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[Federal Register: May 10, 1996 (Volume 61, Number 92)] 
[Proposed Rules]
[Page 21404]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
     
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POSTAL SERVICE
     
39 CFR Part 233
     
     
Addition of Commercial Espionage to Mail Cover Regulations
     
AGENCY: Postal Service.
     
ACTION: Proposed rule.
     
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SUMMARY: This proposed rule will amend the United States Postal 
Service's mail cover regulations to add commercial espionage by foreign 
sources as a criminal activity for which national security mail covers 
may be authorized. This change is effected by expanding the definition 
of ``protection of the national security'' found at 39 CFR 233.3(c)(9) 
to include commercial espionage.
     
DATES: Comments must be received on or before June 10, 1996.
     
ADDRESSES: Written comments should be mailed or delivered to Counsel, 
Postal Inspection Service, 475 L'Enfant Plaza SW, Room 3411, 
Washington, DC 20260-2181.
     
FOR FURTHER INFORMATION CONTACT: Henry J. Bauman, Counsel, Postal 
Inspection Service, (202) 268-4415.
     
SUPPLEMENTARY INFORMATION: Postal Service regulations on mail covers are 
published in Title 39 of the Code of Federal Regulations (CFR) at Sec. 
233. Paragraph (c)(9) of Sec. 233.3 currently defines ``protection of 
the national security'' as ``actual or potential threats to the security 
of the United States of America by a foreign power or its agents.'' This 
definition will be expanded to include commercial espionage.
    Commercial espionage by foreign sources has become an increasing
threat to the economic well-being and ability of the United States to 
compete in the international market. For the purposes of this proposed 
revision, ``commercial espionage'' is defined as either ``economic 
espionage'' or ``industrial espionage.'' According to the Federal 
Bureau of Investigation (FBI) white paper, FBI Strategy to Address the 
Problem of Economic Espionage and Industrial Espionage (Washington, DC: 
FBI Headquarters, undated), ``economic espionage'' is ``government- 
directed, sponsored, or coordinated intelligence activity, which may or 
may not constitute violation of the law, conducted for the purpose of 
enhancing that country's or another country's economic competitiveness 
by the use of the information by the foreign government or by providing 
it to a foreign business entity thereby giving that entity a 
competitive advantage in the marketplace.'' ``Industrial espionage'' is 
defined by the FBI as ``individual or private business entity 
sponsorship or coordination of intelligence activity conducted for the 
purpose of enhancing a private business and its competitive advantage 
in the marketplace, which is a violation of law.''
    Revising the Postal Service's national security mail cover
regulations to include commercial espionage will enhance the ability of 
law enforcement to protect national security.
     
List of Subjects in 39 CFR Part 233
     
    Administrative practice and procedures, Banks and banking, Credit,
Crime, Law Enforcement, Postal Service, Privacy, Seizure and 
forfeiture.
     
    Accordingly, 39 CFR 233 is proposed to be amended as set forth
below.
     
PART 233--INSPECTION SERVICE/INSPECTOR GENERAL AUTHORITY
     
    1. The authority citation for part 233 continues to read as
follows:
     
    Authority: 39 U.S.C. 101, 401, 402, 403, 404, 406, 410, 411,
3005(e)(1); 12 U.S.C. 3401-3422; 18 U.S.C. 981, 1956, 1957, 2254, 
3061; 21 U.S.C. 881; Inspector General Act of 1978, as amended (Pub. 
L. No. 95-452, as amended), 5 U.S.C. App.3.
     
    2. Paragraph (c)(9) of Sec. 233.3 is revised to read as follows:
     
     
Sec. 233.3  Mail covers.
     
* * * * *
    (c) * * *
    (9) Protection of the national security means to protect the United
States from any of the following actual or potential threats to its 
security by a foreign power or its agents:
    (i) An attack or other grave, hostile act; 
    (ii) Sabotage, or international terrorism; or
    (iii) Clandestine intelligence activities, including commercial
espionage.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-11768 Filed 5-9-96; 8:45 am] 
BILLING CODE 7710-12-P