EXPORT ADMINISTRATION ACT AMENDMENTS OF 1979

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000100030006-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 28
• Document Creation Date: December 21, 2016
• Document Release Date: October 27, 2008
• Sequence Number: 6
• Publication Date: September 25, 1979
• Content Type: REPORT

Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL 'RECORD-HOUSE H 8465
EXPORT ADMINISTRATION ACT
AMENDMENTS OF 1979
Mr. BINGHAM. Mr. Speaker, I move
that the House resolve itself into the
Committee of the Whole House on the
State of the Union for the further con-
sideration of the bill (H.R. 4034) to pro-
vide for continuation of authority to
regulate exports, and for other purposes.
. The SPEAKER. The question is on the
motion offered by the gentleman from
New York.
The motion was agreed to.
IN THE COMMITTEE OF THE WHOLE
Accordingly the House resolved itself
into the Committee of the Whole House
on the State of the Union for the fur-
ther consideration of the bill, H.R. 4034,
with Mr. SEIBERLING in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. When the Commit-
tee of the Whole rose on Friday, Sep-
tember 21, 1979, section 117 and the re-
mainder of the bill had been considered
as having been read and open to amend-
ment at any point. Pending was an
amendment offered by the gentleman
from California (Mr. DANNEMEYER).
The CHAIRMAN. The Clerk will re-
port the amendment.
The Clerk read as follows:
Amendment offered by Mr. DANNEMEYER:
Page 62 after line 24 add the following new
section, and renumber the succeding sec-
tions accordingly.
SEc. 124. Notwithstanding any other pro-
vision of this Act subsection (1) of section 7
of the Export Administration Act of 1969
as such section is redesignated by section 104
(a) of the Act, is amended (1) in paragraph
(1)-
(A) by striking out clause (A) and insert-
ing in lieu thereof the following: "(A) is ex-
ported to another country in exchange for
the same quantity of crude oil being exported
from an adjacent foreign country to the
United States, or", and
(B) by striking out "during the 2-year pe-
riod beginning on the date of enactment of
this subsection"; and
(2) by striking out paragraph (2) and in-
serting in lieu thereof the following:
"(2) Crude oil subject to the prohibition
contained in paragraph (1) may be exported
only if-
"(A) the President makes and publishes
express findings that exports of such crude
oil, including exchanges-
"(1) will not diminish the total quantity or
quality of petroleum refined within, stored
within, or legally committed to be trans-
ported to and sold within the United States;
"(ii) will, within three months following
the initiation of such exports or exchanges,
result in (I) acquisition costs to the refin-
eries which purchase the imported crude oil
being lower than the acquisition costs such
refiners would have to pay for the domesti-
cally produced oil which is exported, and (II)
commensurately reduced wholesale and re-
tail prices of products refined from such im-
ported crude oil;
, "(iii) will be made only pursuant to con-
tracts which may be terminated if the crude
oil supplies of the United States are inter-
rupted, threatened, or diminished;
"(iv) are clearly necessary to protect the
national interest; and
"(v) are in accordance with the provisions
of this Act; and
"(B) the President reports such findings to
the Congress and the Congress, within sixty
days thereafter, passes a concurrent resolu-
tion approving such exports on the basis of
the findings.
Findings of lower costs and prices described
in subparagraph (A) (ii) should be audited
and verified by the General Accounting Of-
flee at least semiannually.
"(3) Notwithstanding any other provision
of this section and notwithstanding subsec-
tion (u) of section 28 of the Mineral Leas-
ing Act of 1920, the President may export oil
otherwise subject to this subsection to any
nation pursuant to a bilateral international
oil supply agreement entered into by the
United States with such nation before May
1, 1979.
"(4) The limitations of this subsection, and
the requirement contained in subsection (u)
of section 28 of the Mineral Leasing Act of
1920 that the President make certain find-
ings, shall be effective only during a period
in which, as determined by the President, the
major oil exporting countries have imposed
severe restrictions on the export of oil to
the United States.".
Mr. WOLPE. Mr. Chairman, I rise in
opposition to the amendment.
(Mr. WOLPE asked and was given per-
mission to revise and extend his re-
marks.)
Mr. WOLPE. Mr. Chairman, I rise in
opposition to the amendment offered by
the gentleman from California (Mr.
DANNEMEYER), and I would urge my col-
leagues to attend very carefully to what
the Dannemeyer amendment would ac-'
complish.
^ 1610
The Dannemeyer amendment would
effectively allow exports of Alaskan oil
to proceed without meeting a single test
or condition, not even a national security
test. The amendment of the gentleman
from California would permit restric-
tions on the export of Alaskan oil only
when, in the language of the amendment,
"the major oil exporting countries have
imposed severe restrictions on the export
of oil to the United States."
In all other circumstances only the oil
companies would decide what happens to
Alaskan oil and the Congress would have
no say whatsoever in its disposition.
The language that was adopted by the
Committee on Foreign Affairs, that the
gentleman from California seeks to
amend, was approved overwhelmingly in
a 21 to 9 vote after very thorough con-
sideration and debate. The proposed re-
strictions on the export of Alaskan oil
that are within the bill before you are
motivated by two central concerns: first,
the need to reduce American dependence
on unstable foreign oil supplies; and,
second, the desire to see the oil compa-
nies honor the promise made at the time
of the authorization of the trans-Alas-
kan pipeline to put in place the domestic
infrastructure that would insure that
Alaskan oil would be available to domes-
tic American markets.
Mr. Chairman, I want to emphasize
there is nothing within the language of
the bill before you that flatly prohibits
the export of Alaskan oil. The bill simply
states that the only acceptable basis for
such exports is a showing of direct con-
sumer benefit and a showing that such
exports would not adversely affect Amer-_
ica's oil supply: The question, really, be-
fore the House is whether or not those
are unreasonable criteria to impose upon
the export of such a critical resource.
Mr. Chairman, the language of the bill
as approved by the Foreign Affairs Com-
mittee says, further, that the Congress
should have a direct and affirmative role
in making decisions with regard to this
very critical resource.
Mr. Chairman, who would benefit by
the oil exports that the gentleman from
California would like to facilitate? Cer-
tainly not the consumer. It is true, as
pointed out by the gentleman from Cali-
fornia, that the transportation costs of
taking Alaskan oil to Japan would be $2
lower per barrel than the cost presently
incurred in transporting Alaskan oil
through the Panama Canal. But the cost
of transportation does not add a single
cent to the price American consumers
pay for Alaskan oil because the price of
Alaskan North Slope crude oil is already
decontrolled. It sells for whatever price
the market will bear, regardless of how
much-or how little-it costs to get the
oil to its destination.
The fact of the matter is that the
American consumer stands to gain ab-
solutely nothing by the export of Alaskan
oil. Nor would the American national in-
terest be served by such exports, because
they would only extend our dependence
upon unstable foreign oil supplies.
Only the oil companies stand to gain.
It is their argument that they need ad-
ditional profits to enable them to ex-
pand their production on the North Slope
and to realize the full potential of the
Alaskan field.
Mr. Chairman, there is absolutely no
evidence, oil company protestations not-
withstanding, that existing price levels,
and 'financial incentives are inhibiting
North Slope Production. In fact, the
Alaskan North Slope oil producers re-
cently announced their plans to increase
production by 15 percent, to 1.5 million
barrels per day by the end of next year.
Clearly, current restrictions on Alaskan
oil exports are no disincentive whatever
to increased production. The simple truth
is that we can expect increased produc-
tion in Alaska because decontrolled Alas-
kan North Slope oil is enormously profit-
able, and has been made all the more
so by recent OPEC price increases.
At some point, when confronted with
the issue of profits and incentives, we
have to ask ourselves, "When is enough,
enough." In the first quarter of this year,
Sohio, the North Slope's largest producer,
reported a 302 percent increase in profits
over the first quarter of last year. In the
second quarter of this year there was a
further 70 percent increase. Clearly, the
issue is whether we are developing a pub-
lic policy designed to serve the American
public interest or whether we are going
to continue an energy policy designed to
serve only the interests of the oil
industry.
Mr. Chairman, I would urge opposition
to the Dannemeyer amendment. It is not
in the public interest. It removes any
effective congressional role in determin-
ing the disposition of Alaskan oil. It will,
most importantly, prolong the time when
the oil companies will begin to put into
place the refinery and pipeline. capacity
that is so vital to insuring the future
domestic use of American oil supplies.
Mr. BARNES. Mr. Chairman, I?move
to strike the requisite number of words.
Mr. Chairman, I rise in opposition to
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 H 846
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 CONGR]ESS!ONAIL RECORD -HUE September 205, 1979
the amendment offered by our colleague,
Mr. DANNEMEYER. This amendment would
effectively gut the committee provisions
relating to the export of Alaskan oil.
The Dannemeyer amendment would
eliminate the committee requirement
that any exchange or swap of Alaskan
oil result in lower acquisition costs for
refiners and commensurately reduced
wholesale and retail prices. for consum-
ers In the United States. It would fur-
ther eliminate the provision that oil ex-
changed with an adjacent foreign state
be refined and consumed in that adja-
cent foreign state. Therefore, it would
allow so-called swaps which benefit only
the oil companies.
The Dannemeyer amendment, al-
though appearing to provide for findings
of fact, congressional approval and the
GAO audit, in reality does not. The con-
ditions and restrictions would not have,
to be met unless the President deter-
mines "that the major exporting na-
tions have imposed severe restrictions
on the export of oil to the United States."
In other words, under the Dannemeyer
proposal, there would be absolutely no
restrictions on the export of Alaskan oil
unless OPEC imposed another embargo.
Mr. DANNEMEYER would allow exports
to proceed without meeting a single test
or condition, not even a national secu-
rity test. In effect, this amendment would
totally exclude Congress and the execu-
tive branch from important decisions af-
fecting Alaskan oil; the oil companies
would have a blank check to export this
vital resource.
It seems to me that the only prudent
and responsible course of action is to
have in place some safeguard restric-
tions before an embargo goes Into ef-
fect, not hastily adopted after the fact.
I believe that the language adopted
overwhelmingly by the committee, after
careful and extensive consideration, is
the proper policy. I might add that the
Senate adopted a similar provision by a
wide margin. The committee provision
does not preclude exports or swaps. It
simply states that the only acceptable
criteria for Alaskan oil exports are a
showing of consumer benefit and a show-
ing that such exports would not ad-
versely affect America's oil supply.
The committee language would also
create an additional incentive for build-
ing a west-to-east pipeline and for
retrofitting west coast refineries to han-
dle full Alaskan North Slope Production.
Another feature of the committee bill is
that it requires that Congress play a key
role In decisions affecting what happens
to Alaska oil. Any export plan must have.
the approval of both Houses. Under the
Dannemeyer proposal, only the oil com-
panies would decide what happens to
Alaska oil.
Finally, the bill as reported would re-
affirm our commitment to a strong na-
tional energy policy. It would allow ex-
ports and swaps only if certain tests were
met and Congress is given an affirmative
role in dealing with these proposals. The
Dannemeyer amendment would do nei-
ther of these.
I strongly urge my colleague to retain
the Foreign Affairs Committee language
and reject the Dannemeyer amendment,
which I believe is an ill-conceived and
misdirected effort.
Mr. ZEFERETTI. Mr. Chairman, will
the gentleman yield?
Mr. -BARNES. I yield to the gentleman
from New York.
(Mr. ZEFERETTI asked and was given
permission to revise and. extend his re-
marks.)
Mr. ZEFERETTI. Mr. Chairman, I
strongly urge that my colleagues defeat
this proposed amendment which would
allow for an outright swap of Alaska
North Slope oil. I urge that we approve
the restrictions on export of Alaska oil
as reported by the House Committee on
Foreign Affairs.
It is inconceivable to me how we can
allow for the export or swap of Alaska oil
when it is the pronounced 'policy of this
country to reduce our dependence on
foreign oil.
It is vital that we all understand that
the exchange of Alaska oil will in no way
reduce our dependence on imported,oil.
In fact, swaps could well have the nega-
tive impact of actually increasing our
reliance on foreign sources of oil.
We need look no further than to the
Iranian oil cutoff for a prime example of
how damaging and unwise our continued
reliance on foreign sources is. Even if the
United States is able to terminate the
swap arrangement and to avoid our ob-
ligation to ship Alaska oil, our Nation
will simply return to day one. We will not
have E(n effective domestic oil distribu-
tion and transportation system to move
Alaska oil to where it is needed the most;
that is, the Midwest and the East.
Mr. Chairman, it is crystal clear to me
that allowing the exchange or swap of
Alaska oil will be placing an insurmount-
able obstacle in the way of any long-term
solution to our domestic oil distribution
problems. By permitting Alaska oil to be
exported, we will surely sound the death
knell for west-to-east pipelines. Any hope
that we may have an efficient and equit-
able domestic oil transportation system
will evaporate. Exporting Alaska oil is
the surest way of guaranteeing that pro-
posed pipelines are never built.
Mr. Chairman, we must ask ourselves
who is going to benefit from these ex-
ports. Surely the oil companies stand to
gain, as does the State of Alaska. But,
Mr. Speaker, how about the American
consumer? What is in the export of
Alaska oil for him. The Dannemeyer
amendment specifically eliminates the
provision that would insure that any ex-
change or export of Alaskan oil result in
a consumer benefit. Any transportation
savings will be seen on the oil companies'
income statement and not in the con-
sumers' pocketbook.
I also want to point out that the ex-
port restrictions such as advocated by my
colleagues, STEWART MCKINNEY and
HOWARD WOLPE, do not flatly prohibit the
exchange of Alaska oil. If Alaska oil is
refined and consumed. in the adjacent
foreign state and will achieve lower oil
prices for American consumers, then an
exchange in like quantity and quality
may take place.
. Mr. Chairman, I would like to raise
one final point. In most discussions of
an Alaska oil swap, proponents have
Alaska oil going to Japan in exchange
for Mexican oil. This Would hardly be
an equitable exchange. According to the
Cities Service Oil Company, Mexican oil
is inferior to Alaska oil. More unleaded
gasoline can be produced from a barrel
of Alaska oil than from a barrel of Mex-
ican oil. I am sure that the American
public would be far from overjoyed'at
the prospect of an arrangement such as
the proposed amendment would allow,
Once again, I urge you to defeat this
amendment and to approve the language
as reported by the House Foreign Affairs
Committee.
^ 1620
Mr. McKINNEY. Mr. Chairman, I
move to strike the requisite number of
words, and I rise in opposition to the
amendment.
(Mr. McKINNEY asked and was given
permission to revise and extend his
remarks.)
Mr. McKINNEY. Mr. Chairman, it
seems very strange to me that we are
here arguing this subject once again. The
House overwhelmingly passed the Mc-
Kinney amendment which stopped the
exportation of Alaskan oil over 2 years
ago. In fact, the House went to the al-
most unprecedented length of instruct-
ing the conferees to stick to the House
position.
I appreciate the interest of my. col-
league, the gentleman from California
(Mr. DANNEMEYER) in the issue of Alas-
kan oil distribution. However, I take
strong exception with both the approach
and substance of his amendment to re-
move the restriction on the export of
North Slope crude. The effect of the gen-
tleman's amendment would negate the
entire purpose of building a trans-Alas-
kan pipeline and would run counter to
our efforts to reduce reliance on foreign
oil. The cornerstone of congressional ap-
proval for construction of the Alaskan
pipeline, the watchword for development
of Alaska's North Slope over the last
decade and the impetus for construct-
ing new pipelines to carry that oil east-
ward can be summed up in one word-
independence.
We are on the threshold of completing
a project that will deliver 2 million bar-
rels of domestically produced oil every
day to U.S. refineries. That, is 2 million
barrels a day that we would otherwise
be importing, at exorbitant prices, from
the OPEC cartel. Are we now, in the
eleventh hour, going to undermine that
entire project by exporting nearly a
quarter of that oil to Japan?
There is no longer any question of do-
mestic utilization of Alaskan oil. The
"glut" no longer exists. Every drop of oil
being produced on the North Slope i.4
being refined and consumed in U.S. mar-
kets. And, other U.S. refiners are actu-
ally looking for more. The explanation
is simple. Alaskan oil at any price is a
desirable alternative to spot market
crude. Are we actually going to consider
throwing away the economic and politi-
cal independence that Alaskan oil offers?
The arguments offered by my colleague
in support of his amendment are essen-
tially three: Transportation cost savings;
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECORD-HOUSE
balance of trade benefits ; and the avail-
ability of foreign supply. It should be
made clear that the export restriction
contained in this bill does not prohibit
the export of Alaskan crude. If an eco-
nomic benefit to the consumer can be
documented, the Congress could approve
a swap. But the consumer benefits will
not result from a savings in transporta-
tion costs. Those savings will be captured
by the Alaskan producers and added to
their recordbreaking earnings from the
last three quarters. Further, the balance
of trade savings that my colleague envi-
sions from a swap cannot make up for
the dollars lost due to the difference in
price between Alaskan and Mexican
crude. Alaskan oil is presently selling for
approximately $22 a barrel. Mexican oil
is priced over $23 a barrel and Mexico
adds a 75-cents-a-barrel surcharge to
offset the transportation cost savings
derived from buying Mexican rather
than Middle East crude. In short, a swap
would result in a substantial loss in the
balance of payments for each barrel we
export.
Furthermore, Mr. Chairman, I doubt
that anyone in this Chamber would dis-
pute the fact that the only truly secure
oil supply is a domestically produced sup-
ply. I am pleased that my colleague's
amendment does not advocate the in-
creased use of OPEC oil. Nevertheless,
any exchange agreement would necessi-
tate an increase in foreign oil imports.
While the obvious marketability of
Mexican oil on the gulf coast makes that
source preferable to OPEC supplies, the
mere happenstance of common bound-
aries does not insure supply security.
Canada has already announced its in-
tention to eliminate oil exports to our
northern tier refineries in the next few
years. And Mexico, despite its willing-
ness, was only able to fulfill 60 percent of
its export contracts in May and June of
this year due to production difficulties.
Also, because of its overwhelming reli-
ance on the United States for foreign
trade, Mexico's Ministry of Patrimony
and Industrial Development (under the
firm policy direction of President Por-
tillo), has developed a "2-year program"
to reduce the U.S. share of Mexican oil
exports from 80 to 60 percent. Such in-
formation not only casts legitimate
doubts on the security of supply but
raises the question of whether the propo-
nents of a swap have bothered to obtain
the Mexican Government's view of such
a plan.
Finally, the question of national se-
curity as regards the transport of Alas-
kan oil has been raised. Mr. Chairman,
the greatest threat to our national se-
curity-economically, politically, and
militarily-is our continued dependence
on other people's oil. We are racing
against time in an attempt to free our-
selves from that dangerously precarious
Position. To allow the export of Alaskan
oil would undermine any progress we
have made in freeing ourselves from the
economic stranglehold of foreign pro-
ducing nations. No defense budget of any
size, no amount of troops or arsenal of
missiles can protect this country from
the threat of continued dependence.
Don't talk to me of transportation sav-
ings, when the foundation of our econ-
omy is in the hands of foreign oil
producers. Mr. Chairman, I urge the de-
feat of this amendment.
Mr. VANIK. Mr. Chairman, will the
gentleman yield?
Mr. McKINNEY. I yield to the gentle-
man from Ohio.
Mr. VANIK. Mr. Chairman, I would
like to say to the gentleman, I oppose
the Dannemeyer amendment. I am con-
cerned about our trade balance, par-
ticularly with Japan. We are buying
from Japan about $8 billion or $9 billion
more than we sell and if they are able
to buy American oil, they will liquidate
some of that trade deficit. In other
words, they will buy American oil and
sell more Japanese products in our
markets.
Mr. McKINNEY. Mr. Chairman, I
would answer the gentleman simply this
way. A trade deficit is a trade deficit.
And, we would build a trade deficit of a
minimum of $1 for every barrel of oil we
exported to Japan, because Alaskan oil
is currently selling at $22 a barrel. Mexi-
can oil is selling at $23 a barrel, so we
would have an automatic deficit of trade
with the Mexican Government. It real-
ly makes very little difference where the
deficit occurs. Uncle Sam would still be
losing $1 per barrel of oil.
Mr. VANIK. But in addition to that, it
would help the Japanese correct the
imbalance of their commerce. They
would be buying a very precious raw
material from this country and coming
back with other products to help to
equalize the amount of the trade deficit.
Mr. McKINNEY. This gentleman com-
ing from a highly technical State is not
the slightest bit interested in helping the
Japanese.
Mr. VANIK. Well, I am with the gentle-
man in opposing the amendment.
Mr. McKINNEY. I would suggest to
the gentleman that once the Japanese
allow the Ford Motor Co. and General
Motors to have distribution plants and
parts warehouses, I would be very in-
terested in a more reliable trade rela-
tionship with them.
Mr. VANIK. In the meantime, I do
not think we ought to alleviate the defi-
cit by letting them have our oil.
Mr. Chairman, I rise in opposition to
the amendment of the gentleman from
California.
The amendment does not really cre-
ate any additional oil for the people of
the United States-it does create some
additional profit for some oil companies.
But the amendment 'has a side effect
which is likely to blunt our efforts to
solve a major trade crisis. The amend-
ment will permit the Japanese to reduce
their trade deficit with the United
States by about $3 billion per year, thus
camouflaging the fact that we still have
enormous and serious structural trade
problems with that nation. This amend-
ment could be labeled "The Get Japan
Off the Hook Amendment."
Last year, our trade deficit with Japan
was $11.6 billion. This year, it will prob-
ably be about $8.8 billion, and I predict
that in the future the deficit may again
H 8467
widen, because of the depreciation of the
yen relative to the dollar and because of
our domestic energy problems and infla-
tion. In many areas, it is still difficult to
impossible to sell American manufac-
tured and agricultural goods in Japan.
The staggering trade deficits of the past
several years have helped put the public
spotlight on Japanese trade barriers-
and as a result some of those barriers
have been dismantled.
The amendment of the gentleman
from California will have the.effect of
lobbing billions of dollars off our trade
deficit with Japan-even though we are
making only slow and tedious progress
in solving our manufactured and agri-
cultural trade problems with Japan. The
amendment will defuse attention from
the need to solve our long-range prob-
lems with Japan; it will contribute fur-
ther to turning America into a giant
plantation of raw materials for Japan-
a plantation that supplies soybeans,
phosphate rock, and oil to keep the fac-
tories of Japan humming.
Mr. CONTE. Mr. Chairman, will the
gentleman yield?
Mr. McKINNEY. I yield to the gentle-
man from Massachusetts.
(Mr. CONTE asked and was given per-
mission to revise and extend his re-
marks.)
Mr. CONTE. Mr. Chairman, I want to
take this opportunity to commend the
gentleman in the well and to associate
myself with his remarks. I rise in opposi-
tion to this ill-conceived amendment.
Mr. Chairman, as the debate develops
on the critical issue of extending and
strengthening ? the American economy
through increased exports, we must be
equally cautious concerning exports cru-
cial to our national security. One such
area in which the risk in exporting ex-
ceeds opportunity is the exportation or
"swapping" of Alaskan North Slope oil.
This country has watched its depend-
ence upon imported oil rise from one-
third to nearly one-half in less than 7
years. Our daily imports of foreign crude
and product is nearly 8 million barrels
per day. Our economic lifeblood has
become a thick, black liquid which flows
via tankers from the revolution-torn
Middle East to our coastal ports. Today,
this lifeline to our industrialized coun-
try's survival is tenuous at best. This
great Nation cannot afford to lay bare
its petroleum jugular vein to the Ayatol-
lah Khomeini's of the world. Our vulner-
ability to the OPEC decisionmaking
process will only be increased if we do
not pass this strong ? piece of legislation
which restricts the swapping of Alaskan
oil.
The need to reaffirm our opposition to
the exportation of our domestically pro-
duced Alaskan oil becomes greater with
each increase in OPEC prices. Any
swaps of oil will only increase our re-
liance on foreign imports by as much
as 500,000 barrels per day.
In addition, it would eliminate any
incentive for the establishment of a do-
mestic delivery system of Alaskan crude
to other sections of the country. It would
also result in a loss of U.S. maritime
'jobs.
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
H 8468
Let me quote a speech made by this
country's Vice President MormiLx when
he was a U.S. Senator on the issue of
swapping Alaskan oil:
It seems very strange to me that as we try
to do everything we can to deal with the
energy problems we have in America that
the that significant thing we would do would
be to approve a pipeline. the purpose of
which is to export massive quantities of II S.
all outside our borders. That is what has
been admitted here. The answer is that we
will swap II S. Oil for something else. What
is that something else? That something else
is the very Middle East oil we have trouble
getting today. In other words, we would be
back in the frying pan. It seems to me this
is utterly suicidal for this country.
Mr. Chairman, I sincerely hope that
this continues to reflect the attitude of
our administration concerning this criti-
cal issue of national security. We must
pass this Measure with section 107 as
reported out of the Committee on For-
eign Affairs to insure that our national
security will not be adversely affected.
The CHAIRMAN. The time of the gen-
tleman from Connecticut (Mr. McKIN-
NEY) has expired.
(By unanimous consent, Mr. McKrN-
NEY was allowed to proceed for 3 addi-
tional minutes.)
Mr. LAGOMARSINO. Mr. Chairman,
will the gentleman yield?
Mr. McKINNEY, I yield to the gentle-
man from California.
Mr. LAGOMARSINO. Mr. Chairman,
I thank the gentleman for yielding. I
want to commend the gentleman for his
leadership on this issue. I want to say to
the gentleman with regard to the bal-
ance of payments, the gentleman has
answered that question very well.
I would like to add that there also
would ban addition to the balance-of-
Payments deficit In that the cost of ship-
ping the oil to Japan would be on the
deficit side in that we would be using
foreign-flag vessels and all that money
would go outside of our economy.
Mr. OBERSTAR. Mr. Chairman, I
move to strike the requisite number of
words.
(Mr. OBERSTAR asked and was given
permission to revise and-extend his re-
marks.)
Mr. OBERSTAR. Mr. Chairman, this.
is a national issue but with a profound
regional impact for the Northern Tier
States, Particularly those in the western
Great Lakes area. Winter is fast ap-
proaching in our region. Already the
thermostats are set at 65 degrees in our
homes in Chisholm, Minn. We turned the
furnaces on over this past weekend when
I was home. The people are beginning to
wonder where is the oil coming from
now that Canada has put Minnesota re-
fineries on a month-to-month standby
basis. Canada is going to decide 1
month how much oil its American mar-
ket Is going to get next month. It is in-
tolerable. The Northern Tier states have
a right and an obligation to seek a se-
cure and continuous source of oil. The
best place to get that is the North Slope.
The Northern Tier pipeline, the best
available hope for assuring that supply
of oil, is a matter on which the Interior
Department and the President are going
CONGRESSIONAL RECORD-HOUSE September 25, 1979
to have to make a judgment in the next
month. If we allow swaps of oil as pro-
posed in this amendment and undo the
Wolpe amendment, we will destroy any
possibility of getting that Northern Tier
pipeline built. The very substantial com-
mitments of capital required for that
project will be 'turned to other sources.
We must support the committee and
stick by its language. A swap of oil is
nothing but a delay in the plans to as-
sure a continuous flow of North Slope oil
into the Northern Tier States which are
so desperately dependent on it, whose oil
refineries are built to accommodate this
high-sulphur crude oil.
To make our area dependent on some
other source of oil is unreasonable.
Mr. McKINNEY. Mr. Chairman, will
the gentleman yield?
Mr. OBERSTAR. I am happy to yield
to the gentleman from Connecticut, who
is the author of this language in the
committee bill.
Mr. McKINNEY. Mr. Chairman, I
think the gentleman from Minnesota
(Mr. OBERSTAR) made a most important
statement when he said we must stick
with the committee language, because
the House has stated that the President
can export Alaskan oil if it is economi-
cally advantageous if he comes to the
Congress and gets our approval. The
other body has stated the President can
go ahead and do it and we must dis-
approve.
It is far more important, I think, that
the President be forced to come to us
and make the case.
I remember this clearly, because at the
heeding of the chairman of the commit-
tee 2 %2 years ago I changed my amend-
ment to just a 2-year prohibition be-
cause I was promised by the administra-
tion and promised by the oil companies
that this problem would be solved. Yet
here we sit again 2 %2 years later.
So I admire the gentleman's remarks
about sticking completely, strictly, and
absolutely with the committee's lan-
guage, and I hope that never again will
I have to confront my good friend, the
chairman of the committee, and move'
that the House instruct, because I know
that hurt me and hurt him 21/2 years
ago when I was forced to do that.
Mr. OBERSTAR. Mr. Chairman, I
commend the gentleman's leadership on
this important issue.
I raise one final consideration-the
effect the amendment would have on em-
ployment. If we accept this amendment,
we deny the American seaman the bene-
fits of transporting this oil. The Jones
Act requires that cargo be moved be-
tween American ports by American ships.
Shipment of our oil to Japan would not
be bound by that requirement. Instead of
reducing the balance of payments be-
tween the United States and Japan, this
oil will help Japan build its industrial
might even further.
Mr. Chairman, to insure the movement
of vitally needed oil to America's agri-
cultural and industrial heartland, it is
vitally important to stick with the com-
mittee's language.
Mr. TAUKE. Mr. Chairman, will the
gentleman yield?
Mr. OBERSTAR. I yield to the gentle-
man from Iowa.
Mr. TAUKE. Mr. Chairman, I would
like to commend the gentleman from
Minnesota (Mr. OBERSTAR) on his re-
marks and associate myself with them.
During the time I have been in the
Congress I have spent much time on the
Northern Tier pipeline issue. During the
past several weeks the Departments of
Agriculture and Energy have pointed out
the Northern Tier pipeline proposal to
which the gentleman referred is the best
and most dependable method for bring-
ing energy to the Northern Tier States,
which include, of course, the gentleman's
State and my own State of Iowa.
