U.S. Computer Coalition Urges President to Update Computer Export Controls

Washington, D.C. -- Stating that "export control policies need to promote U.S. national security and maintain U.S. technological leadership," the Computer Coalition for Responsible Exports (CCRE) urged the President to update computer export control thresholds to so-called Tier II and Tier III countries, in a letter the coalition released publicly today.

Eleven senior executives of 11 computer companies and four trade associations urged that controls on widely available business computers need to be updated "to reflect (1) substantial technological advances since the export control thresholds were raised three years ago, (2) the projected technological advances expected to occur within the next twelve months, (3) the commercial availability of competitive computer systems from foreign manufacturers and (4) the globalization and commoditization of information technology driven by worldwide internet growth."

"We are committed to protecting U.S. national security interests," the executives wrote. "A key part of this commitment is our support for effective controls on computer exports that threaten those interests. Updating export controls, as needed, is an important factor in ensuring that they will remain effective and meaningful."

Under current U.S. export control regulations, the government must approve the export of commercial computers that perform above 2,000 million theoretical operations per second (MTOPS) to some 50 designated Tier III countries. Licenses are required for exports of computers that perform over 10,000 MTOPS to 106 Tier II countries.

Earlier this week CCRE announced a public education effort to help policymakers better understand the rapid changes occurring in the computer industry. The group also released a new industry study that identifies foreign competition for business computers and a primer on the U.S. computer industry. The materials show that dual processor computers - inexpensive entry-level business machines - using new commodity chips qualify as supercomputers under current law. Annual sales of those machines are projected to be in the millions. And, according to CCRE, a commodity personal computer will exceed the 2000 MTOPS export control threshold within the next 12 months.

CCRE has expressed concern that failure to raise the control threshold will flood the government bureaucracy with applications for approval of computers that can be purchased from foreign competitors almost anywhere in the world. The group asserts that controlling widely available computers will undermine U.S. technological leadership and dilute government efforts to control exports of truly sensitive systems.

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, Silicon Graphics, 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.