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  1. 1. 57770 Federal Register / Vol. 67, No. 177 / Thursday, September 12, 2002 / Proposed Rules each U.S. business enterprise in which (A) Total assets (do not net out its being subject to reporting in the 2002 a foreign person (foreign parent) owned liabilities); benchmark survey), but is exempt from (B) Sales or gross operating revenues, or controlled, directly or indirectly, 10 filing Form BE–12(LF), Form BE–12(SF), excluding sales taxes; percent or more of the voting securities and Form BE–12 Bank; and (C) Net income after provision for U.S. if an incorporated U.S. business (ii) Each U.S. business enterprise, or income taxes, or enterprise, or an equivalent interest if an its agent, that is contacted, in writing, (iii) On a fully consolidated basis, or, unincorporated U.S. business by BEA concerning its being subject to in the case of real estate investment, on enterprise, at the end of the business reporting in the 2002 benchmark survey an aggregated basis, one or more of the enterprise’s 2002 fiscal year. A report is but that is not otherwise required to file following three items for a minority- required even though the foreign the Form BE–12(LF), Form BE–12(SF), owned U.S. affiliate (not just the foreign person’s ownership interest in the U.S. or Form BE–12 Bank. parent’s share) exceeded $10 million business enterprise may have been (d) Aggregation of real estate (positive or negative) at the end of, or established or acquired during the investments. All real estate investments for, its 2002 fiscal year (a ‘‘minority- reporting period. Beneficial, not record, of a foreign person must be aggregated owned’’ U.S. affiliate is one in which ownership is the basis of the reporting for the purpose of applying the the combined direct and indirect criteria. reporting criteria. A single report form ownership interest of all foreign parents (c) Forms to be filed. (1) Form BE– must be filed to report the aggregate of the U.S. affiliate is 50 percent or less): 12(LF)—Benchmark Survey of Foreign holdings, unless written permission has (A) Total assets (do not net out Direct Investment in the United States— been received from BEA to do liabilities); 2002 (Long Form) must be completed otherwise. Those holdings not (B) Sales or gross operating revenues, and filed by May 31, 2003, by each U.S. aggregated must be reported separately. excluding sales taxes; business enterprise that was a U.S. (e) Exemption. (1) A U.S. affiliate as (C) Net income after provision for U.S. affiliate of a foreign person at the end of consolidated, or aggregated in the case income taxes. its 2002 fiscal year and that was of real estate investments, is not (3) Form BE–12 Bank—Benchmark majority-owned by one or more foreign required to file form BE–12(LF), BE– Survey of Foreign Direct Investment in parents (a ‘‘majority-owned’’ U.S. 12(SF), or Form BE–12 Bank if each of the United States—2002 BANK must be affiliate is one in which the combined the following three items for the U.S. completed and filed by May 31, 2003, direct and indirect ownership interest of affiliate (not just the foreign parent’s by each U.S. business enterprise that all foreign parents of the U.S. affiliate share) did not exceed $10 million was a U.S. affiliate of a foreign person exceeds 50 percent), if: (positive or negative) at the end of, or at the end of its 2002 fiscal year, if: (i) It is not a bank or a bank holding for, its 2002 fiscal year: (i) The U.S. affiliate is in ‘‘banking’’, company, and is not owned directly or (i) Total assets (do not net out which, for purposes of the BE–12 indirectly by a U.S. bank holding liabilities); survey, covers business enterprises company, and (ii) Sales or gross operating revenues, engaged in deposit banking or closely (ii) On a fully consolidated basis, or, excluding sales taxes; and related functions, including commercial in the case of real estate investment, on (iii) Net income after provision for banks, Edge Act corporations engaged in an aggregated basis, one or more of the U.S. income taxes. international or foreign banking, U.S. following three items for the U.S. (2) If a U.S. business enterprise was a branches and agencies of foreign banks affiliate (not just the foreign parent’s U.S. affiliate at the end of its 2002 fiscal whether or not they accept domestic share) exceeded $125 million (positive year but is exempt from filing a deposits, savings and loans, savings or negative) at the end of, or for, its 2002 completed Form BE–12(LF), BE–12(SF), banks, and bank holding companies, fiscal year: or Form BE–12 Bank, it must including all subsidiaries or units of a (A) Total assets (do not net out nevertheless file a completed and bank holding company and liabilities); certified Form BE–12(X). (ii) On a fully