In order to maintain that agricultural
heartland and provide heating oil for
us in the winter, I think it Is essential
that we have that energy lifeline. Cer-
tainly we are much more anxious to be
dependent upon Alaskan oil than we are
to be dependent on foreign sources of oil
coming through the Gulf of Mexico.
So, Mr. Chairman, I agree with the
gentleman from Minnesota (Mr. OBER-
sTAR), and I commend him for his re-
marks.
Mr. OBERSTAR. Mr. Chairman, I
thank the gentleman from Iowa (Mr.
TAuxE) for his contribution, and I yield
back the balance of my time.
Mr. YOUNG of Alaska. Mr. Chairman,
I move to strike the requisite number of
words, and I rise in support of the
amendment.
(Mr. YOUNG of Alaska asked and was
given permission to revise and extend
his remarks.)
Mr. YOUNG of Alaska. Mr. Chairman,
I think a little history will serve many of
my friends in this body to understand
where this prohibitive clause came from
as far as exporting oil or swapping oil
with Japan is concerned. It originally
arose in the pipeline bill, the bill to build
the Alaskan pipeline.
The intent was to have an Alaskan
line, an American line, with American
people and with American oil. That was
my amendment. The amendment was
adopted by the committee, it was adopted
by this House, and it has been in place
ever since.
But unfortunately, because of the in-
activity of this administration, there
have been no ways provided of transport-
ing oil to the Midwest and the east coast.
There have been none. In fact, we have
what we call in the Committee on In-
terior and Insular Affairs a fast-track
provision, and the administration con-
veniently excluded the possibility of ex-
pediting the process of either the Foot-
hills project, which would take care of
the problem of my good friend, the gen-
tleman from Minnesota (Mr. OBERSTAR),
or the Northern Tier.
So what we are faced with today, right
now, is that there is a considerable quan-
tity of oil going through the Panama
Canal. As it goes through the Panama
Canal, that raises the prices from $2 for
transportation costs, as a swap would
allow, to $7 or $9, thus increasing the
cost to the consumer by a considerable
amount. '
What this amendment does is, for a
short period of time, to agree to an ex-
A
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECORD-HOUSIS
change of oil, thus giving the consumer
a break and also giving the State of
Alaskan-and I will say this without any
reservation-a good return on its oil in
the way of royalty. That is the parochial
position I am put in today.
But I would like to bring this to the
attention of the Members again: The
gentleman from Minnesota (Mr. OBER-
sTAR) hit the nail right on the head: It
is absolutely mandatory that we build
a transportation system from the West
to the East. If we do not, this country
puts itself further into the hole of de-
pendency upon the OPEC nations, be-
cause, let me say to my good friends, the
oil of this Nation is in the West. It is off
the Santa Barbara Channel, it is off the
Gulf of Alaska, it is in the Bering Sea
of Alaska, it is in the Beaufort Sea of
Alaska, and it is in the lands of Alaska.
I say that, although this body did not
see the wisdom of allowing the majority
of the oil fields in Alaska to be developed.
That came about from their lack of
knowledge and by listening to those who
would convey half truths and conveni-
ently put aside 65 percent of the oil po-
tential in Alaska. I hope that will be
rectified in the Senate so that we can
have that oil after Prudhoe Bay goes dry
in 1985.
I hope also that we will have accom-
plished a transportation system under
an aggressive administration so that the
West, the Midwest, and the East are no
longer dependent upon the OPEC
nations.
The amendment offered by the gentle-
man from California (Mr. DANNEmEYER)
is a short-term amendment, but it gives
us an opportunity to give the consumer
a break. It gives the consumer who is
paying a dollar a gallon a break, and it
gives him a chance possibly to have fuel
prices back at the price they were prior
to the shortage we just experienced this
past year.
Mr. Chairman, I am confident in my
own mind this would be a short-term
solution. But let us keep in mind that the
secret of this is the long-term solution,
a solution that involves providing a
transportation system from the West to
the East.
Mr. BONKER. Mr. Chairman, will the
gentleman yield?
Mr. YOUNG of Alaska. I yield to the
gentleman from Washington.
Mr. BONKER. Mr. Chairman, the gen-
tleman may not have been here the other
day when I entered into a colloquy with
my friend, the gentleman from Michi-
gan, that stated we have a refining
capacity in the Antilles and in the
Virgin Islands, and that 1 refinery there
now produces up to 700,000 barrels a
day and another can produce 900,000 a
day. That is excess capacity now in ex-
istence, and it could be retrofitted to the
Alaskan sour crude.
Mr. YOUNG of Alaska. It is sad to say,
though, that it is going through the
Panama Canal, it is sad to say that with
the vote on the Panama Canal issue that
we had, the situation is very unsure po-
litically, and it is sad to say that it still
costs the consumer $9 for transportation
to get the oil to the Virgin Islands and the
Bahamas. Those are facts; that is not
just hearsay.
So if we want to argue the economics
of the situation, the swap or the ex-
change is better for the consumer over
the short term. Long range, though, if
we look at the long-range program, it
would be best to have a pipeline or pipe-
lines built through the northern tier
and the southern part of California so
we could have the Alaskan crude come
into the Midwest and the east coast
refineries.
Mr. BONKER. But it seems to me that
the language in the Wolpe amendment
emphasizes the cost benefit to the con-
sumer. So I think that is an important
ingredient in the bill, and I would hate
to see that stricken.
The CHAIRMAN. The time of the
gentleman from Alaska (Mr. YOUNG)
has expired.
(By unanimous consent, Mr. YOUNG
of Alaska was allowed to proceed for 2
additional minutes.)
Mr. KAZEN. Mr. Chairman, will the
gentleman yield?
Mr. YOUNG of Alaska. I yield to the
gentleman from Texas, who is an expert
in the field about which we speak.
Mr. KAZEN. Mr. Chairman, I thank
my colleague, the gentleman from Alaska
(Mr. YOUNG). Let me ask the gentleman
one question, because I want to get this
straight in my mind.
We are going to swap Alaskan oil for
Japanese oil, and the Japanese get that
oil where?
Mr. YOUNG of Alaska. It is my un-
derstanding they have worked out a deal
with Mexico and also with the OPEC
nations.
Mr. KAZEN. Mr. Chairman, let me
ask, what kind of a price f.o.b. the
United States will the Japanese oil that
come to us bring the Japanese?
Mr. YOUNG of Alaska. Mr. Chairman,
I cannot truthfully answer the gentle-
man's question. I cannot answer the
question on the exact price because I
have not seen it.
Mr. KAZEN. Mr. Chairman, getting
into the complexities of the swap and
right down to the nuts and bolts, what
are we swapping in the way of money?
Mr. YOUNG of Alaska. We are swap-
ping the transportation cost of $2 a bar-
rel to Japan versus the $9 a barrel it
costs to bring the oil through the Pana-
ma Canal.
Mr. McKINNEY. Mr. Chairman, will
the gentleman yield? Perhaps I can an-
swer the question.
Mr. KAZEN. Yes; I would like to get
an answer. I would like an explanation
of this.
I want to know the present transporta-
tion cost as opposed to what kind of
transportation cost there will be for Jap-
anese oil f.o.b. the United States.
Mr. YOUNG of Alaska. It is $2 to $3
versus $9. That is my understanding.
Mr. McKINNEY. Mr. Chairman, will
the gentleman yield?
Mr. YOUNG of Alaska. I yield to the
gentleman from Connecticut.
Mr. McKINNEY. Mr. Chairman, let me
give the gentleman my understanding at
the current moment, and I want to re-
mind the Members that the "current
moment" does not last very long in the
oil business.
^ 1640
The current situation is that we would
sell Alaskan oil at somewhere in the
neighborhood of $22 a barrel. We would
receive Mexican oil at somewhere in the
neighborhood of $23, plus a 75-cent
charge they add. That would be $1.75
basic balance of trade deficit with each
barrel exported.
True, the transportation costs are
more. However, the transportation costs
at the present moment are being borne
on Jones bottom ships and being paid to
American shipping companies and
American workers and, therefore, are
self-contained.
However, none of these savings on
transportation would go to the American
consumer. This is my argument to the
gentleman. I understand the gentleman's
parochial interest, and I have no desire
to put him down; he runs from the State
of Alaska. But the only transportation
savings would go to the oil companies.
Sohio has already announced a 302-per-
cent increase in profits and expect to in-
crease their production shortly.
The CHAIRMAN. The time of the gen-
tleman from Alaska has expired.
(On request of Mr. MCKINNEY and
by unanimous consent, Mr. YOUNG of
Alaska was allowed to proceed for 2 addi-
tional minutes.)
Mr. YOUNG of Alaska. Mr. Chairman,
if I may respond, I have made my state-
ment very clear. This is a parochial posi-
tion. We are losing a considerable
amount of money in the State of Alaska
because of the cost factor of shipping
our oil. That may not make many of the
Members have bleeding hearts, but as a
reality we are dealing with a nonrenew-
able resource that is being consumed by
the people of the lower 48, not the Alas-
kan people, and we believe we should be
reimbursed justifiably. It was my amend-
ment that prohibited the export of Jap-
anese oil. If there had been some ag-
gressive leadership in this administra-
tion to build the transportation system-
that has not occurred.
Mr. KAZEN. Mr. Chairman, if the
gentleman will yield, I just wanted to
echo the gentleman's sentiments. I think
we ought to have a mode of transporta-
tion for this oil from the west coast into
the United States. I do not want to name
names, but the State of California's
chief executive raised a lot of questions
and put a lot of stumbling blocks in the
building of that pipeline into Texas that
would have brought the stuff back up
.here into the Midwest and into the East.
Mr. YOUNG of Alaska. Maybe we will
have some brownouts and people will
recognize the problem we have.
Mr. KAZEN. Yes; whatever it takes, I
hope it happens. But still and all, I want
to make sure that if Japan is to get any
oil from Mexico, that Mexico agree to
deliver it through the pipelines to the
United States; otherwise, we will not be
able to make any kind of an agreement
with Japan or anybody else. Somewhere
in the long run it would be detrimental to
our consumers. I can understand the
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 .
H 8470
CONGRESSIONAL RECORD-HOUSE September 25, 1979
gentleman's point of view, and if I were pipelines being built. Certainly there is - Panama. If tolls are increased as a result
in his place I would do the same thing. going to be trouble, as we know it, as to of export of oil, it will have a very serious
Mr. MCKINNEY. Mr. Chairman, if the which route they take. But we are buy- adverse effect on the countries of South
gentleman will yield, let me back up the ing now oil from Canada to feed our America, especially western South
gentleman from Alaska in his point. midwestern -refineries, and we should America. It could easily do more harm
When this whole discussion went forth, feed them with Alaskan oil. There is no than any good from the canal treaty.
when the Alaskan pipeline was built, doubt. But this does not have to be for- Let me mention another thing. Every-
when we did put in fast-track legislation ever. Permits take several years. one was assured when the Alaskan pipe-
into, the Alaskan pipeline we listened to Mr. LAGOMARSINO.. Mr. Chairman, line was built that the oil would not be
the oil companies' promise that they I move to strike the requisite number of exported; it would be used in this coun
would immediately set about building a words, and I rise in opposition to the try. Substantial investments were made
distribution system. That has not hap- amendment. by the American maritime industry to
pened. (Mr. LAGOMARSINO asked and was build ships to carry that extra volume of
The CHAIRMAN. The time of the gen- given permission to -revise and extend oil from Alaska. The only savings that'
tleman from Alaska (Mr. YOUNG) has ex- his remarks.) there really are in shipping oil to Japan
pired. Mr. LAGOMARSINO. Mr. Chairman, is by using foreign ships. If you use
(On request of Mr. MCKINNEY and by I had hoped we had finally put this foreign ships, that certainly does not
unanimous consent, Mr. YOUNG of issue to rest. As a matter of fact, I am contribute to the favorable balance of
Alaska was allowed to proceed for 2 ad- surprised there is still discussion of the trade because the money would then go
ditional minutes.) issue when it seems so obvious to me, outside of the country, and the consider-
Mr. McKINNEY. If.the gentleman will anyway, that when we have an oil short- able investment of the American mari-
yield further, finally, after millions and age, we should be using our Alaskan oil time industry would be lost, or at least
millions of dollars being spent on a pipe- at home. That feeling has been particu- substantially impaired.
line and approvals, we see a sudden at- larly emphasized by the recent strong I would cite another point as well.
traction of interest on the part of the public reaction to the sale of oil prod- Many of us met with Prime Minister
oil companies on a distribution system. ucts to Iran. Ohira, of Japan, when he was in the
And why, one has to ask himself? Be- Since I have studied the issue of United States. We are putting consider-
cause June 22, 1979, they knew they exports of Alaskan oil for some time, all able pressure on the Japanese to in-
could get away with their little ploy. the testimony I have heard and conver- crease their imports of our good, agri-
Mr. YOUNG of Alaska. If I may re- sations I have had have convinced me cultural products as well as manufac-
claim some of my time to sort of refute that the tougher the provision on Alas- tured goods. If we sell them hundreds of
what the gentleman said, that, is not all kan oil that we can enact the better off millions of dollars worth of oil it cer-
necessarily the fact. I can say that they we will be. tainly is going to cut down on their
tried to establish that line early in the . Let me give you Just a couple of rea- interest in buying more from us. They
ball game, but because of 710 permits, sons: First, any pipeline that is being will be able to say, "We have improved
of the uncertainty, they reached a point proposed from the west coast to the the balance of trade," and, of course, the
it was no longer economically feasible to middle of this country, with or without United States will be left having to buy
build a line for the rest of Prudhoe Bay. a Northern Tier pipeline, I think, will that oil from someone else-with no
Again I must remind my good friend that never be built unless it is very clearly change then in our overall balance of
we do not know if there are going to understood that it is going to be ex- trade.
be any more Prudhoe Bays, and put most tremely difficult, if not impossible, to Many environmentalists are opposed
of the potential oil fields onshore off export oil. I am well aware that Sohlo to exporting Alaskan crude oil. They
limits. So Sohio had to pull out. But they has announced abandonment of its have also given further consideration
could make-and I make no bones about plans. But that does not mean they-or to the question of building new refin-
that-a better return on their dollar by some new applicant-cannot decide to go eries. Their conclusion is that compared
the Japanese swap, but for a short pe- ahead with it or some other pipeline. to older, polluting refineries, new large
riod of time. The Northern Tier pipeline is still very refineries using the latest technology are
Mr. MCKINNEY. Would not the gen- much in the picture. preferable for meeting our domestic oil
tleman agree that we would have to keep Second, probably the best argument needs.
their feet to the fire in order to build that was used by the administration, if This is especially true to meet the
this distribution system? you believed it, was that if we did not requirements of refining our heavy crude
Mr. YOUNG of Alaska. You cannot export oil it would preclude an increase resources. Without a prohibition on the
keep the oil companies' feet to the fire. oil production in Alaska. export of Alaskan oil, there will be little
You have to keep this administration Very interestingly, early May, At- incentive to proceed with changing exist-
and those States who have impeded the lantic Richfield Oil Co., which is one of Ing refineries to be able to process
process of a distribution system for the the Alaskan producers, announced it is Alaskan oil or the heavy crude which
rest of the United States. going to increase its production by 25 is so abundant in California. It will be
Mr. McKINNEY. I agree with the gen- percent-300,000 barrels a day-in 1980. interesting to see if the environmental
tleman totally. Company officials also said they antici- groups continue to endorse such pro-
Mrs. F tally. . Mr. Chairman, will pated no serious problems in transport- _ grams once they are actually proposed.
the gentleman yield? ing and distributing the oil to refineries Those who argue that we should allow
Mr. Yof Alaska. I yield to the in the continental United States, al- export of Alaskan oil because there is
gelewo YOUNG from New Jersey. though transportation under current not enough refinery capacity on the west
FENWICK. my man from I thank Jersey.
conditions would be relatively expensive. coast ignore the new refinery being built
Mrs. O
colleague
for yielding. The present surplus of Alaskan crude oil in Alaska itself. The Alpetco refinery
that cannot be refined on the west coast Mr. Chairman, I do not come from is shipped through the Panama Canal to barrelsv have tf he capacity to process and of
Alaska; I come from New Jersey. We refineries in the Southeast. that amounte75,000 arrels of unleaded
are not talking about keeping feet to the With regard to the Panama Canal, I gasoline will be available for California.",
fire. The only feet to the fire are going am surprised that some of the people That refinery should provide one more
to be the consumers, and that is the who support the administration general- incentive for increasing production of
truth. Surely, we should have had that ly and who support the Panama Canal Alaskan crude oil.
pipeline through to Midland, Tex., but Treaty are lining up on the wrong side It is noteworthy that although we
we did not get it, because of obstruction of this issue. Because, if we should export were advised several years ago that total
of one kind or another, as the gentle- Alaskan oil, it would cut down on the west coast refinery capacity was 500,000
man from Texas has alluded to. And we tolls for the Panama Canal, which is not barrels per day, such refining capability
know why. It is commonsense that if one of the things that has been forecast. is now some 830,000 barrels per day.
you can get an equal amount of oil from And then, American taxpayers are going It is also important to remember that
Mexico or Venezuela cheaper, landing to have to either dig that money up, tolls the language in this bill does not auto-
in Texas and in Louisiana refineries are going to have to be increased, or we matically prohibit export of Alaskan oil.
cheaper, we can still insist upon the are going to have a serious problem with The conditions to be met are very
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 ,y Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL
stringent, to be sure, but they do pro-,
vide that if benefits can be passed on to
the consumer and the refiner, then ex-
ports are possible. If those provisions
can be met, then a trade could be a good
thing. However, until those conditions
are met, we should not export Alaskan
oil.
Probably the best reason for not ex-
porting Alaskan oil is that if we do not
prevent it-or at least preserve that
option-it we do not take strong action,
I think that the credibility of the Amer-
scan people in the government of the
United States in relation to oil-and
how we handle oil-is going to be even
more seriously eroded than it already
is-if such a thing is possible. I do not
know how you go from zero to minus.
But that will happen, I can guarantee
you, especially when you remember pub-
lic reaction to export of oil products to
Iran.
The bottom line is that if the Con-
gress of the United States is going to
have anything to say about oil policy in
this country, I think we had better
preserve the strong provisions concern-
ing export of Alaskan crude oil that do
give the Congress the final say.
^ 1650
Mr. BINGHAM. Mr. Chairman, I ask
unanimous consent that all debate on
this amendment and all amendments
thereto cease in 7 minutes.
The CHAIRMAN. Is there objection to
the request of the gentleman from New,
York?
There was no objection.
The CHAIRMAN. Members standing
at the time the unanimous-consent re-
quest was granted will be recognized for
1 minute each.
(By unanimous consent, Mr. BINCHAM,
Mr. LEE, and Mrs. FEN WICK yielded their
time to Mr. DANNEMEYER.)
The CHAIRMAN. The gentleman from
California (Mr. DANNEMEYER) Is recog-
nized for 4 minutes.
Mr. DANNEMEYER. Mr. Chairman,
the argument has been made that we
should not lift this restriction, because
it will continue to put heat under the
effort to build a pipeline from the north
slope of Alaska across Canada in order
to bring energy to the northern tier
States of our Union. Let us examine that
for a moment.
We had a representative of the De-
partment of Energy come before the
Committee on Interstate and Foreign
Commerce, on which I served some 3
months ago, and tell us that because of
land use restrictions and environmental
restrictions in this country, we probably
cannot build another refinery.
So if we are thinking about building
or bringing oil to the northern tier
States, we are going to have to ask very
clearly and concisely what are we going
to do after we get it there. If we think we
are going to build a refinery in some
place in the northern part of the United
States, I do not think that objective has a
realistic chance of being attained.
Let me make my position very clear. I
am prepared; as a Member of this House,
to vote the legislation to build that pipe-
line, because I think it is badly needed.
IECO D - IEIIOUSE H 8471
But until we get it built, what are we
going to do with the oil that we hope to
obtain from increased production in the
north slope of Alaska?
Currently we are producing 1.2 million
barrels a day. It has been estimated that
the capacity of that pipeline is some 2
million barrels a day, and we have to ask
the question, where is that additional
oil going to be used in our system?
Right now, the.west coast capacity is
some 850,000 barrels a day. About 350,-
000 barrels a day is going through the
Panama Canal, and we are in the ridicu-
lous position today of tankers passing
one another in the Panama Canal, one
going to Japan from the east coast of
Mexico, because Mexico has no shipping
port on its west coast.
Now, in 1974, when this amendment
first came into our law prohibiting Alas-
kan oil from being shipped to any place
besides the United States, Mexico had
10.09 billion. barrels in reserve. In that
year it was producing 551,000 barrels a
day.
Today, Mexico has 46.5 billion barrels
of reserve and is' producing 1.6 million
barrels per day.
The point is, there are changed cir-
cumstances in the last 5 years. These
changed circumstances require us at this
time on a temporary basis to look at this
amendment very seriously because all it
says is that we will permit the export of
Alaska oil to a foreign country to the ex-
tent we are able to obtain it from a con-
tiguous foreign nation, which by defini-
tion almost exclusively would be Mexico.
The Mexican oil would be shipped
from the east coast to the refineries in
the Gulf States of this country, and the
oil from Alaska could go to Japan, to the
extent of maybe 300,000 barrels a day.
That works out to a significant saving to
consumers, based. on $2 per day of saving
and transportation costs of about $219
million a year. -
It would improve our balance of pay-
ments with Japan to the extent, assum-
ing we would sell 300,000 barrels a day,
of $2.19 billion per year. That is a sig-
nificant reduction of our adverse balance
of payments with Japan. It is something
I think we should achieve. I ask for an
"aye" vote on the amendment.
(Mr. GORE asked and was given
permission . to revise and extend his
remarks.)
Mr. GORE. Mr. Chairman, I want to
congratulate my colleague for offering
this amendment. I do not support this
amendment, but I think it is an ex-
tremely close question. I am glad he has
brought the question up for debate.
I have studied this very carefully. I
think there is a great deal of merit in
the position he is advocating if we had
a true free market in the world trade of
oil. I think the amendment surely should
pass, but I have decided a "no" vote is
indicated on this amendment for the
following reasons:
First, the consumers would not benefit
at all from the savings effected by the
swap.
Second, the increased revenues to
the oil companies would not result in
additional incentives to step up produc-
tion in Alaska because the recent OPEC
increases which apply to Alaskan pro-
duction have already increased that in-
centive enormously.
Third, I think we need to maintain the
incentive in this country to reconfigure
our refineries to handle the heavy crude
oil and create an incentive to build the
PacTex pipeline or Northern Tier pipe-
line so we can get this oil into the parts
of the country where we can refine it.
Fourth, I think that a "no" vote is in-
dicated. It is a worthy amendment, re-
gardless.
(Mr. LAGOMARSINO asked and was
given permission to revise and extend
his remarks.)
Mr. LAGOMARSINO. Mr. Chairman,
I want to commend my colleagues from
California, too, for offering this amend-
ment, although I do not agree with it.
I think it should be defeated. I think he
has performed a useful purpose in bring-
ing this issue. I think it is an issue
worthy of debate. I think there are two
main reasons why the amendment
should be defeated.
^ 1700
One is that at this time, as I mentioned
in my remarks a little while ago, the
credibility of the U.S. Government with
regard to oil policy is very low. The ship-
ment of oil products in very limited
amounts to Iran certainly demonstrated
that. I think if we were to embark on
a program of exporting Alaskan oil. to
Japan, while we say we have a shortage,
would be very damaging to our credibil-
ity and our efforts to get an energy policy
into the works.
But I think really the bottom line is
the one I mentioned before, and that
is if we are going to be involved, we as
Members of Congress are going to be
involved in the important decisions re-
lating to energy, then I think we cer-,
tainly should preserve that option with
regard to this very important issue. I
urge a "no" vote.
The CHAIRMAN. The Chair recog-
nizes the gentleman from Minnesota
(Mr. OBERSTAR).
Mr. OBERSTAR. Thank you, Mr.
Chairman.
I want to correct a possible misunder-
standing about Northern Tier pipelines
in remarks made earlier. It is not a mat-
ter of building new refineries in the up-
per Midwest. The refineries exist. The
question is the cutoff of Canadian crude.
The Canadians have put the upper Mid-
west on a month-to-month allocation.
We have to build a Northern Tier pipe-
line. We must bring excess Alaskan crude
oil to the upper Midwest refineries,
which are built to accommodate that
high-sulfur sour crude. They can con-
tinue operating; we can continue to feed
the industrial heartland of the United
States.
The decision on building the Northern
Tier pipeline is hardly a month away;
the Interior Department is about ready
'to make its decision. The President has
the recommendation of former Secretary
Schlesinger and of Secretary Bergland
to go ahead with the Northern Tier pipe-
line project. The decision we make today
on the question of swapping Alaskan
crude can decide whether or not we go
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 %
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 ?1
H 8472
ahead with the Northern Tier pipe. I say
defeat the Dannemeyer amendment,
build the Northern Tier pipeline.
The CHAIRMAN. The question is on
the amendment offered gy the gentle-
man from California (Mr. DANNEMEYER).
The question was taken; and the
Chairman announced that the noes ap-
peared to have it.
RECORDED VOTE
Mr. DANNEMEYER. Mr. Chairman,
I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic de-
vice, and there were-ayes 61, noes 340,
not voting 33, as follows:
[Roll No. 506]
AYES-61
Alexander
Forsythe
Pritchard
Anthony
Frenzel
Rhodes
Archer
Gingrich
Rudd
Ashley
Goldwater
Satterfield
Aspin
Hagedorn
Scheuer
Badham
Hansen
Schulze
Bingham
Heftel
Shuster
Bolling
Jones, Okla.
Simon
Brown, Calif.
Kelly
Smith, Iowa
Collins, Tex.
Kemp
Steed
Conable
Kindness I
Symms
Corman
LaFalce
Thomas
Crane, Daniel
Lehman
Van Deerlin
Crane, Philip
Lent
Whittaker
Dannerneyer
McDonald
Wilson, Bob
Derwinski
McEwen
Wirth
Dornan
Madigan
Wyatt
'Duncan, Oreg.
Martin
Young, Alaska
Erlenborn
Michel
Zablocki
Evans, Del.
Nedzi
Fenwick
Paul
NOESl _340
Abdnor
Chappell
Fountain
Akaka
Cheney
Fowler
Albosta
Clausen
Frost
Ambro
Clay
Fuqua
Anderson,
Cleveland
Garcia
Calif.
Clinger
Gaydos
Andrews, N.C.
Coelho
Gephardt
Andrews,
Coleman
Giaimo
N. Dak.
Collins, nl.
Gilman
Annunzio
Conte
Ginn
Applegate
Conyers
Glickman
Ashbrook
Cotter
Gonzalez
Atkinson
Coughlin
Goodling
AuCoin
Courter
Gore
Bafalis
D'Amours
Gradlson
Bailey
Daniel, Dan
Gramm
Baldus
Daniel, R. W.
Grassley
Barnard
Danielson
Gray
Barnes
Daschle
Green
Bauman
Davis, Mich.
Grisham
Beard, R.I.
Davis, S.C.
.Guarini
Beard, Tenn.
de Is Garza
Gudger
Bedell
Dellums
Guyer
Bellenson
Derrick
Hall, Ohio
Benjamin
Devine
Hall, Tex.
Bennett
Dicks
Hamilton
Bereuter
Dingell
Hammer-
Bethune
Dixon
schmidt
Bevill
Dodd
Hance
Blanchard
Boggs
Downey
Harkin
Boland
Drinan
Harris
Boner
Duncan, Tenn.
Harsha
Bonior
Early
Hawkins
Bonker
Eckhardt
Heckler
Bouquard
Edgar
Hefner
Bowen
Edwards, Ala.
Hightower
Brademas
Edwards, Calif.
Hillis
Breaux
Edwards, Okla.
Hinson
Brinkley
Emery
Holland
Brodhead
English
Hollenbeck
Brooks
Erdahl
Holt
Broomfield
Ertel
Hopkins
Brown, Ohio
Evans, Ga.
Horton
Broyhill
Evans, Ind.
Howard
Buchanan
Fary
Hubbard
Burgener
Fascell
Huckaby
Burlison
Findley
Hughes
Burton, John
Hutto
Burton, Phillip Fisher
Hyde
Butler
Fithian
Ichord
Byron
Flippo
Ireland
Campbell
Florio
Jacobs
Carney
Foley
Jeffords
Carr
Ford, Mich.
Jeffries
Ford, Tenn.
Jenkins
CONGRESSIONAL RECORD-HOUSE September 2.5, 1979
Jenrette
Moore
Shannon
Johnson, Calif.
Moorhead,
Sharp
Johnson, Colo.
Calif. '
, Shelby
Jones, N.C.
Moorhead, Pa.
Shumway
Jones, Tenn.
Mottl
Skelton
Kastenmeier
Murphy, N.Y.
Slack
Kazen
Murphy, Pa.
Smith, Nebr.
Kildee
Murtha
Snowe
Kogovsek
Myers, Pa.
Snyder
Kostmayer
Natcher
Solarz
Kramer
Neal
Solomon
Lagomarsino
Nelson
Spellman
Latta
Nichols
Spence
Leach, Iowa
Nolan
St Germain
Leach, La.
Nowak
Stack
Leath, Tex.
O'Brien
Staggers
Lederer
Oakar
Stangeland
Lee
Oberstar
Stanton
Leland
Obey
Stark
Levitas
Ottinger
Stenholm
Lewis
Panetta
Stewart
Livingston
Pashayan
Stokes
Lloyd
Patten
Stratton
Loeffler
Patterson
Studds
Long, La.
Pease
Stump
Long, Md.
