WASHINGTON – Congressmen Patrick J. Kennedy (D-RI) and
Adam Smith (D-WA) are seeking to speed up the review process of the sale
of U.S. high-powered computers.
According to current law, a Congressional review of
high-powered computer exports must wait six months. In a letter today to
Floyd Spence (R-SC), chairman of the House Armed Services Committee,
Kennedy and Smith have asked for a 30-day review to streamline the
process and maintain U.S. technological leadership and competitiveness
in the industry.
"The current six-month lag in our policy is obsolete and
puts our computer industry at a clear disadvantage," said Kennedy. "We
must realize that this industry rolls out a new generation personal
computer every three months. To delay product delivery may result in
irrecoverable market losses for U.S. companies."
On June 22, 79 members of Congress sent a letter to
President Clinton urging him to relax export controls. Recognizing the
need to calibrate the policy, the President proposed a revision to U.S.
export controls on computers on July 1, 1999.
The President submitted a report to Congress that
justifies and spells out the proposed revisions on July 23. Any
adjustment of the licensing threshold must wait 180 days before taking
effect.
"Changing the review period from six months to one month
is not a question of national security; rather, it is about eliminating
unnecessary red tape. Right now, Congress spends thirty days to review
foreign sales of an F-16 fighter plane, and forty-five days to review an
entire military installation closure," said Smith. "I think we can
determine whether or not we can export a Macintosh PC in 30 days."
Kennedy and Smith pointed out that as more members of
Congress become aware of the180 day delays in the export adjustment
policy, they will want to see the process streamlined.
Congresswoman Zoe Lofgren (D-CA) has introduced
legislation, HR 2623, which amends the National Defense Authorization
Act for fiscal year 1998, by striking 180 days, and inserting 30 days.
"We must take action to deal with the rapid growth in our
technology industry, and this legislation shows the critical nature and
timeliness of this issue," said Kennedy.
Along with Kennedy and Smith, 10 of their Democratic
colleagues on the House Armed Services Committee signed the letter to
Spence and Congressman Ike Skelton (D-MO), the ranking member of the
committee: Reps. Mike Thompson (D-CA), John Larson (D-CT), Jim Maloney
(D-CT), Ellen Tauscher (D-CA), Martin Meehan (D-MA), Loretta Sanchez
(D-CA), Baron Hill (D-IN), Cynthia McKinney (D-GA), Robert E. Andrews
(D-NJ), and Robert A. Brady (D-PA).
(Attached is a copy of the letter sent by Kennedy and
Smith)
October 19, 1999
The Honorable Floyd Spence
2340 Rayburn House Office
Building
Washington, D.C. 20515-5035
The Honorable Ike Skelton
2120 Rayburn House Office
Building
Washington, D.C. 20515-5035
Dear Sirs,
In 1997, the House Armed Services Committee predicted the
President would need to update export controls on high-powered computers
from time to time. As a result, the Committee clearly explained the
process for adjusting export control levels in the National Defense
Authorization Act (NDAA) for fiscal year 1998. We are writing to urge
you to streamline this process.
On June 22,1999 seventy-nine Members of Congress sent a
letter to President Clinton urging him to relax export controls on high
powered computers because, as the letter stated, "failure to update
those controls as soon as possible will lead to a decline in U.S.
technological leadership and competitiveness." Recognizing the need to
calibrate this policy, the President proposed a revision to U.S. export
controls on computers on July 1, 1999. According to section 1211 (d) of
the FY98 NDAA, the President submitted a report to Congress that
justifies and spells out the proposed revisions on July 23, 1999.
The President's proposal includes adjusting the composite
theoretical performance licensing threshold for Tier 3 and Tier 2
countries. According to the law, the adjustment of the licensing
threshold must wait 180 days before taking effect.
As you know, the Administration updates export control
thresholds only when they determine changes will not undermine national
security, and when the export policy unnecessarily impedes U.S.
competition in the international marketplace. The current six-month lag
after the Administration has deemed an export policy obsolete undermines
the purpose of the export policy change. In an industry that rolls out a
new generation personal computer every three months, delaying product
delivery may result in irrecoverable market losses. We believe thirty
days provides Congress sufficient time to review the Administration's
report. Also, we find that a 30-day review process is consistent with
many other export review periods. For instance, Congress spends thirty
days to review foreign sales of an F-16, and forty-five days to review
an entire military installation closure. Mr. Chairman, as more Members
of Congress become aware of the 180 and 120 day delays in our export
adjustment policy, they want to see the process streamlined. In fact,
Ms. Lofgren (D-CA) has introduced a bill, HR 2623, that amends the
National Defense Authorization Act for Fiscal Year 1998 by striking 180
days, and inserting 30 days. This legislation shows the criticality and
timeliness of this issue.
As members of the House Armed Services Committee, we have
no higher priority than maintaining our national security. We believe
streamlining our export control adjustment process will strengthen the
contribution the IT industry makes to ensuring that the United States
has the most advanced military in the world.
We appreciate your sincere attention to this important
matter.
Sincerely,
Patrick Kennedy
Member of Congress
Adam Smith
Member of Congress