EXPORT ADMINISTRATION, STATUS CHECK (H.R. 28)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87M01152R000500620015-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: March 24, 2010
• Sequence Number: 15
• Publication Date: February 27, 1985
• Content Type: MEMO

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OLL #85-0640
27 r'ebruarv '1985
MEMORANDUM FOR: Chief, Technology Transfer Assessment
Center/DDI
Associate General Counsel for Intelligence
Community Affairs/OGC
Deputy Chief, Legislation Division/OLL
SUBJECT: Export Administration, Status Check ( H.R. 28 )
1. Showing dispatch and unanimity, the Subcommittee on
International Economic Policy and Trade of the House Foreign
Affairs Committee voted its approval of H.R. 28 and sent it to
the full Committee. A mark-up is scheduled for March 21st,
after which the bill will proceed to the floor of the House.
2. Yesterday, the Subcommittee considered three amendments
deleting controversial portions of the proposed legislation:
(1) Title III dealing with South African trade restrictions;
(2) a provision concerning Department of Defense review of
technology export licenses; and (3) a nuclear non-proliferation
provision. No new material was added to the bill. According
to statements by members of the Subcommittee, the non-
proliferation issue and the South African restrictions will be
the subject of separate legislation.
3. Defense is unhappy about the removal of its license
review authority, but expects to receive more sympathetic
treatment in the Senate.
4. Attached herewith is an editorial from The Washington
Post that appeared the morning of the mark-up. Also attached
is a recap of the mark-up, appearing in the Post business
section the following day.
Attachments:
As stated
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Distribution:
Orig. - Addressees
1 - D/OLL
1 - DD/OLL
1 - OLL Chrono
- LEG Subject
- JBM Signer
OLL?LEG:JBM:dpt (27 Feb 85)
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 ljington JoM'
AN INDEPENDENT NEWSPAPER
THF. Q'ASIIINGTI
Counterattack by -
Co' mrrterce
En UP WITtI gears of needling from the which, to the embanassrnent of the White Ilouse ex-
Pentagon, Secretary of Commerce Malcolm pired last year. In January, the Defense Department
Baldige bas now struck back-and rather won an important victory when President Reagan 5-
effectively. As an example of turf warfare in Wash- Wally stepped in and gave it the authority to review,
ington, the affair is turning into a classic. It re- with Comunerre, the export applications,
volves around the leakage of technology to the Mr. Baldrige counterattacked last week, accus-
Soviet Union-and the question of who is more ing Defense of allowing military and technical se-
vigilantly anti-Soviet than whom. crets to fall to the Soviets through routine declassi-
The first territorial aggression was committed, fication of documents. While the Pentagon has an
as you would expect, by the Defense Department adequate staff to duplicate Conunerce's work on
when it charged the Commerce Department with the export licenses, he said, it doesn't seem to have
carelessness in issuing export licenses for technical anyone overseeing the papers that are automati-
equipment that the Soviets could put to military caiy being opened to the public.
use. The suggestion was that Commerce tends to This week, Commerce turned. its attention to
get carried away with its enthusiasm for export Mr. von Raab, charging that the U.S. Customs al-
promotiom: The obvious solution, Defense thought, lowed a series of shipments of helicopters to con-
was to give it some of Commerce's authority over tinue for more than a year while knowing-without
exportkensing. doing anything about it-that they were being Me-
Then the Pentagon's allies and admirers began gaily diverted to North Korea. The shipments
to be heard from-notably the commissioner of ended, according to Commerce, only when it heard
customs, WMiam von Raab. After each new round about them and intervened.
from Defense, Mr. von Raab warmly joined the re- No doubt there's a serious issue here. American
Train like the second tenor in an operatic sextet, on technology is crucially useful to the Soviets and
the general theme of the awful things that he was their friends, and they work assiduously to obtain
powerless to stop udder present law, etc. it. For the administration, it's a matter of balancing
The Commerce Department is'run by people who security requirements against the necessities of an
think of themselves as reliably to the right in their open society with an immense flow of international
politics, and their first rection was pure astonishment. trade. But all that is almost. too familiar to be worth
Because of this internal quarrel, Congress deadlocked discussing. The territorial struggles within the ad-
an the renewal of the Export Administration Act, ministration are infinitely more entertaining.'
The Transition House'
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TAY AROUND the District -Jong enough and owners throw in flourishes such as hand-finished
YOU will notice some familiar -refrains. One of oak on columns in the offices. tial Space
those is called Aoainni1lated Deficit. Tin is what
mines even o>heaper.
Qty officials try to pay aH every year around budget With the abundance of vacant buildings i the
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time. For a city that ultimately wants to govern itself city, one also wonders whether other, cheaper
without corigmesional oversight, strict belt-tig temng deals could not have been made. The size of the ef.
along with payments on the deficit could be a way to fort, for 70, young adults who will
demonstrate t fiscal Porky. days in the get 90 to 120
building in which to try to get settled
Unfortunately, there always seem to be wasteful into a try
practices-Vocurvinent and printing costs, for ex- the DroQram~ poses another question: 'Woe
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---~^ i1'T Sanitized Copy Approved for Release 2010/03/24: CIA-RDP87M01152R000500620015-8 ore.
ROUNDUP
Export Controls Approved
? A House Foreign Affairs subcommittee yesterday reported out
legislation to control exports of sensitive technology to Soviet-bloc
nations after it was stripped of controversial provisions that kept it
mired in a Senate-House conference last session.
Rep. Don Bonker (D-Wash.), chairman of the subcommitee on
international finance and trade, said the aim is to bring identical bills
to the House and Senate floors, eliminating the need for a new con-
ference. The legislation would reinstate the Export Administration
Act, which expired Sept. 30.
Eliminated from the bill approved yesterday were sanctions
against South Africa and major provisions to control nuclear prolif-
eration; both of which will be considered in separate legislation. A
nuclear nonproliferation amendment giving Congress greater con-
trol over nuclear-cooperation agreements remains in the bill, even
though the State -Department fears it would undermine an agree-
ment President Reagan signed with China.
.Productivity Rises by 2.7% in 1984
^ The annual average productivity of nonfarm American business
rose 2.7 percent during 1984, the labor Department said yester-
day.
That was not as big as the 3.5 percent average gain for 1983, but
was still fairly substantial compared with annual figures for the past
10 years. Annual average productivity in manufacturing rose 4.6
percent during 1984, its largest average gain for any of the past 10
years.
For the fourth quarter of 1984 alone, revised figures showed non-
farm business productivity rose 2.9 percent, instead of 1.7 percent,
as originally estimated. Unit labor costs rose 0.8 percent from the
previous quarter