Pepper
Swift
Lowry
Perkins
Synar
Lujan
Petri
Tauke
Luken
Peyser
Taylor
Lundine
Pickle
Traxler
Lungren
Preyer
Trible
McClory
Price
Udall
McCloskey
Pursell
Ullman
McCormack
Quayle
Vander Jagt
McDade
Rahall
Vanik
McHugh
Railsback
Vento
McKay
Rangel
Volkmer
McKinney
Ratchford
Walgren
Maguire
Regula
Walker
Markey
Reuss
Wampler
Marks
Richmond
Watkins
Marlenee
Rinaldo
Weaver
Marriott
Ritter
Weiss
Matsui
Robinson
White
Mattox
Roe
Whdtehurst
Mavroules
Rostenkowski
Whitley
Mazzoli
Roth
Whitten
Mica
Rousselot
Williams, Mont.
Mikulski
Roybal
Williams, Ohio
Miller, Calif.
Royer
Wilson, Tex.
Miller, Ohio
Runnels
Wolpe
Mineta
Russo
Wydler
Minish
Sabo
Wylie
Mitchell, Md.
Santini
Yates
Mitchell, N.Y.
Sawyer
Yatron
Moakley
Schroeder
Young, Fla.
Moffett
Sebelius
Young, Mo.
Mollohan
Seiberling
Zeferetti
Montgomery
Sensenbrenner
NOT VOTING-33
Addabbo
Ferraro
Rodino
Anderson, Ill.
Flood
Rose
Biaggi
Gibbons
Rosenthal
Carter
Holtzman
Stockman
Chisholm
Lott
Thompson
Corcoran
Mathis
Treen
Deckard
Mikva
Waxman
Dickinson
Murphy, nl.-
Wilson, C. H.
Diggs
Myers, Ind.'
Winn
Donnelly
Quillen
Wolff
Fazio
Roberts
Wright
absolutely clear. Under rule X, clause 1
(h) (14), jurisdiction over export con-
trols is granted solely to the Committee
on Foreign Affairs. That has been the
case since 1975. I have examined the
jurisdiction of the other committees that
have an interest in this legislation and
there is no reference in the rules of any
kind to export controls or other issues
touched upon by H.R. 4034. So there ,.
should be no doubt that the Foreign Af-
fairs Committee has sole legislative ju-
risdiction over export controls, including
controls for the purpose of national se-
curity which is an essential part of the
legislation now before the committee. It
is true that one particular bill in this
Congress, H.R. 3216, was coreferred to
another committee as well as to the For-
eign Affairs Committee. The only dif-
ference between that bill and the export
control bills referred solely to the For-
eign Affairs Committee was a provision
authorizing funds for the Department
of Defense. Such an authorization, of
course, is not within the jurisdiction of
the Foreign Affairs Committee. But in-
cluding such a provision in a bill dealing
with export controls does not give an-
other committee jurisdiction over export
controls, and should not be so inter-
preted.
Mr. LAGOMARSINO. Mr. Chairman,
I move to strike the last word.
(Mr. LAGOMARSINO asked and was
given permission to revise and extend his
remarks.)
Mr. LAGOMARSINO. Mr. Chairman, I
rise in support of this bill.
I wish to take this opportunity to con-
gratulate my colleagues for the excellent
work they have done in shaping this leg-
islation to protect our national security
interests for exports of military critical
technologies and at the same time to
provide for greater specificity for the ex-
port licensing process, thereby giving
business a clearer definition of what to
expect in the administration of export
controls.
I would also like to point out those
provisions which were amended and
which reflect the changes I have been
seeking since the markup process began
in subcommittee last April. ,
The sections on "findings" and "policy"
^ 1710
Messrs. ASHLEY, ALEXANDER, LEH-
MAN, and NEDZI changed their votes
from "no" to "aye."
Messrs. REUSS, HUCKABY, ABD-
NOR, and ECKHARDT changed their
votes'from "aye" to "no."
So the amendment was rejected.
The result of the vote was announced
as above recorded.
^1720
Mr. BINGHAM. Mr. Chairman, I move
to strike the last word.
(Mr. BINGHAM asked and was given
permission to revise and extend his re=
marks.)
Mr. BINGHAM. Mr. Chairman, there
have been some assertions during debate
on this bill to the effect that other House
committees share the jurisdiction over
this legislation. I simply want to state
for the record that there can be no such
interpretation of the rules. The rules are
clarify the necessity of export controls
for national security purposes.
The role of the Department of Defense
is reaffirmed in the military critical tech-
nologies approach to export controls for
national security purposes for develop-
ment of the control list and for review of
license applications for national security
reasons.
Notwithstanding foreign availability,
national security interests will be pre-
served under export controls and re-
export controls will be maintained.
The legislation, as amended, requires
negotiations to eliminate foreign avail-
ability of critical technologies.
The role of the technical advisory com-
mittees is made more explicit with re-
spect to their functions in assisting the
Secretary of Defense in decisions related
to national security controls.
I would like to add that with regard
to the diversion of technology by a con-
signee to significant military use, this
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECORD-HOUSE
legislation prevents further exports until
such diversion is terminated and provides
that additional steps as necessary be
taken to prevent further military use. of
such diverted technology. ,
I also believe that the foreign policy
provisions of this bill make a substantial
improvement in the existing law and will
help to get rid of some of the uncertainty
in the business community. Specifically,
the provision for congressional review
will provide a role for Congress on this
important subject.
With the balance this House has struck
in preserving the national security in-
terests of our country in exports of tech-
nology as well as providing greater cer-
tainty to business, I urge my colleagues
to vote for this legislation.
Mr. BONKER. Mr. Chairman, I move
to strike the last word.
(Mr. BONKER asked and was given
permission to revise and extend his re-
marks.)
Mr. BONKER. Mr. Chairman, I rise
in support of this bill.
H.R. 4034, the Export Administration
Act Amendments of 1979 Is the product
of several months of work and many
more months of study by the Subcom-
mittee on International Economic Policy
and Trade. I have the honor of being
the ranking majority member of that
subcommittee and worked very hard on
this legislation. I have always believed
that the encouragement of exports must
be a national objective; that our export
policy must be affirmative. The Export
Administration Act is basically a nega-
tive instrument. It contains sections
where controls are imposed on exports
because of national security or foreign
policy or short supply considerations. It
also contains other sections where li-
censes for exports are denied for various
reasons.
We faced several monumental prob-
lems in trying to refrom the export con-
trol policy. Our biggest dilemma was how
to reconcile the conflicting tendencies be-
tween a policy that promoted exports and
a policy which maintained those con-
trols that would insure our national
security. In my judgment we have
achieved that fine balance.
As the subcommittee chairman, Mr.
BINGHAM, said recently:
In the world in which we live, we cannot
afford to relax our controls on technology
exports which our adversaries could use to
reduce the military technology gap which is
the key to the superior performance of U.S.
weapons systems. At the same time, con-
sidering the unprecedented trade deficit
which is sapping our economic strength and
vitality, we cannot afford to continue con-
trolling products which are being exported
by other advanced free-world countries. Nor
Can we afford inefficiencies and delays in the
licensing system which act as needless bar-
riers to exports.
That was another problem we had to
resolve. There is no doubt that delays in
the licensing decisions have been a major
cause for our export loss. Foreign pur-
chasers have come to look upon us as an
unreliable supplier because the licensing
policy has often been unclear. I believe
this bill goes a long way in resolving the
licensing issue.
H.R. 4034 is probably one of the most
complicated pieces of legislation to come
before the Congress in a long time. I par-
ticipated in the hearings and drafting of
new amendments with great care. I was
especially interested in finding a way
which would give us an export policy
that gave the people full economic bene-
fits and yet preserved our dwindling re-
sources. My red cedar amendment is one
gdod example. This is a unique situation
that warranted special attention.
Studies have shown that at the pres-
ent rate of cutting this rare species (red-
cedar) will be extinct in 8 to 10 years
and it takes over 300 years? to grow.
Because faster growing species such as
Douglas fir produce greater economic re-
turn, foresters generally do not replace
these large, very old western redcedar
trees with cedar seedlings. This amend-
ment applies only to logs harvested from.
State and Federal lands (excluding In-
dian lands). Virtually all redcedar logs
currently harvested and exported from
Federal and State lands are from my
State. By banning the exports of un-
processed redcedar logs from State and
Federal lands we will help to slow down
consumption and we will help to pre-
serve a precious nonrenewable resource..
A second good example is the section
in H.R. 4034 which strengthens the ex-
isting restrictions on the export or swap
of Alaska oil. This provision requires the
President to demonstrate to the Congress
that exporting Alaskan oil will benefit
the American consumeF. It will also in-
sure that the Congress, as well as the
administration, plays a major role in
deciding whether or not Alaskan oil
should be exported.
Mr. Chairman, let me reiterate, H.R.
4034 is a responsible bill, it addresses
all relevant issues, fully protecting our
national security while increasing our
competitiveness in the world market.
The CHAIRMAN. If there are no fur-
ther amendments, under the rule the
Committee rises.
Accordingly the Committee rose; and
the Speaker having resumed the chair,
Mr. SEIBERLING, Chairman of the Com-
mittee of the Whole House on the State
of the Union, reported that that Com-
mittee, having had under consideration
the bill (H.R. 4034) to provide for con-
tinuation of authority to regulate ex-
ports, and for other purposes, pursuant
to House Resolution 286, he reported
the bill back to the House with sundry
amendments adopted by the Committee
of the Whole.
The SPEAKER. Under the rule, the
previous question is ordered.
Is a separate vote demanded on any
amendment? If not, the Chair will put
them en gros.
The amendments were agreed to.
The bill was ordered to be engrossed
and read a third time, was read the
third time, and passed, and a motion to
reconsider was laid on the table.
GENERAL LEAVE
Mr. BINGHAM. Mr. Speaker, I ask
unanimous consent that all members
may have 5 legislative days in which to
revise and extend their remarks on the
bill just passed.
I 8473
The SPEAKER. Is there objection to
the request of the gentleman from New
York?
There was no objection.
Mr. BINGHAM. Mr. Speaker, I ask
unanimous consent to take from the
Speaker's table the Senate bill (S. 737)
to provide authority to regulate exports,
to improve the efficiency of export regu-
lation, and to minimize interference
with the ability to engage in commerce,
and ask for its immediate consideration.
The Clerk read the title of the Senate
bill.
The SPEAKER. Is there objection to
the request of the gentleman from New
York?
There was no objection.
The Clerk read the Senate bill, as
Be it enacted bynate and House of
Representatives of the United States of
America in Congress assembled, That this
Act may be cited as the "Export Administra-
tion Act of 1979".
FINDINGS
SEC. 2. The Congress makes the following
findings:
(1) The ability of United States citizens to
engage in international commerce is a funda-
mental concern of United States policy.
(2) Exports contribute significantly to the
balance of trade, employment, and produc-
tion of the United States.
(3) The availability of certain materials at
home and abroad varies so that the quantity
and composition of United States export8 and
their distribution among importing countries
may affect the welfare of the domestic econ-
omy and may have an important bearing
upon fulfillment of the foreign policy of the
United States.
(4) Exports of goods or technology with-
out regard to whether they make a signif-
icant contribution to the military potential
of individual countries or combinations of
countries may adversely affect the national
security of the United States.
..(5) The restriction of exports from the
United States can have serious adverse effects
on the balance of payments and on domestic
employment, particularly when restrictions
applied by the United States are more exten-
sive than those imposed by other countries.
(6) Uncertainty of export control policy
can curtail the efforts of American business
to the detriment of the overall attempt to
improve the trade balance of the United
States and to decrease domestic unemploy-
ment.
(7) Unreasonable restrictions on access to
world supplies can cause worldwide political
and economic instability, interfere with free
international trade, and retard the growth
and development of nations.
(8) It is important that the administra-
tion of export controls imposed for national
(and goods which contribute significantly
to the transfer of such technology) which
(and gods which contribute significantly to
the transfer of such technology) which
could make a significant contribution to the
military potential of any country or com-
bination of countries which would be detri-
mental to the national security of the
United States.
DECLARATION OF POLICY
SEC. 3. The Congress makes the following
declarations:
(1) It is the policy of the United States
to minimize uncertainties in export control
policy and to encourage trade with all coun-
tries with which we have diplomatic or trad-
ing relations, except those countries with
which such trade has been determined by
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
IHI 8474 CI
NGRIESSIIONAL RIECORD -HOUSE September 25, 1979
the President to be against the national
interest.
(2) It is the policy of the United States to
restrict the ability to export only after full
consideration of the impact on the economy
of the United States and only to. the extent
necessary-
(A) to prevent the export of goods. and
technology which would make a significant
contribution to the military potential of any
other nation or nations which would prove
detrimental to the national security of the
United States;
(B) to further significantly the foreign
policy of the United States or to fulfill its
declared international obligations; and.
(C) to protect the domestic economy from
the excessive drain of scarce materials and
to reduce the serious inflationary impact. of
foreign demand.
(3) It is the policy of the United States
(A) to apply any necessary controls to the
maximum extent possible in cooperation
with all nations; and (B) to encourage ob-
servance of a uniform export control policy
by all nations with which the United States
has defense treaty commitments.
(4) It. Is the policy of the United States
to use its economic resources and trade po-
tential to further the sound growth and
stability of its economy as well as to, further
its national security and foreign policy ob-
jectives.
(5) It is the policy of the United States
(A) to oppose restrictive trade practices
or boycotts fostered or Imposed. by foreign
countries against other countries friendly
to the United States or against any United
States person;.
(B) to encourage and, in specified cases,
require United. States persons engaged in the
export of goods and technology or other in-
formation to refuse to take actions. includ-
ing furnishing information or entering into
or implementing agreements, which have the
effect of furthering or supporting the restric-
tive trade practices or boycotts fostered or
imposed by any foreign country against a
country friendly to the United States or
against any United States, person; and
(C) to foster international cooperation
and the development of international rules
and institutions to asst?re reasonable access
to world supplies.
(6) - It. Is the policy of the United States
that the desirability of subjecting;. or con-
tinuing to subject, particular goods or tech-
nology or other information to United States
export controls should be subjected to review
by and consultation with representatives of.
appropriate United States Government agen-
cies and private industry.
(7) It is the policy of the. United States to
use export controls, including license fees,
to secure the removal by foreign countries
of restrictions on access to supplies where
such restrictions have or may have a serious
domestic inflationary Impact, have caused or
may cause a serious domestic shortage, or
have been imposed for purposes of influenc-
ing the foreign policy of the United States.
In effecting this policy, the President shall
make every reasonable effort to secure the
removal or reduction of such restrictions.
policies, or actions through international co-
operation and agreement before resorting to
the imposition. of controls on exports from
the United States. No action taken in ful-
flUn ent of the policy set forth in this pars,
graph shall apply to the export of medicine
or medical supplies.
(8) It is the policy of the United States to
use export controls to encourage other coun-
tries to take immediate steps to prevent the
use of their territories or resources to aid,
encourage or give sanctuary to those persons
Involved in directing, supporting, or partic-
ipating in acts of international terrorism.
To achieve this objective, the President shall
make every seesouable effort to secure the
removal or reduction of such assistance to
international terrorists through interna-
tional cooperation and agreement before re-
sorting to the imposition of export controls.
(9) It is the policy of the United States
to cooperate with other nations with which
the United States has defense treaty com-
mitments in restricting the export of goods
and technology which would make a signif-
icant contribution to the military potential
of any country or. combination.of countries
which. would prove detrimental to the secu-
rity of the United States or to the security
of those countries with which the United
States has defense treaty commitments.
AUTROariR
SEC. 4. (a) (1) To the extent necessary to
carry out-the policies set forth in section 3
of this Act, the President, by rule or regula-
tion, may prohibit or curtail the export of
any goods or technology, or for the purpose
of section 6 Information, subject to the juris-
diction of the United States or exported by
any person subject to the jurisdiction of the
United States.. To the extent necessary to
achieve effective enforcement of this Act,
these rules and regulations may apply to the
financing, transporting, and other servicing
of exports and the participation therein by
any person. In curtailing exports to carry
out the policy set? forth In section 3(2) (C)
of this Act, the: President Is authorized and
directed to allocate a portion of export
licenses on. the basis of factors other than
a prior history of exportation.
(2) (A) In administering, export. controls
for national security purposes as prescribed
in section 3(2) (A) of this Act, United States
policy toward individual countries' shall not
be determined exclusively on the basis of
a country's Communist or non-Communist
status but shall take into account such fac-
tors as the country's present and potential
relationship to the United States,. its present
and potential relationship to countries
friendly or hostile to the United. States, its
ability and willingness to control retransfers
of United States exports in accordance with
United States policy, and such other factors
as the President may deem appropriate. The
President shall review not less frequently
than every three years in. the case of controls
maintained cooperatively with other nations,
and annually in the case of all other con-
trols, United States policy toward individual
countries to determine whether such policy
is appropriate in light of. the factors specified
in the preceding sentence.
(B) Rules and regulations under this sub-
section to carry out the policy set forth in
section 3 (2). (A) of this. Act. may provide for
denial of any request or application for
authority to export goods or technology from
the United States, its territories and posses-
sions, which would make a significant con-
tribution to the military potential of any
nation or combination of. nations threaten-
ing the national security of the United.
States' If the President determines that their
export could prove detrimental to the na-
tional security of the United States. In
administering export, controls for national
security purposes as prescribed in section
3(2) (A) of this Act, priority shall be given
to preventing the effective transfer to coun-
tries to which exports are controlled for
national security purposes of goods and
technology critical to the design, develop-
ment, production, or use of existing or
potential military systems, Including weap-
ons, command, control, 'communications,
intelligence systems, and other military ca-
pabilities, such as countermeasures, which
would make a significant contribution
to the military potential of any nation or
nations which could prove detrimental to
the national security of the United States.
The Secretary of Defense shall bear primary
responsibility for Identifying such militarily
critical goods and technologies. Taking this
fully into account, the Secretary of Com-
merce, in consultation with the Secretary
of Defense, shall review and revise not less
frequently than every three years in the case
of controls maintained cooperatively with
other nations,. and annually in the case of all
other controls, export controls maintained
for national security purposes pursuant to
this Act for the purpose of insuring that
such controls cover and (to the maximum
extent consistent with the purposes of this
Act) are limited to such critical goods and
technologies and the mechanisms through
which they may be effectively transferred.
Rules and Regulations shall reflect the diffi-
culty of devising effective safeguards which
would prevent a nation which poses a
threat to, the United States from diverting
critical technologies to military use, the
difficulty in devising effective safeguards. to
protect critical goods, and the need to take
effective measures to prevent the reexport
of critical technologies from noncontrolled
countries to nations that pose a threat to
the security of the United States. Such rules
and regulations shall not assume that effec-
tive safeguards. can be devised.
(C) Export controls maintained. for for-
eign policy purposes shall expire on Decem-
ber 31, 1979, or one year after 'imposition,
whichever is later, unless extended by the
President in accordance with this subpara-
graph and subparagraph (D); Any such ex-
tension and any subsequent extension shall
not be for a, period of more than one year.
When imposing, increasing, or extending
export controls for foreign policy purposes
pursuant to the authority provided by this
Act, the President shall consider-
(t) alternative means to further the
foreign policy purposes in question;
(ii) the likelihood that foreign competi-
tors will join the United States in effective-
ly controlling such. exports;
(iii) the probability that such controls
will. achieve the intended foreign policy
purpose;
(iv) the effect of such controls on United
States exports, employment, and, production,
and on the' international reputation. of the
United States as a supplier of goods and
technology;
(v) the reaction of other countries to the
imposition or enlargement of such export
controls by the United States; and
(vi) the foreign policy consequences of not
imposing controls.
(D) Whenever the President imposes,. in-
creases, or extends export controls for foreign
policy purposes pursuant to authority pro-
vided by this Act, the shall Inform the Con-
gress of his action within thirty days and,
to the extent consistent with the national
interest, make public a report specifying his
conclusions with respect to each of the
matters considered as provided in subpara-
graph (C) of this paragraph and indicating
how such export controls will further signif-
icantly the foreign policy of the United
States or fulfill its declared international
obligations.
(E) The President shall not impose. ex-
port controls for foreign policy or national
security purposes on the export from the
United States of goods or technology which
he determines are available without restric-
tion from sources outside the United States
in significant quantities and comparable in
quality to those produced in the United.
States, unless the President determines that
adequate evidence has. been presented to hint
demonstrating that the absence of such con-
trols would prove detrimental to the foreign
policy or national security of the united
States. With respect to controls imposed for
national security purposes, a finding of
foreign availability which is the basis of a
decision to grant a license for, or to remove
a control on the export of a good or tech-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 ,. Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECORD -HOUSE
H 8475
nology, shall be made in writing and be sup- (2) The Secretary of Commerce shall keep (C) To the extent necessary, the Secretary
ported by reliable evidence, such as a scien- the public fully apprised of changes in export shall seek information and recommendations
tific or physical examination, expert opinion control policy and procedures instituted in from the several executive departments and
based upon adequate factual information, or conformity with this Act with a view to en- independent agencies concerned with aspects
intelligence information. In assessing foreign couraging trade. The Secretary sliall meet of our domestic and foreign policies and
availability with respect to license applica- regularly with representatives of the business operations having an important bearing on
tions, uncorroborated representations by sector in order to obtain their views on export exports. These departments and agencies
applicants shall not be deemed sufficient evi- control policy and the foreign availability shall cooperate fully in rendering such in-
dence of foreign availability. Such sworn of goods and technology. formation and recommendations.
representations without adequate indepen- (c) (1) (A) To effectuate the policies set (2) Within ten days after the date on
dent corroboration shall not constitute re- forth in this Act, the Secretary of Commerce which any export license application is re-
liable evidence. Where, in accordance with shall establish at least the following three ceived, the Secretary shall-
this paragraph, export controls are imposed types of licenses in addition to such other (A) send the applicant an acknowledge-
for foreign policy or national security pur- types as the Secretary may deem appropriate: ment of the receipt of the application and
poses notwithstanding foreign availability, (i) A validated license. the date of the receipt;
the President shall take steps to initiate (ii) A qualified general license. (B) submit to the applicant a written
negotiations with the governments of the (iii) A general license. description of the procedures required by
annro riate forel n countri f th
es
P
or a pur-
g
pose of eliminating such availability. When-
ever the President has reason to believe goods
or technology subject to export control for
national security purposes by the United
States may become available to controlled
countries from other countries, the President
shall promptly initiate negotiations with the
governments of such countries to prevent
such foreign availability. In an instance in
which such negotiations fail to prevent or
secure the removal of such foreign avail-
ability and the President requires additional
authority to take effective action toward that
end, the President shall report fully to the
Congress and where appropriate recommend
measures to secure the removal of such
foreign availability.
(b) (1) Except as otherwise provided in this
Act, the Secretary of Commerce shall reor-
ganize the Department of Commerce as nec-
essary to effectuate the policies set forth In
this Act. Subject to the authority of the Sec-
retary of Defense under subsection (a) (2)
(B) of this section, the Secretary of Com-
merce shall prepare and maintain a list of
goods and technology the export of which
from the United States, its territories and
possessions, is prohibited or regulated pursu-
ant to this Act. The Secretary shall issue
regulations providing for review of such list
not less frequently than every three years in
the case of controls maintained cooperatively
with other nations, and annually In the case
of all other controls, in order to carry out
the policies of this Act, and for the prompt
Issuance of such revisions of the list as may
be necessary. Such regulations shall provide
Interested Government agencies and other
affected or potentially affected parties with
an opportunity, during such review, to sub-
mit written data, views, or arguments with
or without oral presentation. Such regula-
tions shall further provide that as part of
such review, there shall be an assessment of
(i) a "validated license" Is a license au- Secretary and of other agencies with respect
thorizing the export of goods or technology to the application, and the rights of the
pursuant to an application by an exporter applicant;
in accordance with rules and regulations (C) return the application without action
Issued pursuant to this Act. A validated if the application is improperly completed
license may be required for the export of or if additional information is required, with
goods and technology subject to multilateral sufficient information to permit the applica-
controls in which the United States partici- tion to be properly resubmitted, in which
pates or as determined pursuant to para- case if such, application is resubmitted, it
graph (2) of this subsection; shall be treated as a new application for the
(ii) a "qualified general license" is a li- 'purpose of calculating the time periods pre-
cense authorizing the export to any desti- scribed in this subsection;
nation of goods or technology, or a class of (D) determine whether it Is necessary to
goods or technology, subject to the condi- submit the application to any other agency
tions contained in rules and regulations and, if such submission is determined to be
Issued pursuant to, this Act, including con- necessary, inform the applicant of the agen-
ditions pertaining to approval of the par- cy or agencies to which the application will
ticular consignee and end-use of the goods be referred; and
or technology. The goods and technology (E) determine whether It is necessary to
subject to control by qualified general li- submit the application to a multilateral re-
cense shall be determined pursuant to para- view process, pursuant to a multilateral'
graph (2) of this subsection; and agreement, formal or informal, to which the
(iii) a "general license" Is a license au- United States Is a party and, if so, inform the
thorizing the export of a class of goods or applicant of this requirement.
technology without specific approval if the (3) In each case in which the Secretary
export is effected In accordance with the determines that It is not necessary to sub-
conditions contained In rules and regula- mit an application to any other agency for
tions Issued pursuant to this Act. Its information and recommendations, a It-
(2) To effectuate the policies set forth in cense shall be formally issued or denied
section 3 of this Act, it is the intent of within ninety days of the receipt of a prop-
Congress that the use of validated licenses erly completed application.
be limited to the greatest extent
ossible to
p
the (4) In each case in which the Secretary
control of the export of goods and tech- determines that it is necessary to submit an
nology which are subject to multilateral application to any other agency for Its in-
controls in which the United States partici- formation and recommendations, the, Secre-
pates. To the extent that the President de- tary shall, within thirty days of the receipt
termines that the policies set forth in sec- of a properly completed application-
export 3 of this Act require the control of the
export of other goods and technology, or (A) submit the application together with
more stringent controls than the multi- all necessary analysis and recommendations
lateral controls, he will report to the Con- of the Department of Commerce concur-
gress not later than six months after the rently to other appropriate agencies, and
date of enactment of this Act, and there- (B) if the applicant so requests, provide
after in each annual report, the reasons for the applicant with an opportunity to review
United States, its territories and possessions. -~ec -~ - pa he va` ous
mestic economic impact on the various
of goods and technology in significant quan- industries affected by such controls. It is
titles and comparable In quality to those further the Intent of Congress that export
items included on such list. The provisions controls which exceed the multilateral con-
of this paragraph relating to revisions and trols shall be effected to the greatest extent
changes In such list and assessment of -for- possible consistent with the purposes of this
eign availability apply also to the functions Act by means of qualified general licenses.
of the Secretary of Defense under subsection (3) Not later than sixty days after the
(a) (2) (B) of this section. In order to further date of enactment of this Act, the Secretary
effectuate the policies set forth in this Act, of Commerce shall establish procedures for
the Secretary shall establish within the Of- the approval of goods and technology that
fice of Export Administration a capability for may be exported pursuant to a qualified
monitoring and gathering information on the general license.
foreign availability of goods and technology (d) (1) (A) All export license applications
subject to export control. Each department required under this Act shall be submitted
or agency of the United States with respon- by the applicant to the Secretary. All deter-
sibilities with respect to export controls, in- minations with respect to any such pppli-
eluding intelligence agencies, consistent with cation shall be made by the Secretary, sub-
the protection of Intelligence sources and ject to the procedures provided in this Sub-
methods, shall furnish Information concern- section.
ing foreign availability of such goods and (B) It is the intent of Congress that a
technologies to the Office of Export Admin- determination with respect to any export 11-
istratlon and such Office upon request or cense application be made to the maximum
where appropriate shall furnish the informa- extent possible by the Secretary without re-
tion It gathers and receives to such depart- ferral of such application to any other Gov-
ments and agencies. ernment agency.
for accuracy any documentation to be sub-
mitted to such other agencies with respect
to such application for the purpose of de-
scribing the export in question In order to
determine whether such documentation ac-
curately describes the proposed export.
(5) (A) Any agency to which an applica-
tion Is submitted pursuant to paragraph
(4) shall submit to the Secretary, within
thirty days after its receipt of the applica-
tion, the Information or recommendations
requested with respect to such application.
Except as provided in subparagraph (B),
any such agency which does not submit its
recommendations within the time period
prescribed in the preceding sentence shall
be deemed by the Secretary to have no ob-
jection to the approval of such application.
(B) If the head or acting head of any such
agency notifies the Secretary before the ex-
piration of the time period provided In sub-
paragraph (A) for submission of Its recom-
mendations that more time is required for
review by such agency, such agency shall
have an additional thirty-day period to sub-
mit its recommendations to the Secretary.
