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Copyright 2000 Times Mirror Company  
Los Angeles Times

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January 29, 2000, Saturday, Home Edition

SECTION: Business; Part C; Page 2; Financial Desk

LENGTH: 183 words

HEADLINE: BRIEFLY / TECHNOLOGY; 
U.S. UNLIKELY TO EASE EXPORT CONTROLS ON CHIPS

BYLINE: Bloomberg News 


BODY:
The Clinton administration probably will reject demands by Intel Corp., Unisys Corp. and other companies to relax export controls on a new, high-powered computer chip, industry executives and an administration official said. After months of lobbying by a computer industry group, President Clinton may not raise current computing-speed limits as much as the industry has sought on exports to countries such as China and Russia. The decision is expected to be announced Feb. 1. Intel's new Itanium chip--expected to arrive in the middle of this year--will make the revised limit on computing speed obsolete, computer executives say. "It's our understanding that the new rules will not reflect this new generation of chip," said Ken Kay, head of the coalition and chairman of Infotech Strategies Inc., based in Washington. That means computer executives will have to continue their campaign for looser controls, said Chuck Molloy, an Intel spokesman. The Clinton administration is concerned that the faster computing speed could enable terrorists to produce weapons of mass destruction.

LOAD-DATE: January 29, 2000