Thursday, 6/8/00

Industry, Government Work To Modify Export Controls

Tech Daily

Computer industry officials are working with the Defense Department and others to develop a new system for imposing computer export controls aimed at moving away from a process that company representatives argue is outdated, industry officials said Thursday.

Unisys Chairman Lawrence Weinbach said during a policy luncheon sponsored by the Computer Systems Policy Project that the industry has begun working with the Defense Department on a new system for ensuring that national security is protected while still allowing computer companies to sell their products overseas.

"We believe they [the Defense Department] fully understand what we`re talking about," Weinbach said.

The Center for Strategic and International Studies (CSIS) also is establishing a 30-member commission that will examine ways to change the current systems as part of a study looking at what controls are feasible and meaningful given the direction of technology, according to Dan Goure, the group`s deputy director for international security policy.

The current computer export control system is based on imposing restrictions related to a computer`s power as measured in millions of theoretical operations per second (MTOPs). The system also places countries into four tiers with the toughest controls placed on Tier Four countries such as Libya and Iraq and the least on Tier One, such as Western European countries. Weinbach, however, and Clinton administration officials have said they anticipate the next round of computer export control changes, which will likely be announced by July, will be based on MTOPs.

"I think we`re probably living with an MTOP environment until [the Defense Department] or CSIS comes forward with new criteria," he said.

During a meeting Thursday at the White House with National Economic Council Director Gene Sperling and others, Weinbach and other CSPP executives asked the administration in its July announcement to increase the performance level of computers subject to government control from 12,500 MTOPs to 27,000 MTOPs.

Weinbach said industry executives left the meeting "very encouraged" that the administration would further loosen controls but did not say whether the administration agreed to their specific request.

Weinbach and others also noted that they will continue to press Congress to change a law that gives lawmakers six months to review changes to computer export controls covering Tier Three countries, such as Russia and China, before they can go into effect. Sens. Robert Bennett, R-UT, and Harry Reid, D-NV, have offered an amendment to the defense authorization bill, which is being debated on the Senate floor, to cut the review period to 60 days, not including those days when Congress has adjourned for the year.

Weinbach said the executives discussed the issue during a meeting with Senate Armed Services Committee members on Wednesday. He said while some were supportive, we "still have work to do" with others.