If such agency does not so submit its recom-
mendations within the time period pre-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 ?~
E1 8476,
CONGRESSIONAL RECORD-HOUSE September 25, 1979
scribed by the preceding sentence, it shall issue any license or other authority pursuant Agricultural Act of 1970) when the volume of
be deemed by the Secretary to have no ob- to such request before the expiration of the such exports in relation to domestic supply
jection to the approval of such application. period within which the President may dis- contributes, or may contribute, to an in-
(6) (A) Within ninety days after receipt approve such export. The Secretary of De crease in domestic prices or a domestic
of other agency recommendations, as pro- fense shall carefully consider all notifications shortage, and such price increase or shortage
vided for in paragraph (5), the Secretary submitted to him pursuant to this subpara- has, or may have, a serious adverse impact
shall formally issue or deny a license. All graph and, not later than thirty days after on the economy, or any sector thereof. Such
agency reviews of preliminary decisions and' notification of the request, shall- monitoring shall commence at a time ade-
appeals to the appropriate authorities set (i) recommend to the President that he quate to insure that data will be available
forth in this Act shall be accomplished disapprove any request' for the export of any which is sufficient to permit achievement of
within that ninety-day period. In deciding goods or technology to any such country if the policies of this Act, and shall include the
the volume
ncernin
t
i
f d
g
a
a co
ng o
whether to issue or deny a license, the Sec- he determines that the export of such goods gather
retary shall take into account any recom- or technology will make a significant contri- of exports indicated under all contracts pro
mendation of an agency advising on the ap- bution, which would prove detrimental to viding for the export of such goods following
plication in question. In cases where the the national security of the United States, to the date of the filing of the petition under
Secretary receives conflicting recommenda- the military potential of such country or any section 8(a) (1). Information which the Sec-
tions, the Secretary shall, within the ninety other country; retary requires to be furnished in effecting
days provided for in this subsection, take (ii) notify the Secretary that he would such monitoring shall be confidential, ex-
such action as may be necessary to resolve recommend approval subject to specified cept as provided in paragraph (2) of this
such conflicting recommendations: conditions; or subsection and in the last two. sentences of
(B) In cases where the Secretary receives (iii) recommend to the Secretary that the section 11(c) of this Act.
questions or negative considerations or rec- export of goods or technology be approved. (2) The. results of such monitoring shall,
ommendations from other agencies advising If the President notifies the Secretary, within to the extent practicable, be aggregated and
on an application, the Secretary shall, to the thirty days after receiving a recommendation included in weekly reports. setting forth, with
maximum extent consistent with the na- y y g respect to each, item monitored, actual and
from the Secretary of Defense, that he dis- anticipated exports, the. destination by coun-
tional security or foreign policy of the United approves such export, no, license or other try, and the domestic and worldwide price,
States, inform the applicant of the specific authority may be issued for the export of supply, and demand. Such reports may be.
questions raised and any negative considera- such goods or technology to such. country. made monthly if the Secretary determines
tions or recommendations made by an agency, (C) The Secretary shall approve or dis- that there is insufficient information to jus-
and shall accord the applicant an opportu- approve a+ license application, and issue or tify weekly reports.
nity, before the final determination with deny a. license; in accordance with the pro- (f) In Imposing export controls to effec-
respect to the application is made, to respond visions of this paragraph, and, to the extent tuate the policy stated. in section 3(2) (C) of
In writing, to such questions, considerations. applicable, in accordance with the time pe- this. Act, the President's authority shall in-
or recommendations. riods and procedures otherwise set forth. In, elude but not be limited to, the imposition
(C) In cases where the Secretary has deter- this. subsection.. of export license fees.
mined that an application should be denied, (D) Whenever the President exercises his (g) (1) Notwithstanding any other provi-
at the time of the formal denial, the appli- authority under this paragraph to modify or of this Act and notwithstanding ubsec-
cant shall be Informed,. in writing within overrule a recommendation made by the sion
ec
five days of such decision of the statutory Secretary of Defense, or exercises his author- si (u) of f section 28 t U.Mineral B.C. Leasing
e185), no
basis for denial, the policies set forth In sec- thy to modify or overrule any determination Act n oof 1920, as f amended the ing sub transported
tion 3 of the Act which would be furthered made by the Secretary of Defense pursuant domestically produseduced c crude l by denial, and, to the extent consistent with to section 4(a) (2) (B) or 4(b) (1) of this Act by pipeline to, right-of-way ude oil
section granted pursu-
national national security and foreign policy, the spe- with respect to list of goods and technologies ant the ra requirements er er ire of an Authorization e203' of d Act the
cific considerations which led to the denial,. controlled for national security purposes, the Trans, the over
oil
(except any such crude o3
and of the availability of appeal procedures. President shall promptly transmit to the U.S.C. exported, for the purpose of
In the event decisions on license applications Congress a statement indicating his decision, which 165 g aisn exchange exported o which the crude
are deferred inconsistent with the provisions together with the recommendation of the effectctuatistinng a in which
foreign state
of this subsection, the applicant shall be Secretary of Defense. oil rt d ta an adjacent
quantity therein, in crude ex-
informed in writing within five days of such (8) In any case in which. an application, oto, be be refined the and same consumed
deferral. The Secretary shall establish appro- which has been finally approved under para-oil
deferral. -
priate procedures for applicants to appeal graph (4), (7), or (8) of this subsection, is being exported from that state to. the United
such deferrals or denials. required to be. submitted to a. multilateral States; such exchange must result through
(D) If the Secretary determines that a review process, pursuant to a multilateral cowered in lower ea ed efficiency cy consuof tm
rsns-
roducts prices
particular application or set of applications agreement, formal or informal', to which the portation
the United States as
is of exceptional importance and complexity, United States is a party, the license shall not described In paragraph (2) United of this
and that additional time is required for nego- be issued as prescribed in such paragraphs, subsection, or (B) is temporarily exported
tiations to modify the application or appli- but the Secretary shall notify the applicant for convenience or increased efficiency of
cations, or otherwise to arrive at a decision, of the approval (and the date of such ap- transportation across parts of an adjacent
the Secretary may extend any time period proval) of the application by the Secretary foreign state and reenters the United States)
-
prescribed in this subsection The Secretary subject to such. multilateral review. The 11-
cense shall be issued upon approval of the may be exported from the United States, its
shall. notify the Congress and the applicant application under such multilateral review. territories and possessions, unless, the re-
of such extension and the reasons therefor. (9) The Secretary and any agency to quirements of paragraph (2) of this subsec-
(7) (A) Notwithstanding any other pro- which any application is referred under this tion are met.
vision of this subsection, the Secretary at subsection shall keep accurate records with (2) Crude oil subject to the prohibition
Defense is authorized to review any proposed respect to all applications considered by the contained in paragraph (1) may be exported
export of any goods or technology. to any Secretary or by any such agency, including only if-
country to which exports are. controlled' for the factual and analytical basis for the de- (A), the President makes and publishes an
national security purposes and, whenever he cision, together with any dissenting recom- express finding that exports of such crude
determines that the export of such goods or. mendations received from any agency. enc g
will make a'significant contribu- y g y' oil, including exchanges-
technology tion, which would prove detrimental to the (10) The Secretary shall establish appro- (i) will not diminish the total quantity
national security of the United States,. to the priate procedures for applicants to appeal or quality of petroleum refined within,. stored
military potential of any such country, to the denials absence of e of a export license licenses. In any approval case
exists be- within, or legally committed to be trans-
recommend to the President that such export cause of agency action or inaction that ported to and sold within the United States;.
stand- (if) will, within three months following,
be disapproved. clearl
conflicts with the
rocedures
y
p
,
(B) Notwithstanding any other provision ards, or policies of this Act, the applicant the initiation of such exports or exchanges,
of law, the Secretary of Defense shall deter- may file a petition with the Secretary re- result in (a) acquisition costs to the refiners
mine, in consultation with the Secretary, questing that such action or inaction be being lower than the acquisition costs such
and confirm in writing the types. and cate- brought in conformity with the appropriate refiners would. have to pay for the domesti-
gories of transactions which should be re- provisions of this Act. When such petition, cally produced crude oil in the absence of
viewed by him in order to make a deter- is filed, the Secretary shall determine the such an export of exchange and (b) that not
urination referred to in subparagraph (A). validity of the petition and, if valid, shall less than 75 per centum of the savings shall
Whenever a license or other authority is. re- take appropriate corrective action, be reflected in reduced wholesale and retail
quested for .the export to any country to (e) (1) To effectuate the policy set forth Prices of products refined from such im
which exports are controlled for national. in section 3(2.) (C) of this Act, the Secretary. Ported crude oil;
security purposes, of goods or technology of Commerce shall monitor exports, and (iii) will be made only pursuant to con-
within any such type or category? the Secre- contracts for exports, of any goods (other tract which maybe terminated if the crude
tary shall notify the Secretary of Defense of than a commodity which is subject to the oil supplies of the United States are inter-
such request, and the Secretary may not reporting requirements of section 812 of the rupted, threatened, or diminished;
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONE SSXONTAIL RIECORD-IHIOUSIE HH 8477
(iv) are clearly necessary to protect the able for storage of domestically. owned com- debate thereon shall be limited to not more
national interest; and modities, and (D) that the purpose of such than one hour, the time to be divided in the
(v) are in accordance with the provisions storage is to establish a reserve of such com- House equally between those favoring and
of this Act; and modities for later use, not including resale those opposing the motion to discharge and
(B) the President reports such finding to to or use by another country. The Secretary to be divided in the Senate equally between,
the Congress and the report is approved in of Commerce is authorized to issue such and controlled, by the majority leader and
accordance with paragraph (3). rules and regulations as may be necessary to the minority leader or their designese.
(3) The report of the findings of the implement this paragraph. An amendment to the motion is not in order.
President required by paragraph (2) shall (3) (A) The Secretary of Commerce shall (B),(i) Except as provided in subpara-
be considered approved, and shall take effect transmit to the House of Representatives and graphs (ii) and (iii) of this paragraph, con-
at the end of the first period of sixty cal- the Senate a summary of any proposed ex- siderationof aresolutioncfdisapproval zhaii
enclar days of continuous session of the ercise of the authority conferred by this be in accord with the rules of the Senate
Congress after such report is submitted, section with regard to agricultural com- and of the House of Reepresentative% respec-
unless the House of Representatives and the , modities
. lively.
Senate adopt a resolution during such pe- (B) (1) Except as provided In subparagraph (ii) When the committee has reported or
riod stating that it does not favor such (ii), such proposal shall not become effective has been discharged from further considaa-
findings. For the purposes of this pars- if within sixty calendar days of continuous tion of a resolution with respect to a pro.
graph- session of the Congress after the date of oral, it shall be in order et any time there-
(A) continuity of a session of the Con- transmittal of the proposal to the Congress, after (even though a previous motion to the
gress is broken only by an adjournment one House agrees to a resolution of dis- same effect has been disagreed to) to move
sine die; and approval and at the end of thirty additional to proceed to the immediate consideration ays
whi in (B)es sion fib arse ofch
an eitherad journme t for mirttal calendar days after the date of trans- of the resolution. The motion of the resolution of disapproval to the leged and Is net debatable. An1am endmepnt to
more than three days to a day certain are other House of Congress, such other House the motion is not in order.
excluded in computing the sixty-day period. has not passed a resolution disapproving (iii) Debate on the resolution shall to
(4) A resolution under paragraph (3) such resolution. Limited to not more than two hours, which
shall be considered in accordance with the (ii) Notwithstanding subparagraph (1), .if shall be divided equally between those favor-
procedures established by section 851 of the at the end of sixty calendar days of con- ing and those opposing the resolution. A
Energy Policy and Conservation Act. tinuous session of the Cogress after the date .motion further to limit debate Is not in
(5) Notwithstanding the foregoing pro- of transmittal of the proposal to the Con- order. An amendment to, or motion to re-
visions of this subsection or any other pro- . gress, neither House has agreed to a resolu- commit the resolution Is not In order.
vision of law including subsection (u) of tion of disapproval concerning such proposal, (j) Nothing in this Act or the rules or
section 28 of the Mineral Leasing Act of and the committee to which a resolution of regulations thereunder shall be construed
1920, the President may export oil to any disapproval concerning such proposal has to require authority or permission to export,
foreign nation with whom the United States been referred has not reported and has not except where required by the President to
has entered into a bilateral international been discharged from further consideration effect the policies set forth in section 3 of
oil supply agreement prior to June 25, 1979, of such a resolution, such proposal shall be this Act,
or to any foreign nation with whom the effective at the end of such sixty-day period (k) The President may delegate the
United States has entered Into a multi- or such later date as may be prescribed by power, authority, and discretion conferred
lateral supply arrangement pursuant to sec- such proposal.
tion 251(d) of the Energy Policy and Con- (C) For the aapan hire by this Act to such departments,
purposes this chapter- agencies, or officlals; of the 'Government as '
servation Act: Provided, That the President (i) continuity of session is broken only by =ay deem appropriate, except cept that no au-
promptly notifies Congress of each such an adjournment sine die; and
agreement. o city lsetj y, any may be delegated ed to,
(h) Petroleum products refined in United in (Li) sssion becas we Of hich nitadj House Is not o rent nxor~ ,y she head of any depart- offz1al States Foreign Trade Zones, or in the United more than three days to a da8y cserttaiin are ex- appointed meat or aby and n the head the a2 atlvi ce n and is coa on-
States Territory of Guam, from foreign crude cluded in the computation. of calendar da sent of the by ma n t
oil shall be excluded from any quantita- of continuous session. set of tsneer The President may not
tive restrictions imposed pursuant to sec- D The provisions of this section are en- en delegate or to o overruie der he power, fy anylre, and
tion 3(2) (C) of this Act, except that, if acted by Congress- m datiio or C cisl fir modify any rSeem-
the Secretary of Commerce finds that a (I) as an exercise of the rulemakirg power tort' oereCo a, the made Ra secretary y the Grp,
of Zafensa'
product is in short supply, the Secretary of the Senate and the House of Represent- and ~ ?tary r?S the to the pro-
Commerce may issue such rules and reg- Lives, respectively, and as such era siSecrf thi A t"tat` pursuant to the ulations as may be necessary to limit exports. deemed a part of the rules of each House, re-
(1) of this Art.
(1) (1) The authority conferred by this Gpectively, but applicable only with respect (1) (1) Any United States firm, enterprise,
section shall not be exercised with respect to the procedure to be followed in the Hours or other me non-governmental entity which, for
to any agricultural commodity, including in the case of resolutions described by this commercial purposes, enters into an agree.
fats and oils or animal hides or skins, with. paragraph; and they supersede other rule, anent 7ith an agency of a government in
out the approval of the Secretary of Agri- only to the extent that they are inconsistent another country to which exports are re-
culture. The Secretary of Agriculture shall therewith; ctricted for at anal security purposes, which
not approve the exercise of such authority (ii) with full recognition of the ecnstitu. agreement cites an Intergovernmental agree-
with respect to any such commodity dur- tional right of either House to change the meat ca.llina for the cneouragement of tech-
ing any period for which the supply of rules (co far as relating to the procedure of nical cooperation and is intenfl?fl to result
such commodity is determined by him to be that House) at any time, in the same manner in the export from the United States to
in excess of the requirements of the do- and to the same extent as in the case of any the other party of unpublished technical
mestic economy, except to the extent the other rule of that House; and data of United States origin, shall report
President determines that such exercise of (iii) (I) resolutions of disapproval, and such agreement to the Secretary of Com-
authority is required to effectuate the poll- resolutions disapproving a resolution of dis- merce.
Gies set forth in sections 3 (2) (A) or (B) of approval in the other House shall, upon (2) The provisions of this subsection shall
this Act. Introduction, be immediately referred by the not apply to colleges, universities, or other
(2) Upon approval of the Secretary of presiding officer of the Senate or of the House educational institutions
C
.
ommerce, in consultation with the Secre- of Representatives to the appropriate stand-
tary of Agriculture, agricultural commodities ing committee of the Senate or the House of on The issue Secretary such of rules and rules anCommerce is au- regula purchased by or for use in a foreign -country Representatives; as r are necessary ito implement the provisions
e provisions
may remain in the United States for export (u) if the committee to Which as
subsection.
at a later date free from any .a resolu- of this subsecquantitative tion has been referred does not report a reso- (m) The Secretary of State, In consulta-
limitations on export which may be imposed lution within forty-five calendar days of son- . tion with the Secretary of Defense, the
pursuant to section 3(2) (C) of this Act sub- tinuous session of Congress after the date of Secretary of Commerce, and the heads of
sequent to such approval. The Secretary of transmittal of the proposal to which such other appropriate departments and egen-
Commerce may not grant approval hereunder resolution relates, it shall be in order to move ces, shall be responsible for negotiations
unless he receives adequate assurance and, to discharge the committee from further con- with other countries regarding their co-
in conjunction with the Secretary of Agri- sideration of such resolution; and
culture, finds (A) that such commodities operation in restricting the export of grade
will eventually be exported, (B) that neither such motion to discharge must be and technologies t to expert ) ofd be
the sale nor export thereof will result in an supported by one-fifth of the Members of restricted pursuant to section 3(99) of this
excessive drain of scarce the House of Congress involved, and is highly Act, as authorized under section 4(a) (1) of
excessi =teria and have a privileged In the House and privileged in the this Act, including negotiations on the basis
serious domestic farce
storage d nSationary l t' (C) Senate (except that it may not be made after of approved administration positions as to
States of such coouly limit the space avail- a resolution of disapproval has been reported which goods and technologies should be
will not pace a with respect to the same proposal); and subject to multilaterally agreed export re-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
NH 8478
CONGRESSIONAL R]ECO
September 25, 1979
totting country on a carrier of the boycotted
country, or by a route other than that pre-
scribed by the boycotting country or the
recipient of the shipment;
(B) complying or agreeing to comply with
import and shipping document requirements
with respect to the country of origin, the
name of the carrier and route of shipment,
the name of the supplier of the shipment or
the name of the provider of other services,
except that no information knowingly fur-.0
nished or conveyed in response to such re-
quirements may be stated in negative, black-
listing, or similar exclusionary terms on or
after June 22, 1978, other than with respect
to carriers or route of shipment as may be
permitted by such rules and regulations in
order to comply with precautionary require-
ments protecting against war risks and
confiscation;
(C) complying or agreeing to comply in
the normal course of business with the uni-
lateral and specific selection by a boycottting
country, or national or resident thereof, of
carriers, insurers, suppliers of services to be
performed within the boycotting country or
specific goods which, in the normal course
of business, are identifiable by source when
imported into the boycotting country;
(D) complying or agreeing to comply with
export requirements of the boycotting coun-
try relating to shipments or transshipments
of exports to the boycotted country, to any
business concern of or organized under the
laws of the boycotted country, or to any
national or resident of the boycotted country;
(E) compliance by an individual or agree-
ment by an individual to comply with the
immigration or passport requirements of any
country with respect to such individual or
any member of such individual's family or
with requests for information regarding re-
quirements of employment of such individual
within the boycotting country; and
(F) compliance by a United States person
resident in a foreign country or agreement
by such person to comply with the laws of
that country with respect to his activities
exclusively therein, and such rules and reg-
ulations may contain exceptions for such
resident complying with the laws or regula-
tions of that foreign country governing im-
ports into such country of trademarked,
trade named, or similarly specifically identifi-
able products, or components of products for
his own use, including the performance of
contractual services within that country, as
may be defined by such rules and regulations.
(3) Rules and regulations issued pursuant
to paragraphs (2) (C) and (2) (F) shall not
provide exceptions from paragraphs (1) (B)
and (1)(C).
(4) Nothing in this subsection may be
construed to supersede or limit the opera-
tion of the antitrust or civil rights laws of
the United States.
(5) Rules and regulations pursuant to this
subsection shall be issued not later than
ninety days after the date of enactment of
this section and shall be issued in final form
and become effective not later than one hun-
dred and twenty days after they are first
issued, except that (A) rules and regula-
tions prohibiting negative certification may
take effect not later than one year after
the date of enactment of this section, and
(B) a grace period shall be provided for the
application of the rules and regulations
issued pursuant to this subsection to ac-
tions taken pursuant to a written contract
or other agreement entered into on or before
May 16, 1977. Such grace period shall end on
December 31, 1978, except that the Secretary
of Commerce may extend the grace period
for not to exceed one additional year in any
case in which the Secretary finds that good
faith efforts are being made to renegotiate
the contract or agreement in order to elimi-
nate the provisions which are inconsistent
strictions and what conditions should apply
for exceptions from those restrictions.
(n) The President shall enter into ne-
gotiations with the governments participat-
ing in the group known as the Coordinating
Committee (hereinafter in this subsection
referred to as the "Committee") with a
view toward reaching-
(A) an agreement to publish the list of
items controlled for export by agreement of
the Committee, together with all notes, un-
derstandings, and other aspects of such list,
and all changes thereto;
(B) an agreement to hold periodic meet-
ings of such governments with high-level
representation from such governments, for
the purpose of providing guidance on export
control policy issues to the Committee;
(C) an agreement to modify the scope of
the export controls imposed by agreement
of the Committee to a level accepted and
enforced by all governments participating in
the Committee; and
(D) an agreement on more effective proce-
dures for enforcing the export controls agreed
to pursuant to subparagraph (C).
(o) In order to assure that requirements
for national security controls are removed
when no longer necessary, the Secretary of
Commerce shall adopt regulations which
eliminate unnecessary delay in implement-
ing decisions reached, according to law, to
remove or relax such controls. Consideration
shall also be given by the Secretary, where
appropriate, to removing site visitation re-
quirements for goods and technology which
are removed from the above-mentioned list
unless objections described in this subsec-
tion are raised.
(p) (1) Notwithstanding any other provi-
sion of this Act, no horse may be exported by
sea from the United States, its territories and
possessions, unless such horse is part of a
consignment of horses with respect to which
a waiver has been granted under paragraph
(2) of this subsection.
(2) The Secretary of Commerce, in consul-
tation with the Secretary of Agriculture, may
issue rules and regulations providing for the
granting of waivers permitting the export by
sea of a specified consignment of horses, if
the Secretary of Commerce, in consultation
with the Secretary of Agriculture, deter-
mines that no horse in that consignment is
being exported for purposes of slaughter.
(q) (1) Crime control and detection in-
struments and equipment shall be approved
for export by the Secretary of Commerce
only pursuant to a validated export license.
(2) The provisions of this subsection shall
not apply with respect to exports to coun-
tries which are members of the North At-
lantic Treaty Organization or to Japan, Aus-
tralia, or New Zealand, and such other coun-
tries as the President-shall designate con-
sistent with the purposes of this subsection
502(b) of the Foreign Assistance Act of 1961,
as amended.
DISAPPROVAL OF LICENSE FOR THE EXPORT OF
GOODS OR TECHNOLOGY TO COUNTRY WHICH
SUPPORTS ACTS OF INTERNATIONAL TERRORISM
SEC. 5. (a) The Secretary of Commerce shall
approve no license for the export of goods or
technology to any country with respect to
which the Secretary of State has made the
following determinations:
. (1) that such country has demonstrated a
pattern of support for acts of international
terrorism, and
(2) that the exports in question would
make a significant contribution to the mili-
tary potential of such country or would
otherwise enhance its ability to support acts
of international terrorism.
(b) The President may suspend the appli-
cability of paragraph (a) of this section with
respect to, any particular country or any
particular transaction if he finds that the
national interests so require.
FOREIGN BOYCOTTS
SEC. 6. (a) (1) For the purpose of imple-
menting the policies set forth in section 3(5)
(A) and (B), the President shall issue rules
and regulations prohibiting any United
States person, with respect to his activities
in the interstate or foreign commerce of the
United States, from taking or knowingly
agreeing to take any of the following actions
with Intent to comply with, further, or sup-
port any boycott fostered or imposed by _a
foreign country against a country which is
friendly to the United States and which is
not itself the object of any form of boycott
pursuant to United States law or regulation:
(A) Refusing, or requiring any other person
to refuse, to do business with or in the boy-
cotted country, with any business concern
organized under the laws of the boycotted
country, with any national or resident of the
boycotted country, or with any other person,
pursuant to an agreement with, a require-
ment of, or a request, from or on behalf of
the boycotting country. The more absence of
a business relationship with or in the boy-
cotted country with any business concern or-
ganized under the laws of the boycotted
country, with any national or resident of the
boycotted country, or with any other person,
does not indicate the existence of the intent
required to establish a violation of rules and
regulations issued to carry out this subpara-
graph.
(B) Refusing, or requiring any other per-
son to refuse, to employ or otherwise dis-
criminating against any United States. per-
son on the basis of race, religion, sex, or na-
tional origin of that person or of any owner,
officer, director, or employee of such person.
(C) Furnishing information with respect
to the race, religion, sex, or national origin
of any United States person or of any owner,
officer, director, or employee of such person.
. (D) Furnishing information about whether
any person has, has had, or proposes to have
any business relationship (including a rela-
tionship by way of sale, purchase, legal or
commercial representation, shipping or other
transport, insurance, investment, or supply)
with or in the boycotted country, with any
business concern organized under the laws
of the boycotted country, with any national
or resident of the boycotted country, or with
any other person which is known or believed
to be restricted from having any business
relationship with or in the boycotting coun-
try. Nothing in this paragraph shall prohibit
the furnishing of normal business informa-
tion in a commercial context as defined by
the Secretary of Commerce.
(E) Furnishing information about whether
any person is a member of, has made contri-
butions to, or is otherwise associated with or
involved in the activities of any charitable
or fraternal organization which supports the
boycotted country.
(F) Paying, honoring, confirming, or oth-
erwise implementing a letter of credit which
contains any condition or requirement com-
pliance with which is prohibited by rules and
regulations issued pursuant to this para-
graph, and no United States person shall, as
a result of the application of this paragraph,
be obligated to pay or otherwise honor or im-
plement such letter of credit.
(2) Rules and regulations issued pursuant
to paragraph (1) shall provide exceptions
for-
(A) complying,or agreeing to comply with
requirements, (i) prohibiting the import of
goods or services from the boycotted coun-
try or goods produced or services provided by
any business concern organized under the
laws of the boycotted country or by nationals
or residents of the boycotted country, or (ii)
prohibiting the shipment of goods to the boy-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECOR
with the rules and regulations issued pur-
suant to paragraph (1).
(6) This Act shall apply to any trans-
action or activity undertaken, by or through
a United States or other person, with intent
to evade the provisions of this Act as imple-
mented by the rules and regulations issued
pursuant to this subsection, and such rules
and regulations shall expressly provide that
the exceptions set forth in paragraph (2)
shall not permit activities or agreements
(expressed or implied by a course of conduct,
including a pattern of responses) otherwise
prohibited, which are not within the intent
of such exceptions,
(b) (1) In addition to the rules and. regu-
lations issued pursuant to subsection (a) of
this section, rules and regulations issued un-
der section 4(a) of this Act shall implement
the policies set forth in section 3(5).
(2) Such rules and regulations shall require
that any United States person receiving a re-
quest for the furnishing of information, the
entering into or implementing of agreements,
or the taking of any other action referred to
in section 3(5) shall report that fact to the
Secretary of Commerce, together with such
other information concerning such request
as the Secretary may require for such action
as he may deem appropriate for carrying out
the policies of that section. Such person shall
also report to the Secretary of Commerce
whether he intends to comply and whether
he has complied with such request. Any re-
port filed pursuant to this paragraph after
the date of enactment of this section shall be
made available promptly for public inspec-
tion and copying, except that information re-
garding the quantity, description, and value
of any goods or technology to which such
report relates may be kept confidential if the
Secretary determines that disclosure thereof
would place the United States person in-
volved at a competitive disadvantage. The
Secretary of Commerce shall periodically
transmit summaries of the information con-
tained in such reports to the Secretary of
State for such action as the Secretary of
State, in consultation with the Secretary of
Commerce, may deem appropriate for carry-
ing out the policies set forth in section 3(5)
of this Act.
(c) The provisions of this section and the
rules and regulations issued pursuant thereto
shall preempt any law, rule, or regulation of
any of the several States or the District of
Columbia, and any of the territories or pos-
sessions of the United States, or of any gov-
ernmental subdivision thereof, which law,
rule, or regulation pertains to participation
in, compliance with, implementation of, or
the furnishing of information regarding re-
strictive trade practices or boycotts fostered
or imposed by foreign countries against other
countries.
PROCEDURES FOR HARDSHIP RELIEF FROM
EXPORT CONTROLS
SEC. 7. (a) Any person who, in his domestic
manufacturing process or other domestic
business operation, utilizes a product pro-
duced- abroad in whole or in part from a
commodity historically obtained from the
United States but which has been made sub-
ject to export controls, or any person who
historically. has exported such a commodity,
may transmit a petition of hardship to the
Secretary of Commerce requesting an exemp-
tion from such controls in order to alleviate
any unique hardship resulting from the im-
position of such controls. A petition under
this section shall be In such form as the
Secretary of Commerce shall prescribe and
shall contain information demonstrating the
need for the relief requested.
(b) Not later than thirty days after re-
ceipt of any petition under subsection (a),
the Secretary of Commerce shall transmit a
written decision to the petitioner granting
or denying the requested relief- Such deci-
sion shall contain a statement setting forth
the Secretary's basis for the grant or denial.
Any exemption -granted may be subject to
such conditions as the Secretary deems ap-
propriate.
. (c) For purposes of this section, the Sec-
retary's decision with respect to the grant or
denial of relief from unique hardship result-
ing directly or indirectly from the imposition
of controls shall reflect the Secretary's con-
sideration of such factors as-
(1) whether denial would cause a unique
hardship to the petitioner which can be alle-
viated only by granting an exception to the
applicable regulations. In determining
whether relief shall be granted, the Secre-
tary will take into account;
(A) ownership of material for which there
is no practicable domestic market by virtue
of the location or nature of the material;
(B) potential serious financial loss to the
applicant if not granted an exception;
(C) Inability to obtain, except through im-
port, an item essential for domestic use
which is produced abroad from the com-
modity under control;
(D) the extent to which denial would con-
flict, to the particular detriment of the appli-
cant, with other national policies including
those reflected in any international agree-
ment to which the United States is a party;
(E) possible adverse effects on the economy
(including unemployment) in any locality or
region of the United States; and
(F) other relevant factors, including the
applicant's lack of an exporting history dur-
ing any base period that may. be established
with respect to export quotas for the particu-
lar commodity; and
(2) the effect a finding in favor of the ap-
plicant would have on attainment of the
basic objectives of the short supply control
program.
In all cases, the desire to sell at higher prices
and thereby obtain greater profits will not
be considered as evidence of a unique hard-
ship, nor will circumstances where the hard-
ship is due to imprudent acts or failure to
act on the part of the petitioner.
