A MEETING OF THE SUB-COMMITTEE ON EXPORT CONTROLS 18TH-20TH NOVEMBER 1958

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00647A000200090002-0
• Release Decision: RIFPUB
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• Document Page Count: 21
• Document Creation Date: November 16, 2016
• Document Release Date: March 24, 2000
• Sequence Number: 2
• Publication Date: March 3, 1959
• Content Type: REPORT

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S E C R E T
March 3rd, 1959?
s)l
COCOM Document No. Sub-C( 9)1 B
COORDINATING COMMITTEE
CHAIRKAN IS. REPORT
ON
A FETING OF THE SUB-COMMITTEE ON EXPORT CONTROLS
18th - 20th November 19 g
BELGIUM(LUXEMBOURG)
CANADA MaIRK
Mr: Blondiau
11r. Vaisiere
161T. Poirier
(Chairman)
i ire Bailey
Mr. Charland
Mr. Lund
Mr. Nielsen
FRANCE
GERMANY
ITALY
Miss Boussac
Dr.
Kruse
Mr. Cortese de Besis
Mr.
f tinebault
Dr.
Schaffrath
l:ir. Paoli
Mr.
Mr.
Mr.
Poirier
Muzard
Abadie
1-4r.
1Mr.
M" ?
Mr.
Mr.
Campbell
von Hahn
Vath
Gtinthe r
Lehmann
NETHERLANDS NORWAY
Mr.
Mr.
Mr.
Nikai
Yanagiya
Mitsui
Mr. Bliek Mr. Schoeyen
Mr. de Roo
Mr. de la Vieter
UNITED KINGDOM
UNITED STATES
Mr.
Maddocks
Mr. Allen
Mr.
Cazalet
Mr. Goinga
Mr.
Smith
Miss Novikola
yir.
Wood
;1r. Hendersen
Mr. Borton
Jr. Anderson
!Jr. Rehfeld
S E C R E T
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COCQM Document No. Sub-C(59)lt
CONTENTS
Paragraphs
Page
I.
I.C./D.V. System
..1 - 23
3-6
II.
T.A.C. Scheme
24 - 48
6-9
III.
Enforcement problems
4965
9 - 12
IV.
Statistical problems
66 - 68
12
V.
Secondary Control
69 - 78
13
VI.
Non-member country cooperation
79 - 91
14 - 15
VII.
Insurance
92
15
VIII.
Next meeting
16
Annex
Illegal diversions
17 - 21
(Report of the Chairman of
the working Group)
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COCOM Document Sub-C(59)1 D
References: COCOM Documents Nos.
2749,
3030,
3058,
3195.1
- 11,
3209,
3258(Revised), 3259,
3260,
X264,
3269,
3292,
3317,
3318, Sub-C(58)2.
Export Controls W.P.7.
Note: The following document is a detailed report of the discussions
which took place in the Sub-Committee on Export Controls. A
number of general statements were made in the Committee both before
and after the Sub-Committee held its separate meetings. These
statements, together with a brief report made to the Committee by
the Chairman of the Sub-Committee will be found in COCOM 3317.
I. IMPORT CERTIFICATEJDELIVERY VERIFI(,"TION a"CHEi,O.
(a) Standard wording of ICs and DVs (COCOM Documents 2749, 3209, 3259,
and Sub-C(58) 2 paras. 32 - 36.)
1. The UNITED ST.&TES Delegate stated that the procedures at present
adopted in the United States for ensuring that DVs contained sufficient details
to enable the goods to be identified were set out in 0000M Document No. 3259-
He explained that about a month before the United States control authorities
had made photostat copies of one hundred DVs issued in Now York and had checked
them for all the information they contained, such as the IC number and the
names of parties to the transaction. A, few technical irregularities had been
found. When errors had come to light, the firms concerned had been contacted,
The United States aut-orities had come to the conclusion that spot checks of
this kind helped to make the system more effective.
2. The DANISH Delegate said that since September a new DV form had
been in use which his authorities thought would effect an improvement in the
system. The importer was instructed to give the same specification as appeared
on the IC and the Danish authorities obtained copies of the DVs issued by the
Customs and checked them against the relevant ICE.
3. The JAPANESE Delegate recalled that full details of the new regu-
lations in force in Japan were given in his Government's Memorandum (COCOI
Document No. 3209-
4- The ITALIAN Delegate stated that DVs were issued in Italy by the
Customs post through which the goods were imported and contained a description
of the goods which was based on the Customs tariff nomenclature. The DV gave
a full description of to name of the foreign exporter, the name of the Italian
importer, the value of the goods and details of the weight or number of pieces,
The Customs post would put the IC number on the DV form if so requested.
5. The GERMGN Delegate said that the remarks made by his Italian
colleague applied to all countries where DVs were issued by the Customs. The
Customs always used the Customs tariff wording on DVs, whereas ICs were issued
with the wording of the International Lists which differed considerably from
the wording of the Customs tariff and thus made comparison difficult. It was
important for the DV to have on it the number of the relevant IC, although
even then there was the possibility of a mistake occurring. He believed that
it might be preferable to issue an extra copy of the IC on which it would be
certified that the goods had been imported, and which could then serve as a
6. The UNITED KINGDOM Delegate said that a new system had now been
in force since October 1957. It was fully described in COCOM Document No. 2479
and was now working with 7% efficiency. It was hoped to improve upon this
figure and steps were being taken to make the system more effective. whore
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COCOM Document Sub-C(59)1 B
it was felt that the authorities of the exporting country were not able easily
to relate the DV to the IC, invoice numbers were also included on the DV so
that the exporter could be approached in order to see which particular trans-.
action was concerned.
7. The CHJIRI, N said that the object was simply to achieve as much
standardisation as possible in countries where DVs were issued by the Customs
and not by the same authority which had issued the I. When the IC/DV system
had been established in 1952 it had been decided that the official administra-
tions would be responsible for the control system and that business circles
should be burdened with as little formality as possible. If the standard
practice were now to involve mentioning invoice numbers on DVs it would mean
that the business community would have to supply more documents to the centre
of administrative authorities and he thought that this should be avoided.
8. The UNITED KINGDOM Delegate pointed out that his authorities found
it useful to use invoice numbers because the Customs import documents related
principally to duty, which was usually calculated on an ad valorem basis,
thus the invoice always accompanied the Customs documents and was immediately
available.
