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THE WHITE HOUSE

                     Office of the Press Secretary
                 (Shanghai, People's Republic of China)
________________________________________________________________________
For Immediate Release                                      June 30, 1998

EXECUTIVE ORDER


                  ADMINISTRATION OF ARMS EXPORT CONTROLS
                          AND FOREIGN ASSISTANCE

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, and in order to delegate certain authority to the Secretary of State and the Secretary of Defense, it is hereby ordered as follows:

Section 1. Section 1 of Executive Order 11958, as amended, is further amended as follows:

(a) in subsection (k), by inserting after "State." "Those under Section 36(e) of the Act, as added by Public Law 104-164 with respect to transmittals pursuant to Section 36(b) to the Secretary of Defense, and with respect to transmittals pursuant to Section 36(c), to the Secretary of State.", and

(b) by redesignating subsections (n) through (s) as subsections (o) through (t), respectively, and inserting the following after subsection (m):

"(n) Those under Section 40A of the Act, as added by Public Law 104-164, to the Secretary of State insofar as they relate to commercial exports licensed under the Act, and to the Secretary of Defense insofar as they relate to defense articles and defense services sold, leased, or transferred under the Foreign Military Sales Program."

Sec. 2. Section 1-201 of Executive Order 12163, as amended, is further amended as follows:

(a) in subsection (a)(13),

            (1)  by inserting the following before "and sections":
                 ", section 620G as added by Public Law 104-164"; and

            (2)  by inserting the following after "law":
                 ", except that the functions under section 620G as 
                 added by Public Law 104-164 shall be exercised in 
                 consultation with the Secretary of Defense";

(b) in subsection (a)(23), by deleting ", except" and all that follows through "thereof";

(c) by redesignating subsections (a)(18) through (36) as (a)(19) through (37), respectively; and

(d) by inserting the following new subsection after subsection (a)(17):

"(18) section 655 of the Act, insofar as they relate to defense articles and defense services licensed for export under section 38 of the Arms Export Control Act:".

Sec. 3. Section 1-301 of Executive Order 12163, as amended, is further amended by:

(a) redesignating subsections (e) through (g) as subsections (f) through (h), respectively; and

(b) inserting the following new subsection (e):

"(e) the functions under section 655 of the Act insofar as they relate to defense articles, defense services, and international military education and training furnished by grant or sale by the Secretary of Defense, except to the extent otherwise delegated."

Sec. 4. Section 1-501 of Executive Order 12163, as amended, is further amended:

(a) in subsection (a)(2) by striking "and"; and

(b) in subsection (a)(3) after "1754)" by inserting the following:

"; and (4) section 655(c) of the Act".

WILLIAM J. CLINTON

                                   THE WHITE HOUSE,
                                   June 29, 1998.

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