PETITIONS FOR MONITORING OR CONTROLS
SEC. 8. (a) (1) Any entity, including a
trade association, firm, or certified or recog-
nized union or group of workers, which is
representative of an industry or a substantial
segment of an industry which processes any
material or commodity for which an increase
in domestic prices or a domestic shortage has
or may have a significant adverse effect on
the national economy or any sector thereof
may transmit a written petition to the Secre-
tary of Commerce requesting the imposition
of export controls, or the monitoring of ex-
ports, or both, with respect to such material
or commodity.
(2) Each petition shall be in such form as
the Secretary of Commerce shall prescribe
and shall contain information in support of
the action requested. The petition shall in-
clude information reasonably available to
the petitioner indicating (A) that there has
been a significant increase over a representa-
tive period in exports of such material or
commodity in relation to domestic supply,
and (B) that there has been a significant in-
crease in the price of such material or com-
modity under circumstances indicating that
the price increase may be related to exports.
(b) Within fifteen days after receipt of any
petition described in subsection (a), the
Secretary of Commerce shall cause to be
published a notice in the Federal Register.
The notice shall include (1) the name of
the material or commodity which is the sub-
ject of the petition, (2) the Schedule B num-
ber of the material or commodity as set forth
in the Statistical Classification of Domestic
and Foreign Commodities Exported from the
United States, (3) notice of whether the peti-
tioner is requesting that controls or moni-
toring, or both, be imposed with respect to
the exportation of such material or com-
H 8479
modity, and (4) notice that interested per-
sons shall have a period of thirty days com-
mencing with the date of publication of
such notice to submit to the Secretary of
Commerce written data, views, or arguments,
with or without opoprtunity for oral presen-
tation. At the request of the petitioner or any
other entity described in subsection (a) (1)
with respect to the material or commodity
which is the subject of the petition or at
the request of any entity representative of
the producers or exporters of such material
or commodity, the Secretary shall conduct
public hearings with respect to the subject of
the petition, in which event the thirty-day
period shall be extended to forty-five days.
(c) Within forty-five days after the end
of the thirty-day or forty-five-day period
described in subsection (b) or within
seventy-five days of publication of the peti-
tion in the Federal Register, whichever is
the later, the Secretary of Commerce shall-
(1) determine whether to impose monitor-
ing or controls or both on the exportation
of such material or commodity; and
(2) publish in the Federal Register a de-
tailed statement of the reasons for such
determination.
(d) Within fifteen days following a deci-
sion under subsection (c) to impose monitor-
ing or controls on the exportation of a mate-
rial or commodity, the Secretary shall pub-
lish in the Federal Register proposed regula-
tions with respect to such monitoring or
controls. Within thirty days following the
publication of such notice, and after con-
sidering any public comments, the Sec-
retary shall publish and implement final
regulations.
. (e) For the purposes of publishing notices
in the Federal Register and the scheduling
of public hearings, the Secretary shall have
the authority to consolidate petitions and
responses thereto with respect to the same
or related commodities.
(f) If a petition has been fully considered
under this section and a notice has been pub-
lished with respect to a particular commodity
or group of commodities and in the absence
of significantly changed circumstances, the
Secretary shall have authority to determine
that a petition for monitoring or control of
such commodity or commodities does not
merit the full consideration mandated under
this section.
(g) The procedures and time limits set
forth in this section shall take precedence
over any review undertaken at the initiative
of the Secretary.
(h) The Secretary shall have the author-
ity to impose monitoring or controls on a
temporary basis during the period following
the filing of a petition under subsection
(a) (1) and the Secretary's determination
under subsection (c) if the Secretary deems
such action to be necessary to effectuate the
policy set forth in section 3(2) (C) of this
Act. If such authority is used the Secretary
shall afford interested persons an opportunity
to submit written comments thereon and
such comments shall be considered by the
Secretary in making the determination
required under subsection (c) and in the
development of any final regulations.
(i) The authority under this section shall
not be construed to affect the authority of
the Secretary of Commerce under section
4(e) (1) or any other provision of this Act.
(j) The provisions of this section shall not
apply to any agricultural commodity.
(k) Nothing contained in this section
shall be construed to preclude submission on
a confidential basis to the Secretary of Com-
merce of information relevant to a decision
to impose or remove monitoring or controls
under the authority of this Act, nor consider-
ation of such information by the Secretary
in reaching decisions required under this
section. The provisions of this subsection
are not intended to change the applicabil-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 .-
H 8480
CONGRESSIONAL RECORD-HOUSE September 25, 1979
ity of section 552(b) of title 5, United States
Code.
CONSULTATION AND STANDARDS
SEC. 9. (a) In determining what shall be
controlled or monitored under this Act, and
in determining the extent to which exports
shall be limited, any department, agency, or
official making these determinations shall
seek information and advice from the sev-
eral executive departments and independent
agencies concerned with aspects of. our
domestic and foreign policies and operations
having an important bearing on exports.
Such departments and agencies shall fully
cooperate in rendering such advice and in-
formation. Consistent with considerations of
national security, the President shall seek
information and advice from various seg-
ments of private industry in connection with
the making of these determinations. In addi-
tion, the Secretary of Commerce shall con-
sult with the Secretary of Energy to deter-
mine whether, in order to effectuate the
policy stated in section 3(2) (C) of this Act,
monitoring or controls are necessary with
respect to exports of facilities, machinery, or
equipment normally and principally used,
or intended to be used, in the production,
conversion, or transportation of fuels and
energy (except nuclear energy), including
but not limited to drilling rigs, platforms,
and equipment; petroleum refineries, nat-
ural gas processing, liquefaction, and gasifi-
cation plants;' facilities for production of
synthetic natural gas or synthetic crude oil;
oil and gas pipelines, pumping stations, and
associated equipment; and vessels for trans-
porting oil, gas, coal, and other fuels.
(b) (1) In authorizing exports, full utiliza-
tion of private competitive trade channels
shall be encouraged insofar as practicable,
giving consideration to the interests of small
business, merchant exporters as well as pro-
ducers, and established and new exporters,
and provision shall be made for representa-
tive trade consultation to that end. In addi-
tion, there may be applied such other stand-
ards or criteria as may be. deemed necessary
by the head of such department, or agency,
or official to carry out the policies of this
Act.
(2) Upon imposing quantitative restric-
tions on exports of any goods to carry out
the policy stated in section 3(2) (C) of this
Act, the Secretary of Commerce shall include
in the notice published in the Pederal Reg-
ister an invitation to all interested parties
to submit written comments within fifteen
days from the date of publication of the im-
pact of such restrictions and the method of
licensing used to implement them.
(c) (1) Upon written request by represent.
atives of a substantial segment of any in-
dustry which produces goods or technology
which are subject to export controls or are
being considered for such controls because
of their significance to the national security
of the United States, or whenever he deems
appropriate to further the purposes of this
Act, the Secretary of Commerce shall appoint
a technical advisory committee for any
grouping of such goods or technology which
he determines is difficult to evaluate because
of questions concerning technical matters,
worldwide availability and actual utilization
of production and technology, or licensing
procedures. Each such committee shall con-
sist of representatives of United States in-
dustry and government, including the De-
partments of Commerce, Defense, and State,
and, when appropriate, other Government
departments and agencies. No person serving
on any such committee who is representa-
tive of industry shall serve on such com-
mittee for more than four consecutive years.
(2) It shall be the duty and function of
the technical advisory committees estab-
lished under paragraph (1) to advise'and
assist the Secretary of Commerce and any
other department, agency, or official of the
Government of the United States to which
the President has delegated power, authority,
and discretion under section 4(e) with re-
spect to actions designed to carry out the
policy set forth in section 3 of this Act.
Such committees, where they have expertise
in such matters, shall be consulted with re-
spect to questions involving (A) technical
matters, (B) worldwide availability and ac-
tual utilization of production technology,
(C) licensing procedures which affect the
level of export controls applicable to any
goods or technology, and (D) exports sub-
ject to multilateral controls in which the
United States participates including pro-
posed revisions of any such multilateral con-
trols. Nothing In this subsection shall pre-
vent the Secretary from consulting, at any
time, with any person representing industry
or the general public regardless of whether
such person is a member of a technical ad-
visory committee, Members of the public
shall be given a reasonable opportunity, pur-
suant to regulations prescribed by the Secre-
tary of Commerce, to present evidence to
such committees.
(3) Upon requests of any member of any
such committee, the Secretary may, if he
determines it appropriate, reimburse such
member for travel, subsistence, and other
necessary expenses incurred by him in con-
nection with his duties as a member.
(4) Each such committee shall elect a
chairman, and shall meet at least every
three months at the call of the Chairman,
unless the Chairman determines, in con-
sultation with the other members of the
committee, that such a meeting is not neces-
sary to achieve the purposes of this Act.
Each such committee shall be terminated
after a period of two years, unless extended
by the Secretary for additional periods of
two years. The Secretary shall consult each
such committee with regard to such termi-
nation or extension of that committee.
(6) To facilitate the work of the technical
advisory committees, the Secretary of Com-
merce, in conjunction with other depart-
ments and agencies participating in the ad-
ministration of this Act, shall disclose to
each such committee adequate information,
consistent with national security and for-
eign policy, pertaining to the reasons for
the export controls which are in effect or
contemplated for the grouping of goods or
technology with respect to which that com-
mittee furnishes advice.
(6) Whenever a technical advisory com-
mittee certifies to the Secretary of Commerce
that goods or technology are available in fact
from sources outside the United States in
sufficient quantity and of comparable qual-
ity so as to render United States export con-
trols ineffective in achieving the purposes of
this Act, and provides adequate documenta-
tion for such certification, the Secretary of
Commerce shall investigate and report to the
technical advisory committee on whether
the Secretary concurs with the certification.
If the Secretary concurs, the Secretary shall
submit a recommendation to the President
who shall act in accordance with section 4
(a) (2) (E) of this Act.
(d) The Secretary of Defense shall have
the same authorities and responsibilities as
the Secretary of Commerce under paragraphs
(1) through (5) of subsection (c) in order to
carry out his responsibilities under this Act.
VIOLATIONS
SEC. 10. (a) Except as provided in subsec-
tion (b) of this section, whoever knowingly
violates any provision of this Act or any
regulation, order, or license issued thereun-
der shall be fined not more than five times
the value of the exports involved or $50,000,
whichever is greater, or imprisoned not more
than five years, or both.
(b) Whoever willfully exports anything
contrary to any provision of this Act or any
regulation, order, or license issued thereun-
der, with knowledge that such exports will be
used for the benefit of any country to which
exports are restricted for national security
or foreign policy purposes, shall be fined not
more than five times the value of the exports
involved or $100,000, whichever is.greater, or
imprisoned not more than ten years or both.
(c) (1) The head of any department or
agency exercising any functions under this
Act, or any officer or employee of such de-
partment or agency specifically designated by
the head thereof, may impose a civil penalty
not to exceed $10,000 for each violation of
this Act or any regulation, order, or license
issued under this Act, either in addition to or
in lieu of any other liability or penalty which
may be imposed.
(2) (A) The authority under this Act to
suspend or revoke the authority of any
United States person to export goods or tech-
nology may be used with respect to any vio-
lation of the rules and regulations issued
pursuant to section 5(a) of this Act.
(B) Any administrative sanction (includ-
ing any civil penalty or any suspension or
revocation of authority to export) imposed
under this Act for a violation of the rules
and regulations issued pursuant to section
6(a) of this Act may be imposed only after
notice and opportunity for an agency hear-
ing on the record in accordance with sec-
tions 554 through 557 of title 5. United
States Code.
(C) Any charging letter or other document
initiating administrative proceedings for the
imposition of sanctions for violations of the
rules and regulations issued pursuant to
section 6(a) of this Act shall be made avail-
able for public inspection and copying.
(d) The payment of any penalty imposed
pursuant to subsection (c) may be made a
condition, for a period not exceeding one
year after the imposition of such penalty, to
the granting, restoration, or privilege granted
or to be granted to the person upon whom
such penalty is imposed. In addition, the
payment of any penalty imposed under sub-
section (c) may be deferred or suspended in
whole or in part for a period of time no
longer than any probation period (which
may exceed one year) that may be imposed
upon such person. Such a deferral or sus-
pension shall not operate as a bar to the
collection of the penalty in the event that
the conditions of the suspension, deferral,
or probation are not fulfilled.
(e) Any amount paid in satisfaction of any
penalty imposed pursuant to subsection (c)
shall be covered into the Treasury as a mis-
cellaneous receipt. The head of the depart-
ment or agency concerned may, in his dis-
cretion, refund any such penalty, within two
years after payment, on the ground of a ma-
terial error of fact or law in the imposition.
Notwithstanding section 1346(a) of title 26,
United States Code, no action for the refund
of any such penalty may be maintained in
any court.
(f) In the event of the failure of any per-
son to pay a penalty imposed pursuant to
subsection (c), a civil action for the recov-
ery thereof may, in the discretion of the
head of the department or agency concerned,
be brought in the name of the United States.
In any such action, the court shall deter-
mine de novo all issues necessary to the es-
tablishment of liability. Except as provided
in this subsection and in subsection (d), no
such liability shall be asserted, claimed, or
recovered upon by the United States in any
way unless it has previously been reduced
to judgment.
(g) Nothing in subsection (c), (d), or (f)
limits-
(1) the availability of other administra-
tive or judicial remedies with respect to
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRIESSIIONAIL RIECORD-HOUSIE H8481
violations of this Act, or any regulation,
order, or license issued under this Act;
(2) the authority to compromise and settle
administrative proceedings brought with re-
spect to violations of this Act, or any regu-
lation, order, or license issued under this
Act; or
(3) the authority to compromise, remit or
mitigate seizures and forfeitures pursuant to
section 1(b) of title VI of the Act of June 15,
1917 (22 U.S.C. 401(b)).
ENFORCEMENT
SEC. 11. (a) To the extent necessary or ap-
propriate to the enforcement of this Act or
to the imposition of any penalty, forfeiture,
or liability arising under the Export Con-
trol Act of 1949, the head of any department
or agency exercising any function there-
under (and officers or employees of such de-
partment or agency specifically designated
by the head thereof) may make such inves-
tigations and obtain such information from,
require such reports or the keeping of such
records by, make such inspection of the
books, records, and other writings, premises,
or property of, and take the sworn testimony
of, any person. In addition, such officers or
employees may administer oaths or affirma-
tions, and may by subpena require any per-
son to appear and testify or to appear and
produce books, records, and other writings,
or both, and in the case of contumacy by, or
refusal to obey a subpena issued to, any such
person, the district court of the United
States for any district in which such person
is found or resided or transacts business,
upon application, and after notice to any
such person and hearing, shall have juris-
diction to issue an order requiring such per-
son to appear and give testimony or to ap-
pear and produce books, records, and other
writings, or both,. and any failure to obey
such order of the court may be punished by
such court as a contempt thereof.
(.b) No person shall be excused from
complying with any requirements under this
section because of his privilege against self-
Incrimination, but the immunity provisions
of the Compulsory Testimony Act of Febru-
ary 11, 1893 (27 Stat. 443; 49 U.S.C. 46) shall
apply with respect to any individual who
specifically claims such privilege.
(c) Except as otherwise provided by the
third sentence of section 6(b) (2) and by sec-
tion 10(c) (2) (C) of this Act, information
obtained prior to June 30, 1980, under this
Act, which is deemed confidential, including
Shippers' Export Declarations, or with refer-
ence to which a request for confidential
treatment' is made by the person furnishing'
such information, shall be exempt from dis-
closure under section 652(b) (3) (B) of title 5,
United States Code, and such information
shall not be published or disclosed unless
the Secretary of Commerce determines that
the withholding thereof is contrary to the
national interest. Information obtained after
June 30, 1980, under this Act may be with-
held only to the extent permitted by statute,
except that information obtained for the
purpose of consideration of, or concerning,
license applications under this Act shall be
withheld from public disclosure unless the
release of such information is determined
by the Secretary of Commerce to be in the
national interest. Enactment of this subsec-
tion shall not affect any judicial proceeding
commenced under section 552 of title 6,
United States Code, to obtain access to boy-
cott reports submitted prior to October 31,
1976, which was pending on May 15, 1979;
but such proceeding shall be continued as
if this Act had not been enacted. Nothing
in this Act shall be construed as authorizing
the withholding of information from Con-
gress, and all information obtained at any
time under this Act or previous Acts regard-
ing the control of exports, including any
report or license application required under
section 4(b), shall be made available upon
request to any committee or subcommittee
of Congress of appropriate jurisdiction. No
such committee or subcommittee shall dis-
close any information obtained under this
Act or previous Acts regarding the control
of exports which is submitted on a con-
fidential basis unless the full committee de-
termines that the withholding thereof is
contrary to the national interest.
(d) In the administration of this Act,
reporting requirements shall be so designed
as to reduce the cost of reporting, record-
keeping, and export documentation required
under this Act to the extent feasible con-
sistent with effective enforcement and com-
pilation of useful trade statistics. Reporting,
recordkeeping, and export documentation re-
quirements shall be periodically reviewed
and revised in the light of developments in
the field of information technology.
EXEMPTION FROM CERTAIN PROVISIONS RELAT-
ING TO ADMINISTRATIVE PROCEDURE AND JU-
DICIAL REVIEW
SEC. 12. (a) Except as provided in section
10(c) (2), the functions exercised under this
Act are excluded from the operation of
sections 551, 553 through 559, and 701
through 706 of title 5, United States Code.
(b) It is the intent of Congress that, to
the extent practicable, all regulations im-
posing controls on exports under this Act
be issued in proposed form with meaningful
opportunity for public comment before tak-
ing effect. In cases where a regulation im-
posing controls under this Act is issued with
immediate effect, it is the intent of Congress
that meaningful opportunity for public
comment also be provided and that the
regulation be reissued in final form after
public comments have been fully considered.
The Secretary shall include in the annual
report required by this Act a detailed ac-
counting of the issuance of regulations un-
der the authority of this Act, including an
explanation of each case. in which regula-
tions were not issued in accordance with
the first sentence of this subsection.
ANNUAL REPORT
SEC. 13. (a) The Secretary of Commerce
shall make an annual report to the President
and to the Congress on the implementation
of this Act.
(b) Each annual report shall include an
accounting of-
(1) actions taken by the President and-
the Secretary of Commerce to effect the
antiboycott policies set forth in section 3(5)
of this Act;
(2) organizational and procedural changes
instituted and any reviews undertaken in
furtherance of the policies set forth in this
Act;
(3) efforts to keep the business sector of
the Nation informed about policies and pro-
cedures adopted, under this Act;
(4) any changes in the exercise of the au-
thorities of section 4(a) of this Act;
(5) the results of review of United States
policy toward individual countries called
for in section 4(a) (2) (A);
(8) the results, in as much detail as may
be included consistent with the national
security and the need to maintain the con-
fidentiality of proprietary information, of
the actions, including reviews, and revisions
of export controls maintained for national
security purposes, required by section 4(a)
(2)(B);
(7) action taken pursuant to section 4
(b) (1), including changes made in control
lists and assessments of foreign availability;
(8) evidence demonstrating a need to im-
pose export controls for national security or
foreign policy purposes in the face of for-
eign availability as set forth in section 4(a)
(2) (E);
(9) the information contained in the re-
ports required by section 4(e) (2) of this Act,
together with an analysis of-
(A) the impact of the economy and world
trade of shortages or increased prices for
commodities subject to monitoring under
this Act or section 812 of the Agricultural
Act of 1970;
(B) the worldwide supply of such com-
modities; and
(C) actions being taken by other nations
in response to such shortages or increased
prices;
(10) delegations of authority by the Presi-
dent as provided for under section 4(k) of
this Act;
(11) the progress of negotiations under
section 4(n) of this Act;
'(12) the number and disposition of export
license applications taking more than ninety
days to process pursuant to section 4(d) of
this Act;
(13) consultations undertaken with tech-
nical advisory committees pursuant to sec-
tion 9(c) of this Act the use made of advice
given, and the contribution such committees
made in carrying out the policies of this
Act;
1('14) violations of the provisions of this
Act and penalties imposed pursuant to this
Act; and
?(15) any revisions to reporting require-
ments prescribed in section 11(d).
-
?(c) The heads of other involved depart
ments and agencies shall fully cooperate
with the Secretary of Commerce in providing
all information required by the Secretary of
Commerce to complete the annual reports.
DEFINITIONS
SEC. '14. As used in this Act-
(1) the term "person" includes the singu-
lar and the plural and any individual, part-
nership, corporation, or other form of asso-
ciation, including any government or agency
thereof;
,(2) the term "United States person"
means any United States resident or national
(other than an individual resident outside
the United States and employed by other
than a United States person), any domestic
concern (including any permanent domestic
establishment of any foreign concern) and
any foreign subsidary or affiliate (including
any permanent foreign establishment) of
any domestic concern which is controlled in
fact by such domestic concern, as deter-
mined under regulations of the President;
(3) the term "goods" means any article,
material, supply or manufactured product,
including inspection and test equipment,
and excluding technical data; and
(4) the term "technology" means the in-
formation and know-how that can be used
to design, produce, manufacture, utilize, or
reconstruct goods, including computer soft-
ware and technical data, but not the goods
themselves.
EFFECTS ON OTHER ACTS
SEC. 15. (a) The Act of February 15, 1936
(49 Stat. 1140), relating to the licensing of
exports of tinplate scrap, is hereby super"
seded; but nothing contained in this Act
shall be construed to modify, repeal, super-
sede, or otherwise affect the provisions of
any other laws authorizing control over ex-
ports of any commodity.
(b) The authority granted to the Presi-
dent under this Act shall be exercised in
such manner as to achieve effective coordi-
nation with the authority exercised under
section 38 of the Arms Export Control Act
(22 U.S.C. 2778).
(c) On October 1, 1979, the Mutual De-
fense Assistance Control Act of 1951, as
amended (22 U.S.C. 1611-1613d), is super-
seded.
AUTHORIZATION OF APPROPRIATIONS
SEC. 16. (a) Notwithstanding any other
provision of law, no appropriation shall be
made under any law to the Department of
Commerce for expenses to carry out the pur-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
1H[ 8482
poses of this Act for any fiscal year com-
mencing on or after October 1, 1980, unless
previously and specifically authorized by
legislation.
(b) There are authorized to be appropri-
ated to the Department of Commerce $8,-
000,000 (and such additional amounts as
may be necessary for increases in salary, pay,
retirement, other employee benefits author-
ized by law, and other nondiscretionary
costs) for fiscal year 1980 to carry out the
purposes of this Act, of which $1,250,000
shall be available only for purposes of es-
tablishing and maintaining the capability
to make foreign availability assessments
called for by section 4 (b) (1).
(c) There are authorized to be appropri-
ated to the Department of Defense $2,500,000
for fiscal year 1980 to carry out its functions
under subsection 4(a) of this Act.
EFFECTIVE DATE
SEc. 17. (a) This Act takes effect upon the
expiration of the Export Administration Act
of 1969. -
(b) All outstanding delegations, rules,
regulations, orders, licenses, or other forms
of administrative' action under the Export
Control Act of 1949 or section 6 of the Act of
July 2, 1940 (64 Stat. 714), or the Export
Administration Act of 1969 shall, until
amended or revoked, remain in full force
and effect, the same as if promulgated under
this Act.
TERMINATION DATE
SEC. 18. The authority granted by this Act
terminates on September 30, 1983, or upon
any prior date which the President by proc-
lamation may designate.
MOTION OFFERED BY MR. BINGHAM
Mr. BINGHAM. Mr. Speaker, I offer
motion.
The Clerk read as follows:
CONGRESSIONAL RECORD -HOUSE
"(7) The availability of certain materials
at home and abroad varies so that the quan-
tity and composition of. United States ex-
ports and their distribution among import-
ing countries may affect the welfare of the
domestic economy and may have an impor-
tant bearing upon fulfillment of the foreign
policy of the United States.
"(8) Unreasonable restrictions on access
to world Supplies can cause worldwide po-
litical and economic instability, interfere
with free international trade, and retard the
growth and development of nations.
"(9) The export of goods or technology
without regard to whether such export makes
a significant contribution to the military
potential of individual countries may ad-
versely affect the national security of the
United States. '
"(10) It is important that the administra-
tion of export controls imposed for national
security purposes give special emphasis to
the need to control exports of technology
(and goods which contribute significantly to
the transfer of such technology) which could
make a significant contribution to the mili-
tary potential of any country or combina-
tions of countries which would be detrimen-
tal to the national security of the United
States.
"(11) Minimization of restrictions on ex-
ports of agricultural Commodities and prod-
ucts is of ertical importance to the mainte-
nance of a sound agricultural sector, to
achievement of a positive balance of pay-
ments, to reducing the level of federal ex-
penditures for agricultural support programs,
and to United States cooperation in efforts
to eliminate malnutrition and world
hunger.".
POLICY
SEc. 103. (a) Section 3 of the Export Ad-
ministration Act of 1969 (50 U.S.C. App. 2402)
is amended by, amending paragraph (2) to
read as follows:
"(2) It is the policy of the United States to
use export controls to the extent necessary
(A) to restrict the export of goods and tech-
nology which would make a significant con-
tribution to the military potential of any
country or combination of countries which
would prove detrimental to the national se-
curity of the United States; (B) to restrict
the export of goods and technology where
necessary to further significantly the foreign
policy of the United States or to fulfill its
international responsibilities, including to
restrict exports to countries which violate the
principles of the Monroe Doctrine; and
(C) to restrict the export of goods where
necessary to protect the domestic economy
from the excessive drain of scarce materials
and to reduce the serious inflationary impact
of foreign demand.".
(b) Such section is further amended--
(1) in paragraph (5) by striking out "ar-
ticles, materials, supplies, or information"
and inserting in lieu thereof "goods, tech-
nology, or other information ";
(2) in paragraph (6) by striking out "ar-
ticles, materials, or supplies, including tech-
nical data or other information," and insert-
ing in lieu thereof "goods, technology, or
other information"; and
(3) by adding at the end thereof the fol-
lowing new paragraph:
"(9) It is the policy of the United States to
cooperate with other nations with which the
United States has defense treaty commit-
ments in restricting the export of goods and
technology which would make a significant
contribution to the military potential of any
country or combination of countries, which
would prove detrimental to the security of
the United States and of those countries with
which the United States has defense treaty
commitments.
"(10) It is the policy of the United States
that export trade by United States citizens be
given a high priority anc( not be pontrolled
Mr. BINGHAM moves to strike out all after
the enacting clause of the Senate bill, S. 737,
and to rose thereof the provisions
of the bill, .R. 4034 as passed, as follows:
TITLE I-EXPORT ADMINISTRATION
SHORT TITLE
SECTION 101. This title may be cited as the
"Export Administration Act Amendments of
1979*'.
FINDINGS
SEC. 102. Section 2 of the Export Admin-
istration Act of 1969 (50 U.S.C. App. 2401) is
amended to read as follows:
"FINDINGS
"SEC. 2. The Congress makes the following
findings :
"(1) Exports are important to the eco-
nomic well-being of the United States.
"(2) A large United States trade deficit
weakens the value of the United States dol-
lar, intensifies inflationary pressures in the
domestic economy, and heightens instability
in the world economy.
"(3) Poor export performance is an im-
portant factor contributing to a United
States trade deficit.
"(4) It is important for the national inter-
est of the United States that both the pri-
vate sector and the Federal Government
place a high priority on exports, which
would strengthen the Nation's economy.
"(5) The restriction of exports from the
United States can have serious adverse ef-
fects on the balance of payments and on
domestic employment, particularly when re-
strictions applied by the United States are
more extensive than those imposed by other
countries.
"(6) The uncertainty of policy toward cer-
tain categories of exports has curtailed the
efforts of American business in those cate-
gories to the detriment of the overall at-
tempt to improve the trade balance of the
United States.
September 25, 1979
except when such controls (A) are essential
to achieve fundamental national security,
foreign policy, or short supply objectives, (B)
will clearly achieve such objectives, and
(C) are administered consistent with basic
standards of due process. It is also the policy
of the United States that such controls shall
not be retained unless their efficacy is an-
nually established in detailed reports avail-
able to both the Congress and to the public,
to the maximum extent consistent with the
national security and foreign policy of the
United States.
"(11) It is the policy of the United States
to minimize restrictions on the export of
agricultural commodities and products.".
EXPORT LICENSES; TYPES OF CONTROLS
SEC. 104. (a) The Export Administration
Act of 1969 is amended-
(1) by redesignating section 4 as section
7;
(2) by repealing sections 5 and 9;
(3) by redesignating sections 6, 7, 8, 10,
11, 12, 13, 14, and 15 as sections 11, 12, 13,
14, 16, 17, 18, 19 and 20, respectively; and
(4) by redesignating sections 4A and 4B
as sections 8 and 9, respectively.
(b) The Export Administration Act of 1969
is amended by adding after section 3 the fol-
lowing new sections:
"EXPORT LICENSES; COMMODITY CONTROL LIST:
LIMITATION ON CONTROLLING EXPORTS
"SEC. 4. (a) TYPES OF LICENSES.-The Sec-
retary may, in accordance with the provisions
of this Act, issue any of the following export
licenses:
"(1) A validated license, which shall be a
document issued pursuant to an application
by an exporter authorizing a specific export
or, under procedures established by the Sec-
retary, a group of exports, to any destination.
"(2) A qualified general license, which shall
be a document issued pursuant to an appli-
cation by the exporter authorizing the ex-
port to any destination, without specific ap-
plication by the exporter for each such ex-
port, of a category of goods or technology,
under such conditions as may be imposed by
the Secretary.
"(3) A general license, which shall be a
standing authorization to export, without
application by the exporter, a category of
goods or technology, subject to such condi-
tions as may be set forth in the license.
"(4) Such other licenses, consistent with
this subsection and this Act, as the Secre-
tary considers necessary for the effective and
efficient implementation of this Act.
