SENATE ADOPTS REID PROVISION TO SHORTEN CONGRESSIONAL REVIEW PERIOD
FOR SALE OF HIGH PERFORMANCE COMPUTERSMeasure will promote
competitiveness of U.S. high-tech industry
July 12, 2000
WASHINGTON – An amendment today to S.2549,
the Defense Department Authorization bill to shorten the congressional
review period for the sale of high performance computers by American
high-tech companies passed the U.S. Senate, U.S. Senator Harry Reid
announced today. The amendment, offered by Senator Reid and Senator Robert Bennett (R-UT) passed the
Senate by a vote of 86 to 11.
"Today's vote is a big victory for the U.S. high technology industry
and for the jobs and economic growth that this important industry has
generated," Reid said.
Under a law adopted in 1998, American exporters of high-performance
computers (computers operating at 2,000 million theoretical operations per
second) are subject to a six-month (180 days) congressional review period.
The Reid amendment will reduce the congressional review period to 60 days.
Because an identical provision was included in the House DOD authorization bill, Reid's
amendment is now on a fast track to become the law of the land.
"This legislation will help ensure that U.S. high tech firms can
compete on a level playing field with their global counterparts. High
performance computers are widely available in the world market, so it
makes little sense to subject U.S. firms to a burdensome and
discriminatory waiting period," said Senator Reid, Assistant Democratic
Leader and Chairman of the Senate Democrats High Tech Working Group.
In offering the amendment, Reid said that at the rate technology is
advancing, many U.S. products become obsolete after the six month delay.
This becomes a national security issue since U.S. companies that provide
consumers with cutting edge technologies are being replaced by foreign
computer companies in overseas markets. Changing the waiting period to 60
days will ensure U.S. companies keep their competitive edge around the
world.
"The current export control system interferes with legitimate U.S.
exports because it does not keep pace with the high rate of innovation in
the microprocessor market," Reid said.
Reid's amendment has been endorsed by the Information Technology Industry Council,
the Computer Coalition for Responsible
Exports and the U.S. Chamber of
Commerce.
"Computer exports are critical to the continued success of the high
tech industry and America's leadership in information technology. While we
strongly support our country's security objectives, there seems no
rationale for treating business-level computers that are widely available
on the world market as inherently more dangerous than items being removed
from the nation's munitions list, an act that gives Congress just 30
calendar days to review," said Rhett Dawson, President of the Information
Technology Industry Council, a coalition of leading providers of
information technology products and services. ITIC's member's include Dell
Computer, IBM, Microsoft, Hewlett Packard and others.
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