South African Government welcomes Announcement by the Government of the United States that the Debarment against ARMSCOR, FUCHS and DENEL has been Rescinded

The South African Government welcomes the announcement by the US State Department that the debarment against Armscor, Fuchs and Denel has now been rescinded.

The debarment was originally instituted in 1994 as a result of activities undertaken in the US by these companies during the pre-1994 arms embargo era.

The debarment was suspended in 1998 as a result of an agreement reached in this regard between the South African Government and the US Administration. Deputy Minister Pahad furthermore welcomed the US' statement that, "the South African Government instituted concrete and far - reaching measures to establish a comprehensive and effective national export control regime". He confirmed that South Africa was in agreement with the US' position that the previously debarred companies have developed effective export compliance programmes that meet the criteria of both Governments.

Deputy Minister Aziz Pahad indicated that this announcement had removed the final impediment in the defence industry relations between the two countries. He encouraged Denel, Fuchs, Armscor and the South African Defence Industry at large to utilize the window provided by this announcement to actively pursue business opportunities in the United States.

Deputy Minister Pahad expressed his appreciation towards the officials of the US State Department and the representatives of Armscor, Denel and Fuchs for the positive and co-operative manner in which they approached the discussions that were held in order to find a mutually acceptable outcome to this issue.

Issued by Ronnie Mamoepa on 082 990 4853.

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

21 July 2004