9. The GE1 MA,N Delegate said that he agreed with the Chairman * s point
of view. The controls had to be as effective as possible but on the other
hand there should be as few difficulties as possible imposed on the business
community. He added that he saw no advantage in using the invoice number
because it was not available when the IC was issued.
10. The CHi.IR..!c1N summed up the discussion by saying on the whole the
IC/DV system was working well and there were few difficulties. The Sub-Commit-
tee would be able to see at a later date if it were still necessary to try to
improve the procedure. It dust always be borne in mind that too much should
not be demanded of the business community.
(b) Return of unused ICs POCOLI Sub-C(58) 2 paragraphs 58 and 59?)
11. The GERiILN Delegate said that it was important that unused official
documents should not be left in the hands of private firms. :' German importer
was obliged to return the IC if a transaction did not take place or if it were
concluded on some other basis. If the IC iiad already been sent to the foreign
exporter, the importer had to inform the office which issued the IC accordingly.
12. The ITALIAN Delegate stated that if an IC were not used by an
Italian importer the latter would have to return it to the issuing authorities.
If the IC had already left the country, in dubious cases the Italian authori-
ties took action through diplomatic channels to ensure that the IC was not
misused.
13. The FRENCH Delegate observed that in his opinion this was a
problem which occurred only when non-Member Countries were concerned. In the
case of an export from France, the French authorities would issue a certificate
of non-use or partial use. In the event of a proposed import into France, the
French authorities, should the goods not arrive, would make the necessary
investigation to see what had happened and would ask the French importer to
return the IC* Since the last meeting of the Sub-Committee, widespread spot
checks had been made but no case had been found of an IC being issued-And no
import taking place subsequently- 1' such a case were to occur, it would
always be possible to find out what was happening through diplomatic channels.
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14. The GER. N Delegate illustrated the importance of returning unused
ICs with the following example: an importer would ask for an IC for a pexticu4
lar transaction, then having obtained it would buy the same quantity of goods'
in the same country but with the intention of sending the goods to a different
destination. The original IC would be used for this second, illegal, trans-
action. It would not be possible of course to obtain a DV but by the time the
fraud was discovered the transaction would already have taken place.
15. The CHAIRN pointed out that the name of the foreign exporter
appeared on an IC and the exporter could ship the goods only to the country
named on the IC. It was much simpler to follow up an unused IC when another
Member Country was concerned; when non-Member Countries were involved it was
necessary to make enquiries from the importer and even to use diplomatic
channels to get back the unused IC.
16. The UNITED STATES Delegate informed the Sub-Committee that his
authorities had made a special check after the last meeting and only one case
of possible irregularity was found. If the United States authorities rejected
a licence application they returned the IC or, if it were approved for a smal=ler amount, that amount would be marked on the IC. Furthermore the business
community were notified in the published regulations that ICs must be returned,
if they were not used. So far this rule had been well observed.
17. The CH.I J summed up the discussion by saying that this was a
question of minor importance but there was a certain danger in leaving unused
ICs in commercial hands. There was not the same danger where Member Countries
were concerned but such ICs had sometimes been used illegally in non-Member
Countries. participating countries should arrange to have unused ICs returned,
working through diplomatic channels when necessary.
(c) Facsimiles of signatures on ICs and DVs; Copies of ICs and DVs in use
18. The UNITED KINGDO.1 De egate suggested that it might be possible
to effect some small improvements in he procedure. The Netherlands Delega-
tion, for example, had circulated facsimiles of the signatures of their
control authorities and, from time to time, the United Kingdom services had
received requests for the legalisation of signatures at Consulates. It some-
times happened that new IC and DV forms were issued without warning, in which
case it would be better if specimens were circulated before the new forms went
into use.
19. The UNITED ST"'TLS Delegate hoped that the United Kingdom proposal
would include a reference to the validating seal put on documents. Nineteen
separate field offices were authorised to issue ICs in the United States and
his authorities therefore attached less importance to the signature which
appeared on an IC than to the seal which was more difficult to forge. They
had some time ago submitted to the Committee samples of the seal they used.
20. The ITLLIAN Delegate said that copies of the documents in use were
circulated to member countries and to cooperating countries through the iiinis-
try of Foreign Affairs. ICs were issued by the .inistry of Foreign Trade but
DVs were issued at the various Customs posts, and since each post had its own
stamp and signatures it would not be possible to circulate facsimiles.
21. The FRENCH Delegate said that his authorities had no objection to
circulating facsimiles of the signatures in use, but they did not think that
this would be a particularly useful measure. It was always possible to compaxe
the signatures on the original IC and the copy before issuing an export li-
cence.
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22. The UNITED KINGDOM Delegate said he realised that not all Member
Countries were as centralised as the United Kingdom as far as signatures on
ICs and DVs were'concerned. He therefore withdrew his proposal to circulate
facsimiles. He would be interested to know, however, if other Member Countries
had been faced with requests for the legalisation of signatures.
23. The CHAMuAN summed up the discussion by saying that there seemed
to be little need to circulate copies of the documents in use since they were
already well known. It would in most cases be impossible to circulate fac-
similes of the signatures of the officials concerned with the issue of ICs
and DVs, especially when there were changes in personnel. He therefore recom-
mended that attention should be paid to the stamps used on documents rather
than the signatures. With respect to the legalisation of signatures it seemed
that only the United Kingdom had been faced with such requests, and it was
sometimes the importer himself who asked for legalisation rather than the
official organisation. The Chairman expressed the general feeling in saying
that it was not an important question where ;Member Countries were involved;
in the case of non-Member Countries the matter could be arranged on a
bilateral basis if the need arose.
II. T.A.C. SCHE,.;E: T.A.C. Questionnaire
olt Documents Nos. 3195.1 - 11, Sub-C(58) 2 Annex A (paragraphs 49 and
(50)
(a) General Comments
24. The CHAT L" opened the examination of the replies which had been
given to the TAC questionnaire by inviting general comments. He informed the
Committee that in the diversion case mentioned in the German answer to question
C 3 (c) (COCOM 3195.4), the foreign forwarding agent had been sentenced to one
year in prison but the case was not yet completed since an appeal had been
lodged.
25. The CANADIAN Delegate said that although there had so far boon no
need to implement the T.A.C. scheme, Canadian regulations were sufficient to
prevent movements of goods through Canada to the Soviet Bloc.
26. The DANISH Delegate said that his authorities had the power to
stop the transshipment if it was accompanied by insufficient or unsatisfactory
documents.