"(b) COMMODITY CONTROL LIST: The Sec-
retary shall establish and maintain a list
(hereinafter in this Act referred to as the
'commodity control list') consisting of any
goods or technology subject to export con-
trols under this Act.
"(C) RIGHT OF EXPORT.-NO authority or
permission to export may be required under
this Act, or under any rules or regulations
issued under this Act, except to carry out
the policies set forth in section 3 of this
Act.
"NATIONAL SECURITY CONTROLS
"SEc. 5. (a) AUTHORITY.-(1) In order to
carry out the policy set forth in section 3(2)
(A) of this Act, the President may,. in accord-
ance with the provisions of this section, pro-
hibit or curtail the export of any goods or
technology subject to the jurisdiction of the
United States or exported by any person sub-
ject to the jurisdiction of the United States.
The authority contained in this subsection
shall be exercised by the Secretary, in con-
sultation with the Secretary of Defense, and
such other departments and agencies as the
Secretary considers appropriate, and shall be
implemented by means of export licenses de-
scribed in section 4(a) of this Act.
"(2) (A) Whenever the Secretary makes any
revision with respect to any goods or tech-
nology, or with respect to the countries or
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979
CONGRESSIONAL RECORD -HOUSE
destinations, affected by export controls im-
posed under this subsection, the Secretary
shall publish in the Federal Register a notice
of such revision and shall specify in such
notice that the revision relates to controls
imposed under the authority contained in
this section,
"(B) Whenever the Secretary denies any
export license under this subsection, the Sec-
retary shall specify in the notice to the ap-
plicant of the denial of'such license that the
license was denied under the authority con-
tained in this section. Further, the Secre-
tary shall include in the notice to
the applicant of denial' of such license
what, if any, modification in or re-
strictions on the goods or technologies for
which the license was sought would allow
such export to be compatible with controls
implemented under this section, or shall in-
dicate in such notice which departmental
officials familiar with the application will be
made reasonably available to the applicant
for consultation with regard to such modifi-
cations or restrictions if appropriate.
11(3) In issuing rules and regulations to
carry out this section, particular attention
shall be given to the difficulty of devising ef-
fective safeguards to prevent a country that
poses a threat to the security of the United
States from- diverting critical technologies
to military use, the difficulty of devising ef-
fective safeguards to protect critical goods,
and the need to take effective measures to
prevent the reexport of critical technologies
from other countries to countries that pose
a threat to the security of the United States.
Such regulations shall not be based upon the
assumption that such effective safeguards
can be devised.
"(b) POLICY TOWARD INDIVIDUAL COUN-
TRIES.-In administering export controls un-
der this section, United States policy toward
individual countries shall not be determined
exclusively on the basis of a country's Com-
munist or non-Communist status, but shall
take into account such factors as the coun-
try's present and potential relationship to
the United States, its present and potential
relationship to countries friendly or hostile
to the United States, its ability and willing-
ness to control retransfers of United States
exports in accordance with United States
policy, and such other factors as the Presi-
dent may consider appropriate. The Presi-
dent shall periodically review United States
policy toward individual countries to de-
termine whether such policy is appropriate
in light of factors specified in the preceding
sentence.
"(c) CONTROL LIST-(1) The Secretary
shall establish and maintain, as part of the
commodity control list, a list of all goods
and technology subject to export controls
under this section. Such goods and tech-
nology shall be clearly identified as being
subject to controls under this section.
"(2) The Secretary of Defense and other
appropriate departments and agencies shall
identify goods and technology for inclusion
on the list referred to in paragraph (1).
Those items which the Secretary and the
Secretary of Defense concur shall be subject
to export controls under this section shall
comprise,such list. If the Secretary and the
Secretary of Defense are unable to concur
on such Items, the matter shall be referred
to the President for resolution.
"(3) The Secretary shall issue regulations
providing for continuous review of. the list
established pursuant to 'this subsection in
order to carry out the policy set forth in
section 3(2) (A) and the provisions of this
section, and for the prompt issuance of such
revisions of the list as may be necessary.
Such regulations shall provide interested
Government agencies and other affected or
potentially affected parties with an oppor-
tunity, during such review, to submit writ-
ten data, views, or arguments with or with-
out oral presentation. Such regulations shall
further provide that, as part of such review,
an assessment be made of the availability
from sources outside the United States of
goods and technology comparable to those
controlled for export from the United States
under this section.
"(d) MILITARY CRITICAL TECHNOLOGIES.-
(1) The Congress finds that the national in-
terest requires that export controls under
this section be focused primarily on military
critical technologies, and that export con-
trols under this section be implemented for
goods the export of which would transfer mil-
itary critical technologies to countries to
which exports are controlled under this
section.
"(2) The Secretary of Defense shall develop
a list of military critical technologies. In de-
veloping such list, primary emphasis shall be
given to-
"(A) arrays of design and manufacturing
knowhow;
"(B) keystone manufacturing, inspection,
and test equipment; and
"(C) goods accompanied by sophisticated
operation, application, or maintenance know-
how,
which are not possessed by countries to
which exports are controlled under this sec-
tion and which, if exported, would permit a
significant advance in a military system of
any such country.
"(3) (A) The list referred to in paragraph
(2) shall be sufficiently specific to guide the
determinations of any official exercising ex-
port licensing responsibilities under this Act;
and
(B) The initial version of the list referred
to in paragraph (2) shall be completed and
published in an appropriate form in the Fed-
eral Register not later than October 1, 1980.
"(4) The list of military critical tech-
nologies developed by the Secretary of De-
fense pursuant to paragraph (2) shall be-
come a part of the commodity control list.
"(5) The Secretary of Defense shall report
annually to the Congress on actions taken to
carry out this subsection.
"(e) EXPORT LICENSES-(1) The Congress
finds that the effectiveness and efficiency of
the process of making export licensing de-
terminations under this section is severely
hampered by the large volume of validated
export license 'applications required to be
submitted under this Act. Accordingly, it is
the intent of Congress in this subsection to
encourage the use of a qualified general li-
cense, in lieu of a validated license, to the
maximum extent practicable, consistent with
the national security of the United States.
"(2) To the maximum extent practicable,
consistent with the national security of the
United States, the Secretary shall require a
validated license under this section for the
export of goods or technology only if-
"(A) the export, of such goods or technol-
ogy is restricted pursuant to a multilateral
agreement, formal or informal, to which the
United States is a party and, under the terms
of such multilateral agreement, such export
requires the specific approval of the parties
to such multilateral agreement;
"(B) with respect to such goods or technol-
ogy, other nations do not possess capabilities
comparable to those possessed by the United
States; or
"(C) the United States is seeking the
agreement of other suppliers to apply com-
parable controls to such goods or technology
and, in the judgment of the Secretary, United
States export controls on such goods or tech-
nology, by means of such license, are neces-
sary pending the conclusion of such
agreement.
"(3) To the maximum extent practicable,
consistent with the national security of the
United States, the Secretary shall require a
118483
qualified general license, in lieu of, a vali-
dated license, under this section for the ex-
port of goods or technology if the export of
such goods or technology is restricted pur-
suant to a multilateral agreement, formal or
informal, to which the United States is a
party, but such export does not require the
specific approval of the parties to such multi-
lateral agreement.
"(f) FOREIGN AVAILABILITY-(l) The Sec-
retary, in consultation with appropriate
Government agencies and with appropriate
technical advisory committees established
pursuant to subsection (h) of this section,
shall review, on a continuing basis, the avail-
ability, to countries to which exports are con-
trolled under this section, from sources out-
side the United States, including countries
which participate with the United States in
multilateral export controls, of any goods or
technology the export of which requires a
validated license under this section. In any
case in which the Secretary determines, in
accordance with procedures and criteria
which the Secretary shall by regulation estab-
lish, that any such goods or technology are
available in fact to such destinations from
such sources in sufficient quantity and of
sufficient quality so that the requirement of
a validated license for the export of such
goods or technology is or would be ineffective
in.achieving the purpose set forth in subsec-
tion (a) of this section, the Secretary may
not, after the determination is made, require
a validated license for the export of such
goods or technology during the period of
such foreign availability, unless the Presi-
dent determines that the absence of export
controls under this section would prove det-
rimental to the national security of the
United States. In any case in which the Presi-
dent determines that export controls under
this section must be maintained notwith-
standing foreign availability, the Secretary
shall publish that determination together
with a concise statement of its basis, and the
estimated economic impact of the decision.
"(2) The Secretary shall approve any appli-
cation for a validated license which is re-
quired under this section for the export of
any goods or technology to a particular
country and which meets all other require-
ments for' such an application, if the
Secretary determines that such goods or
technology will, if the license is denied, be
available in fact to such country from
sources outside the United States, includ-
ing countries which participate with the
United States in multilateral export con-
trols, in sufficient quantity and of suffi-
cient quality so that denial of the license
would be ineffective in achieving the purpose
set forth in subsection (a) of this section,
subject to the exception set forth in para-
graph (1). of this subsection. In any case in
which the Secretary makes a determination
of foreign availability under this paragraph
with respect to any goods or technology, the
Secretary shall determine whether _6 deter-
mination of foreign availability under para-
graph (1) with respect to such goods or
technology is warranted.
"(3) If, in any case in which the President
makes a determination under paragraph (1)
or (2) of this subsection with respect to
national security, the good or technology
concerned is critical to United States na-
tional security and, if available to an adver-
sary country, would permit a significant con-
tribution to the military potential of that
country, the President shall direct the Sec-
retary of State to enter into negotiations
with the appropriate government or govern-
ments in order to eliminate foreign avail-
ability of such good or technology.
"(4) With respect to export controls im-
posed under this section, any determination
of foreign availability which is the basis of
a decision to grant a license for, or to re-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
IEII 8484
move a control on, the export of a good or
technology, shall be made in writing and
shall be supported by reliable evidence, in-
cluding scientific or physical examination,
expert opinion based upon adequate factual
information, or intelligence information. In
assessing foreign availability with respect to
license applications, uncorroborated repre-
sentations by applicants shall not be deemed
sufficient evidence of foreign availability.
"(5) Whenever the Secretary of State, in.
consultation with the Secretary, has reason
to believe that the availability of any goods
or technology from sources outside the United
States can be prevented or eliminated by
means of negotiations with other countries,
the Secretary of State shall undertake such
negotiations. The Secretary shall not make
any determination of foreign availability un-
der paragraph (1) or (2) Of this subsection
with respect to such goods or technology
until the Secretary of State has had a rea-
sonable amount of time to conclude such
negotiations.
"(6) In order to further effectuate the poli-
cies set forth in this paragraph, the Secre-
tary shall establish, within the Office of Ex-
port Administration of the Department of
Commerce, a capability to monitor and gather
information with respect to the foreign avail-
ability of any goods or technology subject to
export controls under this section. The Sec-
retary shall include a detailed statement with
respect to actions taken in compliance with
the provisions of this paragraph in each re-
port to the Congress made pursuant to sec-
tion 14 of this Act.
"(7) Each department or agency of the
United States with responsibilities with
respect to export controls, including intelli-
gence agencies, shall consistent with the pro-
tection of intelligence sources and methods,
furnish information concerning foreign
availability of such goods and technologies
to the Office of Export Administration, and
such Office, upon request or where appropriate, shall furnish to such departments and
agencies the information it gathers and re-
ceives concerning foreign availability.
" (g) INDEXING.-In order to ensure that
requirements for validated licenses and
qualified general licenses are periodically
removed as goods or technology subject to
such requirements become obsolete with
respect to the national security of the
United States, regulations Issued by the
Secretary may, where appropriate, provide
for annual increases in the performance
levels of goods or technology subject to any
such'licensing requirement. Any such goods
or technology which no longer meet the per-
formance levels established by the latest
such increase shall be removed from the list
established pursuant to subsection (c) of
this section unless, under such exceptions
and under such procedures as the Secretary
shall prescribe, any other Government
agency objects to such removal and the Sec
retary determines, on the basis of such
objection, that the goods or technology shall.
not be removed from the list.
"(h) TECHNICAL ADVISORY COMMITTEES.-
(1) Upon written request by representatives
of a substantial segment of any industry
which produces any goods or technology sub-
ject to export controls under subsection (a)
or being considered for such controls be-
cause of their significance to the national
security of the United States, the Secretary
shall appoint a technical advisory commit-
tee for any such goods or technology which
the Secretary determines are difficult to
evaluate because of questions concerning
technical matters, worldwide availability,
and actual utilization of production and
technology, or licensing procedures. Each
such committee shall consist of representa-
tives of United States Industry and Govern-
ment, including the Departments of Com-
merce. Defense, and State and, in the
CONGRESSIONAL RECORD -HOUSE September 2'5, 1979
discretion of the Secretary, other Govern-
ment departments and agencies. No person
serving on any such committee who is a
representative of industry shall serve on
such committee for more than four consecu-
tive years.
"(2) Technical advisory committees es-
tablished untier paragraph (1) shall advise
and assist the Secretary, the Secretary of
Defense, and any other department, agency,
or official of the Government of the United
States to which the President delegates au-
thority under this Pict, with respect to ac-
tions designed to carry out the policy set
forth in section 3(2)(A) of this. Act. Such
committees, where they have expertise in
such matters, shall be consulted with respect
to questions involving (A) technical mat-
ters, (B) worldwide availability and actual
utilization of production technology, (C)
licensing procedures which affect the level
of export controls applicable to any goods
or technology, and (D) exports subject to
multilateral controls in which the United
States participates, including proposed re-
visions of any such multilateral controls.
Nothing in this subsection shall prevent
the Secretary or the Secretary of Defense
from consulting, at any time, with any
person representing industry or the general
public, regardless of whether such person
is a member of a technical advisory com-
mittee. Members of the public shall be given
a reasonable opportunity, pursuant to reg-
ulations prescribed by the Secretary, to
present evidence to such committees.
"(3) To facilitate the work of the tech-
nical advisory Committees, the Secretary, in
conjunction with other departments and
agencies participating in the administration
of this Act, shall disclose to each such com-
mittee adequate information, consistent
with national security, pertaining to the
reasons for the export controls which are in
effect or contemplated for the goods or tech-
noloey with respect to which that committee
furnishes advice.
"(4) Whenever a technical advisory com-
mittee certifies to the Secretary that goods
or technology with respect to which such
committee was appointed have become
available in fact, to countries to which ex-
ports are controlled under this section. from
sources outside the United States, including
countries which participate with the United
States in multilateral export controls, in
sufficient quantity and of sufficient quality
so that requiring a validated license for the
export of such goods or technology would be
ineffective in achieving the purpose set
forth in subsection (a), and provides ade-
quate documentation for such certification,
in accordance with the procedures estab-
lished pursuant to subsection (f) (1) of this
section, the Secretary shall take steps to
verify such availability, and upon such
verification shall remove the requirement of
a validated license for the export of the
goods or technology, unless the President
determines that the absence of export con-
trols under this section would prove detri-
mental to the national security of the
United States. In any case in which the
President determines that export controls
under this section must be maintained not-
withstanding foreign availability, the Sec-
retary shall publish that determination to-
. gether with a concise statement of its basis,
and the estimated economic impact of the
decision.
"(i) MULTILATERAL EXPORT CONTROLS.-(1)
The President shall enter into negotiations
with the governments participating in the
group known as the Coordinating Commit-
tee of the Consultative Group (hereinafter
in this subsection referred to as the 'Com-
mittee') with a view toward accomplishing
the following objectives:
"(A) Agreement to publish the list of
items controlled for export by agreement of
the Committee, together with all notes, un-
derstandings, and other aspects of such
agreement, and all changes thereto.
"(B) Agreement to hold periodic meet-
ings of such governments with high-level
representation from such governments, for
the purpose of discussing export control pol-
icy issues and issuing policy guidance to the
Committee.
"(C) Agreement to reduce the scope of the
export controls imposed by agreement of the
Committee to a level acceptable to and en-
forceable by all governments participating
in the Committee.
"(D) Agreement on more effective proce-
dures for enforcing the export controls
agreed to pursuant to subparagraph _(C).
"(2) The President shall include, in each
annual report required by section 14 of this
Act, a detailed report on the progress of the
negotiations required by paragraph (1), un-
til such negotiations are concluded.
"(j) COMMERCIAL AGREEMENTS WITH CER-
TAIN COUNTRIES.-(1) Any United States
person who, for commercial purposes, enters
into any agreement with any agency of the
government of a country to which exports
are restricted for national security purposes,
which agreement cites an intergovernmental
agreement (to which the United States and
such country are parties) calling for the en-
couragement of technical cooperation, and
which agreement is intended to result in the
export from the United States to the other
party of unpublished technical data of
United States origin, shall report such
agreement to the Secretary.
"(2) The provisions of paragraph (1) shall
not apply to colleges, universities, or other
educational institutions.
"(k) NEGOTIATIONS WITH OTHER COUN-
TRIEs.-The Secretary of State, in consulta-
tion with the Secretary of Defense, the Sec-
retary of Commerce, and the heads of other
appropriate departments and agencies, shall
be responsible for conducting negotiations
with other countries regarding their co-
operation in restricting the export of goods
and technology in cider to carry out the
policy set forth in section 3(9) of this Act,
as authorized by subsection (a) of this sec-
tion, including negotiations with respect to
which goods and technology should be sub-
ject to multilaterally agreed export restric-
tions and what conditions should apply for
exceptions from those restrictions.
"FOREIGN POLICY CONTROLS
"SEC. 6. (a) AUTHORITY-(1) In order to
effectuate the policy set forth in paragraph
(2) (B), (7), or (8) of section 3 of this Act,
the President may prohibit or curtail the ex-
portation of any goods, technology, or other
information subject to the jurisdiction of the
United States or exported by any person
subject to the jurisdiction of the United
States, to the extent necessary to further
significantly the foreign policy of the United
States or to fulfill its international respon-
sibilities. The authority granted by this
subsection shall be exercised by the Secre-
tary, in consultation with the Secretary of
State and such other departments and agen-
cies as the Secretary considers appropriate,
and shall be implemented by means of ex-
port licenses issued by the Secretary.
"(2) (A) Whenever the Secretary makes
any revision with respect to any goods, tech-
nology, or other information or with respect
to the countries or destinations affected by
export controls imposed under this subsec-
tion, the Secretary shall publish in the Fed-
eral Register a notice of such revision, and
shall specify in the notice that the revision
relates to controls imposed under the au-
thority contained in this subsection.
"(B) Whenever the secretary denies any
export license under this subsection, the
Secretary shall specify in the notice to the
applicant of the denial of such license that
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECORD -HOUSE
the license was denied under the authority
contained in this subsection, and the reasons
for such denial, with reference to the criteria
set forth in subsection (b) of this section.
Further, the Secretary shall include in the
notice to the applicant of denial of such
license what, if any, modifications in or
restrictions on the goods or technologies for
which the license was sought would allow
such export to be compatible with controls
implemented under this section, or shall in-
dicate in such notice which Departmental
officials familiar with the application will be
made reasonably available to the applicant
for consultation with regard to such modi-
fications or restrictions if appropriate.
"(3) In accordance with the provisions of
section 10 of this Act, the Secretary of State
shall have the right to review any export
license application under this section that
the Secretary requests to review, and to ap-
peal to the President any decision of the
Secretary with respect to such license ap-
plication.
"(b) CRrrERIA.-In determining whether
to impose export controls under this sec-
tion, the President, acting through the Sec-
retary and the Secretary of State, shall
consider-
"(1) the likely effectiveness of the pro-
posed controls in achieving their purpose,
including the availability from other coun-
tries of any goods or technology comparable
to goods or technology proposed for export
controls under this section;
"(2) the compatibility of the proposed
controls with the foreign policy objectives of
the United States, including the effort to
counter international terrorism, and with
overall United States policy toward the coun-
try which is the proposed target of the con-
trols;
"(3) the likely effects of the proposed con-
trols on the export performance of the United
States, on the competitive position of the
United States in the international economy,
and on individual United States companies
and their employees and communities, in-
cluding the effects of the controls on exist-
ing contracts; and
"(4) the ability of the United States Gov-
ernment ,to enforce the proposed controls
effectively.
" (C) CONSULTATION WITH INDUSTRY-The
Secretary, before imposing export controls
under this section, shall consult with such
affected United States industries as the Sec-
retary considers appropriate, with respect to
the criteria set forth in paragraphs (1) and
(3) of subsection (b) and such other mat-
ters as the Secretary considers appropriate.
"(d) ALTERNATIVE MEANS-Before resorting
to the imposition of export controls under
this section, the President shall determine
that reasonable efforts have been made to
achieve the purposes of the controls through
negotiations or other alternative means.
" (e) NOTIFICATION TO CONGRESS.-The Pres-
ident in every possible instance shall consult
with the Congress before imposing any ex-
port control under this section. Whenever the
President imposes any export control with
respect to any country under this section,
he shall immediately notify the Congress of
the imposition of such export control, and
shall submit with such notification a report
specifying-
"(1) the reasons for the control, the pur-
poses the control is designed to achieve, and
the conditions under which the control will
be removed;
"(2) those considerations of the criteria
set forth is subsection (b) which led him to
determine that on balance such export con-
trol would further the foreign policy inter-
ests of the United States or fulfill its interna-
tional responsibilities, including those- cri-
teria which were determined to be inappli-
cable;
"(3) the nature and results of consulta-
tions with industry undertaken pursuant to
subsection (c): and
"(4) the nature and results of any alterna.
tive means attempted under subsection (d),
or the reasons for imposing the control with-
out attempting any such alternative means.
To the extent necessary to further the effec-
tiveness of such export control, portions of
such report may be submitted on a classi-
fled basis, and shall be subject to the pro-
visions of section 12 (c) of this Act. If the
Congress, within sixty days after the receipt
of such notification, adopts a concurrent
resolution disapproving such export control,
then such export control shall cease to be
effective upon the adoption of the resolution.
In the computation of such sixty-day period,
there shall be excluded the days on which
either House of Congress is not in session be-
cause of an adjournment of more than three
days to a day certain or because of an ad-
journment of the Congress sine die. The pro-
cedures set forth in section 130 of the
Atomic Energy Act of 1954 shall apply to any
concurrent resolution referred to in this sub-
section, except that any such resolution shall
be reported by the appropriate committees of
both Houses of Congress not later than forty-
five days after the receipt of the notification
submitted pursuant to this subsection.
"(f) ExcLusioN FOR FOOD AND MEDICINE:
This section does not authorize export con-
trols on food, medicine, or medical supplies.
It is the intent of Congress that the Presi-
dent not impose export controls under this
section on any goods or technology if he de-
termines that the principal effect of the ex-
port of such goods or technology would be to
help meet basic human needs. This subsec-
tion shall not be construed to prohibit the
President from imposing restrictions on the
export of food, medicine, or medical' supplies,
under the International Emergency Eco-
nomic Powers Act.
"(g) TRADE EMBARGOES.-This section does
not authorize the imposition by the United
States of a total trade embargo on any
country. This subsection shall not be con-
strued to prohibit the President from im-
posing a trade embargo under the Interna-
tional Emergency Economic Powers Act.
"(h) FOREIGN AvArLABa.ITY-In applying
export controls under this section, the Pres-
ident shall take all feasible steps to initiate
and conclude negotiations with appropriate
foreign governments for the purpose of se-
curing the cooperation of such foreign gov-
ernments in controlling the export to coun-
tries and consignees to which the United
States export controls apply of any goods
or technology comparable to goods or tech-
nology controlled for export under this
section.
" (I) INTERNATIONAL OBLIGATIONS.-The
limitations contained in subsections (b),
(c), (d), (f), (g), and (h) shall not apply
in any case in which the President exercises
the authority contained in this section' to
impose export controls, or to approve or deny
export license applications, in order to ful-
fill commitments of the United States pur-
suant to treaties to which the United States
is a party, or to comply with decisions or
other actions of international organizations
of which the United States is a member.
" (j) EXISTING CONTROLS: The provisions of
subsection (f) and (g) shall not apply to
any export control on food or medicine or to
any trade embargo in effect on the effective
date of the Export Administration Act
Amendments of 1979.
"(k) COUNTRIES SUPPORTING INTERNATIONAL
TERRORISM.-The Secretary and the Secre-
tary of State shall notify the Committee on
Foreign Affairs of the House of Representa-
tives and the Committee on Foreign Rela-
tions of the Senate before any license is
approved for the export of goods or tech-
El 8485
nology valued at more than $7,000,000 to any
country concerning which the Secretary of
State has made the following determina-
tions :
" (1) Such country has repeatedly provided
support for acts of international terrorism.
"(2) Such exports would make a signifi-
cant contribution to the military potential
of such country, including its military lo-
gistics capability, or would enhance the abil-
ity of such country to support acts of inter-
national terrorism.
"(1) CONTROL LIsT.-The Secretary shall
establish and maintain, as part of the com-
modity control list, a list of any goods or
technology subject to export controls under
this section, and the countries to which
such controls apply. Such goods or tech-
nology shall be clearly identified as subject
to controls under this section. Such list shall
consist of goods and technology identified by
the Secretary of State, with the concurrence
of the Secretary. If the Secretary and the
Secretary of State are unable to agree on
the list, the matter shall be referred to the
President for resolution. The Secretary shall
issue regulations providing for periodic re-
vision of such list for the purpose of elimi-
nating export controls which are no longer
necessary to fulfill the purpose set forth in
subsection (a) of this section or are no
longer advisable under the criteria set forth
in subsection (b) of this section.".
(c) The Export Administration Act of 1969
is amended by inserting after section 9, as
redesignated by subsection (a) of this sec-
tion, the following new section:
"PROCEDURES FOR PROCESSING VALIDATED AND
QUALIFIED GENERAL LICENSE APPLICATIONS
"SEC. 10. (a) GENERAL RESPONSIDII.ITY OF
THE SECRETARY; DESIGNATED OFFICIAL: (1)
All export license applications required
under this Act shall be submitted by the
applicant to the Secretary. All determina-
tions with respect to any such application
shall be made by the Secretary, subject to
the procedures provided in this section for
objections by other agencies. The Secretary
may not delegate the authority to deny any
such application to any official holding a
rank lower than Deputy Assistant Secretary.
"(2) For purposes of this section, the term
'designated official' means an official desig-
nated by the Secretary to carry out functions
under this Act with respect to the admin-
istration of export licenses.
" (b) APPLICATIONS To BE REVIEWED To
OTHER AGENCIES-(1) It is the intent of
Congress that a determination with respect
to any export license application be made
to the maximum extent possible by the Sec-
retary without referral of such application
to any other Government agency.
"(2) The head of any Government agency
concerned with export controls may, within
ninety days after the effective date of this
section, and periodically thereafter, in con-
sultation with the Secretary, determine the
specific types and categories of license ap-
plications to be reviewed by such agency be-
fore the Secretary approves or disapproves
any such application. The Secretary shall, in
accordance with the provisions of this sec-
tion, submit to the agency involved any
license application of any such type or
category.
"(C) INITIAL SCREENING-Within ten days
after the date on which any export license
application is received, the designated offi-
cial shall-
"(1) send to the applicant an acknowledg-
ment of the receipt of the application and
the date of the receipt;
"(2) submit to the applicant a written
description of the procedures required by
this section, the responsibilities of the Secre-
tary and of other agencies with respect to
the application, and the rights of the
applicant;
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 -ul
II 8486
"(3) return the application without action
if the application is improperly completed
or if additional information is required, with
sufficient information to permit the appli-
cation to be properly resubmitted, in which
case if such application is resubmitted, it
shall be treated as a new application for the
purpose of calculating the time periods pre-
scribed in this section; and
"(4) determine whether it is necessary to
submit the application to any other agency
and, if such submission is determined to be
necessary, inform the applicant of the
agency or agencies to which the application
will be referred.
" (d) ACTION BY THE DESIGNATED OFFICIAL:
Within thirty days after the date on which
an export license application is received, the
designated official shall-
"(1) approve or disapprove the application
and formally issue or deny the license, as the
case may be; or
"(2) (A) submit the application, together
with all necessary analysis and recommenda-
tions of the Department of Commerce, con-
currently to any other agenceis pursuant to
subsection (b) (2) ; and
"(B) if the applicant so requests, provide
the applicant with an opportunity to review
for accuracy any documentation submitted
to such other agency with respect to such
application.
"(e) ACTION BY OTHER AGENCIES.- (1) Any
agency to which an application is submitted
pursuant to subsection (d) (2) (A) shall sub-
mit to the designated official, within thirty
days after the end of the thirty-day period
referred to in subsection (d), any recom-
mendations with respect to such application.
Except as provided in paragraph (2), any
such agency which does not so submit its
recommendations within the time period
prescribed in the preceding sentence shall
be deemed by the designated official to have
no objection to the approval of such
application.
"(2) If the head or acting head of any
such agency notifies the Secretary before the
expiration of the time period provided in
paragraph (1) for submission of its recom-
mendations that more time is required for
review of the application by such agency, the
agency shall have an additional thirty-day
period to submit its recommendations to the
designated official. If such agency does not
so submit its recommendations within the
time period prescribed by the preceding sen-
tence, it shall be deemed by the designated
official to have no objection to the approval
of the application.
"(f) DETERMINATION ? BY THE DESIGNATED
OFFICIAL -(1) The designated official shall
take into account any recommendation 'of
an agency submitted with respect to an ap-
plication to the designated official pursuant
to subsection (e), and, within twenty- days
after the end of the appropriate period
specified in subsection (e) for submission of
such agency recommendations, shall-
"(A) approve or disapprove the application
and inform such agency of such approval or
disapproval; or
"(B) if unable to reach a decision with
respect to the application, refer the applica-
tion to the Secretary and notify such agency
and the applicant of such referral.
"(2) The designated official shall formally
issue or deny the license, as the case may be,
not more than ten days after such official
makes a determination under paragraph (1)
(A), unless any agency which submitted a
recommendation to the designated official
pursuant to subsection (e) with respect to
the license application, notifies such official,
within such ten-day period, that it objects to
the determination of the designated official.