consolidated basis, one (B) Sales or gross operating revenues, (f) Due date. A fully completed and or more of the following three items for excluding sales taxes; certified Form BE–12(LF), Form BE– (C) Net income after provision for U.S. the U.S. affiliate (not just the foreign 12(SF), or BE–12 Bank is due to be filed income taxes. parent’s share) exceeded $10 million with BEA not later than May 31, 2003. (2) Form BE–12(SF)—Benchmark (positive or negative) at the end of, or A fully completed and certified Form Survey of Foreign Direct Investment in for, its 2002 fiscal year: BE–12(X) is due to be filed with BEA the United States—2002 (Short Form) (A) Total assets (do not net out within 30 days of the date it was must be completed and filed by May 31, liabilities); received, or by May 31, 2003, whichever (B) Sales or gross operating revenues, 2003 by each U.S. business enterprise is sooner. excluding sales taxes; that was a U.S. affiliate of a foreign (C) Net income after provision for U.S. person at the end of its 2002 fiscal year, [FR Doc. 02–23099 Filed 9–11–02; 8:45 am] income taxes. if: BILLING CODE 3510–06–P (4) Form BE–12(X)–Benchmark (i) It is not a bank or a bank holding Survey of Foreign Direct Investment in company, and is not owned directly or the United States-2002 Claim for indirectly by a U.S. bank holding CONSUMER PRODUCT SAFETY Exemption from Filing BE–12(LF), BE– company, and COMMISSION (ii) On a fully consolidated basis, or, 12(SF), and BE–12 Bank must be in the case of real estate investment, on completed and filed within 30 days of 16 CFR Part 1610 an aggregated basis, one or more of the the date it was received, or by May 31, following three items for a majority- 2003, whichever is sooner, by: Standard for the Flammability of owned U.S. affiliate (not just the foreign (i) Each U.S. business enterprise that Clothing Textiles; Advance Notice of parent’s share) exceeded $10 million, was a U.S. affiliate of a foreign person Proposed Rulemaking but no one item exceeded $125 million at the end of its 2002 fiscal year (positive or negative) at the end of, or (whether or not the U.S. affiliate, or its AGENCY: Consumer Product Safety for, its 2002 fiscal year: agent, is contacted by BEA concerning Commission. VerDate Sep<04>2002 15:11 Sep 11, 2002 Jkt 197001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:FRFM12SEP1.SGM 12SEP1
  2. 2. 57771 Federal Register / Vol. 67, No. 177 / Thursday, September 12, 2002 / Proposed Rules ACTION: Advance notice of proposed when worn by individuals.’’ The FFA of flame spread is less than 4 seconds (31⁄2 rulemaking. 1953 specified that a test, first published seconds for plain-surfaced fabrics) or by the Department of Commerce as a the specimens do not burn, five SUMMARY: The Commission is voluntary commercial standard, then additional specimens must be tested considering amending the flammability called ‘‘Flammability of Clothing and the average time of flame spread for standard for clothing textiles. The Textiles, Commercial Standard (‘‘CS’’) these ten specimens taken. Id. standard, originally issued in 1953, has 191–53,’’ shall be used to determine if 1610.4(g)(7). Classification is based on become outdated in several respects. fabric or clothing is ‘‘so highly the reported results before and after The Commission is considering changes flammable as to be dangerous when drycleaning and washing, whichever is that would enable the standard to better worn by individuals.’’ lower. Id. 16110.4(g)(8). reflect current consumer practices and In 1967, Congress amended the FFA, B. Statutory Provisions technologies and would clarify several expanding its coverage and authorizing aspects of the standard. The The FFA sets forth the process by the Secretary of Commerce to issue Commission invites comments which the Commission can issue or flammability standards through concerning the risk of injury identified amend a flammability standard. The rulemaking. A savings clause kept the in this notice, the regulatory alternatives Commission first must issue an advance flammability standard for clothing being considered, and other possible notice of proposed rulemaking textiles that the 1953 Act had mandated alternatives. The Commission also (‘‘ANPR’’) which: (1) Identifies the into effect until superseded or modified invites submission of any existing fabric or product and the nature of the by the Secretary of Commerce through standard or statement of intention to risk associated with the fabric or the procedures specified in the 1967 modify or develop a voluntary standard product; (2) summarizes the regulatory amendment. See section 11 of Public to address the flammability risk of alternatives under consideration; (3) Law 90–189, 81 Stat. 568, December 14, clothing textiles. provides information about existing 1967. In 