27. The FR..NCH Delegate observed that France was very little used as
a transit country. The only difficulty was likely to arise in the case of
goods coming from Spain but it seemed highly unlikely that the
+i~~Q) N-Et.
would supply strategic goods to the Soviet Bloc.
28. The ITALIAN Delegate stated that in Italy it was the task of the
Customs officials to see that the laws entrusted to them were properly applied.
For this reason, in the case of transactions involving the export and transit-
ting of strategic goods (items included in the "Esport" List), the Customs
officials had to see that the arrangements in force relating to currency and
economic prohibitions and T.A.C. regulations were adhered to scrupulously.
Consequently, in the case of transactions involving goods covered by the T.A.C.
scheme, the Customs authorities, in addition to the purely fiscal controls
exercised, made sure that:
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(1) In the case of exports:
The licence really existed.
The bank authorisation had been granted.
The T.A.C. had really been issued, when the goods were
intended for the Sino-Soviet Bloc.
(2) In the case of transit shipments:
The currency document had b ion issued when it was a case
of indirect transit. This document was issued by the
banks, upon prior authorisation from the competent ministry.
The T .&X. really existed, when the shipment was subject
to T.A.C. regulations.
It should be added that the Italian authorities exercised a preliminary control
even over direct transit transactions, involving goods belonging to persons
residing in Italy. The currency arrangement in force necessitated, for the
purchase and resale by residents of foreign goods on the "Esport" List, the
issuance of an authorisation by the Italian Foreign Exchange Office or by the
Ministry for Foreign Trade, depending on the case involved.
29. The CiLAIRi;A+ observed that no replies to the T.A.C. questionnaire
had been received from the Delegations of Greece, Portugal or Turkey. He
believed that it would be useful if the Secretariat informed these Delegations
that their replies would be of value to the Sub-Committee in assessing the
effectiveness of the T.A.C. scheme. Ike pointed out that Luxembourg was in a
Customs union with Belgium, and thus the Belgian reply to the questionnaire
also covered the Grand Duchy of Luxembourg.
(b) Replies to individual questions.
"To what extent do your T.A.C. regulations permit your authorities
to detain shipments of strategic goods where there is good reason to believe
or suspect that they are en route for an ultimate Soviet Bloc destination ?"
30. The CHAIRM0 observed that all delegations considered that their
regulations were sufficient to detain shipments if necessary.
"Have you soon any evidence of falsified or forged T.A.C. certi-
31. The CH.IRiv N remarked that all delegations had replied "No" to
this question.
"Have any T.A.C.s been issued to local residents acting as a
principal for shipments of strategic goods from third countries to the Soviet
Bloc ? If so, is a problem created which might lead to a weakening of the
T.A.C. scheme ?"
32. The CHLIRiGi.AN stated that there seemed to be no difficulties over
this point. The cases reported by the Netherlands Delegation (COCOM 3195.10)
were of a special nature since they concerned aviation fuel to be used in the
Soviet Bloc by Western airlines.
33? The GERM Delegate pointed out that the country of transit did not
necessarily know which was the country of origin of the goods. In the case of
non cooperating non-Member Countries there was of course no T.A.C. and in the
case of non-Member Countries which did oooperate, the T.A.C. could be issued if
the country of origin gave its agreement to the movement of the goods.
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34. The NETHERLANDS Delegate pointed out that the question was concernedA
with middlemen resident in :Member Countries and in this case the oil company
in question were actually owners of the goods.
35. The FRENCH Delegate emphasized the importance of ensuring, before
the issue of the T..i.C., that the middleman was a principal in the transaction
and that the ownership of the goods actually passed to him at one stage, and
that he.did not merely remain an agent throughout'the transaction.
36. The UNITED ST.i.TES Delegate informed the dub-Committee that since
his authorities had replied to the questionnaire, they had issued two T.&.C.s
for goods consigned to Poland from cooperating non-Member Countries. They
were ready to accept responsibility for goods in transit from non-Member
Countries provided the latter cooperated in the T.. .C. scheme.
"Have any enquiries been received from transshipping countries
regarding strategic shipments which were detained in transit because they
were not accompanied by T.A.C.s issued by your Government but were stated or
known to be destined to the Soviet Bloc ? Total number of shipments involved ?"
37. The CHAIRMAN stated that only one case had come to the attention
of the Sub-Committee and this had been effectively prevented.
"What is your estimate of the effectiveness of the T.A.C. scheme ?1'
38. The CHAIRLvAN stated that delegations were practically unanimous
in agreeing that the scheme was effective where it was in force, but in some
cases was only relatively effective when third countries did not cooperate in
the scheme.
"What are the weaknesses or loopholes in the T.A.C. scheme ?
How may they be remedied ?"
39. The UNITED KINGDOM Delegate said that he fully realised that the
problem in his own country was different from that in other Member Countries
because his authorities were concerned almost exclusively with shipments
arriving by sea. However, they were so well impressed with the result of their
transshipment licensing scheme put into effect in November 1951, that they
had recommended its adoption by other Member Countries.
40. The GLR.AN Delegate said that he did not think that it would be
possible to apply the United Kingdom scheme in continental Europe because of
practical difficulties. He asked whether the United States comment that the
T.A.C. Scheme would be more effective if 'Member Countries fully implemented
their existing controls applied to cases of direct transit.
41. The UNITED STATES Delegate replied that his authorities were
empowered to inspect any goods in transit to the Soviet Bloc through the
United States, but he realised that some countries could not apply the T.A.C.
Scheme to goods in direct transit. Goods consigned to Western countries went
through on a general licence but this did riot apply to destinations in the
Soviet Bloc.
42. The FRENCH Delegate agreed with his German colleague that it would
not be possible to introduce a scheme on the lines suggested by the United
Kingdom. In the experience of his authorities, control would be much easier
if Austria and the free zones of Switzerland applied the T.A.C. scheme.
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43. The UNITED STATES Delegate commented that the question of non--
Member Country cooperation posed a particularly delicate problem. Austria
and Switzerland for example did cooperate in some ways as far as goods of
their own origin were concerned. He suggested that special attention should
be paid to this problem during the next few months, then at the next meeting
of the Sub-Committee it might be possible to frame concrete recommendations
to the Committee.
