U.S. Computer Coalition Welcomes Release of Cox Committee Report

Washington, D.C. -- The Computer Coalition for Responsible Exports (CCRE) welcomed today`s release of the report by the Select Committee on U.S. Security and Military/Commercial Concerns with the People`s Republic of China (Cox Committee) and endorsed many of its recommendations.

"We are pleased that the report has finally been made public and the speculation is over," said Lewis E. Platt, chairman and CEO of Hewlett-Packard Company and chairman of CCRE. "This is clearly a story about espionage and serious breaches of national security. The Cox Committee Report raises some very serious questions about U.S. counterintelligence capabilities, which must be addressed. We share the Committee`s concern and will support efforts to prevent or guard against further leaks."

Platt noted that CCRE member companies strongly support a number of the Cox Committee recommendations, including:

- Higher penalties for those who would compromise our national security by violating export control laws.

- A reenactment of the Export Administration Act that would establish an effective and efficient export control regime responsive to technological and market realities.

- Streamlining of the export licensing process to encourage a more predictable and transparent system.

- The enhancement of multilateral agreements and controls to more effectively prevent the acquisition of sensitive technologies by those who could threaten our security interests.

"We also agree with Congressman Cox`s previous statement that `clamping down on commercial exports` is not the answer to our problems with China. Widely available computers should be available for sale to China when they are destined for commercial use," Platt continued. "The U.S. has the strictest export controls in the world. Ceding the Chinese computer market to foreign competitors would actually be detrimental to U.S. national security."

As an example, Weinbach pointed out that the computing power of a single commodity microprocessor has doubled since 1998. Weinbach also noted that a recent GartnerGroup study estimates that up to 60,000 computer systems, most if not all of which will be over 2000 MTOPS, will be sold to China by foreign manufacturers in the year 2000.

"The computer industry takes its national security responsibilities very seriously," said Weinbach. "We work very hard to comply with all U.S. export control laws, and plan to continue to work closely with the U.S. government to help protect our most sensitive technologies."

"A vibrant and competitive computer industry is critical to maintaining the technological superiority upon which our national security depends," continued Weinbach. "We stand ready to work with the Congress and the Administration to develop an export control regime that reflects the realities of changing technology and the global economy while protecting our national security."

CCRE noted that the Cox Committee Report does not give enough attention to the significant foreign availability of multiprocessor computer systems. It also noted that the report does not have a clearly defined viewpoint regarding the strategic significance of U.S. systems legally exported to China.

CCRE also expressed concern with the Committee view that corporations face inherent conflicts of interest in complying with U.S. export control laws.

CCRE is committed to promoting and protecting U.S. national security interests, and seeks to work in close partnership with the U.S. government to ensure that America`s economic, national security, and foreign policy goals are realized. Members of CCRE believe that a strong, competitive computer industry is critical to U.S. national and economic security and contributes significantly to U.S. economic and technological leadership.

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) 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.