1972, Congress established the DATES: Comments and submissions relevant standards and reasons why the Consumer Product Safety Commission must be received by November 12, 2002. Commission does not preliminarily when it enacted the Consumer Product believe that these standards are ADDRESSES: Comments should be Safety Act (‘‘CPSA’’), 15 U.S.C. 2051 et adequate; (4) invites interested persons mailed, preferably in five copies, to the seq. The CPSA transferred to the to submit comments concerning the Office of the Secretary, Consumer Commission the authority the Secretary identified risk of injury, regulatory Product Safety Commission, of Commerce had to issue and amend alternatives being considered, and other Washington, DC 20207–0001, or flammability standards under the FFA. possible alternatives; (5) invites delivered to the Office of the Secretary, 15 U.S.C. 2079(b). In 1975, the submission of an existing standard or Consumer Product Safety Commission, Commission codified the FFA of 1953 at portion of a standard as a proposed Room 502, 4330 East-West Highway, 16 CFR 1609 and the Standard for the regulation; and (6) invites submission of Bethesda, Maryland 20814; telephone Flammability of Clothing Textiles at 16 a statement of intention to modify or (301) 504–0800. Comments also may be CFR part 1610. It is this standard that develop a voluntary standard to address filed by telefacsimile to (301) 504–0127 the Commission is considering the risk of injury. 15 U.S.C. 1193(g). or by email to cpsc-os@cpsc.gov. amending. If, after reviewing comments and Comments should be captioned submissions responding to the ANPR, ‘‘Clothing ANPR.’’ 2. The Current Standard the Commission determines to continue FOR FURTHER INFORMATION CONTACT: The clothing textile standard the rulemaking proceeding, it will issue Margaret Neily, Directorate for describes a test apparatus and the a notice of proposed rulemaking. This Engineering Sciences, Consumer procedures for testing clothing and notice must contain the text of the Product Safety Commission, textiles intended for clothing. It proposed rule along with alternatives Washington, DC 20207; telephone (301) establishes three classes of flammability: the Commission has considered and a 504–0508, extension 1293. Class 1 or normal flammability; class 2 preliminary regulatory analysis. 15 SUPPLEMENTARY INFORMATION: or intermediate flammability; and class U.S.C. 1193(i). Before issuing a final 3 or rapid and intense burning. Clothing A. Background rule, the Commission must prepare a and textiles that are categorized as class final regulatory analysis, and it must 1. History of the Standard 3 under the prescribed test method are make certain findings concerning any The Commission is considering considered dangerously flammable. 16 relevant voluntary standard, the amending the Standard for the CFR 1610.3 relationship of costs and benefits of the To determine the appropriate Flammability for Clothing Textiles, 16 rule, and the burden imposed by the classification, the standard prescribes CFR Part 1610, which covers clothing regulation. Id. 1193(j). The Commission the method of testing. Five specimens and textile fabrics intended for use in also must provide an opportunity for are subjected to a flammability tester. clothing. It excludes hats, gloves, interested persons to make an oral This is a draft-proof ventilated chamber footwear, and interlining fabrics. The presentation before the Commission containing an ignition medium, a standard provides a test to determine issues a final rule. Id. 1193(d). sample rack and an automatic timing whether such clothing and fabrics C. Possible Amendment device. Id. 1610.4(b). The ignition exhibit ‘‘rapid and intense burning,’’ medium is a spring-motor driven gas jet and are therefore highly flammable. This notice initiates the rulemaking In 1953, Congress enacted the around a 26-gage hypodermic needle. process to amend the flammability Flammable Fabrics Act of 1953 (‘‘FFA’’), Id. 1610.4(b)(6). A swatch of each standard for clothing and textiles (Pub. L. 83–88, 67 Stat. 111). As enacted sample must be subjected to the dry intended for clothing. in 1953 and amended in 1954, the FFA cleaning and hand washing procedure 1. The Products prohibited the importation, manufacture prescribed by the standard. Id. for sale, or the sale in commerce of any 1610.4(d)&(e). To determine results, the The products of concern are clothing article of wearing apparel, which is ‘‘so average time of flame spread is taken for and fabrics intended to be used for highly flammable as to be dangerous five specimens. However, if the time of clothing. The flammability standard VerDate Sep<04>2002 15:11 Sep 11, 2002 Jkt 197001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:FRFM12SEP1.SGM 12SEP1