44. The CHAIB11AN summed up by saying that it did not seem necessary
at the moment to modify the T.A.Ci scheme, which was somewhat difficult to
apply but which had nevertheless resulted in an important drop in the amount
of illegal transactions. Difficulties were more likely to occur where non-
Member Countries were concerned; the Sub-Committee should take note of those
difficulties but the Chairman felt it should be left to the Committee to take
up the question of policy in this respect.
"T.A.C.s issued to local exporters for shipments of strategic
goods to the Soviet Bloc."
45? The CHAIRMAN noted that a relatively small number of T.A.C.s
(64 during 1957) had been issued to exporters in Member Countries for ship-
ments of strategic goods to the Soviet Bloc.
Statistics of shipments of strategic goods in transit to the
46. The UNITED STATES Delegate said that he was surprised that no
Member Country had submitted any statistics concerning strategic goods of
Swiss origin transitting through their territory to the Soviet Bloc. He was
sure that such cases existed and he asked Delegations to reinvestigate this
question. He also asked what experience Member Countries had had with res-
pect to use of the facilities, such as duplicate copies of licences, made
available by the Swiss authorities.
47. The BELGIAN Delegate said that his authorities had issued T.A.C.s
on the basis of photostat copies of Swiss export licences.
48. The CHAIRMAN invited Member Governments to provide, in time for
the next Sub-Committee meeting, statistics on Swiss or Swedish transit goods
shipped on to the Sino-Soviet Bloc upon presentation of duplicate copies of
export licences issued by Switzerland or Sweden. In conclusion he said that
the T.A.C. Scheme seemed to be working satisfactorily. There was less
fraudulent traffic than before the scheme was put into operation and there
was no need to modify the present regulations.
III. ENFORCEiZENT PROBLEi
(a) Arising from the revised lists
49. The CHAIR.AN said that it would be useful if all delegations
confirmed that the new Lists had been published and were in force in their
countries. ICs and DVs should no longer be issued for items which had been
deleted from the embargo List and a DV should not be issued for a deleted
item even if an IC had been issued while the item was still under embargo.
50 The GERMAN Delegate said that, because of the technical diffi-
culties of translation and comparison with the Customs tariff, his authori-
ties would not publish the new List before January 1st, 1959. He confirmed
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that no more ICs or DVs were being issued for items which had been deleted
from embargo.
51. The CANLDIh Delegate informed the Committee that his authorities
had published the new Lists on the ?3rd August.
52. The DAt3ISII Delegate said that the new Lists were not yet printed
but ICs were no longer being issued for deleted items.
53. The UNITED KINGDOM Delegate said that the new Lists had not yet
been completely embodied in the necessary statutory instruments but he
expected that they would enter fully into force in January 1959. There had
been a number of technical difficulties in defining exactly what was covered
by the International Lists. ICs were not issued for deleted items.
54. The ITALIAN Delegate said that the new Lists had entered into
force in Italy on the 15th August.
55? The FRENCH Delegate said that the changes had come into force in
his country on the 15th August 1958. Nevertheless for technical reasons,
such as those mentioned by the German and United Kingdom Delegates, it had
not been possible to establish the complete list of goods subject to the
I.C./D.V. system. Publication was expected to take place after the Atomic
Energy List review had been completed.
56. The GERMAN Delegate then made two suggestions. He first stressed
that the German Customs authorities charged with the control of export docu-
ments used lists based on the Customs Tariff definitions, in deciding whether
or not goods were subject to export licensing. Consequently considerable
'difficulty arose in the establishing of these internal lists, since it was
sometimes almost impossible to determine exactly which items in the Customs
Tariff Nomenclature corresponded to the International List definitions. The
Delegate therefore proposed that, at some future stage, a questionnaire might
be constituted in order to see if other Member Governments encountered the
same difficulties. He wondered moreover if it might not be useful to agree
upon uniform transposition for all Member Governments using the Brussels
Tariff Nomenclature.
57. The UNITED KINGDOM Delegate pointed out that the Brussels Tariff
related principally to imports, and did not have much connection with exports.
His authorities had tried to see if the Brussels Tariff were adaptable to
export control requirements, but the results of their investigation had not
been promising.
58. The NETHERLANDS Delegate observed that there was uniformity only
as far as the main headings were concerned. Countries using the Brussels
Tariff added their own sub-categories and thus differences in practice could
occur. In any event the Benelux countries would not be ready to use the
Brussels Tariff until 1960.
59? The CHAIR1LAN summed up the discussion by saying that the new
Lists were either already published and in force or else the necessary pre-
parations were well in hand. It was agreed that the I.C./D.V. system should
not be applied to items deleted from the embargo list.
60. The UNITED STATES Delegate said there would appear to be two
categories of problems involved, (1) those relating to transition from the
old to the new Lists and (2) basic problems which could be expected to arise
in connection with the enforcement of any embargo. With respect to the former,
these could be expected to be of a temporary character involving such ques-
tions as the issuance of licences by customs authorities through administrative
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error because of mistakes in the identification of items due to the changed
Lists and revised definitions. Such errors were understandable and the
United States authorities would view them with sympathy. Once the List
revisions had been completed and in use for a short period, this type of
problem would tend to disappear. The second type of problem was more basic
and related to attempts to divert embargoed items to the Sino-Soviet Bloc.
Most items on the new Lists had been carefully defined with specifications
which should enable licensing and control officers to recognize embargo
goods. Many items were types which did not move frequently in trade channels.
Diversion attempts might, therefore, be expected to be more sophisticated
and well-financed. Document forgery, bribery, and subornation might increase
and should be guarded against. This did not mean that the old methods of
diversion should be expected to cease, and Member Governments should continue
to guard against the usual tactics of transshipment, use of free ports, the
shipment of parts for assembly at destination, etc. The new Lists were in
some respects more vulnerable than the.old Lists, because parts of items
formerly embargoed were now free and the definitions of other had been
narrowed. There were no indications that Bloc efforts to divert borax,
cobalt, molybdenum and ball-bearings had ceased. Other items might emerge
as important Bloc targets. The Delegate stressdd the importance of all
Member Countries being alert and vigilant at all times to prevent the
diversion to the Bloc of any item on the Lists, all of which were highly
strategic.
61. The UNITED KINGDOM Delegate said that the new Lists made it
desirable for Customs officers to have more information on the items controlled
In this connection they found that a descriptive booklet such as the United
States Commodity Identification Manual was extremely useful.
