Licensing For Export of Turbine Engine Cores to Italy For Use In Iraqi Frigates

We have reviewed the U.S. export licensing procedures with regard to the Fenwick Amendment and the licensing of eight General Electric gas turbine engine cores for export to Italy and eventual reexport in frigates built for the Iraqi Navy. The Office of Export Administration in the Department of Commerce approved the license application on January 23, 1980. This approval was made without State Department review but was technically in compliance with the Fenwick Amendment provision of the Export Administration Act of 1979. Subsequently, the license was reviewed and approved at the highest level of the executive branch. Although the license was not revoked, the war between Iraq and Iran caused the State Department to request a suspension in shipment of the engine cores until the conflict ends. The company voluntarily agreed to this suspension.

On May 21, 1980, a change was made in the Office of Export Administration's regulations to correct the deficiencies in the system that occurred in this case. Additionally, an informal consultation procedure between State and Commerce was established to cover other Fenwick Amendment type cases.