  3. 3. 57772 Federal Register / Vol. 67, No. 177 / Thursday, September 12, 2002 / Proposed Rules applies to all items of clothing, and and use in this manner violates Manual could be used to clarify both of fabrics used for such clothing, whether regulations issued by the Environmental these procedures. The Commission is for adults or children, for daywear or Protection Agency. The Commission also considering whether to add nightwear. The Commission has staff has not used this procedure since directions on how to test specialty regulations governing the flammability 1986. (The standard allows alternate fabrics. Clarify when to test 5 additional of sleepwear, 16 CFR 1615 and 1616, procedures if they are as stringent as the specimens. The standard states that for that are more stringent than this general specified procedure.) An alternative plain-surface fabrics if the time of flame wearing apparel flammability standard. procedure using commercial dry spread is less than 3.5 seconds or if the The possible changes the Commission cleaning procedures and washing/ first five specimens do not burn, five discusses in this notice would not affect tumble drying as provided in ASTM D additional specimens should be tested. the sleepwear standards. The changes 1230 appears to be just as stringent, if 16 CFR 1610.4(g)(7). However, CPSC the Commission is considering would not more so, as the outdated dry testing experience has shown that if the not affect the scope of the standard, but cleaning procedures required by 16 CFR first five specimens do not ignite, the would modernize the test method. part 1610. Changes to the hand washing next five specimens will not ignite 2. The Risk of Injury procedure. The current standard either. The CPSC Engineering According to the standard, its purpose requires that after fabric specimens are Laboratory Test Manual states that if is to ‘‘reduce danger of injury and loss dry cleaned they must be hand washed none of the first five specimens burns, of life by providing, on a national basis, with neutral chip soap and line dried five additional specimens should not be standard methods of testing and rating before testing them for flammability. 16 tested. As for raised-fiber surfaces, the flammability of textiles and textile CFR 1610.4(e). However, this practice is whose burning characteristics are products for clothing use, thereby outdated. Neutral chip soap is no longer complicated, the standard does not discouraging the use of any dangerously available to consumers, who now use clearly specify when it is necessary to flammable clothing textiles.’’ 16 CFR non-phosphate detergent and usually test five additional specimens. CPSC’s 1610.1. Any amendments the use home washers and dryers. Test Manual could be used to clarify Commission is considering would Moreover, limited testing by CPSC this. continue to address this risk of injury. Clarify when base fabric ignition indicates that for some raised surfaces Changes to the test method to better occurs. Whether the base fabric ignites the machine wash/tumble dry method is reflect current practices and during testing is important because it is more stringent than the procedure now technologies and clarify some aspects of a factor in determining whether required by the standard. The the standard may improve the additional testing is necessary and what Commission is considering laundering the fabric classification should be. standard’s ability to address the risk of requirements similar to those prescribed However, the standard provides no clear injury. Based on the most recent five in American Association of Textile definition of base burn for raised-surface years of available data, 153 deaths and Chemists and Colorists (‘‘AATCC’’) 124– fabrics. The Appendix of CS 191–53, an estimated 4,000 hospital emergency 1996. This would be consistent with which was not incorporated in the FFA, department-treated injuries result changes the Commission recently made clearly defines base burn and surface annually from the ignition of clothing. to the laundering requirements for flash. CPSC’s Test Manual also contains flammability standards for children’s 3. Regulatory Alternatives a clarification. These could be added to sleepwear, carpets and rugs, and The Commission is considering the standard. mattress pads. 65 FR 12924, 12929, and changes to the clothing textile Add test result codes. The standard 12935 (March 10, 2000). flammability standard that would provides no codes to report complex test The Commission is also considering modernize and clarify it. Only minimal results consistently. CPSC developed clarifying several portions of the changes, such as removing obsolete some codes many years ago to record standard. When the staff conducts footnotes, have been made since its test results. Industry members and test flammability testing