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Raytheon to Pay Fine in Arab Boycott Case

January 20, 1981
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The Raytheon Company, manufacturers of electronics and communications equipment, has agreed to pay a civil penalty of $5,000 for supplying information about its business relations to the Arab League’s Central Boycott Office in Damascus, the Department of Commerce has announced.

Raytheon, whose executive offices are in Lexington, Mass., neither admitted nor denied the charge that the Department alleged was in violation of the anti-Arab boycott legislation. The legislation “prohibits U.S. firms or individuals from providing information in support of a boycott imposed by a foreign country against another nation friendly to the U. S., such as Israel, “the Department said in its announcement.

Raytheon, according to the Department, brought the alleged violation to the Department’s attention when the company discovered it had supplied the information to the boycott office in Syria. “Raytheon said it relied upon misleading information from a U. S. government official overseas concerning the effective date of the regulations,” the Department said. The regulations became effective Jan. 18, 1978.

Eric Hirschorn, Deputy Assistant Secretary of Commerce for export administration, said “The

Office of Anti-Boycott Compliance conducted a thorough investigation of Raytheon’s international transactions and Raytheon’s anti-boycott program. As a result of the findings of that investigation, the Department has determined that it need not order Raytheon to implement a more effective compliance program than it already has in place.” The Department’s letter charging Raytheon was addressed to Philip Phalon, the firm’s vice president for international affairs.

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