Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Page Count: 
Document Creation Date: 
December 9, 2016
Document Release Date: 
March 24, 1998
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Publication Date: 
August 7, 1959
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PDF icon CIA-RDP62-00328A000200130001-0.pdf289.44 KB
? Approved For Relea 000/08/2 A-RDP62-00328A0002/430001-0 - i.y -',,cfni- AlLic.-).J4At-o' V..f.:31IE'v,s.sol'! 1,%,-,Itit icsi 21', t : 25X1A2g i h ? 1 i L DATE,_ /959 t , ?..,Y.1032; ill .ZU13.7,44.2.3N'T t A rA.LBJECT . c9Nt'IMPT CHINA ir-rt011,11 14, t . ...Tr4.49-i,015.1tiVig....Ct. UtirstYPZ11...12.1kb2PdtLitiirarizt_.,....._,.; (17 Apri'll 1959) t t, 25X1A2g DaGROU14 Th9 fiem Pegaeue !fee been ercaged in the bueinese of providing pibiicationi (includin,1? U.S.) to Communist China and in one case mae ineolved in the shipmezt ef U.S. gicromint readeee which are believed to have also been tramehipped to Communist China. Personnel of DDA aolicited tie assietance of this cffice 1.1 securing the cooperation of Gnaw-L.0e and Treasuey Depantmegte fey the purpose of having these Departmsnts hake anprol.riate actign againat this firm. These approaease reuulted in the Treasney Departmegt designating Begasus as a "national" of Coinit China undc.r Foreign Assete Control Regulations in July 19511. This :reticle Eenied thg firat7ne privilege of engaging in U.S. dollar tvansaetiole. On the basis e: a Illrepert that U.S. mime- 25X1A print ride ee heel teen sLipped by %gas* to Communist China, the Bureau of Feneign Conmerce issued a temponary suspensfon order age/net Peg ?3116 aDe CITIES affiliated wttil it, effective 22 April 1959, which temporar-Uy denied the firn and its affiliates U.S. export privileees. The Pegasus firm infgemed pemeerce that they were unaware of the Communist China deetinatiOn of the microprint readers and suppLiee_ doeumentatien shele:nt that tha readers had been sent to Poland. Since this vas the on 1e evidence of violation of U.S. export centrels (rest eublioatiene do net require a validated licence for ehinment tc Cenmuljet China) the suspeneion order was Hetes on 22 Nay r54-?. Uowaverv the Depeetment of Commerce is still folloeing the eotivitiee of ;.,he flee,: in the hope that additfnena_ information will be deeeloped wee!: edded to the previously mentioned reeorts, will permit reinstitution of Compliance Action against the firm. The referenced revert dated 17 Aped 1959 was not originally disseminated to the Departments of Com.aora. aad Tneasury. It wao, howev (24 jure 1959) 25X1A whichreerred to ir which reunited in an Inv ry froi ommeree Deeartment. The only net of tncleaures to thsMreport had been sent by DD/P to State Department where they ware destroyed. Tte Departeent of Commerue is interested in seeing copies of the encloenree if they can be made available. 25X1A ,.... 1. DEGREE Ot' MED: R.TAtvar Pr) 't CI r:';;13/41. 0 .1Elr'i 1. ij aPer the Chief 25X1A9a i_ _ TARGEll DATE kup i C.:UWE 1 -ff t int,,,, , ? DEADLi:TE- 1 C7.NTINUltr., t . -E.--oRIGINATcFR ski) ? : _ 3. COORDINATION (in anhAtAltlep) ,na riarc,n,?77 4. SUGGESTED SCI-URCES . eteting Chief, Ftelfitiali:, 5. CHECMD 7.,FIA artg ar, 141 ,Office of Reeearch eel ieetnee .5. NO. CF COPIES FOR, iiir,,'.f.:)1,PRiit`JVIENTS STzlf F 'Ihr'a.18.225,10,14.1.10TOMV.M..... iiria.90,4 7? REMARKS: ReqU)Storr 2232 ! 25X1A9a St/I MOTE: This nequireeent WNC dieeusced with ed11/521 25X1A9a 25X1A8a r? -x-siSt-t1F.CA" ;f,1 Mt:PT? k TA,...ThZ131144),T: ITSI? ? ezz on 6 Anguat 1?59,, Approved For Release 2000/08/22 : CIA-RDP62-00328A000200130001-0 Approved For Relea?64000/08/22:CIA-RDP62-00328A00024030001-0 1.1)11ff,LIA'A8C),;21 7-1V010:::LAT7CPB Itc...q1EU:1411.119 AMA: 'CiAter4IT2 C17 PrialTMAIME PAGE TWO or WC PUT,V3 25X1A2g . 7 AUGUST 1959 ECBJTOT: Trade Activi'fie, )1 Ditgeverij Ece.f.ts Pega4us (ITESTIONS 25X1A 1, Aok:ordi,kg t,c, the ref(' renced report,? Pegasus established tae De TA for it in 'U,S. dollar transactions after Fg :s/AS procW.,:nef,3 a Lntel -n!,4,tional by the Treasury Depart,. 1-To-rlde fuPti-ee,.. frifcrraton or documentation shoring t7,7,a1;1. jaa a.i2y 7)ther firm) Ails established by Pegasus for thf.-. 0.2rpose frutz.V.-atirk:N c.i7reestu y x...vv-?-zerrt's designation of the firm munixt China, r;2.hirt vouldr of course? iaclude ?.se Tojz-7i?k or other I irrn to engagi,t in dollar transactions 0.1 re.qaaus t?Ii.rms were denie4 all U.S. expotA licensin,j; privileges tiring tbz, 22 43,11-21 Nay 1959 suspension peri.xl,. referre,d to bvc a. Spply 07:erratic.: eviteern1n3 the reeeint of, or ordQr f' o:diti:+3e publi -ationt by ;?eoasus and/or De Tjalk du the susir.113in oy.'dez, bo Bsport c, of eAtxr arm to violate the suspeme,on c. tic-vurrezzi.ta-Aon if possible. 3, The Bureau of Fore-Ign Coarrrce Compl.lanee Case againgt PEsu i bi be:! abeyance they ere currently umb:le refute ti;:tr: firi rE43)..czentatlune that it yes uninformed, and theie. fore una=.,lare, t;ila`C., the MiCrOgni nt readers were to be re-exported Poland t,;,:; z;;;b3mutlimb ChJna. a. Provi,de- informtion t1Tt Communist OWnese dcstin5,.W.on cr +Zig Bu o oreiT, 00-matt es to nffiliateF-? e,r,d 1'1cia1 offl export contrcl t1onsv.a van '44I0 c? the 0.ipment. ynplience Action pay be ,1"ilfiaged with -tri..ol_attoria of V- :I.6yEinst the T.irm Provlde tb-b neTres of eiLmffiliates or PeFAsus. b. Determine whit:th of the prnoipals or 'Pegasus, De Tja114 or other affiliated firms should be lfAed under a Bureau. of Forel&o. Commerce ComplUnce ?neir positio and inflrc i. I t: .*1,p7,tto.z2 any01 the illicit 5, The rAtnchmants to he ref:ired regort are no longer sraileable. in 71,shingto7A, Provi6e o,)pies of Illess if possible, Approved For Release 200114161141444611100130001-0