62. Certain other delegates . shared the opinion expressed by their
United Kingdom colleague, end the UNITED STATES Delegate said that his
authorities realised that the old Manual was out of date. They had been
reluctant to carry out a revision until they had been assured that all
Members of the Committee found the Manual useful but, in view of the opinions
which had just been expressed, they would consider revision, at least for the
items where this was possibly:. The Delegate said that he had some sample
sheets available which Delegations could show to their :;xperts, and that
suggested changes would be welcomed.
(b) Illegal Diversions
(COCOM 3030, 3058, 3269, 3318, and Sub-C(58) 2, Annex B para. 8.)
63. Following a short discussion, the Sub-Committee decided to
recommend to the Committee that in future the names of countries should be
given in all documents concerning illegal diversions. It was clearly under-
stood, however, that the names of individual firms would not be mentioned.
64. The UNITED STATES Delegate said that this year the International
Lists had been reviewed at length and the Committee now had an embargo list,
every item of which was considered to be highly strategic. The United States
authorities felt that the Committee's efforts would have been to little avail
unless there were a strong system of enforcement and means of preventing
these strategic materials from reaching the Sino-Soviet Bloc. The Interna-
tional Lists wore no stronger than the enforcement thereof and the effective
implementation of agreed control procedures was vital to all Member Govern-
ments. His authorities had submitted details of a number of diversion cases
in COCOM Documents Nos. 3030 and 3269. The Delegate referred to the desire
expressed by other delegates at the last meeting to approach the problem
according to categories of loopholes and causes of diversion, and noted that
the United States authorities had submitted their cases on this basis with
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the cause or causes of diversion listed under each case and all categories of
causes summarized in the memorandum submitted by his Delegation. He hoped
that all Members of the Sub-Committee would participate in the Working Group
and that other delegations would also submit cases which had come to their
notice. He was gratified to note, in this connection, that the German
Delegation had submitted a diversion case for the Committee's consideration
(COCOM Document No. 3058) and expressed the hope that other delegations would
take similar action, The United States Government hoped that other delega-
tions would take a leading part in the discussion of cases which were of
particular concern to them. In their view the primary objectives of enforce-
ment as it related to the Working Group, were twofold: (1) to prevent the
diversion of strategic commodities to the Bloc in active cases where the
diversions had not yet been accomplished; the cooperation of Member Govern-
ments could be very effective in this connection; and (2) in cases where the
diversions had already taken place, to establish, through exchanges of infor-
mation among Member Governments, complete facts in regard to such cases in
order that Member Governments might all determine just what they were up
against, be in a position to guard against the repetition of similar tactics,
and perhaps evolve means of preventing similar diversions in the future. The
Delegate thought it particularly desirable to have Working Group specialists
get together on these cases in order that they might share information on
cases, diversion, patterns, possible loopholes in controls, etc. with a view
to developing improved investigative and enforcement techniques. He strongly
endorsed frequent meetings of the Working Group and suggested that perhaps
some system could be developed whereby there would be a constant availability
of representatives of interested Member Governments to consider active cases
from time to time as they should arise.
65. A Working Group comprising representatives of all delegations was
then set up to consider the diversion cases contained in COCOM Documents Nos.
3269 and 3318. The Working Group act separately under the Chairmanship of
M. Blondiau on November 19th and 20th an? reported to the Sub-Committee on
November 20th. The report of the Chairman of the Working Group will be found
at Annex A to this Document.
IV. STATISTICAL PROBLEMS
(COCOMM Document No. 1766.)
66. The GERMAN Delegate proposed that if a Member Country had sub-
mitted an exceptions case and had obtained the Committee's approval, the latter
should be informed if the transaction were later to fall through. It some-
times happened that enquiries for the same equipment were made in several
Member Countries, several exceptions requests would then be made and there was
a danger of duplicating statistical returns.
67. The UNITED KINGDOM Delegate said that United Kingdom statistics for
exports of List I, liLnitions List and Atomic Energy List items were based on
licences issued. List IV statistics were based mainly on Customs returns
showing actual exports. The United Kingdom would continue to report to the
Committee in this way and would not show any follow up of exceptions cases
which had been submitted to the Committee. The statistics did show where
export licences had been cancelled. Information could always be obtained
bilaterally from the United Kingdom Delegation as to whether or not a United
Kingdom exporter was successful in obtaining an order after enquiries had
been made in several Member Countries, but this information would not be shown
in the statistical returns.
68. The CHAIRMAN drew the attention of the Sub-Committee to the pro-
visions laid down in paragraph 31 of COCOM Document No. 1766, and emphasized
that delegations should include details of cancelled licences in their sta-
tistical returns.
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V. EXCHANGE OF VIEWS CONCERNING THE APPLICATION OF SECONDARY CONTROL
(COCOM Document No. 2869.52)
69. The GERiaAN Delegate said it was difficult to obtain statistics
relating to the export of List IV items, because his authorities required no
licences for such exports. Their returns were compiled partly on the basis
of statistics from the ilinistry of Economics and partly on information recei-
ved from industrial sources.
70. The UNITED KINGDOM Delegate stated that the application of secon-
dary control was working satisfactorily and that no difficulties had been met.
There was close cooperation between the Export Licensing Branch and the
Customs to produce the necessary statistics.
71. The ITALIAN Delegate stated that, generally speaking, export
licences were not issued in Italy for List IV items (except in the case of
certain. items difficult to define). The periodical statistical returns
required by the Committee were established, according to the case involved,
on the basis of the data supplied either by the Central Institute of Statis-
tics, the Customs authorities, or by professional organisations.
72. The DANISH Delegate informed the Sub-Committee that his statis-
tical returns referred mainly to licences issued, since export licences were
required for nearly all goods sent to destinations outside the European Pay-
ments Union, the Dollar Area and Finland.
73. The UNITED STATES Delegate said that the policy adopted in his
country was very similar to that followed by the Danish authorities. His
Government reported to the Committee when a licence expired or was cancelled.
He stressed the importance of reporting such exports with particular reference
to nickel and rotating electrical machinery.
74. The FRENCH Delegate stated that export licences were necessary for
List IV exports. The relevant statistical returns were based mainly on
Customs statistics.
75. The BELGIATT Delegate stated that licences were required for all
exports from the Belgo-Luxembourg Economic Union to the Soviet Bloc. The
statistical returns supplied by the Belgian authorities showed actual exports.
76. The JAPANESE/sa1189fiat, with the exception of two items, 4410
(tankers) and 4661 (nickel), List IV exports were not subject to licensing.
