U.S. Computer Coalition Welcomes Export Control Revisions; Urges Bi-partisan Support for Expediting Implementation

Washington, D.C. -- Calling it "a good first step," today the Computer Coalition for Responsible Exports (CCRE) welcomed the plan released by the Administration to update computer export controls. "We are relieved that the Administration recognizes that commodity computers cannot be controlled. The numbers reflect that fact, although they are lower than the technology would justify," said Lewis E. Platt, chairman, president and CEO of Hewlett-Packard Company and chairman of CCRE. "The Administration understands that the technology is outpacing the government`s controls and is acting to avoid the `technology train wreck` we`ve all been anticipating," he said.

"But the Administration`s proposal provides only half a solution since the revisions cannot go into effect for six months," he continued. "We are heartened by the Administration`s commitment to work with the Congress to implement these changes as quickly as possible and to shorten the timeframe for implementing future revisions to 30 days." Under the National Defense Authorization Act, the revisions affecting exports to 50 Tier III countries, cannot be implemented for six months.

Under the Administration`s plan, commodity computers that perform at up to 6,500 MTOPS (millions of theoretical operations per second) can be exported to Tier III countries, such as China, Israel and India, without approval from the U.S. government. Computers that perform between 6,500 - 12,300 MTOPS can be exported to those countries if U.S. exporters notify the U.S. government. Sales of computers in this range to military end users will require individual export licenses. The Administration has also committed to regular six-month review of the process.

The Administration plan would also raise the export control threshold to so-called Tier II countries - primarily Latin America and key Asian trading partners - to 20,000 MTOPS. The Administration has pledged to review those number with the expectation of raising them to the 32,000-36,000 MTOPS range in six months. In addition four Tier II countries would be moved to Tier I.

"The threshold levels proposed by the Administration are consistent with U.S. national security goals to keep sensitive computers out of the hands of potential adversaries," said Platt "Instead of policing widely available commodities, government resources can be devoted to controlling truly sensitive computers. Many members of Congress understand that our national security needs are best met by export controls that are meaningful."

CCRE warned, however, that the Administration`s proposal, even if implemented quickly, is just a short-term fix. "We are pleased that our recent meetings with the Clinton Administration have resulted in a proposal that affords our industry short term relief from outdated export controls," said Louis V. Gerstner, Jr., Chairman and CEO of IBM Corporation and in-coming co-chair of CCRE. "We now look to Congress to act on recent statements of support for short term relief such as this, and for more systematic changes to U.S. export controls." A number of members of both the House and Senate from both political parties have written to the President in support of raising the thresholds.

"We need a better system for addressing the overall issue of technology exports, one that is dynamic and responsive to market and technological realities," said Gerstner. "This is the information age. Our policies need to reflect that fact. We should put some of the best minds in the country together to come up with a system that promotes national security while keeping the country on top technologically. We need to change the law in ways that make it more contemporary with the speed of the global marketplace. The Export Administration Act debate provides an important opportunity to do just that, " he concluded.

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.