WASHINGTON – Citing the importance of the high tech industry in continuing U.S. economic growth, Assistant Democratic Leader Senator Harry Reid (D-NV) today urged his Senate colleagues to take up the Export Administration as soon as possible. Senator Reid's floor statement follows:

"I want to talk this morning about export controls. We all boast and are enthused about what is going on with the high tech industry in America. There are stories of people who have made huge amounts of money in the new economy and the capability of the technology that has been developed is truly remarkable.

"This little thing I carry in my pocket, a Palm Pilot, has all my addresses, phone numbers and schedule. It has in it a dictionary and a calculator and the Old and New Testament. It is unbelievable what it can do. While we are talking a good game, we aren't doing a very good job to do something to support the strong economy and make sure the high-tech industry is allowed to grow our economy. To do this, we must pass the Export Administration Act. If we don't act the very real possibility exists that the jobs in this industry will shift overseas.

"I do not support decontrolling sensitive military equipment that will that will harm our national security, but by the same token, the Bureau of Export Administration and the Defense Department are still conducting business under Cold War regulations. The Cold War is over and we must understand that the economic and political world has changed dramatically.

"Last year I met with Senators Gramm, Enzi and Johnson to discuss this issue, and they, together with Senator Lott agreed to move the Export Administration Act before the end of 1999. Now each one of those gentlemen have lived up to what they said they would do. They've tried to move a bill. The Chairman of the Banking Committee, Senator Gramm, has worked very hard to move this legislation. They've all worked hard, but frankly, the Majority is unable to join with us to allow us to move this bill forward. When the bill passed out of the Banking Committee, it had the full support of the committee. However, I am afraid, Mr. President, that due to serious disagreements in the Majority, this bill will not come to the floor anytime soon. This is unfortunate. The Majority must move this bill and by not doing so, we are not doing what we need to do to keep our burgeoning economy moving forward.

"A couple of days ago, Mr. President, I met with members of the high-tech industry. They voiced concerns about the need to update our export policies. They said it was one of their two or three top concerns and frankly, a few members of the majority are stopping our progress. As with many issues I often hear Congress would best serve the public and industry by doing nothing at all. That's simply not true. This is one area we can be of great help to the high tech community. There are currently a number of U.S. products that can't compete with foreign companies due to export control limitations, not because of national security interests, but because of a slow review process in Congress. We are trying to change that. In June 1999, and in January of this year, with the urging of the Minority leader, Senator Daschle, myself and others, the Administration agreed to ease the level of controls that are referred to as MTOPS, million theoretical operations per second. We as well as those in the computer industry were elated by this news. However, now there is a six month period of review.

"The Banking Committee bill reduces it from 180 days to 60 days. However, I and Senators Bennett from Utah, Dashcle, Kerry of Massachusetts, Murray, Bingaman, Kennedy and Boxer, believe a further reduction is necessary. We believe it should be reduced to 30 days. There is an amendment pending if this bill ever comes to floor to reduce it to 30 days and I am confident it will pass overwhelmingly. By limiting American companies to the degree we have, we are not only losing short term market share, but we are also allowing foreign companies to make more money and in turn, create better products, which in the future, have the potential to capture a market we have dominated. If this happens, we will probably lose our competitive advantage in this growing economic sector, an area that has propelled economic growth over the past eight years. Mr. President, I urge the Majority to move this bill forward to allow the amendment process and let's get on with it."