From: paul@poboy.b17c.ingr.com (Paul Robichaux)
Date: Mon, 3 Oct 94 06:24:47 PDT
To: cypherpunks@toad.com
Subject: Export controls apply to physical objects, too
Message-ID: <199410031326.AA00596@poboy.b17c.ingr.com>
MIME-Version: 1.0
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Yesterday's _Huntsville Times_ had an interesting story about a local
company's problems with the ITARs. The company, Signature
Technologies, makes an EM-absorbent paint called Signaflux, the main
application for which is decreasing the radar cross-section of various
flying objects.

Although so far the primary customers for Signaflux have been from the
US DoD, there have been sales to "friendly" foreign governments,
notably the Israelis. ST has been trying to diversify; in that vein,
they've been selling Signaflux for industrial and commercial
applications, like EM shielding in test cells and reducing airport
buildings' radar signatures.

The dispute in this case comes from a contract to sell Deutsche
Aerospace SA about $500,000 worth of Signaflux for the Cyclops cruise
missile. ST applied to Commerce for an export license under the
dual-use provision. After a CJ determination, State yanked their
export license.

The story didn't say who requested the CJ determination. I can't
imagine that ST would have asked for one, since they had a license
already. 

In closing, the CEO was quoted as saying (paraphrased) "These rules
are stupid; I could sell the Germans a fleet of F-16s with dashboards
full of avionics, but I can't sell them paint."

- -Paul

- -- 
Paul Robichaux, KD4JZG        |  Demand that your elected reps support the
perobich@ingr.com             |  Constitution, the whole Constitution, and
Not speaking for Intergraph.  |  nothing but the Constitution.
		  ### http://www.intergraph.com ###

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