The President's Decision to Order a Chinese Company's Divestiture of a Recently Acquired U.S. Aircraft Parts Manufacturer.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV
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We examined certain issues regarding the Presidents February 1, 1990, decision to order a firm of the Peoples Republic of China, the China National Aero-Technology Import and Export Corp. CATIC, to divest its recently acquired control of the U.S. firm, MAMCO Manufacturing, Inc. The issues relate to 1 the interagency process for reviewing national-security related foreign investments, 2 existing means for safeguarding information possessed by MAMCO, and 3 sources of information needed in investigating the national security implications of the investment. The issues arose because CATIC proceeded to complete its acquisition of MAMCO before the government had finished its review of the investment, as provided for under the 1988 Exon-Florio Amendment to the Defense Production Act.
- Government and Political Science