FOR IMMEDIATE RELEASE
Tuesday, February 1, 2000
U.S. Computer Industry Endorses New Export Control Proposal
Washington, D.C.-The Computer Coalition for Responsible Exports (CCRE) called today's announcement by the White House raising computer export control thresholds "a positive step that will hopefully lead to the development of a more rational and effective export control system." "We appreciate the Administration's recognition that if U.S. companies are to remain competitive in the global market, they must be allowed to export common business computers," said Lou Gerstner, Chairman and CEO of IBM Corporation and Co-Chairman of CCRE.  "However, today's announcement represents only a short-term fix.  The introduction of more powerful commodity microprocessors due in the next few months will soon render the new thresholds obsolete. It is clear that we need to continue to work with the Administration and Congress to develop a new framework for advancing American technology while protecting our national security interests." The new threshold for exports to Tier III countries will not take effect until the completion of a 6-month Congressional review period; this review is required by law.  When effective, computers with an MTOPS (millions of theoretical operations per second) level up to 12,500 may be exported without a license to 50 countries, including China, Russia and Israel. CCRE has reported that Intel's new Itanium chip, due for introduction in the second half of 2000, will perform at a level of 6,132 MTOPS.  A business server, utilizing four Itanium microprocessors will thus perform at 23,731 MTOPS.   "We are troubled that U.S.-manufactured four-way servers -- which are standard equipment in many commercial establishments -- will be subject to burdensome export controls while at the same time, comparable equipment from foreign producers will not be subject to control," said Lawrence A. Weinbach, Chairman and CEO of Unisys Corporation and Co-Chair of CCRE.   "Unless these new thresholds are revised before Itanium servers hit the market, we risk undermining U.S. competitiveness without accomplishing any significant national security objective.  We believe government resources would be better spent monitoring truly sensitive items rather than commercial computers that are widely available on the global market," said Ken Kay, Executive Director of CCRE. 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, 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 web site at: www.ccre.net