"(3) The designated official shall fully in-
form the applicant, to.'the maximum extent
consistent with the national security and,
foreign policy of the United States-
CONGRESSIONAL RECORD-HOUSE September_.25, 1979
"(A) within five days after a denial of the
application, of the statutory basis for the
denial, the policies in section 3 of this Act
that formed the basis of the denial, the spe-
cific circumstances that led to the denial, and
the applicant's right to appeal the denial to
the Secretary under subsection (k) of this
section; or
"( B) in the case of a referral to the Secre-
tary under paragraph (1) (B) or an objection
by an agency under paragraph (2) of the
specific questions r&ised and any negative
considerations or recommendations made by
an agency, and shall accord the applicant an
opportunity, before the final determination
with respect to the application is made, to
respond in writing to such questions, con-
siderations, or recommendations.
"(g) ACTION BY THE SECRETARY-(1) (A)
In the case of an objection of an agency of
which the designated official is notified under
subsection I f) (2), the designated official shall
refer the application to the Secretary The
Secretary shall consult with the head of such
agency, and, within twenty days after such
notification, shall approve or disapprove the
license application and immediately inform
such agency head of such approval or dis-
approval.
Ili B 1 In the case of a referral to the Secre-
tary under subsection (f) 11) (B), the Secre-
tary shall, within twenty days after notifi-
cation of the referral is transmitted pursuant
to such subsection, approve or disapprove the
application and immediately inform any
agency which submitted recommendations
with respect to the application, of such ap-
proval or disapproval.
"121 The Secretary shall formally issue or
deny the license, as the case may be within
ten days after approving or disapproving an
application under paragraph 11), unless the
head of the agency referred to in paragraph
I11(A), or the head of an agency described
in paragraph 11) 1 B), as the case may be,
notifies the Secretary of his or her objection
to the approval or disapproval
"13) The Secretary shall immediately find
fully inform the applicant, in accordance
with subsection (f) (Si , of any action taken
under paragraph (1) or (2) of this sub-
section.
"14) The Secretary may not delegate the
authority to carry out the actions required
by this subsection to any official holding a
rank lower than Deputy Assistant Secretary.
" 1 h 1 ACTION BY THE PRESIDENT-In the
case of notification by an agency head, un-
der subsection (g) (2), of an objection to
the Secretary's decision with respect to an
application, the Secretary shall immediately
refer the application to the President. With-
in thirty days after such notification, the
President shall approve or disapprove the ap-
plication and the Secretary' shall immediately
issue or deny the license, in accordance with
the President's decision In any case in
which the President does not approve or dis-
approve the application within such thirty-
day period, the decision of the Secretary shall
be final and the Secretary shall immediately
issue or deny the license in accordance with
the Secretary's decision.
"(i) SPECIAL PROCEDURES FOR SECRETARY OF
DEFENSE.-(1) Notwithstanding any other
provision of this section, the Secretary' of
Defense is authorized to review any proposed
export of any goods or technology to any
country to which exports are controlled for
national security purposes and, whenever he
determines that the export of such goods
or technology will make a significant con-
tribution, which would prove detrimental to
the national security of the United States, to
the military potential of any such country, to
recommend to the President that such export
be disapproved.
"(2) Notwithstanding any other provi-
Sion of law, the Secretary of Defense shall
determine, in consultation with the export
control office to which licensing requests are
made, the types and categories of transac-
tions which should be reviewed by him in
order to make a determination referred to
in paragraph 11). Whenever a license or other
authority is requested for the export to any
country to which exports are controlled for
national security purposes of goods or tech-
nology within any such type or category, the
appropriate export control office or agency to
which such request is made shall notify the
Secretary of Defense of such request, and
such office may not issue ? any license or
other authority pursuant to the request be-
fore the expiration of the period within
which the President may disapprove such
export. The Secretary of Defense shall care-
fully consider all notifications submitted to
him pursuant to this paragraph and, not
later than thirty days after notification of
the request, shall-
"(A1 recommend to the President that he
disapprove any request for the export of
any goods or technology to any such coun-
try if he determines that the export of such
goods or technology will make a significant
contribution, which would prove detrimental
to the national security of the United States,
to the military potential of such country or
any other country;
" 1 B) notify such office or agency that he
will interpose no objection if appropriate
conditions designed to achieve the purposes
of this Act are imposed; or
"(C) indicate that he does not intend to
interpose an objection to the export of such
goods or technology
If the President notifies such office or agency.
within thirty days after receiving a recom-
mendation from the Secretary of Defense,
that he disapproves such export, no license
or other authority may be issued for the
export of such goods or technology to such
country
"13t The Secretary shall approve or dis-
approve a license application, and issue or
deny a license. in accordance with the pro-
visions of this subsection, and, to the extent
applicable, in accordance with the time
periods and procedures otherwise set forth
in this section
"I j I MULTILATERAL REVIEW - I 1 I In any
case in which an application. which has been
.finally approved under subsection 1 d i . 1 f) .
1 g 1 , 1 h 1 . or 111 of this section, is required
to be submitted to a multilateral review
process, pursuant to a multilateral agree-
ment, formal or informal, to which the
United States is a party the license shall
not be issued as prescribed in such subsec-
tions. but the Secretary shall notify the ap-
plicant of the approval land the date of
such approval) of the application by the
United States Government. subject to such
multilateral review The license shall be is-
sued upon approval of the application under
such multilateral review If such multilateral
review has not resulted in a determination
with respect to the application within sixty
days after such date. the Secretary's ap-
proval of the application shall be final and
the license shall be issued The Secretary
shall institute such procedures for prepara-
tion of necessary documentation before final
approval of the application by the United
States Government as the Secretary consid-
ers necessary to implement the provisions
of this paragraph.
"121 In any case in which the approval of
the United States Government is sought by
a foreign government for the export of goods
or technology pursuant to a multilateral
agreement, formal or informal, to which the
United States is a party, the Secretary of
State, after consulting with other appro-
priate United States Government agencies,
shall, within sixty days after the date on
which the request for such approval is made,
make a determination with respect to the re-
quest for approval Any such other agency
which does not submit a recommendation to
the Secretary of State before the end of such
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CONGRESSIONAL RECORD -HOUSE
sixty-day period shall be deemed by the
Secretary of State to have no objection to
the request for United States Government
approval. The Secretary of State may not
delegate the authority to disapprove a re-
quest for United States Government ap-
proval under this paragraph to any official
of the Department of State holding a rank
lower than Deputy Assistant Secretary.
" (k) ExTENSIONS.-If the Secretary deter-
mines that a particular application or set of
applications is of exceptional importance
and complexity, and that additional time
is required for negotiations to modify the
application or applications, the Secretary
may extend any time period prescribed in
this section. The Secretary shall notify the
Congress and the applicant of such extension
and the reasons therefor.
"(1) APPEAL AND COURT ACTION.-(I) The
Secretary shall establish appropriate proce-
dures for any applicant to appeal to the
Secretary the denial of an export license ap-
plication of the applicant.
"(2) In any case in which any action pre-
scribed in this section is not taken on a
license application within the time periods
established by this section (except in the
case of a time period extended under sub-
section (k) of which the applicant is notl-
Red), the applicant may file a petition with
the Secretary requesting compliance with
the requirements of this section. When such
petition is filed, the Secretary shall take im-
mediate steps to correct the situation giving
rise to the petition and shall immediately
notify the applicant of such steps.
"(3) If, within thirty days after petition
is filed under paragraph (2), the processing
of the application has not been brought into
conformity with the requirements of this
section, or, if the application has been
brought into conformity with sue.h require-
ments, the Secretary has not so notified the
applicant, the applicant may bring an action
In an appropriate United States district
court for a restraining order. a temporary or
permanent injunction, or other appropriate
relief, to require compliance with the re-
quirements of this section The United States
district courts shall have jurisdiction to pro-
vide such relief as appropriate.
"(m) REcoRDs.-The Secretary and any
agency to which any application is referred
under this section shall keep accurate records
with respect to all applications considered by
the Secretary or by any such agency "
SHORT SUPPLY LICENSE ALLOCATION
SEC. 105. Section 7 of the Export Admin-
istration Act of 1969. as redesignated by sec-
tion 104 (a I of this Act, is amended in sub-
section ib) by adding the following at the
end of paragraph ? I i "Such factors shall
Include the extent to which a country en-
gages in equitable trade practices with re-
spect to United States goods and treats the
United States equitably in times of short
supply ".
MONITORING OF EXPORTS
SEC. 106. Section 7 of the Export Admin-
tion 104(a) of this Act, is amended by
amending paragraph ill of subsection ic)
to read as follows:
"(c) (1) To effectuate the policy set forth
in section 3(2) (C) of this Act, the Secre-
tary shall monitor exports, and contracts
for exports, of any good (other than a com-
modity which is subject to the reporting re-
quirements of action 812 of the Agricultural
Act of 1970) when the volume of such
exports in relation to domestic supply con-
tributes, or may contribute, to an increase
in domestic prices or a domestic shortage,
and such price increase or shortage has, or
may have, a serious adverse impact on the
economy or any sector thereof. Any such
monitoring shall commence at a time ade-
quate to assure that the monitoring will re-
sult in a data base sufficient to enable pol-
icies to be developed, in accordance with
section 3(2) (C) of this Act, to mitigate a
short supply situation or serious inflationary
price rise or, if export controls are needed,
to permit imposition of such controls in a
timely manner. Information which the Sec-
retary requires to be furnished in effecting
such monitoring shall be confidential, ex-
cept as provided in paragraph (2) of this
subsection.".
DOMESTIC CRUDE OIL
SEC. 107. Subsection (1) of section 7 of
the Export Administration Act of 1969, as
such section is redesignated by section 104
(a) of this Act, is amended-
(1) in-paragraph (l)-
(A) by striking out clause (A) and insert-
ing in lieu thereof the following: "(A) is ex-
ported to the territory of an adjacent foreign
state to be refined and consumed therein in
exchange for the same quantity of crude oil
being exported from that country to the.
United States, such exchange achieving,
through convenience or increased efficiency
of transportation, lower. oil prices described
in paragraph (2) (A) (ii) of this subsection
for consumers in the United States, or", and
(B) by striking out "during the 2-year
period beginning on the date of enactment
of this subsection"; and
(2) by striking out paragraph (2) and in-
serting in lieu thereof the following:
"(2) Crude oil subject to the prohibition
contained in paragraph (1) may be exported
only if-
"(A) the President makes and publishes
express findings that exports of such crude
oil, including exchanges-
"(I) will not diminish the total quantity
or quality of petroleum refined within, stored
within, or legally committed to be trans-
ported to and sold within the United States;
"(ii) will, within three months following
the initiation of such exports or exchanges,
result in (I) acquisition costs to the re-
fineries which purchase the imported crude
oil being lower than the acquisition costs
such refiners would have to pay for the
domestically produced oil which is exported,
and (II) commensurately reduced wholesale
and retail prices of products refined from
such imported crude oil;
"(iii) will be made only pursuant to con-
tracts which may be terminated if the crude
oil supplies of the United States are inter-
rupted, threatened, or diminished;
"'(iv) are clearly necessary to protect the
national interest; and
"(v) are in accordance with the provisions
of this Act; and
"(B) the President reports such findings
to the Congress and the Congress, within sixty
days thereafter, passes a concurrent resolu-
tion approving such exports on the basis of
the findings.
Findings of lower costs and prices described
in subparagraph (A) (ii) should be audited
and verified by the General Accounting Of-
fice at least semiannually.
"(3) Notwithstanding any other provision
of this section and notwithstanding'subsec-
tion (u) of section 28 of the Mineral Leasing
Act of 1920, the President may export oil
otherwise subject to this subsection to any
nation pursuant to a bilateral international
oil supply agreement entered into by the
United States with such nation before May 1,
1979.".
UGANDA
SEC. 108. Section 7 of the Export Adminis-
tration Act of 1969, as redesignated by section
104 of this Act, is amended by repealing sub-
section (m), as added by section 5(d) of the
Act of October 10, 1978 (Public Law 95-435).
PETITIONS FOR MONITORING OR CONTROLS
SEC. 109. Section 7 of the Export Adminis-
tration Act of 1969, as redesignated by see-
H
87
tion 104(a) of this Act, is amended by strik-
ing out subsection (d) and inserting in lieu
thereof the following:
"(d) (1) (A) Any entity, including a trade
association, firm, or certified or recognized
union or group of workers, which Is repre-
sentative of an industry or a substantial seg-
ment of an industry which processes metallic
materials capable of being recycled with re=
spect to which a serious inflationary impact
resulting from an increase in domestic prices
or a domestic shortage, either of which re-
sults from increased exports, has or may have
a significant adverse effect on the national
economy or any sector thereof, may transmit
a written petition to the Secretary request-
ing the monitoring of exports, or the impo-
sition of export controls, or both, with respect
to such material, in order to carry out the
policy set forth in section 3(2) (C) of this
Act.
"(B) Each petition shall be in such form
as the Secretary shall prescribe and shall
contain information in support of the action
requested. The petition shall include any in-
formation reasonably available to the peti-
tioner indicating (1) that there has been a
significant increase, in relation to a specific
period of time, in exports of such material
in relation to domestic supply and (2) that
there has been a serious inflationary impact
resulting from a significant increase in the
price of such material which may be related
to exports.
"(2) Within fifteen days after receipt of
any petition described in paragraph (1), the
Secretary shall publish a notice in the Fed-
eral Register. The notice shall (A) include
the name of the material which is the sub-
ject of the petition, (B) include the Sched-
ule B number of the material as set forth in
the Statistical Classification of Domestic and
foreign Commodities Exported from the
United States, (C) indicate whether the pe
titioner is requesting that controls or moni-
toring, or both, be imposed with respect to
the exportation of such material, and (D)
provide that interested persons shall have a
period of thirty days commencing with the
date of publication.of such notice to submit
to the Secretary written data, views, or argu-
ments, with or without opportunity for oral
presentation, with respect to the matter in-
volved. At the request of the petitioner or
any other described in paragraph (1) (A)
with respect to the material which is the
subject of the petition, or at the request of
any entity representative of producers or ex-
porters of such material, the Secretary shall
conduct public hearings with respect to the
subject of the petition, in which event the
thirty-day period may be extended for forty-
five days.
"(3) Within forty-five days after the end
of the thirty or forty-five-day period de-
scribed in paragraph (2), as the case may be.
or within seventy-five days after the publi-
cation in the Federal Register, pursuant to
paragraph (2), whichever occurs later, the
Secretary shall-
."(A) determine whether to impose moni-
toring or controls, or both, on the exporta-
tion of -such material, in order to carry out
the policy set forth in section 3(2) (C) of
this Act; and
"(B) publish in the Federal Register a de-
tailed statement of the reasons for such de-
termination.
"(4) Within fifteen days after making a
determination under paragraph (3) to im-
pose monitoring or controls on the exporta-
tion of a material, the Secretary shall pub-
lish in the Federal Register proposed .regu-
lations with respect to such monitoring or
controls. Within thirty days following the
publication of such proposed regulations,
and after considering any public comments,
the Secretary shall publish and implement
final regulations.
"(5) For purposes of publishing notices
in the Federal Register and scheduling pub-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
H 8488
lie hearings, the Secretary may consolidate
petitions, and responses thereto, which in-
volve the same or related materials.
"(6) If a petition has been fully considered
within the past six months under this sec-
tion and a notice has been published with
respect to a particular material or group of
materials and in the absence of significantly
changed circumstances, the Secretary shall
have authority to determine that the petition
for monitoring. or control of such material
does not merit the full consideration man-
dated under this section.
"(7) The procedures and time limits set
forth in this subsection with respect to a.
petition filed under this subsection shall take
precedence over any review undertaken at the
initiative of the Secretary with respect to
the same subject as that of the petition.
"(8) The Secretary may impose monitor-
ing or controls on a temporary basis after a
petition is filed under paragraph (1) (A) but
before the Secretary makes a determination
under paragraph (3) if the Secretary con-
siders such action to be necessary to carry
out the policy set forth in section 3(2) (C) of
this Act.
"(9) The authority under this section shall
not be construed to affect the authority of
the Secretary under the other provision of
this Act. .
"(10) Nothing contained in this section
shall be construed to preclude submission on
a confidential basis to the Secretary of Com-
merce of information relevant to a decision to
impose or remove monitoring or controls
under the authority of this Act, nor consid-
eration of such information by the Secretary
in reaching decisions required under this sec-
tion. The provisions of of this subsection are
not intended to change the applicability of
section 552(b) of title 5, Uinted States Code."
BARTER AGREEMENTS
SEC. 110. Section 7 of the Export Admin-
istration Act of 1969, as redesignated by sec-
tion 104 of this Act, is amended by adding
at the end thereof the following new sub-
section:
"(n) (1) The exportation pursuant to. a
barter agreement of any goods which may
lawfully be exported from the United States,
for any goods which may lawfully be im-
ported into the United States, may be ex-
empted, in accordance with paragraph (2) of
this subsection, from any quantiative lim-
itation on exports (other than any reporting
requirement) imposed to carry out the
policy set forth in section (3) (2) (C) of this
Act, or imposed by the President under the
International Emergency Economic Powers
Act (50 U.S.C. App. 1701 et seq.) on account
of a threat to the economy of the United
States.
"(2) The Secretary shall grant an exemp-
tion under paragraph (1) If the Secretary
finds, after consultation with the head of any
appropriate agency of the United States,
that-
"(A) for the period during which the bar-
ter agreement is to be performed-
"(i) the average annual quantity of the
goods to be exported pursuant to the barter
agreement will not be required to satisfy the
average amount of such goods estimated to
be required annually by the domestic econ-
omy and will be surplus thereto; and
"(11) the average annual quantity of the
goods to be imported will be less than the
average amount of such goods estimated to
be required annually to supplement do-
mestic production; and
"(B) the parties to such barter agreement
have demonstrated adequately that they in-
tend, and have the capacity, to perform
such barter agreement.
"(3) For purposes of this subsection, the
term 'barter agreement' means any agree-
ment which is made for the exchange, with-
out monetary consideration, of any goods
CONGRESSIONAL RECORD-HOUSE September 25, 1979
produced in the United States for any goods
produced outside of the United States.
"(4) This subsection shall apply only with
respect to barter agreements entered into
after the effective date of the Export Admin-
istration Act Amendments of 1979.".
EXPORTS OF HIDES AND SKINS
SEC. 111. Paragraph (1) of subsection (f)
of section 7 of the Export Administration
Act of 1969, as such section is redesignated
by section 104(a) of this Act, is amended
by adding at the end thereof the following:
"The Secretary of Agriculture shall, by exer-
cising the authorities which the Secretary of
Agriculture has under other applicable pro-
visions of law, collect data with respect to
export sales of animal hides and skins.".
UNPROCESSED RED CEDAR
SEC. 112. (a) The Secretary of Commerce
shall require a validated license, under sec-
tion 7 of the Export Administration Act of
1969, as redesignated by section 104(a) of
this Act, for the export of unprocessed west-
ern red cedar (Thuja plicata) logs, harvested
from State or Federal lands. The Secretary
shall impose quantitative restrictions upon
the export of unprocessed western red cedar
logs during the three-year period beginning
on the effective date of this Act as follows:
(1) Not more than thirty million board
feet scribner of such logs may be exported
during the first year of such, three-year
period.
(2) Not more than fifteen million board
feet Scribner of such logs may be exported
during the second year of such period.
(3) Not more than five million board feet
Scribner of such logs may be exported dur-
ing the third year of such period.
After the end of such three-year period, no
unprocessed western red cedar logs may be
exported from the United States.
(b) The Secretary of Commerce shall al-
locate export licenses to exporters pursuant
to this section on the basis of a prior his-
tory of exportation by such exporters and
such other factors as the Secretary considers
necessary and appropriate to minimize any
hardship to the producers of western red
cedar and to further the foreign policy of the
United States.
(c) Unprocessed western red cedar logs
shall not be considered to be an agricul-
tural commodity for purposes of subsection
(f) of section 7 of the Export Adminis-
tration Act of 1969, as such section is re-
designatd by section 104(a) of this Act.
(d) As used in this subsection, the term
"unprocessed western red cedar" means red
cedar timber which has not been processed
Into-
(1) lumber without wane;
(2) chips, pulp, and pulp products;
(3) veneer and plywood;
(4) poles, posts, or pilings cut or treated
with preservative for use as such and not
intended to be further processed; or -
(5) shakes and shingles.
CIVIL AIRCRAFT EQUIPMENT
SEC. 113. Notwithstanding any other provi-
sion of law, any product (1) which is stand-
ard equipment, certified by the Federal Avia-
tion Administration, in civil aircraft and is
an integral part of such aircraft, and (2)
which is to be exported to a country other
than a controlled country, shall be subject
to export controls exclusively under the Ex-
port Administration Act of 1969. Any such
product shall not be subject to controls un-
der section 38(b) (2) of the Arms Export
Control Act. For purposes of this section,
the term "controlled country" means any
country described in section 620(f) of the
Foreign Assistance Act of 1961.
NONPROLIFERATION CONTROLS
SEC. 114. (a) Nothing in section 5 or 6 of
the Export Administration Act of 1969, as
added by section 104(b) of this Act, shall
be construed to supersede the procedures
published by the President pursuant to sec-
tion 309(c) of. the Nuclear Non-Prolifera-
tion Act of 1978.
(b) With respect to any export license
application which, under the procedures pub-
lished by the President pursuant to sec-
tion 309(c) of the Nuclear Non-Proliferation
Act of 1978, is referred to the Subgroup on
Nuclear Export Coordination or other in-
tergency group, the provisions of section 10
of the Export Administration Act of 1969,
as added by section 104(c) of this Act, shall
apply with respect to such license appli-
cation only to the extent that they are
consistent with such published procedures,
except that if the processing of any such
application under such procedures is not
completed within one hundred and'eighty
days after the receipt of the application by
the Secretary of Commerce, the applicant
shall have the rights of appeal and court
action provided in subsection (k) of such
section 10.
VIOLATIOt'S
SEC. 115. Section 11 of the Export Admin-
istration Act of 1969, as redesignated by sec-
tion 104(a) of this Act, is amended as
follows:
(1) Subsection (a) Is amended to read as
follows:
"(a) Except as provided in.subsection (b)
of this section, whoever knowingly violates
any provision of this Act or any regulation,
order, or license issued thereunder shall be
fined not more than five times the value of
the exports involved or $50,000, whichever
is greater, or imprisoned not more than five
years, or both.".
(2) Subsection (b) is amended to read as
follows:
"(b)'(1) Whoever willfully exports any-
thing contrary to any provision of this Act
or any regulation, order, or license issued
thereunder, with knowledge that such ex-
ports will be used for the benefit of any coun-
try to which exports are restricted for na-
tional security or foreign policy purposes,
shall be fined not more than five times the
value of the exports involved or $100,000,
whichever is greater, or imprisoned not more
than ten years, or both.
"(2) any person who is issued a validated
license under this act for the export of any
good or technology to a controlled country
and who, with knowledge that such a good or
technology is being used by such controlled
country for military or intelligence gather-
ing purposes -willfully fails to report such
use to the Secretary of Defense, shall be fined
the sum equal to the amount of gross profit
accrued from the sale of the item or $100,000,
which ever is greater, or imprisoned for not
more than five years, or both, for purposes
of this paragraph, 'controlled country' means
any Communist country as defined in section
620(f) of the "Foreign Assistance Act of
1961.".
(3) Subsection (c) (2) (A) is amended by
striking out "articles, materials, supplies, or
technical data or other information" and
inserting in lieu thereof, "goods, technology,
or other information".
SEC. 116. Subsection (c) of section 12 of
the Export Administration Act of 1969, as
such section is redesignated by section 104
(a) of this Act, is amended to read as
follows :
"(c) (1) Except as otherwise provided by
the third sentence of section 8(b) (2) and
by section 11(c) (2) (C) of this Act, informa-
tion obtained under this Act on or before
June. 30, 1980, which is deemed confidential
or with reference to which a request for
confidential treatment is made by the per-
son furnishing such information, shall be
exempt from disclosure under section 552 of
title 5, United States Code, and such in-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979
CONGRESSIONAL RECORD - HOUSE
formation shall not be published or disclosed
unless the Secretary determines that the
withholding thereof is contrary to the na-
tional interest.
"(2) Any department or agency exercis-
ing any function under this Act may with-
hold information obtained under this Act
after June 30, 1980, only to the extent per-
mitted by statute, except that information
concerning licensing of exports filed under
this Act shall be withheld from public dis-
closure unless the release of such informa-
tion is determined by the head of such de-
partment or agency to be in the national
interest.
"(3) Nothing in this Act shall be con-
strued as authorizing the withholding of in-
formation from Congress, and all informa-
tion obtained at any time under this Act
or previous Acts regarding the control of
exports, including any report or license ap-
plication required under this Act, shall be
made available upon request to any commit-
tee or subcommittee of Congress of appro-
priate jurisdiction. No such committee or
subcommittee shall disclose any informa-
tion obtained under this Act or previous
Acts regarding the control of exports which
is submitted on a confidential basis un-
less the full committee determines that the
withholding thereof is contrary to the na-
tional interest.".
REPORT TO CONGRESS
SEC. 117. Section 14 of the Export Admin-
istration Act of 1969, as redesignated by
section 104(a) of this Act, is amended to
read as follows:
"ANNUAL REPORT
"SEC. 14. Not later than December 31 of
each year, the Secretary shall submit to
the Congress a report on the administration
of this Act during the preceding fiscal year.
All agencies shall cooperate fully with the
Secretary In providing information for such
report. Such report shall include detailed
information with respect to-
"(1) the implementation of the policies
set forth in section 3;
"(2) general licensing activities under
section 5, 6,-and 7;
"(3) actions taken in compliance with
section 5(c) (3);
"(4) changes in categories of items under
export control referred to in section 5(e);
"(5) the operation of the indexing system
under section 5(g);
"(6) determinations of foreign availability
made under section 5(f), the criteria used to
make such determinations, the removal of
any export controls under such section, and
any evidence demonstrating a need to im-
pose export controls for national security
purposes notwithstanding foreign availa-
bility;
"(7) consultations with the technical ad-
visory committees established pursuant to
section 5(h), the use made of the advice
rendered by such committees, and the con-
tributions of such committees toward im-
plementing the policies set forth in this
Act;
"(8) changes in policies toward individual
countries under section 5(b);
"(9) actions taken to carry out section 5
(d);
"(10) the effectiveness of export controls
unposed under section 6 . in furthering the
foreign policy of the United States;
"(11) the implementation of section 8;
"(12) export controls and monitoring un-
der section 7;
" (13) organizational and procedural
changes undertaken to increase the efficiency
of the export licensing process and to fulfill
the requirements of section 10, including an
analysis of the time required to process li-
cense applications and an accounting of
appeals received, court orders issued, and
actions taken pursuant thereto under sub-
section (1) of such section; and
"(14) violations under section 11 and en-
forcement activities under section 12.".
SEC. 118. The Export Administration Act
of 1969 is amended by inserting after section
14, as redesignated by section 104(a) of this
Act, the following new section:
"REGULATORY AUTHORITY
"SEC. 15. The President and the Secretary
may issue such rules and regulations as are
necessary to carry out the provisions of this
Act. Any such rules or regulations issued to
carry out the provisions of section 5(a), 6
(a), 7(a), or 8(b) may apply.to the financing,
transporting, or other servicing of exports
and the participation therein by any person.".
DEFINITION
SEC. 119. Section 16 of the Export Admin-
istration Act of 1969, as redesignated by sec-
tion 104(a) of this Act, is amended-
(1) In paragraph (1) by striking out "and"
after the semicolon;
(2) In paragraph (2) by striking out the
period at the end thereof and inserting in
lieu thereof "; and"; and
(3) by adding at the end thereof the
following:
"(3) the term 'Secretary' means the Secre-
tary of Commerce.".
EFFECT ON OTHER ACTS
SEC. 120. (a) Section 17 of the Export Ad-
ministration Act of 1969, as redesignated by
section 104(a) of this Act, is amended in
subsection (b) by striking out 'section 414 of
the Mutual Security Act of 1954 (22 U.S.C.
1934)" and inserting in lieu thereof "sec-
tion 38 of the Arms Export Control Act (22
U.S.C. 2778).".
(b) Effective October 1, 1979, the Mutual
Defense Assistance Control Act of 1951 (22
U.S.C. 1611-1613d) is superseded.
AUTHORIZATION OF APPROPRIATIONS
SEC. 121. Section 18 of the Export Admin-
istration Act of 1969, as redesignated by sec-
tion 104(a) of this Act, is amended to read
as follows:
"AUTHORIZATION OF APPROPRIATIONS
"SEC. 18. (a) REQUIREMENT OF AUTHORIZING
LEGISLATIONS.-Notwithstanding any other
provision of law, no appropriation shall be
made under any law to the Department of
Commerce for expenses to carry out the
purposes of this Act unless previously and
specifically authorized by law.
"(b) AUTHORIZATION.-(1) There are au-
thorized to be appropriated to the Depart-
ment of Commerce to carry out the purposes
of this Act $7,070,000 for the fiscal year 1980
and $7,777,000 for the fiscal year 1981 (and
such additional amounts as may be neces-
sary for increases in salary, pay, retirement,
other employee benefits authorized by law,
and other nondiscretionary costs).
"(2) Of the funds appropriated to the De-
partment of State for the fiscal, year 1980,
the Secretary of State may use such amounts
as may be necessary to carry out the provi-
sions of section 5(k) of this Act.".
TERMINATION DATE
SEC. 122. Section 20 of the Export Admin-
istration Act of 1969, as redesignated by sec-
tion 104(a) of this Act, Is amended by strik-
ing out "1979" and inserting In lieu thereof
"1983".
