U.S. Computer Industry Welcomes Congressional Call to Update Computer Export Thresholds

Washington, D.C. -- The Computer Coalition for Responsible Exports (CCRE) today praised the 79 members of Congress who urged the Clinton Administration to update computer export control levels to keep pace with changes in technology.

"We know that technology has outpaced current control levels when standard commercial computers are treated as supercomputers whose sales are restricted by the U.S. government," said Lewis E. Platt, chairman and CEO of Hewlett-Packard Company and chairman of CCRE. "We applaud those members of Congress who recognize this fact and are taking action both to promote national security and avoid a technology train wreck."

The bi-partisan letter urges the Administration to "begin the process of updating export control thresholds in order to ensure that they reflect current technological and worldwide market realities." The letter was released today by Congressman David Dreier, Chairman of the House Rules Committee.

"We support U.S. national security objectives and believe that raising the export control thresholds is consistent with that goal," said Platt. "If we fail to revise outdated controls and cede markets to foreign competitors, we could lose our technological edge and damage our national security interests."

CCRE has expressed concern that failure to raise the control threshold will result in a flood of export applications for approval of widely available computers, and will divert resources away from government efforts to control exports of truly strategic systems.

"These export controls were never meant to cover widely available computers," Platt said. "But if no change is made, that is just what will happen. Customers won`t wait to buy an American computer when they can easily purchase one from our foreign competition."

Under current law, the Administration has the authority to raise the control levels for exports of computers to countries such as Israel, Russia, Saudi Arabia, and China. However, the new levels would not take effect until six months after Congress has received notice of these changes. With recent advances in technology, computers using two or more microprocessors - commonly used in businesses throughout the world - are now treated as "supercomputers" and are thereby subject to U.S. unilateral export controls.

"We commend these members of Congress for their leadership on this critical issue. Market realities require that these thresholds be updated," said Lawrence A. Weinbach, chairman and CEO of Unisys Corporation and co-chair of CCRE. "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. 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 Inc., 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.