Returns were based on Customs figures.
77. The NETHERLANDS Delegate said that his authorities required
licences for all exports to the Soviet Bloc. statistics had so far been based
on licences issued; in future account would be taken of those which remained
unused.
78. The CHAIRMAN summed up the discussion by saying that all Member
Countries had taken the necessary steps to conform with the Coordinating
Committee's recommendations on establishing a form of secondary control,
whether they issued export licences or not. Having then raised the question
of statistics relating to Dependent Overseas Territories, he said that
this was a matter of policy which should be left to the Coordinating Committee
for a decision. The Sub-Committee merely noted that Belgium included the
Belgian Congo and the United Kingdom included Hong Kong in their returns.
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VI. NON-MEMBER COUNTRY COOPERATION
(a) Division .of work in relations with non-member countries
(COCOM Document No. 2869.51)
79 The CHAIRMAN said that it was well known that the most serious
loophole in the T.A.C. and I.C./D.V. schemes was caused by the lack of coope-
ration from certain non-Miember Countries. He had grave doubts, however, that
the Sub-Committee was the proper forum for discussing this aspect of relations
with non-Member Countries.
80. The UNITED KINGDOM Delegate said that he shared the Chairman's
doubts. It was entirely a diplomatic problem to take account of the political
sensibilities of non-Member countries, particularly those in Europe. He
considered that the matter had been sufficiently ventilated in the Coordina-
ting Committee in July (COCOM Document No. 2869.51) when the United States
Delegation had raised the question of informing non-Member Countries of the
changes in the International Lists. The Coordinating Committee could take up
the matter again whenever it thought fit.
81. The SUB-COMMITTEE decided that this question went beyond its terms
of reference and proceeded to the next item on the agenda.
(b) Controls enforced by non-Member Countries
(COCOM Documents Nos. 3258, 3260, Sub-C(58) 2 paragraph 66)
82. The UNITED STATES Delegate drew the attention of the Sub-Committee
to the memoranda submitted by his authorities (COCOM Documents Nos. 3258, 3260).
They hoped that all Member Countries would use to the maximum the facilities
made available by non-Members.
83. The FRENCH Delegate informed the Sub-Committee that his authorities
had issued ICs for goods from the following countries: Austria, Brazil, Chile,'
Belgian Congo, Mexico, Nigeria, Sweden, Switzerland, Federation of Rhodesia
and Nyasaland, #:ialaya. A check was carried out six months after the issue of
the IC and, as far as it was possible to ascertain, all the goods had arrived
in France. The French authorities had also obtained a DV from Yugoslavia for
a consignment of borax.
84. The UNITED KINGDOM Delegate gave details of the ICs which had
been issued by his authorities during the year 1957 and the period January -
September 1958. Statistics for the first half of 1958 might be incorporated
in the compilation to be prepared by the Secretariat.
85. After further discussion, it was decided that all delegations.
should submit to the Secretariat by the 15th December statistics of the ICs
issued during the first six months of 1958 as regards both cooperating and
non-cooperating non-Meraber Countries. The SUB-COMMITTEE then discussed more
fully the French Delegation's reference to a Dy issued by the Yugoslav autho-
rities.
86. The UNITED STATES Delegate said that his authorities had tried
unsuccessfully for many months to obtain DVs from Yugoslavia. So far only
the thorough pursuit of individual cases through diplomatic channels had led
to successful results, and the shipment of some consignments had had to be
suspended until assurances had been received that they would not be reshipped.
He urged all delegations to keep a very close watch on their trade with
Yugoslavia.
87. The GERMAN Delegate stated that his authorities had obtained DVs
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from Yugoslavia since the beginning of 1957, although they had asked for them
only where goods of particular importance, such as borax and copper, were
concerned. He circulated a copy of the document provided by the Yugoslav
authorities and said that his Government considered its terms satisfactory.
88. The UNITED KINGDOM Delegate said that in the last few months a
thorough examination of United Kingdom trade with Yugoslavia had been made and
nothing suspicious, such as sudden increases in trade in particular commodi-
ties, had come to light.
89. The CHAIRLLN summed up the discussion by saying that it would be
useful to request non-Meiiber Countries to furnish proof of the arrival of
the goods, in addition to the end-use certificate called for before the export
took place. The SUB-COMMITTEE then proceeded to a close examination of the
United States memorandum (COCOMDocument No. 3260) on the cooperation afforded,
by various non-Member Countries.
(c) Bilateral negotiations
(COCOM Sub-C(58) 2, paragraph 66)
90. The SUB-COMi1TTTEE decided that this question went beyond its
terms of ref.-rent e an4/pro ceeded to the next item on the agenda.
(d) Documentation and addresses of cooperating authorities
(COCOM Document No. 3264, Sub-C(58) 2 paragraph 61.)
91. The CHAIRMAN paid tribute to the United States Delegation for
submitting a very complete document (COCOK Document No. 3264) listing the
names and addresses of the authorities in non-Member Countries which coope-
rated in the T.A.C. and I.C./D.V. schemes. The SUB-COMMITTEE agreed that
delegations should study the United States Memorandum further and send any
necessary corrections or additions to the Secretariat by the 31st December.
Nil returns should also be submitted. The Secretariat would then compile a
composite document for ease of reference.
VII. INSURANCE.
(COCOM Document No. 3292, Sub-C(58) 2 paragraphs 82 - 90)
92. The BELGIAN Delegate informed the Sub-Committee that one of the
general conditions of the Standard Antwerp Maritime Policy was to the effect
that the insurers were not liable in cases of seizure or confiscation when
the person insured engaged in prohibited or clandestine commerce. He con-
firmed that there was no legislation in Belgium to compel insurers to follow
the control regulations but he was sure that there was no direct cooperation
by insurance companies in contraband traffic.
93. The GERMAN Delegate drew the attention of the Sub-Committee to
the activities of a Soviet insurance agency in Western Europe, which was
prepared to underwrite goods consigned to the Soviet Bloc at lower premiums
than those charged by Western companies.
94. The FRENCH Delegate confirmed the statement he had made at the
previous meeting of the Sub-Committee and said that his Government were al-
ready applying the maximum control possible. He explained that, with respect
to maritime transport insurance, article 7 of the ,eneral insurance policy
stipulated that insurers were not liable for the following causes or conse-
quences thereof: ..., violation of blockade, ..., prohibited or clandestine
trade. As regards land transport, chapter III laid down the risks which
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were not covered. article 3, in particular, stated that "insurers were
expressly free from all liability for the following causes: ... , any
consequences whatsoever of contraband and prohibited or clandestine trade."
