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CCRE Calls on House Armed Services Committee to Support Immediate Implementation of New Export Control Thresholds

Washington, D.C. -- In today`s testimony before the House Armed Services Committee, the Computer Coalition for Responsible Exports (CCRE) called on Congress to move ahead with approval of the Administration`s update of computer export control regulations. In July, the Administration proposed raising the computer export control threshold for Tier III countries from 2000 MTOPS (millions of theoretical operations per second) to 6500 MTOPS.

"Computers that will perform up to 6500 MTOPS are widely available from U.S. and foreign manufacturers, as are the components and know-how to manufacture such computers," said Dan Hoydysh, CCRE Co-Chairman and Unisys Director of Trade Policy. The CCRE testimony made the following four key points:

(1) the July proposal to adjust the computer export controls is supported by the technological and market trends of the global computer industry;

(2) the July proposal should be implemented immediately as the present delay is hurting the U.S. computer industry with no apparent benefit to national security;

(3) given the present experience with the 180 day delay in implementing the adjustments to the computer export controls, future Presidential proposals adjusting the export control thresholds should only be subject to a thirty day review period; and

(4) given the trends in computer performance over the foreseeable future, a more responsive and efficient export control regime needs to be developed.

"We hope that this Committee will agree with us that ineffective unilateral U.S. controls that provide a competitive advantage to foreign manufacturers will -- in the long run -- damage our national security by eroding our technological pre-eminence. It is our view that the proposal to raise the computer control thresholds is a prudent response to technological, economic and competitive realities and we, therefore, urge this Committee to support the immediate implementation of the proposal," Hoydysh continued.

"Tomorrow, October 29, 1999, will mark the 120 day anniversary of the announcement of the Administration proposal. The delay is hurting U.S. computer companies. Sales are being lost, market position is being hurt, long-term relationships with distributors are suffering, and our foreign competitors are positioning themselves to reap the benefits. Given this reality, we urge the Congress and the Executive Branch, with the support and assistance of the computer and other hi-tech industries, to begin a bipartisan examination of other methods of achieving the national security goals presently associated with computer export controls," he concluded.

CCRE members include Apple Computer, Inc., Compaq Computer Corporation, Data General Corporation, Dell Computer Corporation, Hewlett-Packard Company, IBM Corporation, Intel Corporation, NCR Corporation, SGI, Sun Microsystems, Inc., Unisys Corporation, the American Electronics Association (AEA), the Computer and Communications Industry Association (CCIA), the Computer Systems Policy Project (CSPP), the Electronic Industries Alliance (EIA), and the Information Technology Industry Council (ITI). For more information about CCRE and the issues surrounding export controls, visit the CCRE website at: www.ccre.net

For more information about CCRE and the issues surrounding export controls, visit the CCRE website at: www.ccre.net.