it follows CPSC’s development in 1953. However, laboratories have adopted some of the Laboratory Test Manual. The Test clothing and technology have CPSC codes, but also developed some of Manual provides specific directions that undergone many changes in that time. their own codes. Uniform result codes aid in appropriate testing. The Below, is a discussion of the changes would facilitate reporting accuracy, Commission is considering using some the Commission is considering at this understanding of flammability portions of the Test Manual to clarify point. aspects of the standard, as discussed performance, and resolution of test Changes to the flammability tester. below. result differences among laboratories. Clarify selection of surface/direction The flammability tester prescribed in Clarify calculations for determining for testing. The standard requires that the current standard is a mechanical burn rates and classification. The for textiles without a raised-fiber apparatus that is no longer available. standard generally describes the surface, ‘‘the long dimension shall be Apparel manufacturers and other testing procedures of calculating average time that in which they burn most rapidly, laboratories now use more modern of flame spread. However, it does not and the more rapidly burning surface flammability testers that incorporate clearly state the method to determine shall be tested.’’ 16 CFR 1610.4(a)(2). electronic timers and several other the flame spread time for raised-fiber However, the standard does not clearly electro-mechanical devices that control surface fabrics. More specific direction describe how to select the sample and apply flame impingement. The on calculating average flame spread surface and direction for testing. Commission is considering requiring a time would enable more accurate fabric Similarly, for textiles with a raised-fiber more modern flammability tester. classification. Changes to the dry cleaning surface, specimens must be taken from Specify different desiccant. The procedure. The method of dry cleaning the part that has the fastest rate of standard specifies anhydrous calcium the current standard prescribes requires burning. 16 CFR 1610(a)(3). However, chloride as the desiccant to allow perchloroethylene in an open vessel. the standard does not describe how to specimens to cool before testing without However, perchloroethylene has been determine which area is the most reabsorbing moisture. CFR 1610 shown to cause cancer in animal tests, flammable. Language from CPSC’s Test 1610.4(f). However, CPSC’s Test Manual VerDate Sep<04>2002 15:11 Sep 11, 2002 Jkt 197001 PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 E:FRFM12SEP1.SGM 12SEP1
  4. 4. 57773 Federal Register / Vol. 67, No. 177 / Thursday, September 12, 2002 / Proposed Rules specifies silica gel. Silica gel is more standard is to determine whether 3. updating the laundering method effective, reliable and economical. normal to very sensitive fabrics can be described in the standard; Other possible changes. The dry cleaned by examining dimensional 4. revising or clarifying confusing test Commission is considering several other changes after three to five cleaning procedures; possible changes. For example, the treatments. It uses a commercial dry 5. developing standardized language Commission is considering some cleaning machine containing for interpreting and reporting test changes to the organization of the perchloroethylene and a detergent results; standard to consolidate it and make it 6. reorganizing some text of the rule followed by some form of steam easier to understand. The Commission for clarity; and treatment and/or hot pressing (a lesser is also considering: Specifying that tape 7. clarifying or amending the drying temperature or line drying is can be used to secure specimens in the exemptions from the requirements for used for fabrics containing heat specimen holder; specifying the purpose testing to support guaranties at sensitive fibers). This standard uses a of brushing specimens and when 1610.37(d). modern procedure, a commercial dry replacing the brush is necessary; cleaning machine, but such a machine Dated: September 9, 2002. specifying the details of specimen would not necessarily be available in Todd A. Stevenson, conditioning; and requiring only the the U.S. and would have to have Secretary, Consumer Product Safety type of laundering/drycleaning appropriate environmental controls Commission. specified on a garment’s care label. The installed. The standard does not have a Commission is also considering List of Relevant Documents laundering procedure. clarifying and amending regulations Canadian General Standards Board 1. Briefing memorandum from Jacqueline concerning fabrics exempted from (‘‘CGSB’’) CAN/CGSB–4.2 No. 30.3–94, Elder, Acting