95. The DANISH Delegate stated that there was no legislation speci-
fically to prohibit the insurance of embargoed goods, but that Danish companies
were not aware that such insurance had ever been effected.
96. The ITALIa:1 Delegate stated that the regulations in force in
Italy provided for no special measures as regards the insurance of embargoed
goods. Among the general conditions for insuring the transport of merchan-
dise, however, there was an article, normally included in every contract,
which listed among the risks not covered, damage, loss and expenses resulting
wholly or in part, directly or indirectly, from contraband or prohibited or
clandestine trade".
97. The NETHERLANDS Delegate stated that, as in Belgium, there was a
standard contract with a clause to exclude the cover of contraband. He en-
dorsed the remarks of the German Delegate concerning the Soviet insurance
company operating in Western Europe and said that it reimbursed claims more
generously than Western companies.
98. The UNITED KINGDOM Delegate said that the answers to the questions
he had raised at the previous Sub-Committee meeting seemed to indicate that
in all Member Countries, with the exception of the United States, the position
was the same as in the United Kingdom, namely that it was not a criminal offence
in itself to insure embargoed goods but most policies contained a clause
which made the contract void if the insured person aided or abetted in an act
which he know to be against the law. In the United States the law affected
only goods bound for or originating in China or North Korea and the United
Kingdom authorities considered that the general situation was satisfactory.
The question had also boon raised in the context of reinsurance; here the
prime responsibility lay with the insuring country of the first instance.
99. To sum up, the CH6IL T pointed out that the question of insurance
of strategic goods had been studied very thoroughly and that all Delegations
had explained very frankly the situation obt~-.ining in their countries. it
Sub-Committee level, all the required explanations on this point had been
supplied.
VIII. NEXT 1:TEETING
100. &f ter a brief discussion, it appeared that all delegations were
in favour of holding the next meeting in six monthst time, by which data the
new International Lists would have boon in operation sufficiently long for
their effectiveness to be judged.
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REPORT BY THE CEAIRM" OF THE WORKING GROUP
ON
ILLEGAL DIVERSIONS OF. STRATEGIC GOODS
19th and 20th November, 1958.
References: COCOM 3030, 3058, 3269, 3318, Sub-C(58) 2.
1. The WORKING GROUP decided to discuss in detail each of the cases
contained in the United States memorandum on illegal shipments (COCOM Doc.
No. 3269). Many of those cases were a continuation of those mentioned in
the memorandum submitted by the United States at the previous meeting (COCOM
Doc. No. 3030).
Case No.1
2. The DANISH Delegate asked why the Netherlands authorities had not
been able to stop this diversion by means of transaction or financial controls.
3. The NETHERLANDS Delegate pointed out that the financial trans-
actions had taken place outside the Netherlands, thus nothing could be done
to frustrate the diversion. It might be possible in such cases to impose
fines subsequently but there was no way of preventing then in the first place.
4. The UNITED STATES Delegate expressed concern that the Netherlands
firm was still shipping borax to the Soviet Bloc as late as July, 1958, des-
pite the fact that the United States Government had suspended the firm
from export privileges and reportedly Netherlands action had also been taken
against the firm.
5. The GEC Delegate observed that the goods had been shipped in a
Polish vessel. There was the possibility in this event that goods might not
be discharged at the destination to which they were ostensibly consigned.
6. The CHAIRMAN stated in conclusion that this diversion could not
have been stopped because of the lack of Argentine cooperation.
Case No. 2
7. The GERiN Delegate said that this case was an example of the
successful prevention of an attempted diversion and proved the value of the
T.A.C. scheme. A danger still existed, however, in that whenever a consign-
ment was stopped, fresh instructions were given to transship the goods to
another country.
8. The UNITED STATES Delegate stated that his Government had con-
ducted a thorough investigation of this case which had developed interesting
information, noting that he would be pleased to brief the Working Group on
the results of the United States investigation. However, further discussion
of the case was not considered necessary.
Case No. 3
9. In response to a statement by the German Delegate that diversion
of the borax shipments was due to the existing loophole in the freeport of
Basel where the T.A.C. procedure was not being enforced, the UNITED STATES
Delegate stated that the diversions under discussion could not be blamed on
the freeport of Basel, noting that the shipments had been exported from West
Germany, entered Switzerland in transit status, returning to West Germany as
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transit goods en route to the Soviet Zone of Germany. The Delegate raised
the question, how such transactions were feasible under the present controls,
pointing out that similar diversions had taken place at the German/Netherlands
border. He further inquired why the T.A.C. scheme had not been applied under
the circumstances, pointing out that the Swiss Government had agreed to
participate in the T.A.C. procedure as a country of origin.
that
10. The GERMAN Delegate stated/though Switzerland participated in
the T.A.C. scheme, the difficulty was that the latter applied only when the
transit was broken: in this case the goods remained all the time in a sealed
railway waggon. Goods-could only be stopped if they were recognised as an
original German export. His authorities noted the numbers of the waggons
carrying certain strategic items and could check on the movements of all
German waggons. Difficulties occurred, however$ when "Europ" waggons were
used.
Case No.4
11. The ITALIAN Delegate informed the Working Group that his autho-
rities had now altered the licensing procedure for exports to Finland and
Sweden. A comparison of previous statistics had shown a discrepancy between
Italian exports of strategic goods to Sweden and Swedish imports of these
goods from Italy.
12. The CHAIRl iT said that it would be useful to follow up shipments
of this size through diplomatic channels. The text of the foreign equivalent
of the IC should contain an engagement by the importing firm concerning the
actual disposal of the goods. That was wanted was proof of arrival in the
approved destination. The Swiss "Blue Certificate" was satisfactory in this
respect since it contained the assurance of the Swiss -authorities but he
suggested that it would be useful if the Danish and Norwegian Delegations
enquired into the exact status and value of the Swedish customs document
"Tulseden".
Cases Nos. 5, 6 and 7.
