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Intelligence

ACCESSION 
NUMBER:345824
FILE ID:ECO201
DATE:05/24/94
TITLE:SENATE COMMITTEE APPROVES EXPORT-CONTROL LEGISLATION (05/24/94)
TEXT:*94052401.ECO  ECEXPOLD  EXP CONTROLS
SENATE COMMITTEE APPROVES EXPORT-CONTROL LEGISLATION
(Bill nearer administration view than one in House)  (590)
By Bruce Odessey
USIA Staff Writer
Washington -- A Senate committee has approved an export-control bill much
more to the liking of the Clinton administration than a version advanced in
the House of Representatives, especially on the encryption software issue.
The Senate Banking Committee May 24 approved 19-0 a bill revising the Export
Administration Act (EAA) and extending it from expiration of the current
EAA on June 30, 1994.
The committee approved an amendment worked out with the National Security
Agency (NSA) requiring only an administration report to Congress assessing
how U.S. export controls on computer software with encryption capability
affect U.S. international competitiveness.
In contrast, the bill approved by the House of Representatives Foreign
Affairs Committee would allow exports of "generally available" encryption
software as long as the intended use is civilian.
The NSA opposes the House bill while U.S. industry supports it, arguing that
such encryption products are already widely available from competing
non-U.S. suppliers.
Passage of each bill respectively by the full House or full Senate is
required before a House-Senate conference could meet to work out
differences in the legislation.
In addition, the House Intelligence Committee, concerned about encryption
and other issues, also has claimed authority to make changes to the Foreign
Affairs Committee bill.
"The Senate bill is much closer to what the president has proposed," William
Reinsch, under secretary of commerce, told reporters.
The encryption issue is his biggest concern; all other issues seem capable
of resolution, he said.
Both the House and Senate bills cover products useful in both civilian and
military applications, but not weapons themselves, which are covered by
another law.
Both bills would give the president broad authority to impose export
controls linked to U.S. participation in multilateral non-proliferation
regimes like the Missile Technology Control Regime, the Nuclear Suppliers
Group, the Australia Group (for biological and chemical weapons) and any
successor regime to the Coordinating Committee for Multilateral Export
Controls (COCOM), which went out of existence in March after 45 years.
While the House bill would sharply restrict the president's authority to
impose unilateral controls, the Senate bill has no comparable provision,
1ut  would require removal of obsolete items from the export-control list
annually.
Both bills would allow unilateral controls on exports to
terrorist-supporting countries like Iran, Iraq, Libya and North Korea.
The Senate bill would reduce the existing 120-day deadline for U.S.
government decisions on export applications to 60 days while the House bill
would reduce it to 30 days.
The Senate bill also would give the Defense Department more influence over
such decisions than would the House bill.
A controversy could emerge over amendments expected to be offered in both
the House and Senate for restricting exports of satellites for launch in
China or Russia if those countries provide the service at less than fair
price.
U.S. oil companies and Alaska's delegation to Congress are likely to oppose
provisions in both the House and Senate bills extending existing law
prohibiting exports of oil from Alaska's North Slope.
The Senate bill would authorize sanctions against foreign companies that
undermine any U.S. export controls; the House bill would authorize
sanctions against foreign persons who assist nuclear proliferation.
Because the existing EAA expires June 30, the administration is seeking
quick action from Congress.  No votes have yet been scheduled for the floor
of the House or the Senate.
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