts on which any export license for the technical data
has been based.
- 4)
- Any 9780’s produced by ROM:
- a)
- may be transferred only to transferees in Country
Groups T and V.5
- b)
- shall, both before and after any transfer by ROM,
remain subject to all U.S. export laws and regulations,
except only as herein otherwise provided.
- c)
- may be reexported to the PRC, but only on a case-by-case basis, and
with prior approval of OEA and COCOM.
- 5)
- A responsible Western representative of CDC shall visit ROM each calendar
quarter after issuance of an export license and, within 30 days
following the end of such quarter, shall report in writing to
OEA whether the technical data have been used for anything other
than the purposes herein authorized, whether the technical data
has been transferred, disseminated, or otherwise disposed of,
whether ROM’s production facilities have been moved outside
Romania and whether the shipments made here under have been made
to and received at approved destinations. From time to time a
USG representative may
visit ROM to examine ROM’s books and records to verify that the
terms and conditions of the approved licenses are being adhered
to.
- 6)
- CDC shall promptly submit to
OEA a copy of anything CDC
receives pursuant to Condition 3)e) above, and CDC shall promptly notify OEA in
writing of any significant change in the facts on which any
export license for the technical data has been based, or of any
significant change in the terms of any contracts or agreements
upon which CDC’s relationship with ROM, as described in CDC’s
application, has been based.
- 7)
- Within 30 days following the end of each calendar quarter
after issuance of an export license, CDC shall report in writing to OEA, for both such
calendar quarter and also cumulatively since the issuance of the
export license:
- a)
- the number of 9780s produced by ROM;
- b)
- the number of 9780s transferred to Country Groups T
and V;6
- c)
- the number of 9780s remaining at ROM;
- d)
- the number and identity of parts,7 read/write and servo
heads, and actuators exported to ROM during the quarter
covered by the report, and the number and identity of
parts, read/write and servo heads and actuators that
were incorporated into disc drives during such quarter;
and
- e)
- a description of that part of the technical data
exported to ROM, indicating whether it was exported
orally or through written documentation.
- 8)
- A list of all end-users should be submitted to OEA at the time
of delivery along with the number of disc drives delivered to
each end-user.
- 9)
- Parts provided by CDC,
directly or indirectly, will remain under CDC control, and the quantity of
parts on-site will be limited to that necessary for supporting
the production of 9780’s for the following six months;
- 10)
- Read/write and servo heads as well as the actuator mechanism
(including velocity transducers) will be exported preassembled
and tested by CDC. Technology
of these items will not be exported.