13. After discussion of the above case (case No. 4), the CHAIRMAN
suggested that sufficient borax cases had been reviewed, noting that further
discussion of such cases was not necessary in his opinion. He stated that no
further details were available on Case No. 5 (Diversion of 10 Tons of Boric
Acid Crystals from Germany to the Soviet Occupied Zone of Germany via Sweden),
which was still under investigation. As to Case No. 6 (Attempted Diversion
of 13 tons of Borax Powder by a British Firm to the Soviet Occupied Zone of
Germany), the Chairman said that it showed excellent cooperation between the
Governments concerned. Case No. 7 (Diversion of Borax by a Firm in Switzer-
land) was not taken up.
Attachments 2 and 3
(Nickel and cobalt diversions)
14. Cases under Attachment 2 (Diversion of Nickel Shipments to Soviet
Bloc) and Attachment 3 (Illegal Shipments of Cobalt) were examined si.multa-
neously. The CHAIRuiAN referred to a statement made by the United States
Delegate at the April Working Group Meeting to the effect that some diver-
sions of nickel and cobalt had taken place by declaring the goods as
"metalware". Speaking for the BELGIAN Delegate, he stated that he had checked
this matter with the Belgian Customs Authorities and the "Institut des
Changes" and that no irregularities had been discovered although a few ship-
ments of "metalware" to Switzerland and Swed.ciftere still under investigation
by the Belgian Authorities. The United States Delegate raised the question
whether other participating countries had pursued similar enquiries with regard
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to nickel and cobalt. He suggested that it might be a fruitful line of en-
quiry to pursue, since both metals were significant even if exported in small
amounts. There was no reaction to the United States Delegat?ts enquiries,
end no comments by the other delegates.
Attachment 4
(Tantalum, nickel alloy wire and molybdenum diversions)
15. The GER 6N Delegate pointed out that in this case the actual
arrival of the shipment at the approved destination was not the only impor-
tant consideration. The end-use to which the material was to be put should
be closely scrutinized, since proof that the goods had arrived did not neces-
sarily mean they would be consumed locally.
16. The UNITED STATES Delegate requested delegates to familiarize
themselves with the tactics of the group involved in this case, pointing out
the flexibility of its operations and its ability to transfer its activities
from one country to another.
Attachment 5
(Copper bars diversion)
17. The C1,AIRIJAN said that all members of the Working Group agreed
that when an IC was issued in respect of a shipment from a non-Member Country,
a copy of the IC should be sent to the Export Licensing authorities of that
country. The Belgian and German authcrities only followed this rule in the
case of certain non-Member Countries. The other delegations would check on
the practice they followed.
Attachment 6
(Oil diversion to Communist China)
18. The JAPANESE Delegate said that there was now closer cooperation
in the ministries concerned, and that his authorities considered that the gap
was closed. The Japanese merchant in question had been fined.
19. The UNITED STATES Delegate informed the Working Group that his
authorities had developed additional information on this case which could be
made available to delegates. He emphasized that, although the principal
guilty party had been apprehended, other individuals involved in the case
were still active and that the information on hand attested to the continued
activities of these persons.
Attachment 10.
(Roller bearings diversions to Communist China)
20. The CHAI1UdLN pointed out that, in view of the limited time avai-
lable to the Working Group, it would not be possible to review all remaining
cases. He asked whether delegates had any preferences. The United States
Delegate stated that the subject case might be of interest to the Working
Group, as it illustrated cooperation among participating countries in efforts
to determine the accountability of the participants and the circumstances
which led to the diversion. The Delegate added that the case further illus-
trated that investigation of particular details in a case might lead to in-
formation concerning other irregular transactions and facilitate the inves-
tigation. Secondly, the case illustrated that errors in licensing could also
occur due to misinterpretation of the wording on the documents.
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21. The GERT Delegate agreed with remarks made by his United States
colleague. He cited a case that had come to the attention of his own autho-
rities (C0C0M Document No. 3318) and that also illustrated this point. He
suggested that, in the case of goods imported for exhibition at trade fairs,
it should be made clear to the importing; country that the goods were not in-
tended to enter its economy.
22. The FRENCH Delegate pointed out that in France the re-export of
goods imported for exhibition at trade fairs was compulsory unless an IC
were obtained.
23. The CHLIRl N said that the danger was that the authorities of
the exporting country might not know that the goods were intended for perma-
nent export, but even if they did, the time lag enabled the goods to be re-
shipped to a third country before any action could be taken to stop the re-
shipment.
24. The UNITED KINGDOM Delegate observed that it was important to
protect the element of coLmercial secrecy in triangular transactions. If the
supplier knew the state of the ucxkket in the third country, the intermediary
could be cut out of the transaction.
25. The UNITED STLTES Delegate said that with respect to temporary
imports into the United States under bond for trade fairs, a United States
General licence allowed the re-export of such shipments other than to Soviet
Bloc countries without further formality. Therefore the United States
authorities could not issue ICs for such shipments. They did not require
an IC for a United States export for exhibition at a fair, but they obtained
an undertaking from the exporter that the goods would not be sold without
official approval which meant in effect that an IC would be required before
such approval would be given. The Delegate felt that it was important for
licensing authorities to be able to recognize the type of traderwho was out
to beat the controls in any way possible. The United States Government
considered that the Working Group was a very important and useful forum for
the exchange of ideas and mutual assistance in combatting fraudulent diver-
sions. Diversions could be stopped only if all Member Countries were constant-
ly on the alert and the control systems were sufficiently flexible.
CONCLUSION
26. In rendering his report to the Sub-Com:aittee on Export Controls,
the CHATRMAN expressed the wish that in future meetings the Working Group be
allotted more time and that its work be carried out in a less formal manner.
He stated that he had seen no need to discuss each case listed in COCOM Doc.
No. 3269, and expressed his belief that all Working Group delegates agreed
with him on the following conclusions:
(1) Financial controls were found to be not as efficient as
expected;
(2) In connection with exports from Lrgentina, the T.A.C. pro-
cedure was not applicable. Special attention should, there-
fore, be given to the movement of strategic goods from that
country, especially boron products;
(3) Loopholes were found to exist in transactions involving non-
Member Countries. Participating countries should exercise
special scrutiny in dealing with these countries. This
matter should be reviewed again at the next meeting;
S E C R E T
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(4) Regarding strategic shipments to Sweden, extensive use should
be made of diplomatic channels in determining the end-use of
the goods;
(5) Exchange among participating countries of information regarding
diversion patterns and methods, and persons involved was
increasing;
(6) As a result of the revised embargo List, more attention
should be paid to the description of the commodities by
licensing authorities and extensive use should be made of
technical facilities in identifying such goods.
S E C R E T
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