Assistant Executive Director, testing for guaranties. See 16 CFR Procedure for the Removal of Non- EXHR and Margaret Neily, Project Manager, 1610.37(d). permanent Flame-retardant Treatments Directorate for Engineering Sciences, to the from Textile Products. The purpose of Commission, ‘‘Amending the Standard for 4. Existing Relevant Standards the Flammability of Clothing Textiles, 16 this dry cleaning and laundering The Commission staff conducted a CFR 1610,’’ May 29, 2002. standard is to test fabrics for the review to find other relevant textile 2. Memorandum from Weiying Tao, presence of nonpermanent flame- standards. The staff found three relevant Division of Electrical Engineering, to retardant treatments applied to textile Margaret Neily, Project Manager, ‘‘Amending standards with modern dry cleaning products. The procedures specify that the Flammability Tester Specifications, the methods and/or laundering methods. the fabric should be initially dry Dry Cleaning and Washing Procedures of the American Society for Testing and cleaned in either a coin-operated CPSC Flammability Regulations in 16 CFR Materials (ASTM)D 1230–94, Standard perchloroethylene dry cleaning machine 1610,’’ February 28, 2002. Test Method for Flammability of or in any commercial dry cleaning 3. Memorandum from Weiying Tao, Apparel Textiles. This voluntary Division of Electrical Engineering, to operation. This is followed by standard provides methods for testing Margaret Neily, Project Manager, ‘‘Alternate laundering in a domestic-type washing and evaluating the flammability of Dry Cleaning and Washing Requirements of machine using neutral chip soap and textile fabrics used as apparel in both Apparel Specified in Standards Other than dried according to the care instructions original state condition and after 16 CFR Part 1610 Standard for the provided by the fabric manufacturer. Flammability of Clothing Textiles,’’ March 1, refurbishment. The standard specifies One dry cleaning and one laundering 2002. two dry cleaning options. However, cycle are recommended. The washing 4. Memorandum from Weiying Tao, only one—any commercial dry cleaning machine specified in this standard is (previously) on detail to ESME, to Margaret operation in a closed environment for not currently available in the U.S. Neily, Project Manager, ‘‘Proposed Revisions one cycle—is still available. After the for the Standard for the Flammability of fabric is dry cleaned, it is laundered 5. Invitations to Comment Clothing Textiles,’’ March 25, 2002. using home-type washing and drying In accordance with section 4(g) of the [FR Doc. 02–23273 Filed 9–11–02; 8:45 am] machines. The standard refers to the FFA, the Commission invites comments American Association of Textile BILLING CODE 6355–01–P on this notice, specifically: Chemists and Colorists (AATCC) Test 1. Comments concerning the risk of Method 135 entitled Dimensional injury identified in this notice, the DEPARTMENT OF TRANSPORTATION Changes in Automatic Home regulatory alternatives discussed above, Laundering of Woven and Knit Fabrics. and other alternatives to address the risk Coast Guard This voluntary standard specifies the of injury; type of detergent, washing and drying 2. an existing standard or portion of 33 CFR Part 117 conditions and washer and dryer a standard as a proposed rule; specifications. An analysis of the 3. a statement of intention to modify [CGD05–02–054] laboratory test data from an ASTM or develop a voluntary standard to RIN 2115–AE47 interlaboratory round robin conducted address the risk of injury identified in in 1991 indicates that for specimens the notice along with a description of a Drawbridge Operation Regulations; subjected to ASTM D 1230 (both dry plan to modify or develop the standard. Manasquan River, NJ cleaning and machine laundering In addition, the Commission is followed by tumble drying procedures Coast Guard, DOT. interested in obtaining further AGENCY: specified in AATCC Test Method 135), information and comments about the Notice of proposed rulemaking. ACTION: this flammability test was as stringent or possible changes to the clothing SUMMARY: The Coast Guard proposes to more stringent than the refurbishing flammability standard discussed above, change the regulations that govern the procedure in 16 CFR part 1610. such as: British Standards Institution (‘‘BSI’’) operation of the Route 70 Bridge across 1. Modernizing the flammability BS EN ISO 3175: 1996 Textile— the Manasquan River. The proposed tester; Evaluation of Stability to Machine 2. updating the prescribed dry rule would limit the required openings Drycleaning. The purpose of this cleaning method; of the draw year-round from 7 a.m. to VerDate Sep<04>2002 15:11 Sep 11, 2002 Jkt 197001 PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 E:FRFM12SEP1.SGM 12SEP1