REFINED PETROLEUM PRODUCTS
SEC. 123. Section 7 of the Export Adminis-
tration Act of 1969, as amended by section
109 of this Act, is amended by adding at the
end thereof the following new subsection:
"(o) (1) No refined petroleum product or
residual fuel oil may be exported except
pursuant to an export license specifically
authorizing such export. Not later than five
H 8489
days after an application for a license to
export any refined petroleum product or
residual fuel oil is received, the Secretary
shall notify the Congress of such application,
together with the name of the exporter, the
destination of the proposed export, and the
amount and price of the proposed export.
Such notification shall be referred to a com-
mittee of appropriate jurisdiction in each
House of Congress.
"(2) The Secretary may grant such li-
cense if, within five days after notification
to the Congress under paragraph (1) is re-
ceived, a meeting of either committee of
Congress to which the notification was re-
ferred under paragraph (1) has not been
called, with respect to the proposed export,
(A) by the chairman of the committee, (B)
at the request in writing of a majority of
the members of the committee, or (C) at the
request of the Speaker of the House of Rep-
resentatives or the Majority Leader of the
Senate. Any such meeting shall be held
within 10 days after notification to the Con-
gress under paragraph (1) is received. If
such a meeting is so called and held,. the
Secretary may not grant the license until
after the meeting.
"(3) If, at any meeting of a committee
called and held as provided in paragraph
(2), the committee by a majority vote, a
quorum being present, requests 30 days, be-
ginning on the date of the meeting, for the
purpose of taking legislative action with re-
spect to the proposed export, the Secretary
may not grant the license during such 30-day
period.
"(4) Notwithstanding the provisions of
paragraphs (2) and (3) of this subsection,
the Secretary may, after notifying the Con-
gress of au application for an export license
pursuant to paragraph (1), grant the license
if the Secretary certifies in writing to the
Speaker of the House of Representatives and
the President pro tempore of the Senate that
the proposed export is vital to the national
interest and that a delay will cause irrepar-
able harm.
" (5) At the time the Secretary grants any
license to which this subsection applies, the
Secretary shall so notify the Congress, to-
gether with the name of the exporter, the
destination of the proposed export, and the
amount and price of the proposed export.
"(6) This subsection shall not apply to
(A) any export license application for ex-
ports to a country with respect to which
historical export quotas established by the
Secretary on the basis of past trading re-
lationships apply, or (B) any license applica-
tion for exports to a country if exports under
the license would not result in more than
250,000 barrels of refined petroleum pro-
ducts and residual fuel oil being exported
from the United States to such country in
any fiscal year.
"(7) For purposes of this, subsection, 're-
fined petroleum product' eans gasoline,
kerosene, distillates, propane or butane gas,
or diesel fuel.
"(8) The Secretary may extend any time
period prescribed in section 10 of this Act
to the extent necessary to take into account
delays in action by the Secretary on a
license application on account of the provi-
sions of this subsection.".
TECHNICAL AMENDMENTS
SEC. 124. (a) For purposes of this section,
an amendment which is expressed in terms
of an amendment to a section or other pro-
vision, shall be l-isidered to be a section, as
redesignated by ction 104(a) of this Act,
or other proviof the Export Admin-
istration Act of 1969.
(b) Section 7 is amended-
(1) in the section heading by striking out
"AUTHORITY" and inserting in lieu there-
of "OTHER CONTROLS;"
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
IH[ 84
121 in subsection 'b)-
A) in paragraph 111-
CONGRIESSIONAL RECORD- HOUSE
111 by inserting "1211 Cl" immediately af-
ter "section 3" the first, time it appears,
1 ii) by striking out "articles, materials, or
supplies. including technical data on any
other information." and inserting in lieu
thereof "goods". -
1111I by striking out "articles, materials,
or supplies" and inserting in lieu thereof
goods", and
1 iv) by striking out " I A) " and inserting
in lieu thereof "IC)"; end
I B) by striking out paragraph (2) and
inserting in lieu thereof the following:
"121 Upon imposing quantitative restric-
tions on exports of any goods to carry out
the policy stated in section 312) 1 C) of this
Act, the Secretary shall include in a notice
published in the Federal Register with re-
spect to such restrictions an invitation to all
interested parties to submit written com-
ments within fifteen days from the date of
publication on the impact of such restric-
tions and the method of licensing used to
implement them.";
(3) in subsection (ci-
(A) in paragraph (1)-
(i) by striking out *'(A)" and inserting in
lieu thereof ^' (C) ",
( ii I by striking out "of Commerce".
(ill, by striking out "7(c)" and inserting
in-lieu thereof "121c, ", and
Iiv) by striking out "article, material, or
supply" and inserting in lieu thereof
"goods";
(B ( in paragraph 12) by striking out "each
article, material, or supply" and inserting in
lieu thereof "any goods"; and
(C) by adding at the end thereof the fol-
lowing new paragraph:
"(3) The Secretary shall consult with the
Secretary of Energy to determine whether
monitoring under this subsection is war-
ranted with respect to exports of facilities,
machinery, or equipment normally and prin-
cipally used, or intended to be used, in the
production, conversion, or transportation of
fuels and energy (except nuclear energy),
including but not limited to, drilling rigs,
platforms, and equipment; petroleum re-
fineries, natural gas processing, liquefaction,
and gasification plants;'facilities for produc-
tion of synthetic natural gas or synthetic
crude oil; oil and gas pipelines, pumping sta-
tions, and associated equipment; and vessels
for transporting oil, gas, coal, and other
fuels."
(4) in subsection (f)-
(A) in paragraph (l I by striking out "(B)
or (C)" and inserting in lieu thereof "(A)
or (B) ";
(B) in paragraph (2)-
(i) by striking out "of Commerce" each
place it appears, and
(ii) by striking out "(A)" and inserting in
lieu thereof "(C)'; and
(C) in paragraph (3) by striking out
"clause (A) or (B) of paragraph (2)" and
inserting in lieu thereof "paragraph (2) (C) ";
(5) in subsection (I) by striking out "(A) "
and inserting in lieu thereof "(C)'
(6) in subsection (j)-
(A) by striking out "(A) " and inserting in
lieu thereof "(C)' ; and
(B) by striking out "of Commerce" each
place it appears; and
(7) by striking out subsections (a), (e),
(g), (h), and 1k), and redesignating sub-
section's (b), (c), (f), )i). (p), (1), subsection
(m), as added by section 6(d) (2) of the
International Security Assistance Act of 1978,
subsection In), as added by section 109 of
this Act, and subsection (o), as added by
section 124 of this Act, as subsections (a),
(b), (c), (d), (e), (f), (g), (h) and (i),
respectively.
(c) Section 8 is amended-
11) in subparagraph 11) ID, and 15) of
subsection al by striking out "of Com-
merce"; and
12 1 in subsection 1 b) -
(A) in paragraph 111 by striking out "4
Ibi" and inserting in lieu thereof "61 a)"
and
IB) in paragraph 12) by striking out "of
Commerce" each place it appears.
(d) Section 9 is amended-
(1) by striking out "of Commerce" each
place it appears; and
(2) by striking out "commodity" each
place it appears and inserting in lieu thereof
"good".
(e) Subsection 1c) (2) of section 11 is
amended by striking out "4A" each place it
appears and inserting in lieu thereof "8".
(f) Section 12 is amended-
(1) in subsection I b) by striking out "the
Compulsory Testimony Act of February 11,
1893 (27 Stat. 443; 49 U.S.C. 46)" and insert-
ing in lieu thereof "section 6002 of title 18,
United States Code";
(2) in subsection (d)-
(A) by striking out "quarterly"; and
(B) by striking out "10" and inserting in
lieu thereof "14"; and
(3) in subsection (e)_
(A) by striking out "of Commerce"; -
IB) by striking out "(c)"and inserting in
lieu thereof "(h) ";
IC) by striking out "articles, materials,
and supplies" and inserting in lieu thereof
"goods and technology"; and
ID) by striking out the last two sentences
and inserting in lieu thereof the following:
"The Secretary shall include, in the annual
report required by section 14 of this Act,
actions taken on the basis of such review to
simplify such rules and regulations.".
(g) Section 13 is amended by striking
out "6" and inserting in lieu thereof "11".,
TECHNICAL AMENDMENTS TO OTHER ACTS
SEC. 125. Ia1 Section 38(e) of the Arms
Export Control Act (22 U.S.C. 2778(e)) is
amended by striking out "sections 6(c), (d),
Ie), and If) and 7 1a) and (c) of the Export
Administration Act of 1969" and inserting in
lieu thereof "subsections (c) , I d), (a), and
If) of section 11 of the Export Administra-
tion Act of 1969, and by subsections (a) and
(c) of section 12 of such Act".
I b) 11) Section 103 (c) of the Energy Policy
and Conservation Act (42 U.S.C. 6212(c)) is
amended by striking out "(A)" each place
it appears and inserting in lieu thereof
(C),.
(2) Section 2541ai (3) of such Act 1(42
U.S.C. 6274(e) (3)) is amended-
(A) by striking out "7" and inserting in
lieu thereof "12"; and
(B) by striking out "(50 App. U.S.C.
2406)"
(c) Section 993(c) (2) (D) of the internal
Revenue Code of 1954 (26 U.S.C. 993(c) (2)
(D)) is amended-
(1) by striking out "40 (.b) " and inserting
in lieu thereof "7(a) ";
(2) by striking out "(50 U.S.C. App. 2403
(b)) "; and
(3) by striking but "(A)" and inserting
in lieu thereof "(C) ".
SAVINGS PROVISIONS
SEC. 126. (a) All delegations, rules, regula-
tions, orders, determinations, licenses, or
other forms of administrative action which
have been made, issued, conducted, or al-
lowed to become effective under the Export
Control Act of 1949 or the Export Administra-
tion Act of 1969 and which are in effect at
the time this Act takes effect shall continue
in effect according to their terms until modi-
fled, superseded, set aside, or revoked under
this Act or the amendments made by this
'Act.
(b) This Act and the amendments made
September 25, 1979
by this Act shall not apply to any adminis-
trative proceedings commenced or any ap-
plication for a license made, under the Ex-
port Administration Act of 1969, which is
pending at the time this Act takes effect.
I c I This Act and the amendments made by
this Act shall not affect any investigation,
suit, action, or other judicial proceeding
commenced under the Export Administration
Act of 1969, or under section 552 of title 5,
United States Code, which is pending at the
time this Act takes effect; but such investi-
gation, suit, action, or proceeding shall be
continued as if this Act had not been
enacted.
EFFECTIVE DATE
SEC. 127 1 a 1 Except as proovided in sub-
section 1 b) . this title and the amendments
made by this title shall take effect on October
1, 1979.
lb I The amendments made by section 107
and 108 of this Act shall take effect on the
date of enactment of this Act.
ic) Regulations implementing the pro-
visions of section 10 of the Export Adminis-
tration Act of 1989, as added by section 104
(c) of this Act, shall be issued and take ef-
fect not later than July 1, 1980.
DIVERSION TO MILITARY USE .OF CONTROLLED
GOODS OR TECHNOLOGY
SEC. 128. Section 5 of the Export Adminis-
tration Act of 1969, as added by section 104
1 b) of this Act, is amended by adding at the
and thereof the following new subsection:
"11) DIVERSION TO MILITARY USE OF CON-
TROLLED GOODS OR TECHNOLOGY.-(1) When-
ever there is reliable evidence that goods or
technology, which were exported subject to
national security controls under this section
to a country to which exports are controlled
for national security purposes, have been di-
verted to significant military use, the Secre-
tary shall, for as long as that diversion to
significant military use continues-
"(A) deny all further experts to the party
responsible for that diversion of any goods or
technology subject to national security con-
trols under this section which contribute to
that particular military use, regardless of
whether such goods or technology are avail-
able to that country from sources outside the
United States; and
"(B) take such additional steps under this
Act as are necessary to prevent, the further
military use of the previously exported goods
or technology.
"(2) As used in this subsection, the terms
'diversion to significant military use' and
"significant military use' include, but are not
limited to, the use of goods or technology in
the design or production of any item on the
United States Munitions List.".
TITLE II-INTERNATIONAL INVESTMENT
SURVEY, ACT
AUTHORIZATION OF APPROPRIATIONS
SEC. 201. (a) Section 9 of the International
Investment Survey Act of 1976 (90 Stat.
2059) is amended to read as follows:
"SEC. 9. To carry out this Act, there are
authorized to be appropriated $4,400,000 for
the fiscal year ending September 30, 1980,
and $4,500,000 for the fiscal year ending Sep-
tember 30, 1981".
(b) The amendment made by subsection
(a) shall take effect on October 1, 1979.
TITLE III-MISCELLANEOUS
SEC. 301. Section 402 of the Agricultural
Trade Development and Assistance Act of
1954 is amended by inserting "or beer" in the
second sentence immediately after "wine".
The motion was agreed to.
The Senate bill was ordered to be read
the third time, was read the third time,
and passed.
The title was amended so as to read:
"A bill to provide for continuation of au-
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
September 25, 1979 CO GRIESSEONAIL RIECO[81[D - IH[OUSIE
thority to regulate exports, and for other
purposes.
A similar House bill, H.R. 4034, was
laid on the table.
AUTHORIZING CLERK TO MAKE
CORRECTIONS IN ENGROSSMENT
OF HOUSE AMENDMENT TO S. 737
Mr. BINGHAM. Mr. Speaker, I ask
unanimous consent that in the engross-
ment of the House amendment to the
text of the Senate bill, S. 737, the Clerk
be authorized to correct section numbers,
punctuation, and cross-references and to
make such other technical and conform-
ing changes as may be necessary to re-
flect the actions of the House in amend-
ing the bill, H.R. 4034.
The SPEAKER. Is there objection to
the request of the gentleman from New
York?
There was no objection.
APPOINTMENT OF CONFEREES ON
S. 737, EXPORT ADMINISTRATION
ACT AMENDMENTS OF 1979
Mr. BINGHAM. Mr. Speaker, I ask
unanimous consent that the House insist
on its amendment to the Senate bill,
S. 737, and request a conference with the
Senate thereon.
The SPEAKER. Is there objection to
the request of the gentleman from New
York? The Chair hears none, and ap-
points the following conferees: Messrs.
ZABLOCKI, FASCELL, BINGHAM, BONKER,
PEASE, BARNES, WOLPE, FITHIAN, BROOM-
FIELD, LAGOMARSINO, FINDLEY. and OIL-
MAN.
PERMISSION TO HAVE UNTIL MID-
NIGHT, SEPTEMBER 27 TO FILE
CONFERENCE REPORT ON S. 737,
EXPORT ADMINISTRATION ACT
AMENDMENTS OF 1979, AND MAK-
ING IN ORDER ITS CONSIDERA-
TION ON SEPTEMBER 28 OR ANY
DAY THEREAFTER
Mr. BINGHAM. Mr. Speaker, x ask
unanimous consent that the House con-
ferees have until midnight Thursday,
September 27, 1979, to file a conference
report on the Senate bill, S. 737, and that
it shall be in order to consider the con-
ference report on S. 737 on Friday, Sep-
tember 28, 1979, or any day thereafter,
and that said conference report shall be
considered as having been read.
The SPEAKER. Is there objection to
the request of the gentleman from New
York?
Mr. BAUMAN. Mr. Speaker, reserving
the right to object. I just wanted to ask
the gentleman from New York if this per-
mission is granted, will the gentleman
16 assure us that there will be written cop-
ies available, since if it is filed after mid-
night on Thursday and is brought up on
Friday, Members may not have the bene-
fit of knowing precisely what has been
done.
Mr. BINGHAM. If the gentleman will
yield, the gentleman is as familiar with
the procedures as I am, probably more so.
I cannot assure the gentleman that there
will be printed copies available. There
will be copies available.
Mr. BAUMAN. But there will be some
written copies available for considera-
tion?
Mr. BINGHAM. There will be some
written copies available.
Mr. BAUMAN. Mr. Speaker, I thank
the gentleman, and I withdraw my reser-
vation of objection. -
The SPEAKER. Is there objection to
the request of the gentleman from New
York?
There was no objection.
IMPROVING GSA'S CONTRACTING
OPERATIONS
(Mr. JOHN L. BURTON asked and
was given permission to address the
House.for 1 minute and to revise and
extend his remarks and include extra-
neous matter.)
Mr. JOHN L. BURTON. Mr. Speaker,
as chairman of the Government Activ-
ities and Transportation Subcommittee
of the Committee on Government Oper-
ations, I am introducing today a bill to
redirect and strengthen the General
Services Administration in order to re-
form contract procedures and super-
vision within the Government. Joining
me in sponsoring this legislation is our
subcommittee's ranking minority mem-
ber from Pennsylvania (Mr. WALKER).
Our subcommittee has been investi-
gating aspects of GSA's procurement
and contracting activities for more than
a year. GSA's new Inspector General
and the GSA Task Force in the Justice
Department's Criminal Division are pro-
ceeding with investigation of individual
cases of fraud. The subcommittee is
giving close attention to assuring full
capability of the Office of Inspector Gen-
eral to carry on the needed audit and
investigation work.
Our subcommittee has laid special
stress on GSA's major buying program
for commercial products. This is the
multiple award schedule program, which
involves 4 million products, 8,000 yearly
contracts, and $2 billion in total pur-
chases for fiscal year 1978.
On May 2, 1979. the General Account-
ing Office submitted, pursuant to our
request, a comprehensive report on the
multiple award schedule program. It
found that there was little price com-
petition, slight monitoring of items or-
dered, 'too many items on the schedules,
and too many suppliers. In general, it
found that GSA does not have the ca-
pability to make sure the Government's
interests are protected. Pointing out that
these problems were basic and of long
standing, GSA recommended major leg-
islative changes:
First. To put GSA under a deadline to
accomplish management improvements.
Second. To strengthen GSA's position
as a primary supplier of products for
Federal agencies.
GAO spoke of GSA's "Service-
oriented" approach to satisfying the
agencies' individual needs in critical
terms, declaring: "Without a funda-
mental change in its philosophy, GSA
management will be unable to correct the
current situation."
In view of these and other weaknesses
our investigations have disclosed, we are
H 8491
proposing now a bill to lay out new
powers and duties of GSA with time lim-
its for action. It will bring about greater
involvement of the new Inspector Gen-
eral through special consultative, in-
vestigative, and report responsibilities. In
receiving a larger and clearer mandate
of responsibility and accountability, GSA
should be able to evolve the new philoso-
phy which it needs and which since
1949 has been the underlying principle of
the Federal Property Act; namely, cen-
tralized procurement and supply for the
Government.
It is a good sign that GSA's leadership
has agreed with the GAO report's find-
ings and recommendations. Its new Ad-
ministrator reaffirmed GSA's agreement
by letter on July 11, 1979.
The proposed bill is the product of
much study and discussion. GAO, GSA,
the Department of Justice, and the Con-
gressional Research Service have been
consulted and many of their helpful
suggestions have been incorporated in
this bill. Nevertheless, I recognize that
further changes may become advisable
as hearings develop. I want-to emphasize
that no honest vendors need fear the
impact of this bill since it should help
to strengthen their role by reducing their
unfair competition from shady practices.
Hearings on this bill will begin October
15, 1979.
The bill's main points are these:
First. Section 1 requires contractors to
certify their data. It subjects those who
furnish fraudulent or misleading infor-
mation to special civil penalties, includ-
ing specific monetary assessments and
debarment. The contractor's right to
hearing and appeal is spelled out.
Second. Section 2 provides for im-
proved and systematized contract admin-
istration. Requirements include detailed
record-keeping about decisions, personal
accountability for decisions as well as op-
erations, periodic review of contracting
practices, and a GSA-centralized con-
tract information system.
Third. Section 3 requires GSA to es-
tablish a uniform and regular system of
contract audits. It requires the Inspector
General to conduct periodic evaluation
of agencies' audit resources.
Fourth. Section 4 assures greater econ-
omy in the repair or alteration of Gov-
ernment-leased office space. It requires
additional Congressional oversight and
control of proposed work. It will also pro-
vide that the current dollar threshold
for congressional review is lower so that
such review is less easily circumvented.
It is important that the Congress sig-
nal its legislative intent with respect to
GSA's contracting problems now. The
proposed bill is a major step toward that
goal. I hope other Members will want to
join me and our ranking minority mem-
ber, Mr. WALKER, as further sponsors of
this legislation.
WE MUST HAVE A LARGER INVEST.
MENT IN MILITARY SPENDING
(Mr. RUDD asked and was given per-
mission to address the House for 1 min-
ute and to revise and extend his remarks
and include extraneous matter.)
Mr. RUDD. Mr. Speaker, we will have
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8
 Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8 101, 1
842 CONGR3MC NAIL RECORD-HOUSE ' September 25, 1979
another opportunity to agree to a 3 per-
cent real growth in defense spending
when the House takes up the second con-
current budget resolution again this
week.
This investment is vitally needed for
military hardware to help modernize our
armed forces, as Edward Luttwak of the
Georgetown Center for Strategic and
International Studies demonstrated in
his column in today's daily newspaper.
Urgent priorities include 125 new war-
ships over the next 5 years, instead of the
total of 46 now planned.
We also need 18 new Navy combat
aircraft a year to keep pace with attri-
tion, and larger stocks of Air Force
spares across the board.
The Army's problems will only be
solved by an adequate registration ma-
chinery in order to fill its ranks with
young men fit to fight in the event of
war.
But the Army's urgent needs for a new
infantry combat vehicle, new-design
tank destroyers, and other hardware
have also been shelved owing to ruinous
budget stringency.
As a result, Dr. Luttwak noted-
It is not a U.S.-Soviet nuclear war we have
to fear, but rather the steady deterioration
of our leverage over world events.
I include his column at this point in
the RECORD: '
[From the Washington Post, Sept. 25, 19791
Lass AND LESS FOR HARDWPRE
(By Edward N. Luttwak)
Nothing could have been more clear than
the Kissinger argument: SALT II will merely
register the military inferiority of the united
States unless prompt action is taken.
Nothing could have been more obfuscating
than what followed. How much more money
would be needed? Three percent over infla-
tion, the level promised by President Carter
but not in fact delivered? Five percent, the
increase suggested by Sen. Sam Nunn and
others? And on what should the money :.e
spent? Senior figures of the administration,
men who had just gone through weeks of
bureaucratic agony over excrutlating budget-
cutting choices, did their best to add to the
confusion by claiming that the Pentag..u
would not know how to spend the money
anyway. With their desks littered by service
warnings of just how much the forces would
be run down as inflation cut into real fund-
ing, the administration is loyalists could not
stand their ground for very long; they soon
explained that it was the "strategic-nuclear
programs" that were already fully' funded,
not the rest.
In fact, Henry Kissinger had made it'em-
phatically clear that, in calling for more
spending, his first concern was precisely "the
rest"-that is, the Navy, the Air Force and
the Army, and not just the Trident missile
submarines and the MX missile system, which
are indeed fully funded. And there could
scarcely be an argument over the reality of
those needs, at a time when the Navy is down
to 39B ships (from 950-plus 10 years ago,
with 1600 needed for proper coverage of two
oceans), when our ground forces are so con-
strained for training funds that tank crews
in Germany can fire only a single round dur-
ing a single annual exercise, and when our
finest Air Force fighters are kept on the
ground because there isn't money for spare
parts. Single episodes reveal more than reams
of statistics: Pentagon budgeteers have just
ordered the Navy to provide the refueling
tankers it needs by converting S3 aircraft,
instead of buying new tanker versions of the
Same S3 aircraft. It sounds like plain com-
man sense; tankers, after all, need not be
tip-top new, theirs being an undemanding
mission that calls for no acrobatics. But in
fact this is a real horror story, an extreme
example of how painful the budget situation
really is: The S3 is not some older transport
aircraft, just right for a new lease on life
after con-version. It is a brand new anti-sub-
marine aircraft crammed with advanced elec-
tronics-a key Instrument of one of our very
few remaining military advantages, our su-
periority in submarine detection. As things
now stand, the imperative .need for carrier-
based tankers (without which our Navy
fighters would lose much of their effective-
ness) could only be made ,good by ripping
out sophisticated electronics to make way
for jet fuel.
There are all too many such examples of
ruinous stringency, where major capabilities
are being sacrificed to save small amounts;
the two-way squeeze between manpower
costs and inflation leaves less and less for
the hardware.
One more source of needless confusion has
been the misleading assertion that the Pen-
tagon is already awash with money duly ap-
propriated by Congress but not spent. The
congressmen who play this tune would hard-
ly dare to deny their wives housekeeping
money on the grounds that they still had
some cash in hand. There are bills already
in the mail for the Pentagon, too, and there
are larger amounts already fully commit-
ted where contract negotiations are still not
completed. There is now a real danger that
the Pentagon might be driven to hasty de-
cisions to avoid an accusation issued by those
who have every reason to know better.
Beyond all the obfuscating talk of 1975
dollars and 1980 dollars, current dollars and
deflated dollars, authorized funds and appro-
priated funds, there are harsh facts that will
not be talked away. It is time to become seri-
ous. The Soviet Union is now very evidently
on its way to globalizing its armed strength.
Unless effectively discouraged by counter-
vaiiing'force, its new power will make the
world an even nastier place for us and our
friends. We are spending less than 5 percent
of our gross national product on defense,
they are spending around 15 percent of
theirs, or roughly one-third more than we do
... real terms.
The present Carter defense budget does not
meet the need. Urgent priorities include a
new aircraft carrier this year and another
two over the next five years; 25 warships a
year for the next five years, Instead of the
total of 46 now planned; and more Navy air-
craft. For the Air Force, larger stocks of spare
parts across the board and money for a new
all-weather fighter-bomber in lieu of the
cheaper daylight-only aircraft now being im-
posed. (The Russians might be excused for
choosing to attack at night or in bad
weather, but there is no excuse for equip-
ping our Air Force as if Central Europe. en-
joyed the weather of Nevada.) For the Ma-
rines, old landing craft and amphibious
vehicles badly need to be replaced, preferably
with fighting vehicles that can meet Russian
armor-now to be found all over the world.
The Army's problems cannot really be solved
by money alone; only conscription will fill its
ranks with young men fit to fight a modern
war But it, too, needs money urgently to
provide a combat vehicle for the infantry
( even the Yugoslavs are ahead of us in that
department). new-design tank destroyers
and mobile air defense across the board,
both guns and missiles.
Finally, the strategic forces: there is much
to be said for a cheaper submarine to fit the
Trident II missile than the 1,800-ton mon-
sters now slowly being built, but equally
there is little merit in relying on ancient
B-52s where a new bomber is badly needed;
a cut-price B-i is now available that will be
of use for non-nuclear missions over the
oceans and as an assault-stopper on land, as
well as to deliver nuclear air-ground missiles
and plain bombs.
For a 5 percent budget growth fully clear
of inflation, we could have all this, and noth-
ing less will do. It is not a U.S.-Soviet nu-
clear war that wb have to fear, but rather
the steady deterioration of our leverage over
world events. In the recent jamboree that
gathered in Cuba, which included most mem-
bers of OPEC, the "non-aligned" revealed
their opinion of the balance of power all too
clearly, in their open contempt for American
power. It is time to "get with it"
HORRORS, CARIBOU LIKE THAT
PIPELINE
(Mr. D.EVINE asked and was given
permission to address the House for 1
minute and to revise and extend his re-
marks and include extraneous matter.)
0 ivLn DEVINE. Mr. Speaker, in the
Grand Junction, Colo., Daily Sentinel of
September 10, 1979, Bill Hams authorized
a great tongue-in-cheek, column. It
would be truly a laugher were it not so
tragic. A must dissertation of dramatic
bureaucratic bungling:
HORRORS, CARIBOU LIKE THAT PIPELINE
(By Bill Hams)
Things I would never know if I didn't read
junk mail:
Two University of Colorado scientists re-
cently discovered that the chemical compost
tion of rain and snow near the Continental
Divide is changing drastically and as could
be expected of C.U. scientists working for a
federal grant, they are unduly alarmed.
They have found a steady increase in
acidity over a three-year period. They say it
may have "direct implications" In recreation
and forestry They claim acid rain and snow-
fall can cause an imbalance or shift in envi-
ronmental cycles and "we could lose species
and abundance of species."
While this acidity is far from eating holes
In raincoats, ski boots, woolen sweaters,
leather gloves or even nylon drawers, it has
the C.U people upset-It just might stamp
out the squawfish, the pokenoe shad, the
speckled blister bugs and the uncommon
louse wart, all extremely vital to ecologists
who smoke pot instead of Luckies. It also
might reduce the alkali in the western
deserts.
Consolidated Cigar Co has announced that
it hen developed an aromaless cigar. It is
called the "Flite." There, is a rumor that
one firm making a rug deodorant will pro-
test to the Federal Trade Commission that an
aromalese cigar will damage its market.
If you have an old Parker fountain pen
stashed back in your desk someplace it is
worth hanging onto. It is now a collectors
item despite the fact that Parker Pen Co.
says sales of its old-style pens have more than
doubled in the last 10 years. The price has
beat that. One popular model now goes for
$60. Just think, they used to sell for $5.
Remember that Alaskan pipeline the en-
vironmentalists fought tooth and nail, be-
cause they claimed it might disrupt the
lifestyle of the caribou" Well, one reason it
cost a bundle was because of the additional
engineering required to please the ecologists
and "Friends of the Caribou." Special "gates"
were created, for example, at the migratory
paths of the animals At those points, the
pipeline, which is mostly above ground, was
buried, and special measures were taken to
prevent its heat from melting the.permafrost
and turning it into mud.
Now, it turns out, the caribou don't ap-
preciate the efforts of their ecologist friends.
They prefer the pipeline above ground. They
sleep under it. They play under it, leap over
it and enjoy its friendly warmth. You don't
Approved For Release 2008/10/27: CIA-RDP85-00003R000100030006-8