Summary: Pursuant to a congressional request, GAO provided information regarding a Canadian firm's sale of helicopter engine parts, some of which were of U.S. origin, to an Iranian company.
GAO found that the Canadian firm: (1) had a $2.8-million helicopter parts contract with the Iranian firm; (2) exported about $624,000 worth of parts to Iran in October 1986, of which 2.7 percent were of U.S. origin; (3) obtained an export permit in accordance with Canadian laws; and (4) suspended further shipments following the disclosure of U.S. arms sales to Iran. GAO also found that the Department of Commerce: (1) believed that the Iranian company ordered the parts for military helicopters; (2) determined that the ordered items were not subject to its export approval under the applicable regulations; (3) had previously considered expanding controls on exports to Iran to cover nonstrategic aircraft parts having a military application, but did not do so until November 1987; and (4) reported that the expanded controls will have a small effect on the U.S. economy and contain no provisions that are likely to raise allied concerns.
